Several mid-Missourians told KRCG 13 Sunday they liked a proposal to eliminate sales taxes for titling old cars.
A bill filed in the Missouri Senate would eliminate state and local sales taxes for titling cars if they are at least 10 years old. Jessica Kay said it does not make sense to charge sales tax for cars that old considering how little they sell for.
â??The older the car is, the less you should have to spend on it,â?? she said.
Boone County resident John Harman said the state gets a lot more tax revenue out of a new car than a car that old and would not lose much if the measure passed. He said the cut would help poor people who need a car.
According to the Missouri Department of Revenue, Columbia charges a sales tax of more than 3 percent on motor vehicles in addition to the stateâ??s more than 4 percent tax. This means anyone buying a car in Columbia has to pay a combined 7.6 percent sales tax when they get the title to their car. On Sunday, KRCG 13 found a 1999 Chevrolet Malibu in one lot listed at $7,000. Under current law, the DOR calculates anyone buying that car would have to pay $532 in sales tax. The tax for that car would be waived under the senate proposal.
Not everyone is convinced the move is a good idea. Jack Gallagher said the current tax level is too high but getting rid of it entirely goes too far in the other direction. He said a better idea would be to reduce taxes charged for cars of that vintage.
â??Getting rid of it altogether seems like kind of a harsh move,â?? he said.
The bill, SB 693, is currently awaiting a committee assignment.