State Senators Move to Limit Overreach by the Missouri Department of Revenue
State senators today approved legislation that will limit Department of Revenue overreach into taxpayer pockets and make the cost of doing business in Missouri more affordable. Very simply, Senate Bill 16 exempts delivery charges from sales and use taxes. The need for this legislation arose after a recent Missouri Supreme Court ruling opened the door to applying taxes to delivery fees.
In January 2015, the Supreme Court ruled in Alberici Constructors, Inc. v. Director of Revenue that charges for delivery of a rented crane were subject to use tax because the parties intended for delivery of the crane to be part of the crane rental. In response to the ruling, the DOR sent a letter notifying Missouri business owners that they may soon be required to collect sales tax on delivery charges. The DOR was required to notify business owners thanks to a 2015 measure passed by the General Assembly.
Senate Bill 16 will put into statute the rule that was previously used by the DOR to determine how delivery charges are taxed. More importantly, it will protect our business community and citizens from unfair and unnecessary taxes. It is part of a larger effort to make Missouri a more business-friendly state by reforming our burdensome regulatory environment.
Finally, my office staff and I have had the pleasure of welcoming a number of individuals and organizations from the 20th District to my Capitol office in Jefferson City. Staff members from the Christian County Library and the Springfield-Greene County Library District were on hand for Library Advocacy Day. I was also happy to meet with members of the Missouri Association of Nurse Anesthetists, Missouri Society for Respiratory Care and the Missouri Association of Dental Hygienists, as well as representatives from the home care industry, who were at the Capitol for their annual advocacy day. Thank you to everyone who has stopped by.
If you have any questions or comments 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.