Signed by Governor Jay Nixon

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that allows qualified manufacturing companies and suppliers to withhold tax.

Highlights:

-Defines a "qualified manufacturing company" as a business that (Sec. A):

-Manufactures goods at a facility in Missouri; -In the case of the manufacture of a new product, commits to make a capital investment of at least $75,000 per retained job; -In the case of the modification or expansion of the manufacture of an existing product, commits to make a capital investment of at least $50,000 per retained job within no more than 2 years of the date the qualified manufacturing company begins to retain withholding tax; -Manufactures a new product or has commenced making capital improvements to the facility necessary for the manufacturing of such new product, or modifies or expands the manufacture of an existing product or has commenced making capital improvements to the facility; and -Continues to meet these requirements for the withholding period.

-Defines "qualified supplier" as a manufacturing company that (Sec. A):

-Attests to the department that it derives more than 10 percent of the total annual sales of the company from sales to a qualified manufacturing company; -Adds 5 or more new jobs; -Has an average wage for such new jobs that are equal to or exceed the lower of the county average wage for Missouri, but not lower than 60 percent of the statewide average wage; and -Provides health insurance for all full-time jobs and pays at least 50 percent of the premiums of such insurance.

-Authorizes a qualified manufacturing company that manufactures a new product to retain all withholding tax from full-time jobs at the facility for a period of 10 years (Sec. A). -Authorizes a qualified manufacturing company that modifies or expands the manufacture of an existing product to retain 50 percent of the withholding tax from full-time jobs at the facility for a period of 7 years (Sec. A). -Authorizes a qualified supplier to retain all withholding tax from new jobs for a period of 3 years from the date of approval of the notice of intent for a period of 5 years if the supplier pays wages for the new jobs equal to or greater than 120 percent of county average wage (Sec. A). -Limits the amount of withholding tax that may be retained by any one qualified manufacturing company to $10 million while the aggregate amount retained by all companies cannot exceed $15 million per calendar year (Sec. A). -Prohibits any qualified manufacturing company that is awarded benefits to simultaneously receive tax credits or exemptions under other laws for the jobs created or retained or capital improvement (Sec. A).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that allows qualified manufacturing companies and suppliers to withhold tax.

Highlights:

-Defines a "qualified manufacturing company" as a business that (Sec. A):

-Manufactures goods at a facility in Missouri; -In the case of the manufacture of a new product, commits to make a capital investment of at least $75,000 per retained job; -In the case of the modification or expansion of the manufacture of an existing product, commits to make a capital investment of at least $50,000 per retained job within no more than 2 years of the date the qualified manufacturing company begins to retain withholding tax; -Manufactures a new product or has commenced making capital improvements to the facility necessary for the manufacturing of such new product, or modifies or expands the manufacture of an existing product or has commenced making capital improvements to the facility; and -Continues to meet these requirements for the withholding period.

-Defines "qualified supplier" as a manufacturing company that (Sec. A):

-Attests to the department that it derives more than 10 percent of the total annual sales of the company from sales to a qualified manufacturing company; -Adds 5 or more new jobs; -Has an average wage for such new jobs that are equal to or exceed the lower of the county average wage for Missouri, but not lower than 60 percent of the statewide average wage; and -Provides health insurance for all full-time jobs and pays at least 50 percent of the premiums of such insurance.

-Authorizes a qualified manufacturing company that manufactures a new product to retain all withholding tax from full-time jobs at the facility for a period of 10 years (Sec. A). -Authorizes a qualified manufacturing company that modifies or expands the manufacture of an existing product to retain 50 percent of the withholding tax from full-time jobs at the facility for a period of 7 years (Sec. A). -Authorizes a qualified supplier to retain all withholding tax from new jobs for a period of 3 years from the date of approval of the notice of intent for a period of 5 years if the supplier pays wages for the new jobs equal to or greater than 120 percent of county average wage (Sec. A). -Limits the amount of withholding tax that may be retained by any one qualified manufacturing company to $10 million while the aggregate amount retained by all companies cannot exceed $15 million per calendar year (Sec. A). -Prohibits any qualified manufacturing company that is awarded benefits to simultaneously receive tax credits or exemptions under other laws for the jobs created or retained or capital improvement (Sec. A).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that provides incentives to businesses for redevelopment in economically deprived areas by fostering technology business facility projects.

