Missouri Governor Mike Parson said a special legislative session to undo a court ruling on vehicle sales taxes will run concurrently with veto session.

The special session will focus on amending a state statute to allow the sales proceeds of more than one vehicle, trailer, boat or outboard motor to be used as a credit against the sales tax owed on the purchase of another, Gov. Parson said on Wednesday.The legislature may amend the state law during special session to allow for the sale of multiple vehicles to be used as a credit, in line with the Department of Revenue’s prior practice and what consumers have come to expect, according to the governor.  

“The Supreme Court’s recent decision in Kehlenbrink created a need to clarify an area of state law that has been historically unclear to the citizens of Missouri,” Acting Director of the Department of Revenue Ken Zellers said. “The special session presents an excellent opportunity to do just that.”

The Missouri Supreme Court reversed the decision of the Administrative Hearing Commission deeming the sales proceeds of only one vehicle may be used as a credit against the sales tax owed on the purchase of a new vehicle in their recent ruling in Kehlenbrink v. Director of Revenue (SC 97287).  The state Supreme Court determined the Administrative Hearing Commission erroneously decided that the Kehlenbrinks were entitled to a refund of all sales tax they paid because it mistakenly allowed credit for four vehicles the Kehlenbrinks sold within 180 days of their purchase of a new vehicle. 

“After reviewing the court’s decision, we’ve decided to call a special session because it’s simply the right thing to do for the people of our state,” Gov. Parson said. “The enforcement of this decision would create a financial burden on Missouri taxpayers and unnecessary government red tape that we can proactively prevent.” 

The special session will begin on Sept. 9.