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Bill To Restore Local Sales Taxes On Out-Of-State Vehicle Purchases Sent to Mo. Gov. Nixon

Marshall Griffin/St. Louis Public Radio

Missouri lawmakers have sent legislation to Governor Jay Nixon(D) that would levy local sales taxes on vehicles purchased in other states with voters’ approval.

The Governor vetoed a similar bill last yearbecause it did not give local voters a say in whether they wanted such a tax.  In addition, the Missouri Supreme Courtruled last year that sales tax collections must be limited to purchases made in Missouri, except in cities and counties that had already approved a sales tax on out-of-state vehicle purchases.  The sponsor,State Senator Mike Kehoe(R, Jefferson City), says the decision caused Missouri cities and counties to lose $43 million in revenue last year.

“And then dealers are losing hundreds, if not thousands, of sales on RV’s, trailers and cars because of this initiative, and those purchases are going outside of our state," Kehoe said.  "When those purchases go outside of the state, so, too, will the jobs.”

This year’s version of the bill requires local governments to hold a vote on whether to block collecting sales taxes on out-of-state vehicle purchases.  Kehoe says he worked closely with the Governor’s Office on the bill’s language and is "pretty sure" it’ll be signed into law this year.

Follow Marshall Griffin on Twitter:  @MarshallGReport

Marshal was a political reporter for St. Louis Public Radio until 2018.