HOUSE BILL NO. 3316 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE KNIGHT.
7087H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 144.070, 301.010, 301.020, 301.030, 301.050, 301.055, 301.070, 301.110, 301.140, 301.142, 301.147, 301.190, 301.550, 301.560, 301.570, 302.170, 307.350, and 643.315, RSMo, and to enact in lieu thereof eighteen new sections relating to motor vehicles, with penalty provisions and an effective date.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 144.070, 301.010, 301.020, 301.030, 301.050, 301.055, 301.070, 2 301.110, 301.140, 301.142, 301.147, 301.190, 301.550, 301.560, 301.570, 302.170, 307.350, 3 and 643.315, RSMo, are repealed and eighteen new sections enacted in lieu thereof, to be 4 known as sections 144.070, 301.010, 301.020, 301.030, 301.050, 301.055, 301.070, 301.110, 5 301.140, 301.142, 301.147, 301.190, 301.550, 301.560, 301.570, 302.170, 307.350, and 6 643.315, to read as follows: 144.070. 1. At the time the owner of any new or used motor vehicle, trailer, boat, or 2 outboard motor which was acquired in a transaction subject to sales tax under the Missouri 3 sales tax law makes application to the director of revenue for an official certificate of title and 4 the registration of the motor vehicle, trailer, boat, or outboard motor as otherwise provided by 5 law, the owner shall present to the director of revenue evidence satisfactory to the director of 6 revenue showing the purchase price exclusive of any charge incident to the extension of credit 7 paid by or charged to the applicant in the acquisition of the motor vehicle, trailer, boat, or 8 outboard motor, or that no sales tax was incurred in its acquisition, and if sales tax was 9 incurred in its acquisition, the applicant shall pay or cause to be paid to the director of revenue 10 the sales tax provided by the Missouri sales tax law in addition to the registration fees now or 11 hereafter required according to law, and the director of revenue shall not issue a certificate of
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 3316 2
12 title for any new or used motor vehicle, trailer, boat, or outboard motor subject to sales tax as 13 provided in the Missouri sales tax law until the tax levied for the sale of the same under 14 sections 144.010 to 144.510 has been paid as provided in this section or is registered under 15 the provisions of subsection 5 of this section. 16 2. As used in subsection 1 of this section, the term "purchase price" shall mean the 17 total amount of the contract price agreed upon between the seller and the applicant in the 18 acquisition of the motor vehicle, trailer, boat, or outboard motor, regardless of the medium of 19 payment therefor. 20 3. In the event that the purchase price is unknown or undisclosed, or that the evidence 21 thereof is not satisfactory to the director of revenue, the same shall be fixed by appraisement 22 by the director. 23 4. The director of the department of revenue shall endorse upon the official certificate 24 of title issued by the director upon such application an entry showing that such sales tax has 25 been paid or that the motor vehicle, trailer, boat, or outboard motor represented by such 26 certificate is exempt from sales tax and state the ground for such exemption. 27 5. Any person, company, or corporation engaged in the business of renting or leasing 28 motor vehicles, trailers, boats, or outboard motors, which are to be used exclusively for rental 29 or lease purposes, and not for resale, may apply to the director of revenue for authority to 30 operate as a leasing or rental company and pay an annual fee of two hundred fifty dollars for 31 such authority. Any company approved by the director of revenue may pay the tax due on 32 any motor vehicle, trailer, boat, or outboard motor as required in section 144.020 at the time 33 of registration thereof or in lieu thereof may pay a sales tax as provided in sections 144.010, 34 144.020, 144.070 and 144.440. A sales tax shall be charged to and paid by a leasing company 35 which does not exercise the option of paying in accordance with section 144.020, on the 36 amount charged for each rental or lease agreement while the motor vehicle, trailer, boat, or 37 outboard motor is domiciled in this state. Any motor vehicle, trailer, boat, or outboard motor 38 which is leased as the result of a contract executed in this state shall be presumed to be 39 domiciled in this state. 