SB 1017

4583S.04C
  SENATE COMMITTEE SUBSTITUTE
  FOR
  SENATE BILLS NOS. 1017 & 1239
  AN ACT
  To repeal sections 144.014 and 144.020, RSMo, and to
  enact in lieu thereof two new sections relating to
  sales taxes.
Be it enacted by the General Assembly of the State of Missouri, as follows:
  Section    A.     Sections    144.014    and   144.020,    RSMo,    are
   repealed and two new sections enacted in lieu thereof, to be
   known as sections 144.014 and 144.020, to read as follows:
  144.014.    1. Notwithstanding other provisions of law
   to the contrary, [beginning October 1, 1997, the tax levied
   and imposed under this chapter on] all retail sales of food
   shall be [at the rate of one percent.  The revenue derived
   from the one percent rate pursuant to this section shall be
   deposited by the state treasurer in the school district
   trust fund and shall be distributed as provided in section
   144.701] exempted from the provisions of and from the
   computation of the tax levied, assessed, or payable pursuant
   to this chapter.        The provisions of this subsection are
   intended to exempt the sale of food from the state sales tax
   imposed pursuant to this chapter, and the department of
   revenue shall not construe the provisions of this subsection
   as an exemption from the local sales tax law, as defined in
   section 32.085.        As required in sections 43(a) and 47(a) of
   article IV of the Missouri constitution, the sales tax
   imposed pursuant to such sections shall be imposed upon the
   sales and services that are taxable pursuant to this
   chapter, which shall not include the retail sale of food as
   exempted in this section.
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    2. For the purposes of this section, the term "food"
shall include only those products and types of food for
which food stamps may be redeemed pursuant to the provisions
of the Federal Food Stamp Program as contained in 7 U.S.C.
Section 2012, as that section now reads or as it may be
amended hereafter, and shall include food dispensed by or
through vending machines.   For the purpose of this section,
except for vending machine sales, the term "food" shall not
include food or drink sold by any establishment where the
gross receipts derived from the sale of food prepared by
such establishment for immediate consumption on or off the
premises of the establishment constitutes more than eighty
percent of the total gross receipts of that establishment,
regardless of whether such prepared food is consumed on the
premises of that establishment, including, but not limited
to, sales of food by any restaurant, fast food restaurant,
delicatessen, eating house, or café.
    144.020.   1. A tax is hereby levied and imposed for
the privilege of titling new and used motor vehicles,
trailers, boats, and outboard motors purchased or acquired
for use on the highways or waters of this state which are
required to be titled under the laws of the state of
Missouri and, except as provided in subdivision (9) of this
subsection, upon all sellers for the privilege of engaging
in the business of selling tangible personal property or
rendering taxable service at retail in this state.   The rate
of tax shall be as follows:
    (1) Upon every retail sale in this state of tangible
personal property, excluding motor vehicles, trailers,
motorcycles, mopeds, motortricycles, boats and outboard
motors required to be titled under the laws of the state of
Missouri and subject to tax under subdivision (9) of this
subsection, a tax equivalent to four percent of the purchase
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price paid or charged, or in case such sale involves the
exchange of property, a tax equivalent to four percent of
the consideration paid or charged, including the fair market
value of the property exchanged at the time and place of the
exchange, except as otherwise provided in section 144.025;
    (2) A tax equivalent to four percent of the amount
paid for admission and seating accommodations, or fees paid
to, or in any place of amusement, entertainment or
recreation, games and athletic events, except amounts paid
for any instructional class;
    (3) A tax equivalent to four percent of the basic rate
paid or charged on all sales of electricity or electrical
current, water and gas, natural or artificial, to domestic,
commercial or industrial consumers;
    (4) (a)   A tax equivalent to four percent on the basic
rate paid or charged on all sales of local and long distance
telecommunications service to telecommunications subscribers
and to others through equipment of telecommunications
subscribers for the transmission of messages and
conversations and upon the sale, rental or leasing of all
equipment or services pertaining or incidental thereto;
except that, the payment made by telecommunications
subscribers or others, pursuant to section 144.060, and any
amounts paid for access to the internet or interactive
computer services shall not be considered as amounts paid
for telecommunications services;
    (b) If local and long distance telecommunications
services subject to tax under this subdivision are
aggregated with and not separately stated from charges for
telecommunications service or other services not subject to
tax under this subdivision, including, but not limited to,
interstate or international telecommunications services,
