Legislative Column for Sept. 13, 2019
Nobody likes paying taxes. I don’t think I’ve ever met anyone who enjoys writing a check to the government. The worst for many of us is that sales tax check we write to the Department of Revenue when we buy a new vehicle. The only thing that makes it bearable is that we get to deduct the price of a vehicle we sold from the value of the one we buy.
Historically, Missourians have been able to reduce their sales tax cost even further if they sell two or more vehicles in order to buy another. This was true for cars, trucks, motorcycles, boats, motors and trailers. As long as the extra vehicles were sold within 180 days of the new vehicle purchase, they counted.
That practice came to a temporary halt in June, when the Missouri Supreme Court ruled that Missouri law only allows a buyer to deduct the value of one vehicle sold or traded-in against any single purchase. The decision contradicted years of long-standing tradition and promised to increase the cost of a vehicle purchase for thousands of Missourians. With end-of-year car and boat sales approaching, the governor felt it was important to reverse the court’s one-for-one ruling.
Lawmakers were already scheduled to be at the Capitol on Sept. 11 for the constitutionally-mandated veto session. The governor decided to call us into session for a few extra days to address the sales tax issue. The House of Representatives tweaked the language of existing law to make it clear that Missourians would be able to deduct multiple vehicles against their sales tax liability. The measure passed the House with almost universal support and moved on to the Senate, which also approved the change.
If it were not for the business of sales taxes, this would have been a short week at the Capitol. The governor vetoed just six bills this year. None of these were so urgent that an override of the governor’s veto was anticipated. In fact, the sponsors of the vetoed Senate bills didn’t even move for override consideration.
Some in the media and elsewhere have questioned the governor’s decision to call an extraordinary session to address a simple tax matter. They say there are more pressing issues that the Legislature could be addressing instead. I think he made the right call leaving those weightier matters for the regular session that begins in January. Without specific proposals on the table, lawmakers could find themselves bogged down in endless debates with no conclusion in sight. I don’t see any reason to incur additional taxpayer expense when a legislative resolution is unlikely.
The sales tax issue was simple and straightforward and could be easily resolved in a few days. By changing the law in September, the 180-day grace period will cover all vehicle sales since the court’s decision. Every Missourian will be entitled to deduct all their trade-ins from the cost of a new vehicle. It’s not an earth-shattering issue, but I’m sure many Missourians who buy new cars, trucks or boats will appreciate a little extra savings on their taxes.
It is my great honor to represent the citizens of the 33rd Senatorial District. Although the Legislature has adjourned for 2019, I remain your senator throughout the year. If there’s anything that I can do to assist you, please feel free to contact my Capitol office at (573) 751-1882.