135.950. Definitions.
Definitions.
135.950. The following terms, whenever used in sections 135.950 to135.970 mean:
(1) "Average wage", the new payroll divided by the number of newjobs;
(2) "Blighted area", an area which, by reason of the predominance ofdefective or inadequate street layout, unsanitary or unsafe conditions,deterioration of site improvements, improper subdivision or obsoleteplatting, or the existence of conditions which endanger life or property byfire and other causes, or any combination of such factors, retards theprovision of housing accommodations or constitutes an economic or socialliability or a menace to the public health, safety, morals, or welfare inits present condition and use;
(3) "Board", an enhanced enterprise zone board established pursuantto section 135.957;
(4) "Commencement of commercial operations" shall be deemed to occurduring the first taxable year for which the new business facility is firstput into use by the taxpayer in the enhanced business enterprise in whichthe taxpayer intends to use the new business facility;
(5) "County average wage", the average wages in each county asdetermined by the department for the most recently completed full calendaryear. However, if the computed county average wage is above the statewideaverage wage, the statewide average wage shall be deemed the county averagewage for such county for the purpose of determining eligibility. Thedepartment shall publish the county average wage for each county at leastannually. Notwithstanding the provisions of this subdivision to thecontrary, for any taxpayer that in conjunction with their project isrelocating employees from a Missouri county with a higher county averagewage, such taxpayer shall obtain the endorsement of the governing body ofthe community from which jobs are being relocated or the county averagewage for their project shall be the county average wage for the county fromwhich the employees are being relocated;
(6) "Department", the department of economic development;
(7) "Director", the director of the department of economicdevelopment;
(8) "Employee", a person employed by the enhanced business enterprisethat is scheduled to work an average of at least one thousand hours peryear, and such person at all times has health insurance offered to him orher, which is partially paid for by the employer;
(9) "Enhanced business enterprise", an industry or one of a clusterof industries that is either:
(a) Identified by the department as critical to the state's economicsecurity and growth; or
(b) Will have an impact on industry cluster development, asidentified by the governing authority in its application for designation ofan enhanced enterprise zone and approved by the department; but excludinggambling establishments (NAICS industry group 7132), retail trade (NAICSsectors 44 and 45), educational services (NAICS sector 61), religiousorganizations (NAICS industry group 8131), public administration (NAICSsector 92), and food and drinking places (NAICS subsector 722), however,notwithstanding provisions of this section to the contrary, headquarters oradministrative offices of an otherwise excluded business may qualify forbenefits if the offices serve a multistate territory. In the event anational, state, or regional headquarters operation is not the predominantactivity of a project facility, the new jobs and investment of suchheadquarters operation is considered eligible for benefits under thissection if the other requirements are satisfied. Service industries may beeligible only if a majority of its annual revenues will be derived from outof the state;
(10) "Existing business facility", any facility in this state whichwas employed by the taxpayer claiming the credit in the operation of anenhanced business enterprise immediately prior to an expansion,acquisition, addition, or replacement;
(11) "Facility", any building used as an enhanced business enterpriselocated within an enhanced enterprise zone, including the land on which thefacility is located and all machinery, equipment, and other real anddepreciable tangible personal property acquired for use at and located ator within such facility and used in connection with the operation of suchfacility;
(12) "Facility base employment", the greater of the number ofemployees located at the facility on the date of the notice of intent, orfor the twelve-month period prior to the date of the notice of intent, theaverage number of employees located at the facility, or in the event theproject facility has not been in operation for a full twelve-month period,the average number of employees for the number of months the facility hasbeen in operation prior to the date of the notice of intent;
(13) "Facility base payroll", the total amount of taxable wages paidby the enhanced business enterprise to employees of the enhanced businessenterprise located at the facility in the twelve months prior to the noticeof intent, not including the payroll of owners of the enhanced businessenterprise unless the enhanced business enterprise is participating in anemployee stock ownership plan. For the purposes of calculating thebenefits under this program, the amount of base payroll shall increase eachyear based on the consumer price index or other comparable measure, asdetermined by the department;
(14) "Governing authority", the body holding primary legislativeauthority over a county or incorporated municipality;
(15) "Megaproject", any manufacturing or assembling facility,approved by the department for construction and operation within anenhanced enterprise zone, which satisfies the following:
(a) The new capital investment is projected to exceed three hundredmillion dollars over a period of eight years from the date of approval bythe department;
(b) The number of new jobs is projected to exceed one thousand over aperiod of eight years beginning on the date of approval by the department;
(c) The average wage of new jobs to be created shall exceed thecounty average wage;
(d) The taxpayer shall offer health insurance to all new jobs and payat least eighty percent of such insurance premiums; and
(e) An acceptable plan of repayment, to the state, of the tax creditsprovided for the megaproject has been provided by the taxpayer;
(16) "NAICS", the 1997 edition of the North American IndustryClassification System as prepared by the Executive Office of the President,Office of Management and Budget. Any NAICS sector, subsector, industrygroup or industry identified in this section shall include itscorresponding classification in subsequent federal industry classificationsystems;
(17) "New business facility", a facility that satisfies the followingrequirements:
