Missouri Revised Statutes













Chapter 66

Constitutional Charter Counties, Miscellaneous Provisions

←66.601

Section 66.620.1

66.630→

August 28, 2015

County sales tax trust fund created--tax revenue, how distributed--boundary changes, effect.

66.620. 1. All county sales taxes collected by the director of revenue

under sections 66.600 to 66.630 on behalf of any county, less one percent for

cost of collection which shall be deposited in the state's general revenue

fund after payment of premiums for surety bonds as provided in section 32.087,

shall be deposited in a special trust fund, which is hereby created, to be

known as the "County Sales Tax Trust Fund". The moneys in the county sales

tax trust fund shall not be deemed to be state funds and shall not be

commingled with any funds of the state. The director of revenue shall keep

accurate records of the amount of money in the trust fund which was collected

in each county imposing a county sales tax, and the records shall be open to

the inspection of officers of the county and the public. Not later than the

tenth day of each month, the director of revenue shall distribute all moneys

deposited in the trust fund during the preceding month to the county which

levied the tax; such funds shall be deposited with the county treasurer of

the county and all expenditures of funds arising from the county sales tax

trust fund shall be by an appropriation act to be enacted by the legislative

council of the county, and to the cities, towns and villages located wholly

or partly within the county which levied the tax in the manner as set forth

in sections 66.600 to 66.630.



2. In any county not adopting an additional sales tax and alternate

distribution system as provided in section 67.581, for the purposes of

distributing the county sales tax, the county shall be divided into two

groups, "Group A" and "Group B". Group A shall consist of all cities, towns

and villages which are located wholly or partly within the county which

levied the tax and which had a city sales tax in effect under the provisions

of sections 94.500 to 94.550 on the day prior to the adoption of the county

sales tax ordinance, except that beginning January 1, 1980, group A shall

consist of all cities, towns and villages which are located wholly or partly

within the county which levied the tax and which had a city sales tax

approved by the voters of such city under the provisions of sections 94.500

to 94.550 on the day prior to the effective date of the county sales tax.

For the purposes of determining the location of consummation of sales for

distribution of funds to cities, towns and villages in group A, the

boundaries of any such city, town or village shall be the boundary of that

city, town or village as it existed on March 19, 1984. Group B shall consist

of all cities, towns and villages which are located wholly or partly within

the county which levied the tax and which did not have a city sales tax in

effect under the provisions of sections 94.500 to 94.550 on the day prior to

the adoption of the county sales tax ordinance, and shall also include all

unincorporated areas of the county which levied the tax; except that,

beginning January 1, 1980, group B shall consist of all cities, towns and

villages which are located wholly or partly within the county which levied

the tax and which did not have a city sales tax approved by the voters of

such city under the provisions of sections 94.500 to 94.550 on the day prior

to the effective date of the county sales tax and shall also include all

unincorporated areas of the county which levied the tax.



3. Until January 1, 1994, the director of revenue shall distribute to

the cities, towns and villages in group A the taxes based on the location in

which the sales were deemed consummated under section 66.630 and subsection

12 of section 32.087. Except for distribution governed by section 66.630,

after deducting the distribution to the cities, towns and villages in group

A, the director of revenue shall distribute the remaining funds in the county

sales tax trust fund to the cities, towns and villages and the county in

group B as follows: To the county which levied the tax, a percentage of the

distributable revenue equal to the percentage ratio that the population of

the unincorporated areas of the county bears to the total population of group

B; and to each city, town or village in group B located wholly within the

taxing county, a percentage of the distributable revenue equal to the

percentage ratio that the population of such city, town or village bears to

the total population of group B; and to each city, town or village located

partly within the taxing county, a percentage of the distributable revenue

equal to the percentage ratio that the population of that part of the city,

town or village located within the taxing county bears to the total

population of group B.



4. From and after January 1, 1994, the director of revenue shall

distribute to the cities, towns and villages in group A a portion of the

taxes based on the location in which the sales were deemed consummated under

section 66.630 and subsection 12 of section 32.087 in accordance with the

formula described in this subsection. After deducting the distribution to

the cities, towns and villages in group A, the director of revenue shall

distribute funds in the county sales tax trust fund to the cities, towns and

villages and the county in group B as follows: To the county which levied

the tax, ten percent multiplied by the percentage of the population of

unincorporated county which has been annexed or incorporated since April 1,

1993, multiplied by the total of all sales tax revenues countywide, and a

percentage of the remaining distributable revenue equal to the percentage

ratio that the population of unincorporated areas of the county bears to the

total population of group B; and to each city, town or village in group B

located wholly within the taxing county, a percentage of the remaining

distributable revenue equal to the percentage ratio that the population of

such city, town or village bears to the total population of group B; and to

each city, town or village located partly within the taxing county, a

percentage of the remaining distributable revenue equal to the percentage

ratio that the population of that part of the city, town or village located

within the taxing county bears to the total population of group B.



