JOPLIN, Mo. — A fix for Joplin’s tax-stacking exposure has not materialized in this session of state legislative action, as city leaders had hoped.

And, with only four days left before the session ends, not much chance is seen for the rescue of a bill that would protect Joplin, and other cities, from potential lawsuits such as one filed last year over the city’s multiple sales taxes.

“The bill is pretty much dead,” said Gary Burton, the city’s lobbyist, by telephone on Monday.

House Speaker Ron Richard, R-Joplin, and Rep. Timothy W. Jones, R-Eureka, co-sponsored a bill this session intended to clarify state law that regulates the types and amounts of sales taxes that cities may assess.

Joplin has two sales taxes that are regarded as general taxes: a 1-cent tax that supports the general fund, and a half-cent tax for public safety use.

Last summer, an attorney from the other side of the state, Tom Burcham, filed a lawsuit against Joplin. It asked the court to throw out one of those two taxes as exceeding the number permitted by state law.

City’s position

The city countered that voters approved both taxes, and that an opinion letter by the Missouri Department of Revenue, which collects and distributes sales taxes to cities and counties, said more than one general tax was allowed.

After a statewide controversy over the issue because a number of cities have multiple sales taxes, Burcham withdrew his lawsuit, saying a legislative resolution was on the way.

Several attempts to pass that legislation have failed this session, Burton said, because of opposition by Sen. Jason Crowell, R-Cape Girardeau.

Burton said Crowell killed the bill’s chances by amending it to require that the loser in a tax-stacking lawsuit pay the attorney fees of all the parties in the lawsuit. He said there were other changes Crowell wanted that aren’t agreeable to the cities.

“He wanted to grandfather in some others (cities), but grandfathering has not been upheld because you’re treating one class different than some others,” Burton said. “So right now, we’re kind of in limbo.”

Crowell said Monday by phone that he is in favor of helping cities like Joplin that relied on the “bad advice” the Revenue Department offered. He said he has proposed legislation that would help those cities resolve the question about their multiple taxes. He said his measure would authorize the taxes that exist.

“What I am opposed to doing is blanketly allowing cities to go ahead and be able to raise taxes and put tax increases on their ballots,” he said. He said that would be allowed if the proposals sought by Joplin and by other cities in conjunction with the Missouri Municipal League are approved.

Stuart Haynes, staff associate at the Municipal League, said Monday by phone that the proposed changes would not give cities a blank check. Failure of the legislation leaves taxpayers exposed, he said.

“These lawsuits certainly pose a huge financial risk on a tax issue that the citizens already approved,” Haynes said. “Cities cannot get new taxes unless their citizens want them.”

Who benefits?

He questions who would benefit from Crowell’s version of the bill. “It’s not for the taxpayers,” Haynes said.

Crowell is a lawyer.

Joplin City Attorney Brian Head said that’s who would benefit from Crowell’s bill.

“Our fear was that his fix would actually create a full employment act for attorneys wanting to sue because it provided that the prevailing party was entitled to attorneys’ fees,” Head said. “In Missouri, attorney fees wouldn’t be available unless it is a civil-rights suit. So it created a right to attorney fees that didn’t exist before, and we were opposed to that.”

Joplin’s mayor, Mike Woolston, said he does not understand why lawmakers cannot agree on a bill that would help the affected cities without opening the door for excess taxes.

“Obviously we have a concern until this fix is passed,” he said. “I’m not sure why (Crowell’s) not willing to have legislation to exempt Joplin. They can write it so that it will apply to only one city, and he still would not have an issue with the other cities.”





Tax lawsuits



Other area towns targeted by past lawsuits were Purdy, Mount Vernon and Granby. Up to 60 cities in the state have multiple sales taxes that could be disputed, according to the Missouri Municipal League.