Gov. Jay Nixon last week vetoed a tax-related bill passed by the General Assembly.
Sponsored by Sen. Mike Kehoe, R-Jefferson City, in the Senate and handled by Rep. Lincoln Hough, R-Springfield, in the House, Senate Bill 182 would have eliminated state and local taxes on out-of-state motor vehicle sales in favor of implementing a separate sales tax to be collected on the titling of such property, according to
Senate.Mo.gov.
The bill specifies a need for local taxing jurisdictions that haven't previously approved a local use tax to decide by a vote of the people whether to discontinue collecting sales taxes on the titling of vehicles purchased from out-of-state vendors.
According to a news release from Nixon's office, the bill is a response to a 2012 Missouri Supreme Court decision, which invalidated local taxes on out-of-state and person-to-person vehicle sales, thus creating an incentive for consumers to buy vehicles from out-of-state dealers rather than those in Missouri.
Last year, Nixon vetoed a similar bill, House Bill 1329, saying it imposed a tax retroactively without a vote of the people.
Though he said SB 182 improves upon HB 1329 by allowing voters the chance to repeal the tax, he said it still contains a fundamental flaw - the required voter referendum on the tax wouldn't cover the full extent of the imposed tax, just 85 percent.
"Denying the voters the ability to be heard on the entire scope of this tax is unacceptable and requires my disapproval,” Nixon said in the release. "Here in Missouri, the right of the people to have their voices heard on the taxes they pay is a bedrock principle we must protect."[[In-content Ad]]
