The Capitol Report | July 12th, 2018

End of Fiscal Year Sees Strong Revenue Growth

As Fiscal Year 2018 ended at the close of June, the state received good news regarding the healthier-than-expected growth of state revenues. While state budget leaders had predicted growth of 1.9 percent, the state saw the fiscal year end with growth of 5 percent.

The growth means the state collected $9.47 billion in general revenue from July 2017 through June 2018. In comparison, general revenue collections for Fiscal Year 2017 were only $9.02 billion. The additional dollars in the state’s coffers are a result of 5.6 percent increase in individual income tax collections, and a 2.3 percent increase in sales tax collections. The state also saw corporate income tax collections grow by more than 6 percent.

As promised, I will continue to summarize Truly Agreed to and Finally Passed (TAFP) bills from this legislative session. All of these bills have been signed and delivered to the governor’s office.

HB 1796 — Establishes the “First-Time Home Buyer Savings Account Act” and authorizes an individual income tax deduction for 50% of the contributions to such a savings account dedicated to buying a first home. The bill specifies that the annual contribution deduction limit is $1,600 for an individual or $3,200 for a couple filing a joint tax return.

HB 1797 (Signed by Governor: 06/01/18) — Specifies the levels of physical force, including deadly force, an armed nuclear security guard may use against another person at a nuclear power plant or within a structure or fenced yard of a nuclear power plant to prevent certain dangerous actions by the other person. An armed nuclear security guard, employer of an armed nuclear security guard, or owner of a nuclear power plant will not be subject to civil liability for conduct of an armed nuclear security guard that is permitted in the bill.

HB 1809 (Signed by Governor: 06/01/18) — Adds Franklin County to the compact between Missouri and Illinois creating the Bi-State Development Agency and the Bi-State Metropolitan Development District.

HB 1831 (Signed by Governor: 06/22/18) – Clarifies that disposable diapers are included in the items exempted from sales tax during the Back to School Sales Tax Holiday in August each year. This bill authorizes a state and local sales and use tax exemption for initiation fees and dues paid to nonprofit organizations exempt from taxation by the IRS under Section 501(c)(7).

HB 1832 (Signed by Governor: 06/01/18)  — Currently, scrap dealers must keep documentation for any transaction involving certain metals. This bill expands the documentation requirements to add transactions involving motor vehicle, heavy equipment, or tractor batteries.

HB 1838 (Signed by Governor: 06/01/18) — Authorizes and empowers the Governor to convey all interest in specific property, described in the bill, located in Jefferson City, Missouri. The Commissioner of Administration shall set the terms and conditions for the conveyance as he or she deems reasonable.

HB 1858 (Signed by Governor: 06/01/18) — Beginning July 1, 2019, this bill requires interest on a tax overpayment be paid after 45 days at the same rate of interest as the rate imposed for an underpayment of income tax and removes the provision exempting interest on amounts of less than $1. This bill directs the Department of Revenue to create an online mapping feature whereby the taxing information of political subdivisions and special taxing districts will be made readily available.

If you ever have questions, comments, or concerns, please call my office at 573-751-1688 or email me at: jason.chipman@house.mo.gov

You may read in more detail about what is happening at your State Capitol below.

As always, I will work diligently for you as your State Representative.

-Jason

 

 

Missouri Ends Fiscal Year 2018 with Strong Revenue Growth

As Fiscal Year 2018 ended at the close of June, the state received good news regarding the healthier-than-expected growth of state revenues. While state budget leaders had predicted growth of 1.9 percent, the state saw the fiscal year end with growth of 5 percent.

The growth means the state collected $9.47 billion in general revenue from July 2017 through June 2018. In comparison, general revenue collections for Fiscal Year 2017 were only $9.02 billion. The additional dollars in the state’s coffers are a result of 5.6 percent increase in individual income tax collections, and a 2.3 percent increase in sales tax collections. The state also saw corporate income tax collections grow by more than 6 percent.

