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EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1620
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR GREGORY (15).
7014S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 144.285, RSMo, and to enact in lieu thereof one new section relating to the
calculation of sales tax for certain cash transactions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 144.285, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 144.285, 2
to read as follows:3
144.285. 1. In order to permit sellers required to 1
collect and report the sales tax to collect the amount 2
required to be reported and remitted, but not to change the 3
requirements of reporting or remitting tax or to serve as a 4
levy of the tax, and in order to avoid fractions of pennies, 5
the director of revenue shall establish brackets, showing 6
the amounts of tax to be collected on sales of specified 7
amounts, which shall be applicable to all taxable 8
transactions. 9
2. In all instances where statements covering taxable 10
purchases are rendered to the taxpayer on a monthly or other 11
periodic basis, the amount of tax shall be determined by 12
applying the applicable tax rate to the taxable purchases 13
represented on the statement, rounded to the nearest whole 14
cent, or by application of the brackets established by the 15
director of revenue, at the option of the retail vendor. 16
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3. No vendor or seller shall knowingly charge or 17
receive from a purchaser as a sales tax any sum in excess of 18
the sums provided for in this section. 19
4. A vendor may, at his option, determine the amount 20
charged to and received from each purchaser by use of a 21
formula which applies the applicable tax rate to each 22
taxable purchase, rounded to the nearest whole cent. The 23
formula shall be uniformly and consistently applied to all 24
purchases similarly situated. 25
5. (1) For cash transactions only, a vendor may round 26
the total amount of sale due on a transaction to the nearest 27
five cents. Totals ending in $0.01, $0.02, $0.06, or $0.07 28
may be rounded down to the nearest amount divisible by 29
$0.05. Totals ending in $0.03, $0.04, $0.08, or $0.09 may 30
be rounded up to the nearest amount divisible by $0.05. 31
Rounding shall be applied only to the final total of the 32
transaction after all items, discounts, and taxes have been 33
calculated. 34
(2) This rounding shall not apply to transactions paid 35
by credit, debit, or other noncash methods. The applicable 36
amount of tax due in accordance with the tax brackets shall 37
be remitted to the department of revenue regardless of the 38
method of payment from the taxpayer's customer. 39
6. Amounts which a vendor charges to and receives from 40
the purchaser in accordance with this section shall not be 41
includable in his gross receipts if the amounts are 42
separately charged or stated. 43
[6.] 7. If sales tax for one or more local political 44
subdivisions is owed by a taxpayer pursuant to chapter 66, 45
67, 92, or 94 and that taxpayer remits less than all sales 46
tax due for a filing period specified in section 144.080, 47
the director of revenue shall deposit the tax remitted 48
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proportionately to each taxing jurisdiction in accordance 49
with the percentage that each such jurisdiction's share of 50
the tax due for the filing period bears to the total tax due 51
from such taxpayer for such period. The unpaid balance due 52
along with penalties and interest shall be similarly 53
prorated among the state and all local jurisdictions for 54
which tax was due during the filing period for which an 55
underpayment occurs. The provisions of this subsection 56
shall apply to all returns or remittances relating to sales 57
made on or after January 1, 1984. 58
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