Wright City discusses sales tax for vehicles

By Joe Barker, Record Staff Writer
Posted 11/7/19

Wright City is making plans to address a sales tax issue relating to vehicles purchased out of state. During the April 28 board of aldermen meeting, the board discussed the city’s need to place a …

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Wright City discusses sales tax for vehicles

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Wright City is making plans to address a sales tax issue relating to vehicles purchased out of state.During the April 28 board of aldermen meeting, the board discussed the city’s need to place a proposition on the ballot in an upcoming election to allow the city to keep collecting the sales taxes on vehicles purchased out of state.The proposition will ask Wright City voters if the city should continue collecting the local sales tax on the titling of motor vehicles, trailers, boats, and outboard motors that were purchased out of state.Because of a state law passed in 2014, either a use tax or a sales tax needs to be approved by voters of the collecting agency. Cities or counties that don’t have a voter-approved measure would be unable to collect the revenue after the deadline passes.The deadline had been November 2016. City Attorney Paul Rost said he thought a two-year extension had been granted.Rost said he needed to double check on where things stand on the time line so the city knows how soon it has to act.The board discussed the possibility of putting it on the August election ballot, but could also wait until November. If a two-year extension has been granted, the board could delay a vote even longer.In the recent April election, three local municipalities won approval to continue receiving sales tax revenue from some purchases made out of state.Voters in Warrenton, Truesdale and Innsbrook all approved continuing a sales tax on the titling of motor vehicles, trailers, boats and outboard motors that are purchased from a source other than a licensed Missouri dealer. All three cities will continue to receive a tax already being collected.The vote did not create a new tax, officials from all three entities emphasized prior to the April election.The ballot measure, which required voters to support it by casting a no vote, was approved 651-361 in Warrenton, 38-17 in Truesdale and 166-17 in Innsbrook.If the tax had been discontinued, out-of-state dealerships would no longer be required to collect the local tax. Similar purchases made in-state will be subject to the local sales tax regardless of the election.Wright City


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