94.577. Sales tax imposed in certain cities--rates of tax--election procedure--revenue to be used for capital improvements--revenue bonds, retirement--special trust fund--limitation on use of revenue

MISSOURI STATUTES AND CODES

94.577. Sales tax imposed in certain cities--rates of tax--election procedure--revenue to be used for capital improvements--revenue bonds, retirement--special trust fund--limitation on use of revenue

Sales tax imposed in certain cities--rates of tax--electionprocedure--revenue to be used for capital improvements--revenuebonds, retirement--special trust fund--limitation on use ofrevenue by city of St. Louis--refunds authorized.

94.577. 1. The governing body of any municipality except thoselocated in whole or in part within any first class county having a charterform of government and not containing any part of a city with a populationof four hundred thousand or more and adjacent to a city not within a countyfor that part of the municipality located within such first class county ishereby authorized to impose, by ordinance or order, a one-eighth,one-fourth, three-eighths, or one-half of one percent sales tax on allretail sales made in such municipality which are subject to taxation underthe provisions of sections 144.010 to 144.525, RSMo, for the purpose offunding capital improvements, including the operation and maintenance ofcapital improvements, which may be funded by issuing bonds which will beretired by the revenues received from the sales tax authorized by thissection or the retirement of debt under previously authorized bondedindebtedness. A municipality located in a charter county may impose asales tax on all retail sales for capital improvements as provided insection 94.890. The tax authorized by this section shall be in addition toany and all other sales taxes allowed by law; but no ordinance imposing asales tax under the provisions of this section shall be effective unlessthe governing body of the municipality submits to the voters of themunicipality, at a municipal or state general, primary or special election,a proposal to authorize the governing body of the municipality to imposesuch tax and, if such tax is to be used to retire bonds authorized underthis section, to authorize such bonds and their retirement by such tax, orto authorize the retirement of debt under previously authorized bondedindebtedness.

2. The ballot of submission shall contain, but need not be limitedto:

(1) If the proposal submitted involves only authorization to imposethe tax authorized by this section, the following language:

Shall the municipality of .......... (municipality's name) impose asales tax of .......... (insert amount) for the purpose of funding capitalimprovements which may include the retirement of debt under previouslyauthorized bonded indebtedness?

â ã YES â ã NO

If you are in favor of the question, place an "X" in the box opposite"YES". If you are opposed to the question, place an "X" in the boxopposite "NO"; or

(2) If the proposal submitted involves authorization to issue bondsand repay such bonds with revenues from the tax authorized by this section,the following language:

Shall the municipality of ......... (municipality's name) issue bondsin the amount .......... of .......... (insert amount) to fund capitalimprovements and impose a sales tax of .......... (insert amount) to repaybonds?

â ã YES â ã NO

If you are in favor of the question, place an "X" in the box opposite"YES". If you are opposed to the question, place an "X" in box opposite"NO".

If a majority of the votes cast on the proposal by the qualified votersvoting thereon are in favor of the proposal, including when the proposalauthorizes the reduction of debt under previously authorized bondedindebtedness under subdivision (1) of this subsection, then the ordinanceor order and any amendments thereto shall be in effect, except that anyproposal submitted under subdivision (2) of this subsection to issue bondsand impose a sales tax to retire such bonds must be approved by theconstitutionally required percentage of the voters voting thereon to becomeeffective. If a majority of the votes cast by the qualified voters votingare opposed to the proposal, then the governing body of the municipalityshall have no power to issue any bonds or impose the sales tax authorizedin this section unless and until the governing body of the municipalityshall again have submitted another proposal to authorize the governing bodyof the municipality to issue any bonds or impose the sales tax authorizedby this section, and such proposal is approved by the requisite majority ofthe qualified voters voting thereon; however, in no event shall a proposalpursuant to this section be submitted to the voters sooner than twelvemonths from the date of the last proposal pursuant to this section, exceptthat any municipality with a population of greater than four hundredthousand and located within more than one county may submit a proposalpursuant to this section to the voters sooner than twelve months from thedate of the last proposal submitted pursuant to this section if submittedto the voters on or before November 6, 2001.

