Senate Advances Measure That Will Halt Abusive Practices by the DOR
The Bill Will Correct Some of the Department’s Flawed Policies
JEFFERSON CITY— The Missouri Senate today advanced a measure that ensures the Department of Revenue does not overreach its authority by creating unfair and unnecessary taxes on consumers and businesses. Senate Bill 16 exempts delivery charges from sales and use taxes.
Senate Leader Ron Richard, R-Joplin, said this bill is important for a stronger economy because it will cut back harmful red tape and help end the overreach of government.
“Regulatory reform is important on the list of reforms we need in this state to send a message that Missouri is open for business,” said Richard. “The Senate is working hard this session to create a business-friendly environment that will help attract more jobs to the state, and this measure will help us do just that.”
In January 2015, the Missouri Supreme Court ruled in Alberici Constructors, Inc. v. Dir. Of Revenue that charges for delivery of a rented crane were subject to tax because the parties intended for delivery of the crane to be part of the crane rental. As a result, the Department of Revenue sent a letter notifying Missouri business owners that they may soon be required to collect sales tax on delivery charges.
Senate Bill 16 requires the Department of Revenue’s policy to reflect the old rule of determining how delivery charges are taxed. The measure would officially exempt delivery charges from the state sales tax if they are separately stated and within an industry standard range (usual and customary).
Bill sponsor, Sen. Will Kraus, R-Lee’s Summit, said the measure will also reduce governmental burden on businesses and taxpayers.
“Government overreach and the overtaxing of our citizens is hurting Missouri’s job growth and economic development,” said Kraus. “These aggressive practices must stop. Senate Bill 16 is a step forward in taking a strong stand to hold the out-of-control bureaucracy accountable.”
“Over the past few years, the Legislature has pushed back on the former administration’s harmful tax policies,” said Majority Floor Leader Mike Kehoe, R-Jefferson City. “Moving forward with our new governor, it’s important to have clear and well-communicated tax policies for our businesses and communities. Senate Bill 16 helps clarify and correct the former administration’s harmful rules.”
The measure now moves to the House for consideration. To learn more about this bill or to track its progress, visit www.senate.mo.gov.
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Lauren Hieger, Senate Majority Caucus Communications Director
(573) 751-7266 – lauren.hieger@senate.mo.gov