JEFFERSON CITY — State Sen. Will Kraus, R-Lee’s Summit, announced today that a bill preventing the Missouri Department of Revenue from collecting taxes on delivery fees will be one of his priorities for the upcoming 2017 legislative session. The senator’s announcement comes on the heels of a letter sent by the department, notifying Missouri business owners that they may soon be required to collect sales tax on delivery charges.
“It has become increasingly common for our courts to hand down a ruling and then see the Department of Revenue reinterpret state tax law, without legislative approval and without any regard for the impact on hard-working Missouri families,” said Sen. Kraus. “This latest move by the department to make delivery charges subject to sales tax is just another example of bureaucratic overreach into taxpayers’ pockets.”
In 2015, the Missouri Supreme Court ruled in Alberici Constructors, Inc. v. Director of Revenue that charges for delivery of a rented crane are subject to use tax because the parties intended for delivery of the crane to be part of the crane rental. The DOR’s letter is in response to that ruling.
“Last year, I was happy to lead the successful effort to pass Senate Bill 18, which requires the DOR to notify affected businesses or individuals when a change in tax regulation occurs,” Sen. Kraus added. “While I’m pleased to know this legislation has been effective, it is nevertheless distressing to know that the DOR is always on the lookout for ways to reinterpret tax law in order to generate as much revenue as possible, especially when it’s done at the expense of hardworking families. I look forward to working during the upcoming 2017 session to protect Missourians from another egregious DOR revenue-grab.”