3. All revenue received by a municipality from the tax authorizedunder the provisions of this section shall be deposited in a special trustfund and shall be used solely for capital improvements, including theoperation and maintenance of capital improvements, for so long as the taxshall remain in effect. Once the tax authorized by this section isabolished or is terminated by any means, all funds remaining in the specialtrust fund required by this subsection shall be used solely for themaintenance of the capital improvements made with revenues raised by thetax authorized by this section. Any funds in the special trust fundrequired by this subsection which are not needed for current expendituresmay be invested by the governing body in accordance with applicable lawsrelating to the investment of other municipal funds. The provisions ofthis subsection shall apply only to taxes authorized by this section whichhave not been imposed to retire bonds issued pursuant to this section.

4. All revenue received by a municipality which issues bonds underthis section and imposes the tax authorized by this section to retire suchbonds shall be deposited in a special trust fund and shall be used solelyto retire such bonds, except to the extent that such funds are required forthe operation and maintenance of capital improvements. Once all of suchbonds have been retired, all funds remaining in the special trust fundrequired by this subsection shall be used solely for the maintenance of thecapital improvements made with the revenue received as a result of theissuance of such bonds. Any funds in the special trust fund required bythis subsection which are not needed to meet current obligations under thebonds issued under this section may be invested by the governing body inaccordance with applicable laws relating to the investment of othermunicipal funds. The provisions of this subsection shall apply only totaxes authorized by this section which have been imposed to retire bondsissued under this section.

5. After the effective date of any tax imposed under the provisionsof this section, the director of revenue shall perform all functionsincident to the administration, collection, enforcement, and operation ofthe tax in the same manner as provided in sections 94.500 to 94.550, andthe director of revenue shall collect in addition to the sales tax for thestate of Missouri the additional tax authorized under the authority of thissection. The tax imposed pursuant to this section and the tax imposedunder the sales tax law of the state of Missouri shall be collectedtogether and reported upon such forms and under such administrative rulesand regulations as may be prescribed by the director of revenue. Except asmodified in this section, all provisions of sections 32.085 and 32.087,RSMo, shall apply to the tax imposed under this section.

6. No tax imposed pursuant to this section for the purpose ofretiring bonds issued under this section may be terminated until all ofsuch bonds have been retired.

7. In any city not within a county, no tax shall be imposed pursuantto this section for the purpose of funding in whole or in part theconstruction, operation or maintenance of a sports stadium, field house,indoor or outdoor recreational facility, center, playing field, parkingfacility or anything incidental or necessary to a complex suitable for anytype of professional sport or recreation, either upon, above or below theground.

8. Any tax imposed under this section in any home rule city with morethan four hundred thousand inhabitants and located in more than one countysolely for public transit purposes shall not be considered economicactivity taxes as such term is defined under sections 99.805 and 99.918,RSMo, and tax revenues derived from such tax shall not be subject toallocation under the provisions of subsection 3 of section 99.845, RSMo, orsubsection 4 of section 99.957, RSMo.

9. The director of revenue may authorize the state treasurer to makerefunds from the amounts in the trust fund and credited to any municipalityfor erroneous payments and overpayments made, and may redeem dishonoredchecks and drafts deposited to the credit of such municipalities. If anymunicipality abolishes the tax, the municipality shall notify the directorof revenue of the action at least ninety days prior to the effective dateof the repeal and the director of revenue may order retention in the trustfund, for a period of one year, of two percent of the amount collectedafter receipt of such notice to cover possible refunds or overpayment ofthe tax and to redeem dishonored checks and drafts deposited to the creditof such accounts. After one year has elapsed after the effective date ofabolition of the tax in such municipality, the director of revenue shallremit the balance in the account to the municipality and close the accountof that municipality. The director of revenue shall notify eachmunicipality of each instance of any amount refunded or any check redeemedfrom receipts due the municipality.