JEFFERSON CITY, Mo. – Wednesday, Gov. Mike Parson signed HB 1 into law, which will allow the sales proceeds of more than one vehicle to be used as a credit against the sales tax owed on the purchase of a new vehicle.
The Missouri House of Representatives overwhelmingly supported and the Missouri Senate unanimously passed HB 1 during a special session earlier this month.
“We’re thankful for the overwhelming bipartisan support of the legislature to address and correct this issue,” GParson said. “Our administration will always do what is right for the hardworking people of our state, and at the end of the day, that’s what this was all about.”
HB 1 amends a state statute to allow for the sale of multiple vehicles to be used as a credit, in line with the Department of Revenue’s prior practice and what consumers have come to expect. Without this amendment, the law would limit Missourians in offsetting their tax liability, creating an unnecessary financial burden for thousands of taxpayers.
Parson announced in August that a special session to address the issue would run concurrently with the constitutionally required veto session to save taxpayers’ money.
“It’s important for Missourians to know how their taxpayer dollars are spent,” Parson said. “We will always do whatever we can to protect their hard-earned money, which is why we not only called this special session but called it to take place concurrently with veto session.”
Recent reports inaccurately overestimated the cost of the special session alone at $71,000. This year’s veto session cost approximately $44,000, and the concurrent special session cost approximately $42,000.
HB 1 will take effect in 90 days. To view the bill, click here.