Bill Proposes Tax Breaks for Used Cars

Published 04/07 2014 06:23PM

Updated 04/07 2014 06:32PM

SPRINGFIELD, Mo. -- Missouri state senator wants to give tax break to people buying used cars.

One Missouri State Senator believes not requiring a tax on certain used cars would help working families.

The legislation impacts older used cars that cost less than fifteen thousand dollars.
A local non-profit that helps people get cars says there are so many costs associated with a car like maintenance, gas and licensing it puts car ownership out of reach for some.

"There's hardly anything more impactful, in terms of changing their lives," said Wade Palmer.

Wade Palmer has seen firsthand the difference between having a car and not.

"First of all without a car it's virtually impossible to get a job; it's very difficult to continue your education for instance. It's difficult to just go to the doctor's office," explains Palmer.

Palmer heads the board of the charity "help, give, hope" that give cars as donations as part of its work.

"Over the last decade we've given out well over a hundred cars to families most often single mothers," said Palmer.

So we wanted to see if Palmer thought senator mike parson's proposal to remove sales tax from cars older than 10 years and less than 15 thousand dollars would make a difference.

"Anything that would make cars more affordable for particularly those in the low income bracket," said Palmer.

State Senator Mike Parson says used cars are taxed time and again.

"Research somewhat shows that that vehicle changes hands 3 to 4 times within a ten year period of time so taxes are repeatedly paid on that every time it is sold," said Parson.

Parson says a few hundred dollars can determine whether someone can afford a car or not.

"I truly believe this helps people that's trying to get buy from paycheck to paycheck that maybe can't afford brand new cars and it actually saves them some money. Like in Bolivar where I'm from if you have a 5 thousand dollar car you're going to save about 4 hundred dollars," said Parson.

Parson believes the money will still benefit the local economy.
"More than likely they're going to used that money to buy more groceries or maybe pay utility bills maybe spend the money right there on the local level," Parson said.

Critics say passage of the bill would mean 35 million dollars less a year in sales tax going into transportation.

The bill has now been sent to the house.

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