JEFFERSON CITY, Mo. – State Rep. Sheila Solon applauded the governor today for signing her legislation to clarify the state’s law on a tax exemption for some motor vehicles. Solon’s bill, HB 869, will codify current state practice of exempting vehicles owned by entities such as not-for-profits and schools from state and local sales and use taxes.
Solon said the exemption had been in state statute until legislation passed in 2013 inadvertently removed the language. The state Department of Revenue has continued to honor the exemption even though it is no longer in law, but Solon said it is important to put the language back into statute to ensure the exemption continues in future years.
“This is a simple but important fix that will ensure our non-profits and schools continue to have a lower tax burden. I want to thank the governor for signing the bill and my colleagues for giving it overwhelming bipartisan support during the legislative session,” said Solon, R-Blue Springs.
Specifically, Solon’s bill authorizes a state and local sales and use tax exemption for motor vehicles, trailers, boats, or outboard motors owned and used by the following:
(1) A not-for-profit civic, social, service, or fraternal organization in its civic or charitable functions and activities;
(2) A private, not-for-profit elementary school, secondary school, or higher education institution in the conduct of its educational functions and activities; and
(3) An elementary school, secondary school, or higher education institution in the conduct of its education functions and activities that are supported by public funds.
The bill also states that any transfer of motor vehicles, trailers, boats, or outboard motors because of a corporate merger, liquidation, exchanges of stock or securities, capital contribution, purchasing a partnership interest, dividend distribution, or liquidation of partnership interest is included in the exemption.