WHEREAS, on June 25, 2019, the Missouri Supreme Court ruled in the case of Kehlenbrink v. Director of Revenue (SC 97287), which held that Section 144.025, RSMo, permits the sale proceeds of only one vehicle as a credit against the purchase price of a new vehicle for the purposes of calculating sales tax; and
WHEREAS, the Department of Revenue has historically allowed for the sale of more than one vehicle to be used as credit against the sales tax owed on the purchase of another vehicle; and
WHEREAS, given the Missouri Supreme Court’s interpretation of the statute, the Department of Revenue will be limited to only allowing the sale of one vehicle to be used as a credit against sales tax owed; and
WHEREAS, we believe that if a taxpayer purchases a motor vehicle and sells one or more motor vehicles within 180 days, the taxpayer should only owe sales tax on the difference between the purchase price and the sale price of the respective motor vehicles; and
WHEREAS, this is in line with the Department of Revenue’s prior practice and what consumers have come to expect; and
WHEREAS, after the Kehlenbrink decision, a statutory change is necessary in order to effectuate this policy.
NOW THEREFORE, on the extraordinary occasion that exists in the State of Missouri:
I, MICHAEL L. PARSON, GOVERNOR OF THE STATE OF MISSOURI, pursuant to the authority vested in me as Governor by the Constitution of the State of Missouri, do, by this Proclamation, convene the One Hundredth General Assembly of the State of Missouri in the First Extra Session of the First Regular Session; and
I HEREBY call upon the Senators and Representatives of said General Assembly to meet in the State Capitol in the City of Jefferson at the hour of 12:00 p.m. on Monday, September 9, 2019; and
I HEREBY state that the action of said General Assembly is deemed necessary concerning each matter specifically designated and limited hereinafter as follows:
- To enact legislation amending Section 144.025, RSMo for the sole purpose of allowing the sale of more than one motor vehicle, trailer, boat, or outboard motor to be used as credit against the sales tax owed on the purchase of another motor vehicle, trailer, boat, or outboard motor.
- To allow the Senate to consider appointments to boards, commissions, departments, and divisions that require the advice and consent of the Senate.
- Such additional and other matters as may be recommended by the Governor by special message to the General Assembly after it shall have been convened.
IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the Great Seal of the State of Missouri, in the City of Jefferson, on this 21st day of August, 2019.
[Michael L. Parson's signature]
Michael L. Parson
[Jay Ashcroft's signature]
Secretary of State