Relating to taxation

ARTICLE 1 - INCOME AND CORPORATE FRANCHISE TAXES

Requiring taxes required to be deducted and withheld by partnerships, S corporations and trusts to be paid on a quarterly basis as estimated taxes; modifying the definition of foreign operating corporation; providing a dairy investment credit against the income tax, specifying certain qualifying expenditures; modifying the long term care insurance credit; modifying the net income apportionment formulas for corporations and financial institutions for franchise tax purposes, increasing the sales factor; providing for income tax withholding for other than employees performing work for the employer

ARTICLE 2 - FEDERAL UPDATE

Updating certain state income tax and property tax refund provisions to changes in the internal revenue code (IRC) and the definition of internal revenue code under tax administration and compliance provisions

ARTICLE 3 - SALES, USE AND SPECIAL TAXES

Prohibiting commissioner of administration, state agency or legislative goods or services procurement contracts with foreign vendors failing to register to collect sales and use taxes on sales in the state, exemptions, requiring vendor submission of verification of registration to the agency or legislature; exempting payments received under the federal tricare program from the health care provider gross earnings tax; imposing a gross receipts tax on the sale of liquor, specifying certain duties of the commissioner of revenue; providing for the collection of sales taxes on motor vehicle leases; excluding transportation, transmission or distribution of petroleum, liquefied or natural gas, water or steam through pipes, lines, tanks or mains from the definition of industrial production and machinery or equipment used in the transportation or distribution from the definition of capital equipment for sales tax exemption purposes; imposing sales taxes on wholesales and floor stocks of cigarettes and modifying the bad debt refund for tobacco taxes paid; requiring the commissioner to deduct from the proceeds of the solid waste management tax and the metropolitan solid waste landfill fee amounts equal to direct and indirect administrative costs; defining direct business for insurance gross premium tax purposes; eliminating the repeal of the rental motor vehicle tax

ARTICLE 4 - INTERNATIONAL ECONOMIC DEVELOPMENT ZONE

Providing for designation of foreign trade zones as international economic development zones by federal foreign trade zone authorities under certain conditions, specifying certain consideration requirements for designation and certain powers of the authorities including the authority to establish port authorities, requiring and providing for preparation of a business plan; providing certain property, income, franchise, sales and use tax exemptions for businesses located and individuals operating a trade or business in the zones; creating a jobs credit for qualified businesses and appropriating money to the commissioner of revenue for the credit; requiring and providing for repayment of certain tax incentives upon ceasing operation in the zones; requiring applicants receiving designation as an international economic development zone to report annually to the commissioner of employment and economic development (DEED) on progress in meeting zone goals and compliance with the business subsidy law

ARTICLE 5 - MISCELLANEOUS

Increasing the limit on the designation of income tax payments or property tax refunds to the state elections campaign fund and eliminating certain appropriations from the general fund for transfer purposes; modifying the residential homestead market value property tax credit; modifying the definition of rent constituting property taxes for property tax refund purposes; setting the amount of tax credits or exemptions to be awarded by the commissioner of employment and economic development (DEED) for biotechnology and health sciences industry zones in fiscal year 2006; reducing 2005 and 2006 city aid payments; repealing the political contribution refund and the appropriation to the commissioner of finance of certain positive unrestricted budgetary general fund balances for transfer to the tax relief account
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