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Standing Up to Government Overreach

By Sen. Will Kraus, R-Lee’s Summit

In my time as chairman of the Senate Ways and Means Committee, one of the most disappointing actions by our government that I’ve witnessed is the bureaucracy’s continual overreach into taxpayers’ pockets.

Last week, the Senate passed a fix to a sales tax law I’m sponsoring, Senate Bill 1025, pushing back against the Department of Revenue’s (DOR) perpetual quest for more revenue. The bill would restore instructional classes given at dance studios, gymnastics facilities and other fitness facilities to the same designation as educational classes — the classification they held before the DOR reinterpreted a sales tax law in 2008.

After changing their interpretation of the law, the department began auditing locally owned studios and gyms and claiming they owed huge amounts of back taxes for not collecting sales tax on their classes. Because they were never notified of the change in interpretation, gym owners across the state were shocked when they were given their bills, some of which totaled hundreds of thousands of dollars.

Kraus
Kraus

It is distressing that our Department of Revenue is actively seeking to reinterpret tax law to gain as much revenue as possible, especially in ways that are so damaging to our state’s economy. Our government should be looking to boost job growth and support the small businesses who make it possible instead of imposing burdensome regulations and overreaching into business owners’ pockets.

Senate Bill 1025 corrects this egregious revenue-grab while also promoting our economy and improving our communities. Several businesses affected by the change have been devastated, and many are struggling to remain open. It is never acceptable for our state government to wreak havoc on our economy.

In addition to the negative economic impact, the DOR’s collection policy hurts the ability of many families to pay for classes that are beneficial to their children’s growth. Children throughout the state learn valuable skills through dance, gymnastics and sports teams. They learn work ethic, how to work as a team and how to love a healthy lifestyle. Adding an extra cost in the form of sales tax will force some families to drop the classes, and their children will miss out on the valuable life lessons they offer.

As a public servant, I cannot watch bureaucracy regulate our economy into the ground. I sponsored Senate Bill 1025 to prevent the DOR from inflicting further damage on Missouri’s business owners and communities. Remaining vigilant against this kind of government overreach and keeping money in taxpayers’ pockets is vitally important.