HCS HB 532 -- TAX EXEMPTION FOR CERTAIN VEHICLES

SPONSOR:  Richard (Spreng)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Job
Creation and Economic Development by a vote of 15 to 1.

This substitute exempts all motor vehicles assembled and sold in
Missouri from the state sales and use tax.  Local sales and use
taxes will continue to be collected unless the locality decides
to exempt them.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$2,437,500 in FY 2006, $3,250,000 in FY 2007, and $1,625,000 in
FY 2008.  Estimated Cost on Other State Funds of $4,062,500 in FY
2006, $8,125,000 in FY 2007, and $9,750,000 in FY 2008.

PROPONENTS:  Supporters say that the bill is about generating
sales; and if auto makers can't sell their products, they'll stop
producing them.  More auto sales in Missouri will mean more jobs
in Missouri.  The bill will increase sales of new cars and trucks
that are built and sold in Missouri.  Missouri is the third
leading state in car manufacturing and second in truck
manufacturing.  Missouri auto manufacturers will be encouraged to
build a new car line and new manufacturers to build a facility in
the state.  Every car has a unique vehicle identification number
(VIN) which indicates where and when it was built, so it would be
easy to extend this tax exemption to used cars that were built
and sold in Missouri.  Currently, it just applies to new cars.

Testifying for the bill were Representative Spreng;
Ford-Hazelwood Task Force; Missouri Automobile Dealers
Association; St. Louis Community College; Missouri United Auto
Workers; and DaimlerChrysler Corporation.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm