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Missouri Senate bill aims to eliminate sales tax on used vehicle - KOAM TV 7

Missouri Senate bill aims to eliminate sales tax on used vehicles 10 years or older

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A Missouri Senate bill aims to eliminate sales tax on vehicles ten years or older that cost under $15,000.
"Oh, it would have been excellent if I didn't have to pay sales tax," said Zach Poelma, Carl Junction resident.  "I literally just wrote a check for $522.50."
Poelma just paid his sales tax for a 12-year-old vehicle he purchased yesterday and already feels the strain on his pocketbook.
"I can think of a thousand other things I'd rather spend it on than sales tax," he said.
Missouri SB 693 aims to eliminate that tax on vehicles like his.  Lawmakers hope this would benefit those with lower incomes.
"Think about the single mom that is looking at purchasing a used vehicle because she can't afford a new one," said state representative Charlie Davis, Missouri House of Representatives.  "What more of a better way can we help her out?"
And lawmakers added the amendment with the $15,000 cap to ensure that those who purchase expensive classic cars still have to pay a sales tax.
Lawmakers also hope the bill would boost used car sales.
"We've lost a few sales because of the sales tax," said Megan Lewis, agent for Red Auto Sales LLC in Joplin. "That's the first priority for a lot of people, getting their vehicle registered."
"I think more people will come in and buy more cars because everybody worries about the sales tax," said Cat Johnson, owner of Cat Johnson Auto Sales in Joplin.  "I think it would definitely help."
For some, no sales tax could make a difference in which vehicle they can afford.
"I tried to find a car that was as cheap as I can  that way I don't have to pay as much for my tax," said Jake Tilton, Webb City resident.
"I could have gotten something nicer if I didn't have the sales tax," Poelma said.
Poelma suspects that many feel the same.
"In towns like this, you're going to see a whole bunch of 10 years and older cars, people don't want to spend that extra money," he said.
The bill is currently scheduled for its third reading in the Senate next week.
It is then expected to move to the House.
Representatives expect the Senate bill to have great bipartisan support in the House as well.
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