Missouri lawmakers OK tax exemption for commercial laundries

3 years 1 week 3 days ago Friday, May 15 2015 May 15, 2015 Friday, May 15, 2015 3:26:53 PM CDT May 15, 2015 in News
By: The Associated Press

JEFFERSON CITY (AP) - A sales and use tax exemption for materials used by commercial laundries to clean and treat fabrics is headed to the Missouri governor.

The Missouri House on Friday approved the exemption 104-43. Supporters say the exemption avoids double taxation on laundries that then sell the sterile fabrics, often to hospitals.

Republican Sen. Will Kraus, of Lee's Summit, sponsored the bill in the Senate. He says the Department of Revenue has started to collect tax on soaps and materials used by the laundries, which has not been common practice.

An omnibus tax bill with the provision on it was vetoed last session by Gov. Jay Nixon, who criticized it as a special interest tax exemption.

Legislative researchers estimate the state would lose $1.5 million in general revenue with the exemption.

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