MO HB335

Political subdivisions may abolish personal property taxes and replace them with either a replacement sales tax or replacement real property tax, but not both simultaneously, at rates designed to produce equivalent revenue.

Replacement sales tax requires voter approval through ballot measure and becomes effective the first day of the second calendar quarter after the director of revenue receives notification; one percent of collections goes to the state's general revenue fund with remainder deposited in a special trust fund for designated purposes.

Replacement real property tax requires voter approval through ballot measure and becomes effective on the first day of the year following the election; all collection procedures in chapter 137 apply to the replacement tax.

Either replacement tax may be repealed by voter approval at any election or by petition signed by at least ten percent of registered voters; repeal becomes effective December 31st of the calendar year approved.

Funds from repealed taxes must continue to be used for originally designated purposes, with political subdivisions retaining two percent of collected amounts for one year to cover refunds and overpayments before remitting the balance.