Missouri Legislature Overrides Gov. Nixon’s Veto, Instructional Activities Exempt from Sales Tax

The Missouri General Assembly voted on September 14, 2016 to override the Governor Nixon’s veto of Senate Bill 1025. Sponsored by Sen. Will Kraus, R-Lee’s Summit, SB 1025 now defines instructional classes given at dance studios, martial arts facilities, gymnastics facilities and other fitness facilities as educational classes for tax purposes.

Under current law, the definition of “sale at retail” for purposes of sales tax law includes charges and fees to or in places of recreation. Senate Bill 1025 provides that the definition does not include amounts paid for instructional classes. The act also excludes amounts paid for instructional classes from the 4 percent tax imposed on amounts paid to or in places of recreation.