Wednesday, 06 February 2013 17:18
Missouri legislators considering new local vehicle sales tax
JEFFERSON CITY, Mo. (AP) - Missouri lawmakers are making another run at reinstating local taxes on vehicle sales after Gov. Jay Nixon vetoed last year's attempt.
A Senate committee on Wednesday considered a proposal that would let local governments impose a tax. Voters then would decide whether to continue it.
The legislation seeks to reverse a Missouri Supreme Court ruling that local sales taxes cannot be charged on vehicles purchased out of state or in private transactions. Instead the high court said a local "use tax" could be charged if approved by local voters. Creating local use taxes have had mixed results before voters.
Supporters of the legislation say many cities and counties are losing tax revenue while vehicle dealers in bordering states now have an advantage over Missouri businesses.
A Senate committee on Wednesday considered a proposal that would let local governments impose a tax. Voters then would decide whether to continue it.
The legislation seeks to reverse a Missouri Supreme Court ruling that local sales taxes cannot be charged on vehicles purchased out of state or in private transactions. Instead the high court said a local "use tax" could be charged if approved by local voters. Creating local use taxes have had mixed results before voters.
Supporters of the legislation say many cities and counties are losing tax revenue while vehicle dealers in bordering states now have an advantage over Missouri businesses.
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