A confusing taxation issue for some Missouri businesses could get some clarity with a new bill filed by State Representative Diane Franklin.
Franklin (R-Camdenton) has filed legislation to end the taxation on the delivery of goods in the State of Missouri.
“I am getting calls from guys that haul rock and dirt, people that deliver concrete, businesses that deliver appliances, all kinds of businesses are calling me asking if they are supposed to be collecting this tax or not. My legislation is aimed at clarifying this since in the past it has never been taxed” said Franklin.
The issue stems from a 2015 Missouri Supreme Court ruling which allows the state to impose a levy on the delivery of items. That decision was followed by a letter from the Department of Revenue in July of 2016 telling businesses they could be subject to the tax.
“I feel the courts and the Department of Revenue have both overreached on this issue. It’s never been collected before and they have created a lot of confusion among businesses” continued Rep. Franklin. “We don’t need a tax increase, and because this was not collected in the past that is exactly what it is. Just because the Supreme Court allows it doesn’t mean we should be doing it.”
Representative Franklin’s legislation is HB 704 and is currently waiting committee assignment. Representative Franklin represents the 123rd District which includes Camden and Laclede Counties.