5. (1) For purposes of administering the distribution formula of

subsection 4 of this section, the revenues arising each year from sales

occurring within each group A city, town or village shall be distributed as

follows: Until such revenues reach the adjusted county average, as

hereinafter defined, there shall be distributed to the city, town or village

all of such revenues reduced by the percentage which is equal to ten percent

multiplied by the percentage of the population of unincorporated county which

has been annexed or incorporated after April 1, 1993; and once revenues

exceed the adjusted county average, total revenues shall be shared in

accordance with the redistribution formula as defined in this subsection.



(2) For purposes of this subsection, the "adjusted county average" is the

per capita countywide average of all sales tax distributions during the prior

calendar year reduced by the percentage which is equal to ten percent

multiplied by the percentage of the population of unincorporated county which

has been annexed or incorporated after April 1, 1993; the "redistribution

formula" is as follows: During 1994, each group A city, town and village

shall receive that portion of the revenues arising from sales occurring within

the municipality that remains after deducting therefrom an amount equal to

the cumulative sales tax revenues arising from sales within the municipality

multiplied by the percentage which is the sum of ten percent multiplied by the

percentage of the population of unincorporated county which has been annexed

or incorporated after April 1, 1993, and the percentage, if greater than

zero, equal to the product of 8.5 multiplied by the logarithm (to base 10) of

the product of 0.035 multiplied by the total of cumulative per capita sales

taxes arising from sales within the municipality less the adjusted county

average. During 1995, each group A city, town and village shall receive that

portion of the revenues arising from sales occurring within the municipality

that remains after deducting therefrom an amount equal to the cumulative

sales tax revenues arising from sales within the municipality multiplied by

the percentage which is the sum of ten percent multiplied by the percentage

of the population of unincorporated county which has been annexed or

incorporated after April 1, 1993, and the percentage, if greater than zero,

equal to the product of seventeen multiplied by the logarithm (to base 10) of

the product of 0.035 multiplied by the total of cumulative per capita sales

taxes arising from sales within the municipality less the adjusted county

average. From January 1, 1996, until January 1, 2000, each group A city,

town and village shall receive that portion of the revenues arising from sales

occurring within the municipality that remains after deducting therefrom an

amount equal to the cumulative sales tax revenues arising from sales within

the municipality multiplied by the percentage which is the sum of ten percent

multiplied by the percentage of the population of unincorporated county which

has been annexed or incorporated after April 1, 1993, and the percentage, if

greater than zero, equal to the product of 25.5 multiplied by the logarithm

(to base 10) of the product of 0.035 multiplied by the total of cumulative

per capita sales taxes arising from sales within the municipality less the

adjusted county average. From and after January 1, 2000, the distribution

formula covering the period from January 1, 1996, until January 1, 2000, shall

continue to apply, except that the percentage computed for sales arising

within the municipalities shall be not less than 7.5 percent for

municipalities within which sales tax revenues exceed the adjusted county

average, nor less than 12.5 percent for municipalities within which sales tax

revenues exceed the adjusted county average by at least twenty-five percent.



(3) For purposes of applying the redistribution formula to a municipality

which is partly within the county levying the tax, the distribution shall be

calculated alternately for the municipality as a whole, except that the

factor for annexed portion of the county shall not be applied to the portion

of the municipality which is not within the county levying the tax, and for

the portion of the municipality within the county levying the tax. Whichever

calculation results in the larger distribution to the municipality shall be

used.



(4) Notwithstanding any other provision of this section, the fifty

percent of additional sales taxes as described in section 99.845 arising from

economic activities within the area of a redevelopment project established

after July 12, 1990, pursuant to sections 99.800 to 99.865, while tax

increment financing remains in effect shall be deducted from all calculations

of countywide sales taxes, shall be distributed directly to the municipality

involved, and shall be disregarded in calculating the amounts distributed or

distributable to the municipality. Further, any agreement, contract or

covenant entered into prior to July 12, 1990, between a municipality and any

other political subdivision which provides for an appropriation of

incremental sales tax revenues to the special allocation fund of a tax

increment financing project while tax increment financing remains in effect

shall continue to be in full force and effect and the sales taxes so

appropriated shall be deducted from all calculations of countywide sales

taxes, shall be distributed directly to the municipality involved, and shall

be disregarded in calculating the amounts distributed or distributable to the

municipality. In addition, and notwithstanding any other provision of this

chapter to the contrary, economic development funds shall be distributed in

full to the municipality in which the sales producing them were deemed

consummated. Additionally, economic development funds shall be deducted from

all calculations of countywide sales taxes and shall be disregarded in

calculating the amounts distributed or distributable to the municipality. As

used in this subdivision, the term "economic development funds" means the

amount of sales tax revenue generated in any fiscal year by projects

authorized pursuant to chapter 99 or chapter 100 in connection with which

such sales tax revenue was pledged as security for, or was guaranteed by a

developer to be sufficient to pay, outstanding obligations under any

agreement authorized by chapter 100, entered into or adopted prior to

September 1, 1993, between a municipality and another public body. The

cumulative amount of economic development funds allowed under this provision

shall not exceed the total amount necessary to amortize the obligations

involved.