(a) Such facility is employed by the taxpayer in the operation of anenhanced business enterprise. Such facility shall not be considered a newbusiness facility in the hands of the taxpayer if the taxpayer's onlyactivity with respect to such facility is to lease it to another person orpersons. If the taxpayer employs only a portion of such facility in theoperation of an enhanced business enterprise, and leases another portion ofsuch facility to another person or persons or does not otherwise use suchother portions in the operation of an enhanced business enterprise, theportion employed by the taxpayer in the operation of an enhanced businessenterprise shall be considered a new business facility, if the requirementsof paragraphs (b), (c), and (d) of this subdivision are satisfied;
(b) Such facility is acquired by, or leased to, the taxpayer afterDecember 31, 2004. A facility shall be deemed to have been acquired by, orleased to, the taxpayer after December 31, 2004, if the transfer of titleto the taxpayer, the transfer of possession pursuant to a binding contractto transfer title to the taxpayer, or the commencement of the term of thelease to the taxpayer occurs after December 31, 2004;
(c) If such facility was acquired by the taxpayer from anothertaxpayer and such facility was employed immediately prior to theacquisition by another taxpayer in the operation of an enhanced businessenterprise, the operation of the same or a substantially similar enhancedbusiness enterprise is not continued by the taxpayer at such facility; and
(d) Such facility is not a replacement business facility, as definedin subdivision (25) of this section;
(18) "New business facility employee", an employee of the taxpayer inthe operation of a new business facility during the taxable year for whichthe credit allowed by section 135.967 is claimed, except that truck driversand rail and barge vehicle operators and other operators of rolling stockfor hire shall not constitute new business facility employees;
(19) "New business facility investment", the value of real anddepreciable tangible personal property, acquired by the taxpayer as part ofthe new business facility, which is used by the taxpayer in the operationof the new business facility, during the taxable year for which the creditallowed by 135.967 is claimed, except that trucks, truck-trailers, trucksemitrailers, rail vehicles, barge vehicles, aircraft and other rollingstock for hire, track, switches, barges, bridges, tunnels, and rail yardsand spurs shall not constitute new business facility investments. Thetotal value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by thetaxpayer. The net annual rental rate shall be the annual rental rate paidby the taxpayer less any annual rental rate received by the taxpayer fromsubrentals. The new business facility investment shall be determined bydividing by twelve the sum of the total value of such property on the lastbusiness day of each calendar month of the taxable year. If the newbusiness facility is in operation for less than an entire taxable year, thenew business facility investment shall be determined by dividing the sum ofthe total value of such property on the last business day of each fullcalendar month during the portion of such taxable year during which the newbusiness facility was in operation by the number of full calendar monthsduring such period;
(20) "New job", the number of employees located at the facility thatexceeds the facility base employment less any decrease in the number of theemployees at related facilities below the related facility base employment.No job that was created prior to the date of the notice of intent shall bedeemed a new job;
(21) "Notice of intent", a form developed by the department which iscompleted by the enhanced business enterprise and submitted to thedepartment which states the enhanced business enterprise's intent to hirenew jobs and request benefits under such program;
(22) "Related facility", a facility operated by the enhanced businessenterprise or a related company in this state that is directly related tothe operation of the project facility;
(23) "Related facility base employment", the greater of:
(a) The number of employees located at all related facilities on thedate of the notice of intent; or
(b) For the twelve-month period prior to the date of the notice ofintent, the average number of employees located at all related facilitiesof the enhanced business enterprise or a related company located in thisstate;
(24) "Related taxpayer":
(a) A corporation, partnership, trust, or association controlled bythe taxpayer;
(b) An individual, corporation, partnership, trust, or association incontrol of the taxpayer; or
(c) A corporation, partnership, trust or association controlled by anindividual, corporation, partnership, trust or association in control ofthe taxpayer. "Control of a corporation" shall mean ownership, directly orindirectly, of stock possessing at least fifty percent of the totalcombined voting power of all classes of stock entitled to vote, "control ofa partnership or association" shall mean ownership of at least fiftypercent of the capital or profits interest in such partnership orassociation, and "control of a trust" shall mean ownership, directly orindirectly, of at least fifty percent of the beneficial interest in theprincipal or income of such trust; ownership shall be determined asprovided in Section 318 of the Internal Revenue Code of 1986, as amended;
(25) "Replacement business facility", a facility otherwise describedin subdivision (17) of this section, hereafter referred to in thissubdivision as "new facility", which replaces another facility, hereafterreferred to in this subdivision as "old facility", located within thestate, which the taxpayer or a related taxpayer previously operated butdiscontinued operating on or before the close of the first taxable year forwhich the credit allowed by this section is claimed. A new facility shallbe deemed to replace an old facility if the following conditions are met:
(a) The old facility was operated by the taxpayer or a relatedtaxpayer during the taxpayer's or related taxpayer's taxable periodimmediately preceding the taxable year in which commencement of commercialoperations occurs at the new facility; and
(b) The old facility was employed by the taxpayer or a relatedtaxpayer in the operation of an enhanced business enterprise and thetaxpayer continues the operation of the same or substantially similarenhanced business enterprise at the new facility.
Notwithstanding the preceding provisions of this subdivision, a facilityshall not be considered a replacement business facility if the taxpayer'snew business facility investment, as computed in subdivision (19) of thissection, in the new facility during the tax period for which the creditsallowed in section 135.967 are claimed exceed one million dollars and ifthe total number of employees at the new facility exceeds the total numberof employees at the old facility by at least two;
(26) "Same or substantially similar enhanced business enterprise", anenhanced business enterprise in which the nature of the products producedor sold, or activities conducted, are similar in character and use or areproduced, sold, performed, or conducted in the same or similar manner as inanother enhanced business enterprise.
(L. 2004 S.B. 1155 § 135.1050, A.L. 2007 1st Ex. Sess. H.B. 1, A.L. 2008 H.B. 2393)