573.505. Sales tax authorized, vote required--ballot--disposition of revenue--termination--city and county background check tax trust fund created, refunds--duties of director of revenue. - Missouri Statutes

Sales tax authorized, vote required--ballot--disposition ofrevenue--termination--city and county background check tax trustfund created, refunds--duties of director of revenue.

573.505. 1. In order to defray the costs of background checks conductedpursuant to section 573.503, any city not within a county and any county may,by ordinance or order, impose a sales tax on all retail sales which aresubject to taxation under the provisions of sections 144.010 to 144.510, RSMo,made in such city or county by any adult cabaret. The tax authorized by thissection shall not be levied at a rate which would amount to a sum greater thanten percent of the gross receipts of any such business. The tax authorized bythis section shall be in addition to any and all other sales taxes allowed bylaw, except that no order or ordinance imposing a sales tax under theprovisions of this section shall be effective unless the governing body of thecity or county submits to the voters of the city or county, at a city, countyor state general, primary, or special election, a proposal to authorize thegoverning body of the city or county to impose a tax.

2. The ballot of submission shall contain, but need not be limited to,the following language:

Shall the city or county of ................................ (city's orcounty's name) impose a sales tax upon adult cabarets of ........... (insertamount) for a period not to exceed ......... (insert number) years for thepurpose of investigating the background of the employees of such businessesand for the general law enforcement use of the sheriff's office with existingrevenues to be used for either purpose?

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 box opposite "No".

If a majority of the votes cast on the proposal by the qualified voters votingthereon are in favor of the proposal, then the ordinance or order and anyamendments thereto shall become effective on the first day of the secondcalendar quarter after the director of revenue receives notice of adoption ofthe tax. If a majority of the votes cast by the qualified voters voting areopposed to the proposal, then the governing body of the city or county shallhave no power to impose the sales tax authorized by this section unless anduntil the governing body of the city or county shall again have submittedanother proposal to authorize the governing body of the city or county toimpose the sales tax authorized by this section and such proposal is approvedby a majority of the qualified voters voting thereon.

3. All revenue received by a city or county from the tax authorizedunder the provisions of this section shall be deposited in a special trustfund and shall be used by the city or county for the investigation of thebackgrounds of persons employed at any adult cabaret in such city or countyand for the general law enforcement use of the sheriff's office. Any funds insuch special trust fund which are not needed for current expenditures may beinvested by the governing body in accordance with applicable laws relating tothe investment of other city or county funds.

4. The tax authorized by this section shall terminate four years fromthe date on which such tax was initially imposed by the city or county, unlesssooner abolished by the governing body of the city or county.

5. All sales taxes collected by the director of revenue under thissection on behalf of any city or county, less one percent for cost ofcollection which shall be deposited in the state's general revenue fund afterpayment of premiums for surety bonds as provided in section 32.087, RSMo,shall be deposited with the state treasurer in a special trust fund, which ishereby created, to be known as the "City and County Background Check Tax TrustFund". The moneys in the trust fund shall not be deemed to be state funds andshall not be commingled with any funds of the state. The director of revenueshall keep accurate records of the amount of money in the trust fund which wascollected in each city or county imposing a sales tax under this section, andthe records shall be open to the inspection of officers of the city or countyand the public. Not later than the tenth day of each month, the director ofrevenue shall distribute all moneys deposited in the trust fund during thepreceding month to the city or county which levied the tax. Such funds shallbe deposited with the city or county treasurer of each such city or county,and all expenditures of funds arising from the trust fund shall be by anappropriation act to be enacted by the governing body of each such city orcounty.

6. The director of revenue may authorize the state treasurer to makerefunds from the amounts in the trust fund and credited to any city or countyfor erroneous payments and overpayments made, and may redeem dishonored checksand drafts deposited to the credit of such cities or counties. If any city orcounty abolishes the tax, the city or county shall notify the director ofrevenue of the action at least ninety days prior to the effective date of therepeal and the director of revenue may order retention in the trust fund, fora period of one year, of two percent of the amount collected after receipt ofsuch notice to cover possible refunds or overpayment of the tax and to redeemdishonored checks and drafts deposited to the credit of such accounts. Afterone year has elapsed after the effective date of abolition of the tax in suchcity or county, the director of revenue shall authorize the state treasurer toremit the balance in the account to the city or county and close the accountof that city or county. The director of revenue shall notify each city orcounty of each instance of any amount refunded or any check redeemed fromreceipts due the city or county.

7. Except as modified in this section, all provisions of sections 32.085and 32.087, RSMo, shall apply to the tax imposed under this section.

8. As used in this section, the term "city" means any city not within acounty.

(L. 1993 S.B. 180 § 13, A.L. 2005 S.B. 210)

(2001) Imposition of tax on adult cabarets does not violate the equal protection or due process clauses of the federal and state constitutions. Miss Kitty's Saloon, Inc. v. Missouri Department of Revenue, 41 S.W.3d 466 (Mo.banc).