40 6. Every applicant to be a registered fleet owner as described in subsections 6 to 10 of 41 section 301.032 shall furnish with the application to operate as a registered fleet owner a 42 corporate surety bond or irrevocable letter of credit, as defined in section 400.5-102, issued 43 by any state or federal financial institution in the penal sum of one hundred thousand dollars, 44 on a form approved by the department. The bond or irrevocable letter of credit shall be 45 conditioned upon the registered fleet owner complying with the provisions of any statutes 46 applicable to registered fleet owners, and the bond shall be an indemnity for any loss 47 sustained by reason of the acts of the person bonded when such acts constitute grounds for the 48 suspension or revocation of the registered fleet owner license. The bond shall be executed in HB 3316 3
49 the name of the state of Missouri for the benefit of all aggrieved parties or the irrevocable 50 letter of credit shall name the state of Missouri as the beneficiary; except that, the aggregate 51 liability of the surety or financial institution to the aggrieved parties shall, in no event, exceed 52 the amount of the bond or irrevocable letter of credit. The proceeds of the bond or irrevocable 53 letter of credit shall be paid upon receipt by the department of a final judgment from a 54 Missouri court of competent jurisdiction against the principal and in favor of an aggrieved 55 party. 56 7. Any corporation may have one or more of its divisions separately apply to the 57 director of revenue for authorization to operate as a leasing company, provided that the 58 corporation: 59 (1) Has filed a written consent with the director authorizing any of its divisions to 60 apply for such authority; 61 (2) Is authorized to do business in Missouri; 62 (3) Has agreed to treat any sale of a motor vehicle, trailer, boat, or outboard motor 63 from one of its divisions to another of its divisions as a sale at retail; 64 (4) Has registered under the fictitious name provisions of sections 417.200 to 417.230 65 each of its divisions doing business in Missouri as a leasing company; and 66 (5) Operates each of its divisions on a basis separate from each of its other divisions. 67 However, when the transfer of a motor vehicle, trailer, boat or outboard motor occurs within a 68 corporation which holds a license to operate as a motor vehicle or boat dealer pursuant to 69 sections 301.550 to 301.573 the provisions in subdivision (3) of this subsection shall not 70 apply. 71 8. If the owner of any motor vehicle, trailer, boat, or outboard motor desires to charge 72 and collect sales tax as provided in this section, the owner shall make application to the 73 director of revenue for a permit to operate as a motor vehicle, trailer, boat, or outboard motor 74 leasing company. The director of revenue shall promulgate rules and regulations determining 75 the qualifications of such a company, and the method of collection and reporting of sales tax 76 charged and collected. Such regulations shall apply only to owners of motor vehicles, trailers, 77 boats, or outboard motors, electing to qualify as motor vehicle, trailer, boat, or outboard 78 motor leasing companies under the provisions of subsection 5 of this section, and no motor 79 vehicle renting or leasing, trailer renting or leasing, or boat or outboard motor renting or 80 leasing company can come under sections 144.010, 144.020, 144.070 and 144.440 unless all 81 motor vehicles, trailers, boats, and outboard motors held for renting and leasing are included. 82 9. Any person, company, or corporation engaged in the business of renting or leasing 83 three thousand five hundred or more motor vehicles which are to be used exclusively for 84 rental or leasing purposes and not for resale, and that has applied to the director of revenue for HB 3316 4
85 authority to operate as a leasing company may also operate as a registered fleet owner as 86 prescribed in section 301.032. 87 10. (1) Beginning July 1, 2010, any motor vehicle dealer licensed under section 88 301.560 engaged in the business of selling motor vehicles or trailers shall apply to the director 89 of revenue for authority to collect and remit the sales tax required under this section on all 90 motor vehicles sold by the motor vehicle dealer. A motor vehicle dealer receiving authority 91 to collect and remit the tax is subject to all provisions under sections 144.010 to 144.525. 