Highlights:

-Allows a district designated as a "blighted area" or that is included in one, to possess additional powers to (RSMO §67.1461):

-Contract with any private property owner to demolish and remove, renovate, reconstruct, construct, or rehabilitate any building or structure or improvement owned by such private property owner; and -Expend its revenues or loan its revenues pursuant to a sanctioned contract if it is deemed by the governing body of the municipality to remedy the blighting conditions and serve a public purpose.

-Defines "technology business facility" as a facility purchased, constructed, extended, or improved provided that such business facility is engaged in (RSMO §67.2050):

-Data processing, hosting, and related services; or -Internet publishing and broadcasting and web search portals at the business facility.

-Defines "technology business facility project" or "project" as the purchase, construction, extension, and improvement of technology business facilities, whether it is the entire facility or of any one or more of the facility's components of real estate, buildings, fixtures, machinery, or equipment (RSMO §67.2050). -Authorizes the governing body of any municipality to (RSMO §67.2050):

-Carry out technology business facility projects for economic development; -Accept grants from the federal and state governments for technology business facility project purposes and enter into such agreements as are not contrary to the laws of the state; and -Receive gifts and donations from private sources to be used for technology business facility project purposes.

-Defines "blighted area" as an area characterized by the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, the existence of conditions endangering life or property by fire and other causes, or any combination of such factors that retards the provision of housing accommodations or constitutes an economic or social liability; or a menace to the public health, safety, morals, or welfare (RSMO §135.950). -Defines "certified site zone" as an area of real property that (RSMO §135.950):

-Encompasses not less than 50 acres with approval granted as a certified site by the department; -Designated as a "blighted area" by the governing authority; and -Is located in a census tract, which has a poverty rate of 15 % or more, or for which the median income is less than the statewide median income or the metropolitan median income.

-Defines "dormant manufacturing plant zone" as an area of real property (RSMO §135.950):

-Encompassing not less than 250 acres, that, within 5 years of the date of the notice of intent was primarily used for manufacturing or assembly with less than 3,000 persons employed although all current activity has ceased; -Designated as a blighted area and redevelopment zone by an ordinance adopted by the governing body; -Is located in a census tract with a poverty rate of 15 percent or more, or for which the median income is less than the statewide/metropolitan median income; and -Involves funding provided by a federal agency of at least $1 million to facilitate the redevelopment of such property.

-Specifies that to qualify as an enhanced business enterprise an area must have either the potential to create sustainable jobs in a targeted industry; or an impact on local industry cluster development (RSMO §135.953). -Requires any governing authority that wants to have any portion of a city designated as an enhanced enterprise zone to hold a public hearing (RSMO §135.960). -Specifies that if a certified site zone or a dormant manufacturing plant zone is a designated blighted area prior to December 31, 2010, an additional public hearing to establish it as an enhanced enterprise zone is not required if the governing authority notified the director about the hearing at least 30 days prior to the scheduled date and vice versa (RSMO §135.960). -Specifies that an enhanced enterprise zone designation shall expire after 25 years (RSMO §135.960). -Establishes that no exemption will be granted for a period more than 25 years following the date on which the original enhanced enterprise zone was designated or deemed approved by the department (RSMO §135.963). -Specifies that the taxpayer is entitled to receive the tax credit if the number of new business facility employees engaged or maintained in employment at the new business facility equals or exceeds 9 or if the new business facility investment for the taxable year equals or exceeds $500,000 (RSMO §135.969). -Defines "Homestead exemption limit" as a percentage increase, rounded to the nearest 0.01 percent, which is equal to the percentage increase to tax liability, not including improvements, of a homestead from one tax year onward that exceeds a 9 percentage set (RSMO §137.106). -Specifies that for applications filed between December 31, 2008-2011, the homestead exemption limit shall be based on the increase in tax liability from the base year to the year prior to the application year; however, for applications filed after January 1, 2012, the homestead exemption limit shall be based instead on two years prior to the application year (RSMO §137.106). -Requires the Missouri Sunset Act to sunset provisions of the new program automatically on December 31, 2016, unless reauthorized by an act of the general assembly and if it is reauthorized, the date to sunset the program automatically will be extended until December 31, 2022 (RSMO §137.106). -Establishes that a manufactured home located in a manufactured home rental park, rental community, or on real estate not owned by the manufactured home owner is considered personal property whereas a manufactured home located on real estate owned by the manufactured home owner is real property (RSMO §137.115). -Requires the department of economic development to respond within 30 days to a company, which provides a notice of intent with either an approval or a rejection of the notice of intent (RSMO §620.1881).

Full Bill Text