then the charges for nontaxable services may be subject to
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taxation unless the telecommunications provider can identify
by reasonable and verifiable standards such portion of the
charges not subject to such tax from its books and records
that are kept in the regular course of business, including,
but not limited to, financial statement, general ledgers,
invoice and billing systems and reports, and reports for
regulatory tariffs and other regulatory matters;
    (c) A telecommunications provider shall notify the
director of revenue of its intention to utilize the
standards described in paragraph (b) of this subdivision to
determine the charges that are subject to sales tax under
this subdivision.   Such notification shall be in writing and
shall meet standardized criteria established by the
department regarding the form and format of such notice;
    (d) The director of revenue may promulgate and enforce
reasonable rules and regulations for the administration and
enforcement of the provisions of this subdivision.       Any rule
or portion of a rule, as that term is defined in section
536.010, that is created under the authority delegated in
this section shall become effective only if it complies with
and is subject to all of the provisions of chapter 536 and,
if applicable, section 536.028.       This section and chapter
536 are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536 to review, to
delay the effective date, or to disapprove and annul a rule
are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
August 28, 2019, shall be invalid and void;
    (5) A tax equivalent to four percent of the basic rate
paid or charged for all sales of services for transmission
of messages of telegraph companies;
    (6) A tax equivalent to four percent on the amount of
sales or charges for all rooms, meals and drinks furnished
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at any hotel, motel, tavern, inn, restaurant, eating house,
drugstore, dining car, tourist cabin, tourist camp or other
place in which rooms, meals or drinks are regularly served
to the public.   The tax imposed under this subdivision shall
not apply to any automatic mandatory gratuity for a large
group imposed by a restaurant when such gratuity is reported
as employee tip income and the restaurant withholds income
tax under section 143.191 on such gratuity;
    (7) A tax equivalent to four percent of the amount
paid or charged for intrastate tickets by every person
operating a railroad, sleeping car, dining car, express car,
boat, airplane and such buses and trucks as are licensed by
the division of motor carrier and railroad safety of the
department of economic development of Missouri, engaged in
the transportation of persons for hire;
    (8) A tax equivalent to four percent of the amount
paid or charged for rental or lease of tangible personal
property, provided that if the lessor or renter of any
tangible personal property had previously purchased the
property under the conditions of sale at retail or leased or
rented the property and the tax was paid at the time of
purchase, lease or rental, the lessor, sublessor, renter or
subrenter shall not apply or collect the tax on the
subsequent lease, sublease, rental or subrental receipts
from that property.   The purchase, rental or lease of motor
vehicles, trailers, motorcycles, mopeds, motortricycles,
boats, and outboard motors shall be taxed and the tax paid
as provided in this section and section 144.070.   In no
event shall the rental or lease of boats and outboard motors
be considered a sale, charge, or fee to, for or in places of
amusement, entertainment or recreation nor shall any such
rental or lease be subject to any tax imposed to, for, or in
such places of amusement, entertainment or recreation.
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Rental and leased boats or outboard motors shall be taxed
under the provisions of the sales tax laws as provided under
such laws for motor vehicles and trailers.   Tangible
personal property which is exempt from the sales or use tax
under section 144.030 upon a sale thereof is likewise exempt
from the sales or use tax upon the lease or rental thereof;
    (9) A tax equivalent to four percent of the purchase
price, as defined in section 144.070, of new and used motor
vehicles, trailers, boats, and outboard motors purchased or
acquired for use on the highways or waters of this state
which are required to be registered under the laws of the
state of Missouri.   This tax is imposed on the person
titling such property, and shall be paid according to the
procedures in section 144.070 or 144.440.
    2. All tickets sold which are sold under the
provisions of this chapter which are subject to the sales
tax shall have printed, stamped or otherwise endorsed
thereon, the words "This ticket is subject to a sales tax.".
    3. Notwithstanding any provision of law to the
contrary, of the four percent rate imposed pursuant to this
section, the revenue derived from a rate of two tenths of
one percent shall be deposited by the state treasurer in the
school district trust fund and shall be distributed as
provided in section 144.701.   The remaining portion of the
revenue derived from the rate imposed pursuant to this
section shall be deposited in the general revenue fund.
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