92 Any motor vehicle dealer authorized to collect and remit sales taxes on motor vehicles under 93 this subsection shall be entitled to deduct and retain an amount equal to two percent of the 94 motor vehicle sales tax pursuant to section 144.140. Any amount of the tax collected under 95 this subsection that is retained by a motor vehicle dealer pursuant to section 144.140 shall not 96 constitute state revenue. In no event shall revenues from the general revenue fund or any 97 other state fund be utilized to compensate motor vehicle dealers for their role in collecting and 98 remitting sales taxes on motor vehicles. In the event this subsection or any portion thereof is 99 held to violate Article IV, Section 30(b) of the Missouri Constitution, no motor vehicle dealer 100 shall be authorized to collect and remit sales taxes on motor vehicles under this section. No 101 motor vehicle dealer shall seek compensation from the state of Missouri or its agencies if a 102 court of competent jurisdiction declares that the retention of two percent of the motor vehicle 103 sales tax is unconstitutional and orders the return of such revenues. 104 (2) Notwithstanding any provision of law to the contrary, when a motor vehicle, 105 trailer, boat, or other titled personal property is sold by a licensed Missouri dealer to a 106 purchaser who is not a resident of this state, and the vehicle is delivered to or picked up 107 at the dealer's Missouri location, the dealer shall collect and remit Missouri state and 108 local sales tax according to law at the rate applicable at the dealer's place of business. 109 The provisions of this subdivision shall apply regardless of whether the purchaser 110 intends to title or register the vehicle in another state. The dealer shall not be required 111 to determine the tax rate of the purchaser's state of residence. 112 11. (1) Every motor vehicle dealer licensed under section 301.560, as soon as 113 technologically possible following the development and maintenance of a modernized, 114 integrated system for the titling of vehicles, issuance and renewal of vehicle registrations, 115 issuance and renewal of driver's licenses and identification cards, and perfection and release 116 of liens and encumbrances on vehicles, to be funded by the motor vehicle administration 117 technology fund as created in section 301.558, shall collect and remit the sales tax required 118 under this section on all motor vehicles, boats, and outboard motors that such dealer sells as 119 directed by the director of revenue. In collecting and remitting this sales tax, motor vehicle 120 dealers shall be subject to all applicable provisions under sections 144.010 to 144.527. HB 3316 5
121 (2) The director of revenue may promulgate all necessary rules and regulations for the 122 administration of this subsection. Any rule or portion of a rule, as that term is defined in 123 section 536.010, that is created under the authority delegated in this subsection shall become 124 effective only if it complies with and is subject to all of the provisions of chapter 536 and, if 125 applicable, section 536.028. This subsection and chapter 536 are nonseverable and if any of 126 the powers vested with the general assembly pursuant to chapter 536 to review, to delay the 127 effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then 128 the grant of rulemaking authority and any rule proposed or adopted after August 28, 2023, 129 shall be invalid and void. 301.010. As used in this chapter and sections 304.010 to 304.040, 304.120 to 2 304.260, and sections 307.010 to 307.175, the following terms mean: 3 (1) "All-terrain vehicle", any motorized vehicle manufactured and used exclusively 4 for off-highway use, with an unladen dry weight of one thousand five hundred pounds or less, 5 traveling on three, four or more nonhighway tires, with either: 6 (a) A seat designed to be straddled by the operator, and handlebars for steering 7 control, but excluding an electric bicycle; or 8 (b) A width of fifty inches or less, measured from outside of tire rim to outside of tire 9 rim, regardless of seating or steering arrangement; 10 (2) "Autocycle", a three-wheeled motor vehicle which the drivers and passengers ride 11 in a partially or completely enclosed nonstraddle seating area, that is designed to be 12 controlled with a steering wheel and pedals, and that has met applicable Department of 13 Transportation National Highway Traffic Safety Administration requirements or federal 14 motorcycle safety standards; 15 (3) "Automobile transporter", any vehicle combination capable of carrying cargo on 16 the power unit and designed and used for the transport of assembled motor vehicles, including 17 truck camper units; 18 (4) "Axle load", the total load transmitted to the road by all wheels whose centers are 19 included between two parallel transverse vertical planes forty inches apart, extending across 20 the full width of the vehicle; 21 (5) "Backhaul", the return trip of a vehicle transporting cargo or general freight, 22 especially when carrying goods back over all or part of the same route; 23 (6) "Boat transporter", any vehicle combination capable of carrying cargo on the 24 power unit and designed and used specifically to transport assembled boats and boat hulls. 