Sales tax could help local car dealers - KAIT Jonesboro, AR - Region 8 News, weather, sports

Sales tax could help local car dealers

KENNETT, MO (KAIT) -

The city of Kennett is working to pass an ordinance to help car dealers in the state of Missouri.

The ordinance allows the city to collect a sales tax on vehicles purchased out of state.

According to City Attorney Terry McVey, Missouri cities imposed the tax until the Supreme Court ruled otherwise.

After that ruling, the Missouri State Legislature re-wrote the law allowing cities to impose a sales tax if voters approved it.

McVey said this ordinance would allow Kennett to continue the out-of-state sales tax, which will benefit the city in several ways.

“One, of course, is the revenue to the city; but the other is to level the playing field for the car dealers in Missouri,” McVey said.

McVey said keeping the competition fair is important for the Missouri Bootheel, especially since there are close dealerships nearby in Arkansas and Tennessee.

The council will vote on the ordinance’s approval at the Dec. 15 meeting. 

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