April 28, 2010 - AIM President Ray McCarty announced early this afternoon the Missouri House has finally passed SB 928, a top tax legislative priority of Associated Industries of Missouri.
"This bill corrects a misguided decision of the Missouri Supreme Court that would have resulted in a tax increase to be paid by all businesses selling goods and services to exempt organizations such as churches, government organizations, charities, and other exempt organizations," said McCarty. "Supreme Court justices were, in effect, legislating from the bench in enacting what amounts to a tax increase on those businesses that sell to these types of organizations. By their action today, the Missouri General Assembly rejected this judicial tax increase and we are thankful for their support."
Under the decision, businesses selling to these organizations and government entities would be responsible for paying tax on the purchase price of the items sold to those entities. This would increase costs for these businesses and result in higher costs for schools, government, churches, etc.
Associated Industries of Missouri began working to correct this problem as soon as the decision became final and the true impact of the decision was known. The AIM Tax Committee was instrumental in providing the expertise necessary to draft language that would, after many months of negotiation, be acceptable to the Missouri Department of Revenue in overturning this decision. Special thanks to Andy Zellars, Todd Iveson, and Trevor Bossert of the DOR, Rich Germinder of Senator Lager's office, and Jacinda Walters in Rep. Sutherland's office, who were very helpful in this effort.
The bill also addresses a similar decision relating to ticket sales.
The bill was sponsored by Senator Brad Lager, (R-12 Savannah, pictured above) and the bill was handled in the House by Representative Mike Sutherland, (R-99, Warrenton, pictured at left) - both long-standing supporters of Missouri business. WE THANK SENATOR LAGER AND REP. SUTHERLAND FOR THEIR LEADERSHIP IN FILING AND SHEPHERDING THIS BILL THROUGH THE LEGISLATIVE PROCESS. Governor Nixon is expected to sign the bill soon.
Click here for more information regarding SB 928.
"This bill corrects a misguided decision of the Missouri Supreme Court that would have resulted in a tax increase to be paid by all businesses selling goods and services to exempt organizations such as churches, government organizations, charities, and other exempt organizations," said McCarty. "Supreme Court justices were, in effect, legislating from the bench in enacting what amounts to a tax increase on those businesses that sell to these types of organizations. By their action today, the Missouri General Assembly rejected this judicial tax increase and we are thankful for their support."
Under the decision, businesses selling to these organizations and government entities would be responsible for paying tax on the purchase price of the items sold to those entities. This would increase costs for these businesses and result in higher costs for schools, government, churches, etc.
Associated Industries of Missouri began working to correct this problem as soon as the decision became final and the true impact of the decision was known. The AIM Tax Committee was instrumental in providing the expertise necessary to draft language that would, after many months of negotiation, be acceptable to the Missouri Department of Revenue in overturning this decision. Special thanks to Andy Zellars, Todd Iveson, and Trevor Bossert of the DOR, Rich Germinder of Senator Lager's office, and Jacinda Walters in Rep. Sutherland's office, who were very helpful in this effort.
The bill also addresses a similar decision relating to ticket sales.
The bill was sponsored by Senator Brad Lager, (R-12 Savannah, pictured above) and the bill was handled in the House by Representative Mike Sutherland, (R-99, Warrenton, pictured at left) - both long-standing supporters of Missouri business. WE THANK SENATOR LAGER AND REP. SUTHERLAND FOR THEIR LEADERSHIP IN FILING AND SHEPHERDING THIS BILL THROUGH THE LEGISLATIVE PROCESS. Governor Nixon is expected to sign the bill soon.Click here for more information regarding SB 928.
