Greetings from the fourth floor of your Missouri state Capitol.
Summer is winding down and we are beginning to feel the nice temperatures of fall, the waters continue to subside along the Missouri River and with that comeshopes that our farmers can get back into their fields for fall harvest.
Speaking of the Missouri River, Rep. Rudy Veit and I attended a presentation in Herculaneum, Missouri, to hear about the progress they are making on their Port Authority. The governor made it clear navigation along the Missouri River is going to be a key component in future transportation of our Missouri made goods to other states and the world. The plans the Jefferson County Port Authority have are similar in nature to what we want to do in Jefferson City. Rep. Rudy Veit will be carrying this bill in our next session, and I will be co-sponsoring his bill. This will be a win-win for Jefferson City/Cole County and the state of Missouri as a whole.
This past week I attended the Flood Recovery Advisory Working Group’s first meeting at the Lewis and Clark Building where Gov. Mike Parson addressed the group and a number of concerned citizens. I am pleased to see our governor take this proactive approach to the recent flooding. I have mentioned a number of times even in these articles that while the flooding is going on there are conversations about what we can do to mitigate future flooding, but when the water recedes and the grass turns green we move on to other projects. I am hopeful this will not be the case this time and we are making some definite strides in the right direction to work with numerous stakeholders to ensure a better result this time around.
Seeing the number of state agencies in attendance with the directors or leaders sitting around the same table, listening, and asking thoughtful questions will provide answers for moving forward. Four Army Corps of Engineers colonels or representatives gave updates on what was happening in their respective areas and I think the most encouraging words I heard were cooperation and collaboration. The other was how our governor is meeting with the governors of Kansas, Iowa and Nebraska to work in concert with each other to help reach the best solution for all concerned. This attitude will make a true difference by looking at the big picture and all will benefit in the end.
As many of you have read, in two weeks, we will begin our veto session and this year’s special session. The veto session is required by statute to happen on the second Wednesday of September whether a governor has vetoed any bills or not. Veto and withhold override procedures are covered under Rule 119.
The full link to the House Rules can be found at www.house.mo.gov/billtracking/bills171/rules/rules.pdf
This is the legal description of the purpose of the veto session and while to many it may seem costly to bring all the legislators back to the Capitol for this one day and perhaps two, it is part of our history and tradition and a very necessary part of our legislative process.
The second part is the special session the governor called and this makes a lot of sense. While we are all going to be here, he could use this time wisely and clear up language in an existing bill to give clarification to the judicial branch of our government.
On June 25, 2019, the Missouri Supreme Court handed down a decision in the case of Kehlenbrink v. Director of Revenue, 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 purposed of calculating sales tax.
The Kehlenbrinks sold two vehicles and subsequently bought a new truck. When titling the truck, they were allowed to reduce the sales tax due by crediting the sales of the two vehicles. A few months later, they sold two additional vehicles and applied for an additional refund of sales tax paid on the truck. The total credit from all four vehicles would exceed the purchase price of the truck. The Department of Revenue denied the refund, which the Kehlenbrinks appealed to the Administrative Hearing Commission (AHC). The AHC found the relevant statutes, Section 144.025 RSMo, to be ambiguous and reversed the denial, awarding a refund of all sales tax paid, plus interest. The Department of Revenue appealed as to gather clarity from the Supreme Court.
Since the case involves an interpretation of statute, the appeal went directly to the Missouri Supreme Court. Section 144.025, RSMo, applies if the seller purchases “a subsequent motor vehicle” within 180 days before or after the sale of “the original article” and “a bill of sale” showing the sales price is presented at the time of licensing. Where the subsequent motor vehicle titles more than 180 days after “the sale of the original motor vehicle” the credit is allowed as long as the sale occurred before the 180 days expired. (Emphasis added). The Court found that the use of words “a” and “the” are singular and therefore the statute unambiguously allows for the credit of only one vehicle.
The Department of Revenue currently has a regulation in place that allows for the credit of more than one vehicle. 12 CST 10-103.350 states that “[i]f a person purchases or contracts to purchase a motor vehicle of trailer and sells one (1) or more motor vehicles or trailers … the person owes tax on the difference between the purchase price and the sale price of the respective motor vehicles or trailers.”
This clarification will be of benefit to all Missourians and by addressing this while both chambers are in the Capitol makes fiscal sense and clears up any questions the judicial branch may have.
As always, it is an honor to serve as your state representative and if you have any questions or concerns please reach out to my office.
State Rep. Dave Griffith, R-Jefferson City, represents the 60th District, and shares his perspective on statehouse issues twice a month.