JEFFERSON CITY, Mo. — The Missouri Tire Industry Association (MTIA) is urging its members to fight provisions in the omnibus tax-reform bill of Gov. Eric Greitens that could be expensive to the state's tire dealers and other retailers.
Among other things, Gov. Greitens' tax proposal would repeal the 2-percent sales-tax collection allowance Missouri retailers have had for nearly 70 years, according to MTIA Executive Director David Overholt.
Missouri Senate Bill 939, was introduced at a Jan. 30 hearing of the Missouri Senate Ways and Means Committee as a substitute for the Senate's own tax package.
SB 939 contains a provision to create a streamlined sales-tax system, Mr. Overholt said in the Feb. 2 issue of Treadsetter, the MTIA newsletter. Affected businesses were not allowed any input on that provision, he said.
The bill also eliminates many corporate and individual tax breaks and deductions in order to achieve a lower corporate tax rate, he said.
"The proposal creates winners and losers," Mr. Overholt said. "It robs Peter to pay Paul. Retailers let the Senate Ways and Means Committee know that our costs to collect sales taxes are real and refused the governor's portrayal of the allowance as being an unnecessary giveaway."
Mr. Overholt urged all business owners who collect sales tax to contact their legislators and voice their opposition to repealing the sales-tax collection allowance.
"We should not be forced into indentured servitude," he said.
Mr. Overholt said he expected a tough battle in fighting the sales tax collection allowance repeal.
"They targeted us off the bat," he said. "Legislators are looking for more revenue, because the budget has been tight.
"We're opposing the repeal and doing what we can," he said.