Missouri Supreme Court says car dealership owes taxes

Wednesday, May 6, 2009 | 12:27 p.m. CDT

JEFFERSON CITY (AP) — The Missouri Supreme Court said car dealers must pay state income tax on vehicles sold to out-of-state residents.

A Department of Revenue spokesman said the case could have significantly affected state tax revenues had the court decided it the other way.

At issue was an appeal from a Kansas City car dealer that is two blocks from the Kansas state line. The dealership had not paid Missouri's corporate income tax on vehicles sold to residents of Kansas or other states.

The Administrative Hearing Commission ruled last year that the dealership owed about $82,000 in back taxes and interest for 2002 through 2004.

The Supreme Court on Tuesday upheld that decision.

Had the dealership won, a Revenue Department spokesman said other dealers probably would have claimed a similar exemption.

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