HB 2545 -- Sales Tax on Motor Vehicles

Sponsor:  Parson

Currently, sales tax is collected by the Department of Revenue on
all motor vehicles, trailers, boats, or outboard motors leased or
sold in Missouri based on the state and local rates in effect at
the purchaser's address; and any local sales tax revenue
collected is distributed to the purchaser's local subdivision.
This bill changes the distribution of the local sales tax revenue
to 50% to the political subdivision where the purchaser lives and
50% to the political subdivision where the dealership is located.
New and used motor vehicle dealers must collect the sales tax at
the time of lease or sale for all motor vehicles, trailers,
boats, or outboard motors sold by the licensed dealership, unless
the leased vehicle, trailer, boat, or motor had been registered
and sales taxes already paid.  The dealership must remit the
sales tax collected to the department, less a compensation
deduction.  Late penalties, as specified in the bill, apply if
the dealership does not timely remit the sales tax to the
department; and upon the fourth late or insufficiency penalty
within a year, a dealership's state license can be suspended or
revoked until all taxes, fees, and penalties have been remitted
or fully satisfied.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm