SB 427 Summary

• Repeals Missouri's compensating use tax (sections 144.600 to 144.745) and related motor vehicle use tax provisions, eliminating the state-level tax on purchases from out-of-state vendors.

• Removes references to use tax from district sales tax law (section 67.1545), allowing community improvement districts to impose only sales taxes, not use taxes.

• Eliminates use tax requirements while preserving local use tax options for counties and municipalities that have voter approval to impose them at rates equal to local sales tax rates.

• Maintains local use tax framework in sections 144.757 to 144.761, allowing counties and municipalities to continue collecting locally-imposed use taxes if previously authorized by voters.

• Creates an exemption threshold where individuals with annual out-of-state purchases under $2,000 are not required to file use tax returns.