MO HB298

Hospital districts in specified counties may impose a sales tax of up to 1% on all retail sales and utility services (water, electricity, gas, coal, heating oil) in lieu of property tax, subject to voter approval.

Tax becomes effective on the first day of the second calendar quarter after the Department of Revenue receives notification, but only if approved by a majority of district voters in a state general, primary, or special election.

Revenue collected goes into a "Hospital District Sales Tax Fund" with the Department of Revenue retaining 1% for collection costs; remaining funds are used solely for hospital district purposes and may be invested with interest credited back to the fund.

Governing body may submit a repeal question to voters at any available election date, or must hold a repeal election if petitioned by registered voters equal to at least 10% of those voting in the last gubernatorial election.

Upon tax repeal or termination, remaining funds continue supporting the hospital district's designated purposes, with the Department of Revenue retaining 2% for one year to cover refunds before remitting the balance to the district.