Nixon says the bill reinstating local sales tax collections on the purchase of some vehicles is unconstitutional. Nixon says it’s a tax increase without a public vote.
The bill was passed early this morning.
The state supreme court had ruled last month that cities and counties could not collect sales taxes on vehicles purchased by Missourians in other states. The sales taxes had been the practice for decades.
The senate sponsor of the bill, Senator Mike Kehoe of Jefferson City, is disappointed in the governor’s position, and a little peeved because Nixon had voiced no concerns while lawmakers were crafting the bill. He says there are some bills still in the works that could provide for a public vote on reinstatement of a tax that’s been collected for more than one-half century.
Kehoe says some vehicle dealers in other states already are luring Missouri into their states so they can avoid hundreds of dollars in Missouri sales taxes.
AUDIO: Kehoe interview 2:16Governor