Missouri Supreme Court case effects sales tax - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Missouri Supreme Court case effects sales tax

CAPE GIRARDEAU, MO (KFVS) -

A Missouri Supreme Court case allows Missourians to spend less on sales tax on cars, trucks, and boats in other states.

Craig Street, a Springfield attorney, objected to pay $191.19 in local sales taxes to register a fishing boat, outboard motor and trailer purchased outside Missouri.

He sued the Missouri Department of Revenue because Greene County had no local use tax.

The Supreme Court agreed.

Mike Skelton, the general manager at Cape Girardeau Honda, says his biggest competitors come from Illinois and Kentucky.

"It hasn't come up as much as we anticipated because it's just one piece of the puzzle," Skelton said.

Skelton says a Missouri tax ruling is certainly another obstacle for dealers like him.

"And the tax is obviously a piece of that but it's not the overall deciding factor in most instances," Skelton said.

Here's an example of the Cape Girardeau's sales tax rate breakdown from the city manager's office.

7.975%

Breakdown

3%       state-general

1%       state-education

1/8%   state-conservation commission

1/10% state-parks and soil & water conservation

1%       county

1%       city-general  

½%      city-transportation

¼%      city-sewer capital improvement

¼%      city-water capital improvement

¼%      city-fire

½%      City-parks / stormwater

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