Recent Missouri Supreme Court decisions have put Missouri employers that do business with tax exempt organizations in a costly position, holding that a company selling products to a local government or tax exempt entity could not consider the sale a retail sale, and therefore, could not claim the sale for resale exclusion.
Senate Bill 928, which was passed out of the House this week, reverses that Supreme Court decision, seeking to benefit Missouri business and keep them competitive with those in other states. The bill does this by excluding resale items from sales and use tax if sold to a tax-exempt entity. This would include school districts, cities, counties and the state. The bill also has a provision which establishes similar tax increases for theater or theme park tickets that are sold by ticket brokers and a resale tax exemption on sporting clays that are resold at sporting club events.
Job retention is a huge priority, considering our economy is down and businesses tend to locate to states that offer them the best incentives at the most competitive prices. Through Senate Bill 928, we will be able to retain businesses in our state and provide Missourians with jobs.
The bill gained nearly unanimous support in the House and we hope that the Governor will not delay in signing this bill.
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