Taxpayer protection bills heard in Senate Ways and Means Committee

Two bills designed to protect taxpayers from changing interpretations by Missouri sales and use tax collectors were heard in Senate committee this week.

SB 584 would clarify the intent of the legislature in applying sales tax to fees paid in or to places of entertainment, recreation and amusement. “The Missouri Department of Revenue has changed their interpretation of the statute several times regarding when sales taxes are to be collected in this industry, causing financial hardship for operators of businesses and creating confusion,” said Ray McCarty, president of Associated Industries of Missouri. “We are looking forward to the legislature clarifying this for the tax collectors and for the business community once and for all.”

SB 662 was also heard.  The bill was filed by the Chairman of the Committee, Senator Will Kraus, and requires the Department of Revenue to notify affected taxpayers when they change interpretations of tax law.  Associated Industries also supports this bill that will allow taxpayers to voluntarily comply with changing tax interpretations, rather than penalizing taxpayers that are not aware of changes made by the tax collection agency.

We will keep you posted of the progress of these bills.