Last March, the Missouri Supreme Court ruled local sales taxes can only be collected on in-state sales. This meant consumers who purchased vehicles out-of-state would not be liable for sales taxes to their city or county, and those governments could not impose a use tax—a kind of sales tax that’s remitted by the purchaser instead of the retailer—unless the voters first approved it.

To deal with the issue, the Legislature passed a measure last session that basically reversed the court’s ruling and allowed the taxes to be retroactively collected. The measure was ultimately vetoed.

We’re addressing the problem again this session. Local sales taxes were approved by a vote of the people, under the completely justifiable assumption that all motor-vehicle purchases would be taxed, not just ones from local retailers—it wouldn’t make sense to impose a tax only on local sellers, as this would just push people to buy from other areas. The Supreme Court’s decision, however, basically dictates that unless a jurisdiction explicitly approved imposing this tax on out-of-state purchases and person-to-person sales, the county couldn’t charge the tax. This legal nit-picking has had disastrous results on business owners and local governments across the state.

Local retailers are at a severe disadvantage. How can they compete when citizens can simply drive a few miles over the numerous state lines that border Missouri to get a reduced price? In fact, shortly after the Missouri Supreme Court’s decision, car dealers in Illinois began advertising the amount Missouri consumers could save by buying their vehicle out-of-state. This is not right. We need to protect Missouri business owners.

This would also be a huge loss of revenue for city and county governments, which are still struggling with shrunken budgets from the economic downturn. The Missouri Department of Revenue estimates that about 21 percent of local sales taxes on motor vehicles involve out-of-state or person-to-person sales.

Senate Bill 182 requires all local jurisdictions that have not previously approved a local use tax to put to a vote of the people whether or not to continue collecting sales tax on motor vehicles, among other provisions. Basically, the measure lets local jurisdictions, and ultimately the people, decide what tax policy best suits their area. The measure was passed out of committee, so it now waits for debate on the Senate floor.

I also filed two bills this week regarding transportation in Missouri. Senate Bill 282 increases the penalties for moving violations and traffic offenses that occur within an active emergency zone. Countless emergency responders, MoDOT workers and others have lost their lives because of careless driving in emergency zones. This bill is an effort to better protect those who work in emergency zones.

In addition, I filed Senate 280, which designates a bridge on Highway 65 in Greene County the “Missouri Fallen Soldiers Memorial Bridge.” Our servicemen and women sacrifice much to defend our country. In some instances, they give their lives. It’s important we honor their bravery and dedication.

If you have any questions or comments about this or any other matter regarding your state government, please feel free to contact me at (573) 751-1503; you are also welcome to e-mail me at jay.wasson@senate.mo.gov.