Governor Jay Nixon (D) and the Republican-led General Assembly will face off next week over a bill vetoed earlier this year that would have required Missouri residents to pay sales taxes on vehicles purchased in other states.
The bill in question sought to reverse a Missouri Supreme Court ruling that local sales taxes cannot be levied on out-of-state vehicle purchases. Governor Nixon says overriding the veto would result in a retroactive tax hike without a vote of the people.
"One hundred twenty-two thousand people (will be) getting a tax bill (if the override goes through)," Nixon told reporters today at his State Capitol office. "One hundred eight thousand of those folks...are not folks who dealt with dealers, but those folks who sold cars to each other…we’re gonna have to figure out a way to go collect taxes from people who were not charged at that time.”
Local officials and Missouri vehicle dealers are sending emails urging Gov. Jay Nixon to sign legislation allowing communities to continue levying taxes on vehicle purchases.
But it appears to be an uphill effort because Nixon previously said the legislation would "bypass" a public vote and improperly impose a tax. Nixon has not specifically said whether he will sign or veto the bill.
Nixon called the measure a tax increase that flies in the face of a State Supreme Court ruling issued earlier this year that limited sales tax collections to purchases made in Missouri. State Senator Mike Kehoe (R, Jefferson City) says, though, vetoing the bill would threaten jobs.