Motor vehicle sales tax collection process change possible

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Motor vehicle sales tax collection process change possible

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The Missouri House of Representatives has approved legislation that could have car buyers paying sales tax for vehicle purchases at the dealership rather than a Department of Revenue (DOR) fee office. With a first-round voice vote, lawmakers approved the House Bill 415, which would streamline the process for consumers and help eliminate approximately 90 percent of the temporary tag abuse seen in the state. The bill now requires another vote in the House before moving to the Senate. According to house.mo.gov, the proposed effective date of the bill is Aug. 28. Sponsored by District 95 Rep. Michael O’Donnell, the bill states licensed motor vehicle dealers would collect and remit sales tax on all motor vehicles sold. O’Donnell noted vehicle sales tax is the only sales tax not collected at the point of sale. He said his legislation would put Missouri in line with the other 47 states who require dealerships to collect the vehicle sales tax. This bill will not only simplify the process…

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