Modifies provisions relating to the taxation of certain businesses
Summary
SB 145 revises Missouri law governing municipal business license taxes. The bill repeals and reenacts sections 71.610 and 92.045 to clarify that municipalities generally may not impose a license tax on a business, avocation, pursuit, or calling unless that authority is specifically granted by charter or statute. It also adds a new statewide prohibition on municipal license taxes for enterprises owned by a person age 18 or younger.
The bill preserves existing authority for certain constitutional charter cities with populations over 350,000 to license, tax, and regulate businesses, but it narrows that authority by expressly exempting youth-owned enterprises from local licensing and taxation. It also retains provisions allowing local legislative bodies to delegate rulemaking and administrative enforcement authority to tax officials for ordinances adopted under this section.
Impact
SB 145 changes the scope of municipal taxing authority under sections 71.610 and 92.045, RSMo, by limiting when cities may impose business license taxes and by creating a new exemption for enterprises owned by minors. In practice, this affects local governments—especially charter cities and other municipalities that rely on business license taxes—and provides relief to youth-owned businesses by shielding them from local license tax burdens.
Sentiment
The bill appears to have been broadly supported. It passed the Senate unanimously on third reading, 33-0, and later passed the House with a substantial majority, 108-21. The voting pattern suggests general agreement with the bill’s approach to limiting local taxation authority while protecting young entrepreneurs.
Contention
The main point of contention is the restriction on municipal taxing power, particularly for charter cities that have historically had broader authority to license and tax businesses. Opponents likely focused on the loss of local revenue and reduced home-rule flexibility, while supporters likely emphasized uniform statewide treatment and the policy goal of exempting youth-owned enterprises from local business taxes. The House vote indicates some resistance, but not enough to prevent passage.