No Local Sales Tax on Out-of-State Sales of Motor Vehicles, Boats and Trailers

In an opinion handed down on Jan. 31, the Missouri Supreme Court ruled that local sales taxes cannot be levied on out-of-state purchases of motor vehicles, trailers, boats and motors. Until this ruling, the Missouri Department of Revenue treated all purchases of motor vehicles, trailers, boats and motors as in-state purchases and collected local and state sales taxes at the time of registration. The Court also ruled that the local use tax applies to out-of-state purchases of motor vehicles, trailers, boats and motors, contrary to an earlier decision by the Administrative Hearings Commission.

SOURCE: http://www.mocities.com/

 

3 Comments

    • We think it only applies once a state-determined effective date is established. For clarity, since this is a state issue, contact the Missouri Department of Revenue at dor.mo.gov. Since the Missouri Supreme Court just made the decision, it might be some time before specific information on how it applies is available.

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