HCS HB 553 -- TAX CREDIT FOR CERTAIN MOTOR VEHICLE PURCHASES

SPONSOR:  Flook (Spreng)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Job
Creation and Economic Development by a vote of 12 to 0.

Beginning January 1, 2010, this substitute authorizes a tax
credit equal to 100% of the state sales tax paid on any new motor
vehicle assembled and purchased in Missouri on or after that
date.  The tax credit is refundable and may be claimed against a
taxpayer's income tax; corporate franchise tax; financial
institutions tax; and bridge, express, and public utility
companies tax.  Any political entity may exempt these sales from
the local sales tax by order or ordinance.

The provisions of the substitute will expire December 31 six
years from the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 in
FY 2010, $7,244,228 to $9,596,919 in FY 2011, and $7,284,011 to
$9,636,702 in FY 2012.  No impact on Other State Funds in FY
2010, FY 2011, and FY 2012.

PROPONENTS:  Supporters say that the bill will preserve jobs and
encourage growth in the automobile manufacturing industry in
Missouri.  People will come here to buy cars that have been built
in Missouri, and auto makers will build more cars here.

Testifying for the bill were Representative Spreng; Associated
Industries of Missouri; and Taxpayers Research Institute of
Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am