HCS HB 448 -- TAX CREDIT ON SALES AND MANUFACTURING OF CERTAIN
AUTOMOBILES

SPONSOR:  Richard (Spreng)

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

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 after January 1, 2008.  The tax credit may
be claimed against a taxpayer's income tax; corporate franchise
tax; financial institutions tax; and bridge, express, and public
utility companies tax.  Local sales taxes will continue to be
collected.  The provisions of the substitute relating to the tax
credit will expire on December 31 six years after the effective
date.

Currently, electricity used in the primary manufacturing of
automobiles cannot be assessed local or state sales taxes if the
raw materials used in the processing contain at least 25%
recovered materials.  The substitute specifies that the raw
materials used during the primary manufacturing of automobiles
will be assumed to contain at least 25% recovered materials.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$4,383,540 to Unknown in FY 2008, $8,736,773 to Unknown in
FY 2009, and $8,737,741 to Unknown in FY 2010.  Unknown expected
to exceed $100,000.  Estimated Cost on Other State Funds of
Unknown in FY 2008, FY 2009, and FY 2010.  Unknown expected to
exceed $100,000.

PROPONENTS:  Supporters say that for every auto manufacturing job
in St. Louis or Kansas City, there are seven other related jobs
throughout the state.  These smaller businesses produce parts
used in the assembly plants.  The bill will help protect those
jobs by encouraging Missourians to purchase cars that are
assembled in this state.  The amount of money the customer saves
in sales tax will be spent on other goods and services.  The bill
will give an incentive to the auto industry to stay in Missouri
and train workers.  The average salary paid to an employee of an
auto assembly plant is well above that of other Missouri workers.

Testifying for the bill were Representative Spreng; Taxpayers
Research Institute of Missouri; Associated Industries of
Missouri; Missouri Economic Development Council; Cecil Vaughn,
United Auto Workers #710; United Auto Workers, Missouri State Cap
Council; and Harley-Davidson Motor Company.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am