SB 124 - Under current law, if property is traded in on a purchase, purchasers pay sales or use tax only on the excess, if any, of the purchase price of the new item less any trade-in allowance and any applicable rebates.

This act authorizes the reduction in the purchase price only for trade-in items upon which a sales or use tax has been paid. The act provides a presumption of proper sales and use tax payment on a motor vehicle, trailer, boat, or outboard motor if the item has a valid Missouri certificate of title.

RUSS HEMBREE