SS#2 SCS SB 363 -- MOTOR VEHICLE TAX COLLECTION AND FEE OFFICES

SPONSOR:  Griesheimer (Jones, 89)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 13 to 0.

Beginning January 1, 2012, this substitute allows the Director of
the Department of Revenue to appoint any motor vehicle dealer to
act as a fee agent for the department for the purpose of titling
and registering a motor vehicle at the time of the initial sale
or lease.  Beginning July 1, 2010, dealers may apply to the
department director to collect the sales and use tax on vehicles
sold by the dealer.  If authorized, the dealer must file a return
and remit the tax collected, less a 2% timely filing deduction,
to the department.  Dealers will not be eligible for fee office
fees or general revenue funds for collecting and remitting motor
vehicle sales taxes.  Dealers will be subject to the sales tax
law under Chapter 144, RSMo, and must file a monthly sales tax
report pursuant to Section 301.280.

Currently, if the trade-in and rebate amount is greater than the
purchase price of a new motor vehicle, trailer, boat, or outboard
motor, no tax is owed on that item.  The substitute allows a
taxpayer who trades-in or sells a motor vehicle, trailer, boat,
or outboard motor for more than the purchase price of a
subsequent motor vehicle, trailer, boat, or outboard motor to
apply the excess amount to a subsequent purchase if purchased
within 180 days of the original item.  This provision will also
apply to an item replaced due to theft, casualty, or loss.

The department director is required to award fee office contracts
through a competitive bidding process with priority given to
school districts or coalitions of school districts, charitable
organizations, nonprofit organizations, and political
subdivisions.  All fees collected by a tax-exempt organization
may be retained and used by the organization.  The process of
awarding a fee office contract by any public governmental body
must be public, and no meeting may be closed or any record
sealed.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
in FY 2010, Unknown in FY 2011, and Unknown - More than $100,000
in FY 2012.   Estimated Effect on Other State Funds of a cost of
Unknown in FY 2010, a cost of Unknown in FY 2011, and an income
of More than $100,000 to a cost of Unknown in FY 2012.

PROPONENTS:  Supporters say that the bill will allow motor
vehicle dealers to collect taxes for the state.  Currently, only
four states do not allow this practice.

Testifying for the bill were Senator Griesheimer; and Mike Kehoe.

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 9:26 am