MO HB1335

Repeals and replaces sections 66.620, 66.630, and 94.857 relating to distribution of county and municipal sales taxes.

Modifies the redistribution formula for Group A cities by changing the coefficient from 8.5 to 25.5 in the logarithmic calculation used to determine sales tax distributions from municipalities that exceed the adjusted county average.

Removes the 10 percent adjustment factor previously applied to account for unincorporated county population annexed or incorporated after April 1, 1993, simplifying the distribution calculation.

Increases the minimum distribution guarantee for municipalities levying special municipal sales tax under sections 94.850 to 94.857 from the previous formula to no less than 85 percent of revenues generated within that municipality.

Establishes a new framework allowing newly incorporated municipalities to choose membership in either Group A or Group B through ordinance adoption, rather than automatically remaining in Group B.