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Missouri business representatives explain "local use tax" - KOAM TV 7

Missouri business representatives explain "local use tax"

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Voters in some cities in Jasper County, Missouri will soon decide if local sales taxes will continue to apply to out-of-state vehicle purchases.  

If you live in Missouri and buy a car in a neighboring state, you pay sales tax towards the state of Missouri and the community you live in Missouri.  For a vehicle that costs $20,000, this means $600 to $800 in taxes.  

Local chamber of commerce officials in Missouri say this tax helps funds various city operations.

But a recent Missouri Supreme Court ruling went against this operation.  Starting in November of 2016, Missouri cities won't be allowed to collect local sales taxes on out-of-state purchases, unless the city has a "local use tax."

Voters in Webb City, Carthage, Carl Junction, and Joplin will decide in November if they want a local use tax.

"This is not a new tax.  We can't say that often enough," says Joplin area Chamber of Commerce President  Rob O'Brian.

The local use tax would apply to out-of-state purchases of $2,000 or more.

"If people will look at their tax forms when they file them every year, there's a line that says if you purchase more than $2,000 out-of-state, you should enter that here," explains O'Brian.

Even officials in cities with few or no car dealerships want the measure passed.

"We cannot afford to lose any more public services," says Gary Stubblefield with the Carl Junction Chamber of Commerce.

"We love our community," says Brad Link, owner of Vans Vans vehicle sales in Webb City.

No matter what city, city officials and business leaders say the dollars lead to common sense.

Shortly after the Missouri Supreme Court made its ruling, Governor Jay Nixon let the current out-of-state sales tax on vehicles temporarily stay in operation, to give time for communities to decide if they want to get around the ruling and pursue the "local use tax."  City leaders in Jasper County want the local use tax measure passed this year, fearing someone may say the temporary use of the current out-of-state sales tax is improper, and take the case to court.

Several people have voiced opposition to the local use tax on the KOAM/KFJX Facebook page.  Click here to see these opinions.

For more information on the local use tax proposal, click here.

 

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