25 Boats may be partially disassembled to facilitate transporting; 26 (7) "Body shop", a business that repairs physical damage on motor vehicles that are 27 not owned by the shop or its officers or employees by mending, straightening, replacing body 28 parts, or painting; HB 3316 6
29 (8) "Bus", a motor vehicle primarily for the transportation of a driver and eight or 30 more passengers but not including shuttle buses; 31 (9) "Commercial motor vehicle", a motor vehicle designed or regularly used for 32 carrying freight and merchandise, or more than eight passengers but not including vanpools or 33 shuttle buses; 34 (10) "Cotton trailer", a trailer designed for transporting cotton at speeds less than 35 seventy miles per hour from field to field or from field to market and return; 36 (11) "Dealer", any person, firm, corporation, association, agent or subagent engaged 37 in the sale or exchange of new, used or reconstructed motor vehicles or trailers; 38 (12) "Director" or "director of revenue", the director of the department of revenue; 39 (13) "Driveaway operation": 40 (a) The movement of a motor vehicle or trailer by any person or motor carrier other 41 than a dealer over any public highway, under its own power singly, or in a fixed combination 42 of two or more vehicles, for the purpose of delivery for sale or for delivery either before or 43 after sale; 44 (b) The movement of any vehicle or vehicles, not owned by the transporter, 45 constituting the commodity being transported, by a person engaged in the business of 46 furnishing drivers and operators for the purpose of transporting vehicles in transit from one 47 place to another by the driveaway or towaway methods; or 48 (c) The movement of a motor vehicle by any person who is lawfully engaged in the 49 business of transporting or delivering vehicles that are not the person's own and vehicles of a 50 type otherwise required to be registered, by the driveaway or towaway methods, from a point 51 of manufacture, assembly or distribution or from the owner of the vehicles to a dealer or sales 52 agent of a manufacturer or to any consignee designated by the shipper or consignor; 53 (14) "Dromedary", a box, deck, or plate mounted behind the cab and forward of the 54 fifth wheel on the frame of the power unit of a truck tractor-semitrailer combination. A truck 55 tractor equipped with a dromedary may carry part of a load when operating independently or 56 in a combination with a semitrailer; 57 (15) "Electric bicycle", a bicycle equipped with fully operable pedals, a saddle or seat 58 for the rider, and an electric motor of less than 750 watts that meets the requirements of one of 59 the following three classes: 60 (a) "Class 1 electric bicycle", an electric bicycle equipped with a motor that provides 61 assistance only when the rider is pedaling and that ceases to provide assistance when the 62 bicycle reaches the speed of twenty miles per hour; 63 (b) "Class 2 electric bicycle", an electric bicycle equipped with a motor that may be 64 used exclusively to propel the bicycle and that is not capable of providing assistance when the 65 bicycle reaches the speed of twenty miles per hour; or HB 3316 7
66 (c) "Class 3 electric bicycle", an electric bicycle equipped with a motor that provides 67 assistance only when the rider is pedaling and that ceases to provide assistance when the 68 bicycle reaches the speed of twenty-eight miles per hour; 69 (16) "Farm tractor", a tractor used exclusively for agricultural purposes; 70 (17) "Fleet", any group of ten or more motor vehicles owned by the same owner; 71 (18) "Fleet vehicle", a motor vehicle which is included as part of a fleet; 72 (19) "Fullmount", a vehicle mounted completely on the frame of either the first or last 73 vehicle in a saddlemount combination; 74 (20) "Gross weight", the weight of vehicle and/or vehicle combination without load, 75 plus the weight of any load thereon; 76