Missouri – Taxpayer Not Entitled to Casualty Loss Sales Tax Refund

SALT Report 1928 – The Missouri Administrative Hearing Commission ruled that a Taxpayer was not entitled to a refund of the Missouri sales tax originally paid on his destroyed vehicle as provided under the casualty loss clause in §144.027.1, RSMo, because the Taxpayer did not purchase a replacement vehicle.

In this case, the Taxpayer purchased a vehicle and paid all state and local sales tax. The motor vehicle was later destroyed, and the Taxpayer received an insurance payment to cover the loss of the vehicle. After receiving the payment, the Taxpayer filed a claim for a refund of the sales tax that he paid for his vehicle.

However, the casualty loss provision contained in §144.027.1, RSMo, only entitles the Taxpayer to a credit in the amount of the insurance proceeds that he received from the loss of his vehicle to be applied towards the purchase price of a replacement vehicle.  The regulation does not entitle the Taxpayer to a refund of any state and local sales tax that may have been paid on the purchase of the original motor vehicle.

For Further Information:

Missouri Administrative Hearing Commission – Docket Number 11-1737 RV