JEFFERSON CITY — Today, Sen. Bob Dixon, R-Springfield, sponsored a successful amendment to Senate Bill 26 to roll back actions by the Missouri Department of Revenue (DOR) that negatively impact small businesses and taxpayers throughout Missouri. 

“DOR has stretched beyond recognition a statute on sales and use taxes on entertainment or athletic events and, through agency action, applied it to health and fitness centers,” said Sen. Dixon.  “This action already threatens to shutter some businesses in Springfield.  It is our duty to protect citizens, taxpayers and small businesses by giving the state agencies clear instructions through statute.  This should make clear to DOR that they have overstepped their delegated authority.”

Added to a larger bill on tax policy, the amendment would update the statute and reverse decisions made by the Missouri Department of Revenue.  Over the last decade, the Missouri Supreme Court has reviewed the statute in at least two cases:  Wilson's Total Fitness Center v. Director of Revenue (2001) and Michael Jaudes Fitness Edge v. Director of Revenue (2008).  Both cases dealt with the distinction between exercise for health and exercise for “amusement or recreation.”  Recently, the Department of Revenue has determined that fees for fitness or yoga classes are subject to this sales tax, because these facilities are “places of amusement or recreation.”   

“Small business owners, entrepreneurs and taxpayers shouldn’t be looking over their shoulders, wondering whether the Department—without legislative direction—is going to tax them on something for which they’ve never been taxed before,” Sen. Dixon pointed out.  “Uncertainty is the greatest threat to economic growth and job creation in Missouri.”