By Debby Woodin

dwoodin@joplinglobe.com

Joplin and other Missouri cities may see a resolution in the next session of the state Legislature to lawsuits they are facing over tax stacking.

The majority floor leaders of the state House and Senate say they will propose legislation aimed at clearing up the question over how many sales taxes towns may assess and how much in such taxes may be assessed.

A written statement issued by the majority leaders, Rep. Steve Tilley, R-Perryville, and Sen. Kevin Engler, R-Farmington, states that they “will propose a potential resolution that would resolve pending disputes about the levels at which Missouri cities may impose municipal sales taxes on taxpayers.”

What’s proposed

Their proposal would allow cities to keep their existing sales taxes in place, but prohibit future assessment of general sales taxes beyond 1 cent, the news release states.

Joplin is the target of one of several lawsuits filed by attorney Tom Burcham. He contends that the city violated state law by imposing, even with voter approval, a half-cent public safety tax as a general sales tax in addition to the city’s original 1-cent general sales tax.

State law does not specifically allow a public safety sales tax for cities, though it does for counties.

The law also allows a transportation sales tax of up to a half-cent, a parks and stormwater sales tax of a quarter-cent, a capital improvements sales tax of three-eighths of a cent, and a hotel/motel tax of up to 6 percent.

In Southwest Missouri, the cities of Mount Vernon, Granby and Purdy were subjects of similar lawsuits. Burcham also filed lawsuits against Branson West and Sikeston. He initially won a decision in the Purdy case, but Circuit Judge Robert Wiley recently set aside his decision in that case. The Granby lawsuit has been dismissed. Mount Vernon eliminated the offending tax and established another cited under state law, but the lawsuit is still pending.

Joplin suit

The Joplin lawsuit says that Gerald Friedrich, of Levasy, a visitor presumably sent to the city by Burcham, made a purchase Jan. 21 at Lowe’s Home Store of $5.86, paying 46 cents in sales taxes. Burcham is asking that either the city’s 1-cent general tax or half-cent public safety tax be declared invalid, contending that it was against state law for the city to assess both taxes on Friedrich’s purchase.

The city contends that it relied on an opinion issued by the Missouri Department of Revenue in proposing the additional half-cent public safety tax, which is a general sales tax. All of the sales taxes must be approved by voters. City Attorney Brian Head also said there was a 1991 decision in a circuit court in St. Charles allowing multiple general sales taxes that the city of Joplin used as guidance.

Burcham said Thursday by telephone from his Farmington law office that his intention is “to stand down” on the other lawsuits until he sees what happens with the legislative proposal.