6. If the qualified voters of any city, town or village vote to change

or alter its boundaries by annexing any unincorporated territory included in

group B or if the qualified voters of one or more city, town or village in

group A and the qualified voters of one or more city, town or village in

group B vote to consolidate, the area annexed or the area consolidated which

had been a part of group B shall remain a part of group B after annexation or

consolidation. After the effective date of the annexation or consolidation,

the annexing or consolidated city, town or village shall receive a percentage

of the group B distributable revenue equal to the percentage ratio that the

population of the annexed or consolidated area bears to the total population

of group B and such annexed area shall not be classified as unincorporated

area for determination of the percentage allocable to the county. If the

qualified voters of any two or more cities, towns or villages in group A each

vote to consolidate such cities, towns or villages, then such consolidated

cities, towns or villages shall remain a part of group A. For the purpose of

sections 66.600 to 66.630, population shall be as determined by the last

federal decennial census or the latest census that determines the total

population of the county and all political subdivisions therein. For the

purpose of calculating the adjustment based on the percentage of

unincorporated county population which is annexed after April 1, 1993, the

accumulated percentage immediately before each census shall be used as the

new percentage base after such census. After any annexation, incorporation

or other municipal boundary change affecting the unincorporated area of the

county, the chief elected official of the county shall certify the new

population of the unincorporated area of the county and the percentage of the

population which has been annexed or incorporated since April 1, 1993, to the

director of revenue. After the adoption of the county sales tax ordinance,

any city, town or village in group A may by adoption of an ordinance by its

governing body cease to be a part of group A and become a part of group B.

Within ten days after the adoption of the ordinance transferring the city,

town or village from one group to the other, the clerk of the transferring

city, town or village shall forward to the director of revenue, by registered

mail, a certified copy of the ordinance. Distribution to such city as a part

of its former group shall cease and as a part of its new group shall begin on

the first day of January of the year following notification to the director

of revenue, provided such notification is received by the director of revenue

on or before the first day of July of the year in which the transferring

ordinance is adopted. If such notification is received by the director of

revenue after the first day of July of the year in which the transferring

ordinance is adopted, then distribution to such city as a part of its former

group shall cease and as a part of its new group shall begin the first day of

July of the year following such notification to the director of revenue. Once

a group A city, town or village becomes a part of group B, such city may not

transfer back to group A.



7. If any city, town or village shall hereafter change or alter its

boundaries, the city clerk of the municipality shall forward to the director

of revenue, by registered mail, a certified copy of the ordinance adding or

detaching territory from the municipality. The ordinance shall reflect the

effective date thereof, and shall be accompanied by a map of the municipality

clearly showing the territory added thereto or detached therefrom. Upon

receipt of the ordinance and map, the tax imposed by sections 66.600 to

66.630 shall be redistributed and allocated in accordance with the provisions

of this section on the effective date of the change of the municipal boundary

so that the proper percentage of group B distributable revenue is allocated

to the municipality in proportion to any annexed territory. If any area of

the unincorporated county elects to incorporate subsequent to the effective

date of the county sales tax as set forth in sections 66.600 to 66.630, the

newly incorporated municipality shall remain a part of group B. The city

clerk of such newly incorporated municipality shall forward to the director

of revenue, by registered mail, a certified copy of the incorporation election

returns and a map of the municipality clearly showing the boundaries thereof.

The certified copy of the incorporation election returns shall reflect the

effective date of the incorporation. Upon receipt of the incorporation

election returns and map, the tax imposed by sections 66.600 to 66.630 shall

be distributed and allocated in accordance with the provisions of this section

on the effective date of the incorporation.



8. The director of revenue may authorize the state treasurer to make

refunds from the amounts in the trust fund and credited to any county for

erroneous payments and overpayments made, and may redeem dishonored checks

and drafts deposited to the credit of such counties. If any county abolishes

the tax, the county shall notify the director of revenue of the action at

least ninety days prior to the effective date of the repeal and the director

of revenue may order retention in the trust fund, for a period of one year,

of two percent of the amount collected after receipt of such notice to cover

possible refunds or overpayment of the tax and to redeem dishonored checks

and drafts deposited to the credit of such accounts. After one year has

elapsed after the effective date of abolition of the tax in such county, the

director of revenue shall remit the balance in the account to the county and

close the account of that county. The director of revenue shall notify each

county of each instance of any amount refunded or any check redeemed from

receipts due the county.



9. Except as modified in sections 66.600 to 66.630, all provisions of

sections 32.085 and 32.087 shall apply to the tax imposed under sections

66.600 to 66.630.



(L. 1977 S.B. 234 § 5, A.L. 1979 H.B. 717, A.L. 1980 S.B.

693, A.L. 1983 H.B. 273, A.L. 1984 H.B. 1214 & 1319,

A.L. 1987 H.B. 210, A.L. 1991 H.B. 29, A.L. 1993 H.B. 618, A.L.

1994 H.B. 1481 merged with S.B. 685)



Effective 5-10-94 (S.B. 685)



8-28-94 (H.B. 1481)



CROSS REFERENCE:



Federal census results to be used for distribution of revenue, when,

66.351







Top



Missouri General Assembly



Copyright © Missouri Legislature, all rights reserved.