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Nixon reinstates local taxes on vehicles purchased out-of-state

Missouri Gov. Jay Nixon has signed legislation that reinstates local taxes on vehicles bought from out-of-state dealers or through person-to-person sales.

Nixon has twice vetoed previous bills that sought to re-impose local vehicle taxes.

The Missouri Supreme Court ruled last year that local sales taxes cannot be charged on vehicles bought out of state. It said cities and counties could charge "use taxes" on such vehicles only if the tax had been approved by local voters.

The new law which Nixon signed redefines vehicle sales taxes by applying them to the titling of vehicles. It also requires some local governments to hold public elections on whether to keep or repeal the redefined vehicle tax.

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