Complicated titling tax measure to go to Warrenton voters in April

Posted 11/7/19

By Tim Schmidt Record Managing Editor Warrenton voters next April will decide whether or not the city should continue receiving a titling tax on some purchases made out of state. The titling tax …

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Complicated titling tax measure to go to Warrenton voters in April

Posted

Record Managing EditorWarrenton voters next April will decide whether or not the city should continue receiving a titling tax on some purchases made out of state.The titling tax imposes a local sales tax on the titling of motor vehicles, trailers, boats and outboard motors that were purchased from a source other than a licensed Missouri dealer.The ballot measure does not create a new tax, but rather allows the city to continue a tax already being collected, officials noted during the Dec. 1 board of aldermen meeting. Aldermen voted 5-0 to place the measure on the April 2016 ballot.Complicating matters is confusing ballot language set by state statute, City Attorney Chris Graville noted. In order for the city to continuing receiving revenue from the titling tax, voters must oppose the measure.“I think it’s very misleading,” Graville commented. “Most people would think, if’ I’m going to vote for a tax, I vote yes, but basically, if you want to vote for the tax, you have to vote no.”If the tax is discontinued, it would result in Warrenton losing approximately $63,000 in sales tax revenue annually. It will also put automobiles dealers in the city at a disadvantage to non-Missouri dealers.Graville recommended the city should work alongside other local municipalities and automobile dealers to educate voters about the titling tax and how a no vote is in the best interests of local governments.In 2013, Missouri lawmakers approved imposing a state and local sales taxes on the sale of motor vehicles, trailers, boats and outboard motors at the time the buyer went to get a title on the new purchase. According to the law, the residence of the purchase is used to determine the local tax rate.Officials said all taxing jurisdictions that have not previously approved a local use tax must proceed with a ballot measure allowing voters to decide whether or not to discontinue collecting sales tax on the out-of-state purchases.Governments across Missouri must put the titling tax proposal on the ballot no later than November.“Under this scenario, it forces the transaction into the local community where the car is getting titled,” Ward 2 Alderman Gary Auch said.Warrenton


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