2018 Truly Agreed to and Finally Passed Bills

I will continue to summarize Truly Agreed to and Finally Passed (TAFP) bills from this legislative session. All of these bills have been signed and delivered to the governor’s office.

HB 1796 — Establishes the First-Time Home Buyer Savings Account Act and authorizes a tax deduction for contributions to a savings account dedicated to buying a first home

Beginning January 1, 2019, this bill establishes the “First-Time Home Buyer Savings Account Act” and authorizes an individual income tax deduction for 50% of the contributions to such a savings account dedicated to buying a first home. The bill specifies that the annual contribution deduction limit is $1,600 for an individual or $3,200 for a couple filing a joint tax return.

HB 1797 (Signed by Governor: 06/01/18) — Establishes the Nuclear Power Plant Security Guard Act

This bill defines “armed nuclear security guard,” “structure or fenced yard,” and “nuclear power plant” for purposes of the laws relating to armed nuclear security guards. The bill specifies the levels of physical force, including deadly force, an armed nuclear security guard may use against another person at a nuclear power plant or within a structure or fenced yard of a nuclear power plant to prevent certain dangerous actions by the other person. An armed nuclear security guard, employer of an armed nuclear security guard, or owner of a nuclear power plant will not be subject to civil liability for conduct of an armed nuclear security guard that is permitted in the bill. The bill also provides that if an offense that would be trespass in the first degree, a class B misdemeanor, occurs at a building of or on real property of a nuclear power plant, it will be a class E felony.

HB 1809 (Signed by Governor: 06/01/18) — Changes the laws regarding the Bi-state Metropolitan Development District compact by adding Franklin County

This bill adds Franklin County to the compact between Missouri and Illinois creating the Bi-State Development Agency and the Bi-State Metropolitan Development District.

HB 1831 (Signed by Governor: 06/22/18) — Changes the laws regarding the sales tax holiday that occurs in early August by adding an exemption for disposable diapers

This bill clarifies that disposable diapers are included in the items exempted from sales tax during the Back to School Sales Tax Holiday in August each year. This bill authorizes a state and local sales and use tax exemption for initiation fees and dues paid to nonprofit organizations exempt from taxation by the IRS under Section 501(c)(7).

HB 1832 (Signed by Governor: 06/01/18)  — Changes merchandising practices and credit user protection law and creates the offenses of defacing a credit card reader and illegal use of a card scanner

Currently, scrap dealers must keep documentation for any transaction involving certain metals. This bill expands the documentation requirements to add transactions involving motor vehicle, heavy equipment, or tractor batteries.

HB 1838 (Signed by Governor: 06/01/18) — Authorizes the conveyance of certain state property

This bill authorizes and empowers the Governor to convey all interest in specific property, described in the bill, located in Jefferson City, Missouri. The Commissioner of Administration shall set the terms and conditions for the conveyance as he or she deems reasonable.

HB 1858 (Signed by Governor: 06/01/18) — Requires the Department of Revenue to feature a map of all special taxing districts on its website

Beginning July 1, 2019, this bill requires interest on a tax overpayment be paid after 45 days at the same rate of interest as the rate imposed for an underpayment of income tax and removes the provision exempting interest on amounts of less than $1. This bill directs the Department of Revenue to create an online mapping feature whereby the taxing information of political subdivisions and special taxing districts will be made readily available. The mapping feature will display the geographical boundaries of such political subdivisions and taxing districts, and shall have the option of superimposing those boundaries on Missouri House of Representatives and Senate districts. Political subdivisions collecting sales tax are required to provide to the department mapping and geographic data pertaining to its borders and jurisdictions. The department may contract with a third party to maintain the mapping feature. The department shall implement the mapping feature by July 1, 2019.

I am committed to serve the constituents of the 120th District, so please feel free to contact my office anytime at 573-751-1688. Your District 120 Capitol Office is 201 W Capitol Ave, Rm 415-B, Jefferson City, MO 65101. If you wish to unsubscribe from this report, please email Dylan Bryant at dylan.bryant@house.mo.gov

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