Missouri governor signs bill to save car tax break

Missouri governor signs bill to save car tax break
Gov. Parson signed HB1 into law, which will allow the sales proceeds of more than one vehicle to be used as a credit against the sales tax owed on a new vehicle. (Source: Gov. Mike Parson)

JEFFERSON CITY, Mo. (AP) — A Missouri tax break for trading-in multiple vehicles will continue now Gov. Mike Parson has signed a bill preserving it.

Parson signed the bill Wednesday.

He had called a special legislative session earlier this month to save the tax break, which allows people and businesses to get a discounted sales tax on a new vehicle after trading-in multiple used cars, boats or other vehicles.

Missouri Supreme Court judges in June tossed out the discount for multiple trade-ins. Judges ruled the tax break only applies to one-to-one trade-ins.

Few, if any, people or businesses appear to have lost out on the tax break since the ruling. A spokeswoman for the Revenue Department has said the agency continued to allow sales tax discounts for multi-vehicle trade-ins as the department updated its rules.

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