House Bill 1, filed by Rep. Becky Ruth and handled in the Senate by Sen. Wayne Wallingford, was passed by the Missouri Senate today, concluding the business of the General Assembly in the special legislative session called by Governor Mike Parson.
Associated Industries of Missouri supported the bill, along with the automobile and marine dealers, recreational vehicle dealers, and the Missouri Department of Revenue.
Acting Director of Revenue Ken Zellers testified that the Department appealed the AHC decision that had been issued in favor of the taxpayer because they wanted clarity. He said earlier decisions had left the issue unclear.
The Department has a regulation in effect that allows sales tax credit for multiple trade-ins. The trade-in credit is important to companies that have more than one vehicle (fleets, etc.), but also very important to individuals purchasing vehicles and selling their current vehicles.
The Administrative Hearing Commission issued a decision in favor of the taxpayer in the case allowing a refund for multiple trade-ins, but the Department of Revenue appealed that decision to the Missouri Supreme Court. The Supreme Court ruled against the taxpayer and in favor of the Department’s position, denying the refund. Governor Parson then called the special session to restore the law to allow multiple vehicles as trade-ins, within 180 days before or after the purchase of a new vehicle, resulting in the bill.
The Department of Revenue’s regulations, long-standing practice and the law all now allow sales tax credit for multiple trade-ins/sales within 180 days before or after the purchase of the new vehicle.
The Senate concluded their business in less than 45 minutes and the special session was essentially adjourned.