Bill Text: MO HB2080 | 2012 | Regular Session | Introduced
Bill Title: Changes the laws regarding the sales and use tax on a trade-in or exchange transaction
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-04-26 - Referred: Ways and Means (H) [HB2080 Detail]
Download: Missouri-2012-HB2080-Introduced.html
SECOND REGULAR SESSION
96TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE KEENEY.
4494L.01I D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To repeal sections 144.025 and 144.027, RSMo, and to enact in lieu thereof two new sections relating to sales tax for trade-in or exchange transactions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 144.025 and 144.027, RSMo, are repealed and two new sections enacted in lieu thereof, to be known as sections 144.025 and 144.027, to read as follows:
144.025. 1. Notwithstanding any other provisions of law to the contrary, in any retail sale other than retail sales governed by subsections 4 and 5 of this section, where any article on which sales or use tax has been paid, credited, or otherwise satisfied or which was exempted or excluded from sales or use tax is taken in trade as a credit or part payment on the purchase price of the article being sold, the tax imposed by sections 144.020 and 144.440 shall be computed only on that portion of the purchase price which exceeds the actual allowance made for the article traded in or exchanged, if there is a bill of sale or other record showing the actual allowance made for the article traded in or exchanged. Where the purchaser of a motor vehicle, trailer, boat, or outboard motor, hereinafter referred to as a "unit", receives a rebate from the seller or manufacturer, the tax imposed by sections 144.020 and 144.440 shall be computed only on that portion of the purchase price which exceeds the amount of the rebate, if there is a bill of sale or other record showing the actual rebate given by the seller or manufacturer. Where the trade-in or exchange allowance plus any applicable rebate exceeds the purchase price of the purchased [article] unit there shall be no sales or use tax owed and such excess trade-in or exchange allowance may be applied to any subsequent purchases of units made within one hundred eighty days of the trade-in. This section shall also apply to [motor vehicles, trailers, boats, and outboard motors] units sold by the owner or holder of the properly assigned certificate or certificates of ownership if the seller purchases or contracts to purchase [a] subsequent [motor vehicle, trailer, boat, or outboard motor] units within one hundred eighty days before or after the date of the sale of the original [article] units and [a bill] bills of sale showing the paid sale price is presented to the department of revenue [at the time of licensing. A copy of the bill of sale shall be left with the licensing office]. If the sale price of the original unit exceeds the purchase price of subsequent units, such excess shall only be applied to any subsequent units purchased within one hundred eighty days of the sale of the original unit. Where the subsequent motor vehicle, trailer, boat, or outboard motor is titled more than one hundred eighty days after the sale of the original motor vehicle, trailer, boat, or outboard motor, the allowance pursuant to this section shall be made if the person titling such article establishes that the purchase or contract to purchase was finalized prior to the expiration of the one hundred eighty-day period.
2. As used in this section, the term "boat" includes all motorboats and vessels, as the terms "motorboat" and "vessel" are defined in section 306.010.
3. As used in this section, the term "motor vehicle" includes motor vehicles as defined in section 301.010, recreational vehicles as defined in section 700.010, or a combination of a truck as defined in section 301.010, and a trailer as defined in section 301.010.
4. The provisions of subsection 1 of this section shall not apply to retail sales of manufactured homes in which the purchaser receives a document known as the "Manufacturer's Statement of Origin" for purposes of obtaining a title to the manufactured home from the department of revenue of this state or from the appropriate agency or officer of any other state. 5. Any purchaser of a motor vehicle or trailer used for agricultural use by the purchaser shall be allowed to use as an allowance to offset the sales and use tax liability towards the purchase of the motor vehicle or trailer any grain or livestock produced or raised by the purchaser. The director of revenue may prescribe forms for compliance with this subsection.
144.027. 1. When a motor vehicle, trailer, boat, or outboard motor, hereinafter referred to as a "unit", for which all sales or use tax has been paid is replaced due to theft or a casualty loss in excess of the value of the unit, the director shall permit the amount of the insurance proceeds plus any owner's deductible obligation, as certified by the insurance company, to be a credit against the purchase price of [another motor vehicle, trailer, boat or outboard motor which is] subsequent units that are purchased or [is] contracted to purchase within one hundred eighty days of the date of payment by the insurance company as a replacement [motor vehicle, trailer, boat or outboard motor] unit. Where the credit exceeds the purchase price of subsequent units, there shall be no sales or use tax owed and such excess credit may be applied to any subsequent units purchased within one hundred eighty days of the date of payment by the insurance company as a replacement unit. As used in this section, the term "boat" includes all motorboats and vessels, as the terms "motorboat" and "vessel" are defined in section 306.010.
2. If the owner of a [motor vehicle, trailer, boat or outboard motor] unit as described in subsection 1 of this section does not have insurance coverage for the [motor vehicle, trailer, boat or outboard motor] unit, the director shall permit the fair market value of the [motor vehicle, trailer, boat or outboard motor] unit as determined by the Kelly Blue Book, NADA Used Car Guide, Abos Blue Book or the average of two appraisals from licensed motor vehicle or boat dealers to be a credit against the purchase price of a replacement [motor vehicle, trailer, boat or outboard motor] unit which is purchased or is contracted to purchase within one hundred eighty days of the date of such loss as certified by a law enforcement agency or such other evidence as the director may require as proof of the date of loss of the [motor vehicle, trailer, boat or outboard motor] unit.
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