Important tax bill on way to Governor Parson
May 14, 2020 - Last Friday, the legislature gave its final approval to SB 676, a bill sponsored by Sen. Tony Luetkemeyer and handled in the House by Rep. Phil Christofanelli. The bill contained several important provisions.
The bill changes due dates for appeals of property tax assessments to allow more time for taxpayers to file such appeals. The appeals currently must be filed by the third Monday in June, unless the county Board of Equalization extends the due date. This bill changes that date to the second Monday in July, unless extended by the BOE. Current law provides the BOE in first class counties must meet by the first Monday in July and that is changed to the third Monday in July each year.
The assessor would bear the burden of proof in property tax appears where the tax assessment has increased by more than 15% over the previous assessment, unless such increase is due to new construction or improvement of real property. Also, in cases where the increase is greater than 15%, a physical inspection of the property by the assessor is required. Currently, these provisions only apply in certain counties, but would apply statewide under the bill.
The bill ensures amounts received by Missouri individual taxpayers from the federal CARES Act are not subject to Missouri income tax. Although the federal government has clearly stated such amounts are not subject to federal tax, concerns regarding the way in which that income may be exempted or excluded prompted this language to clarify such amounts will not be subject to Missouri income tax.
The bill also contains provisions dealing with the way amounts due as a result of federal partnership audits are allocated to partners for Missouri income tax purposes. This language was developed by the Missouri Department of Revenue and Missouri certified public accountants.
A terrorist attack victims tax relief provision is also included in the bill, for victims of terrorist attacks in 2001 and 2002.
The bill now moves to Governor Mike Parson for his approval or disapproval.