Missouri’s car dealers association hopes the legislature lets thousands of dollars in sales taxes to be charged again, come September.
The supreme court ruled in March that the state could not collect local sales and use tax on vehicle sales made to Missourians in other states unless voters had approved them. The legislature quickly responded with a bill declaring the sale was not completed until a Missouri license was sought, making the sale a local one. The governor vetoed the bill, saying it took away voters’ rights and could impose taxes that voters had rejected.
President Sam Barbee of the Missouri Auto Dealers Association hopes for a veto override in September, restoring collection of those taxes without a vote. “Local communities rely heavily on the sales taxes generated on car sales in their communities…I don’t think in this instance ‘tax’ is an evil word because it is providing….between fifteen and twenty percent of any community’s sales tax revenues,” he says.
Barbee says a number of sales have been lost to other states and other sales are in jeopardy. Barbee says profits and jobs could be affected in the long term in dealerships along state borders if the veto stands.