Missouri Lawmakers Advance Sales Tax Break For Car Trade-Ins

JEFFERSON CITY, Mo. (AP) — Missouri lawmakers are backing a bill to ensure that people can continue trading in multiple vehicles to get tax breaks on new cars.

The House on Wednesday voted 126-21 to pass the measure and send it to the Senate. It would allow multiple vehicle trade-ins to be subtracted from the price of a new car, reducing the sales tax to whatever is owed on the discounted car.

The Missouri Supreme Court overturned the practice in June. Judges ruled that state law only allows one vehicle trade-in to count toward a discounted sales tax.

Republican Gov. Mike Parson in response called a special session for lawmakers to undo the ruling.

While the measure has bipartisan support, Democratic critics say the issue could have waited until lawmakers’ regular session begins in January.