Weekly Column for Sept. 13, 2019
This week, the Missouri General Assembly met for our annual, constitutionally mandated veto session, and for the extraordinary legislative session called by the governor. Following the legislative session earlier this year, six truly agreed to and finally passed bills were vetoed by the governor; however, lawmakers did not vote to override any of the governor’s vetoes during the annual veto session.
The extraordinary session ran concurrently with veto session and was necessary to address the outcome of the Missouri Supreme Court case Kehlenbrink v. Director of Revenue. This case was brought after the Kehlenbrinks sold multiple vehicles and tried to use the sales to offset the tax owed on a new vehicle purchase. Unfortunately, their request was denied.
As a result of the case, the Missouri Supreme Court ruled that only one vehicle can be sold and used as a credit to offset the sales tax on the purchase of a new vehicle. Previously, the Department of Revenue’s long-standing policy was that multiple vehicles could be used to offset the sales tax obligation of a new vehicle purchase.
This decision by the Missouri Supreme Court interpreted an existing statute. No law or newly enacted statute was thrown out or changed, but new legislation was needed to clarify the department’s previous position on the matter. By addressing this issue in extraordinary session and changing state law, Missourians will save money, and the state will maintain its existing policy that taxpayers have come to expect. Also, by addressing this now, Missourians will be within the 180-day window of the court’s decision — saving them from being denied the ability to take advantage of this cost-saving policy.
I’m proud to take a stand for taxpayers and address this issue. This is in the best interest of Missourians. They deserve better than an unwelcomed, surprise tax bill after purchasing a new vehicle, boat or other motorized equipment.
It is an honor to serve you in the Missouri Senate. Please do not hesitate to contact my office at (573) 751-3678 or by email at dave.schatz@senate.mo.gov if you have any questions.