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Governor Vetoes Local Motor Vehicle Sales Tax Legislation

Governor Jay Nixon has again vetoed legislation designed to allow local sales taxes to apply to purchases of vehicles, trailers, boats and outboard motors from dealers in other states.

The Governor cited technical flaws with the legislation as his reason for vetoing SB 182.   In a statement, the Governor said language allowing repeal of the local taxes could have inadvertenly resulted either in the loss of local taxes on all vehicle sales (including those purchased from instate dealers) or would have resulted in the inability of voters to repeal the local tax on private vehicle sales.  The Governor did acknowledge the bill was a significant improvement over the bill he vetoed last session because it allowed voters to repeal the tax and did not result in retroactive taxation.

The legislature could attempt to override the Governor’s veto, or pass another bill that addresses these technical concerns.  The legislative session ends in four weeks on May 17, 2013.

Click HERE for an article posted by the Governor’s office, or HERE for the official veto letter.

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