Frequently Asked Questions
Statute of Limitations:
A claim for taxes must be filed within ten years from date of overpayment pursuant to Section 144.190.1, RSMo.
A claim for fees must be filed within two years from the date of payment pursuant to Section 136.035.1 RSMo.
A claim for a rescinded sale must be filed within one year after payment of the tax pursuant to Section 144.071.1 RSMo.
Form 426 (Revised 10-2019)
1. If I decide to sell my unit to another person rather than use it as a trade-in when I purchase a replacement, am I entitled to
receive a tax credit based upon the sales price of my original unit? You are entitled to receive a tax credit based upon the sales
price of your original unit if you purchase a replacement within 180 days before or after the date of sale of your original unit. The tax
credit cannot exceed the tax due on the purchase price of the replacement unit. The unit being purchased or contracted to purchase
must be titled in the same owner’s name as the unit being sold.
2. How may I claim my tax credit for my original unit when I sell it to another person and purchase a replacement rather than use it
as a trade-in for a replacement? If you sell your original unit within 180 days before you purchase your replacement, you may present to
the License Office a copy of your bill of sale for the original unit. You will be given credit against the tax due on the replacement unit. If you
sell your original within 180 days after you purchase your replacement unit or if you sold the original within 180 days prior to purchasing the
replacement and you did not receive the tax credit when you titled your replacement, you may file a request for refund with the Missouri
Department of Revenue. The request for refund must be filed within three years from the date of payment of the tax on the replacement.
3. If I trade in my original unit when I purchase a replacement and the trade-in value is more than the purchase price of the
replacement, do I receive a tax credit based upon the full amount of the trade-in value? You will receive a tax credit only up to
the tax due on the purchase price of the replacement unit. There is no credit for the trade-in value in excess of the purchase price of the
replacement unit. Example: If you purchased a vehicle from a dealer for $12,000 and received a trade-in value of $15,000 on your original
vehicle, the value of the trade-in offsets the purchase price of the replacement and results in no tax due when you title the replacement.
You are not entitled to a credit or refund based upon the excess $3,000 trade-in value.
4. If I sell my original unit rather than trade it for a replacement and the sale price of the original unit is more than the cost of
replacement, do I receive a tax credit based upon the full amount I received for my original unit? As with a trade-in, you will
be entitled to a tax credit only up to the tax due on the purchase price of the replacement unit. You are not entitled to a credit or refund
based upon the difference between the sale price of your original unit and your replacement.
5. If I purchase a unit and decide to sell it within 180 days, am I entitled to the tax refund? You are not entitled to the tax refund if
you purchase and sell the same unit. You must purchase a replacement unit to be entitled to a credit or refund.
6. If the original unit being sold is titled in another person’s name, may I receive a tax credit or refund when I purchase another unit?
In order for the tax credit or refund to be allowed, at least one owner listed on the title of the original unit being sold must also be listed on
the title of the replacement unit.
7. May I claim the tax credit or refund if a unit titled in the name of my personal trust is sold and the replacement unit is titled in my
name? You are not entitled to claim the tax credit or refund. A trust is considered to be a separate legal entity or person. Since at least
one owner listed on the title of the original unit must be listed on the title of the replacement, the trust must be named on the title of the
replacement unit for the tax credit or refund to apply.
8. If my unit is determined by my insurance company to be a total loss due to theft or casualty loss, how long do I have to
purchase a replacement unit in order to claim the tax credit or refund? You must purchase a replacement unit within 180 days of
the date of payment by the insurance company. If you do not have insurance coverage, you may still receive the tax credit or refund if you
purchase or contract to purchase a replacement unit within 180 days after the date of the loss. Note: The replacement unit must be a like
unit, i.e., replacing a boat for a boat, trailer for trailer, etc. At least one of the titled owners of the total loss unit must be an owner of the
replacement unit, regardless of any other name(s) listed on the insurance statement.
9. May I receive a refund of license plate or tab fees? Section 136.035, RSMo, allows refunds of any overpayment or erroneous
payment in exceptional circumstances such as plates or tabs issued in error, defective plates, or duplicate issuance, and for license
plates for commercial motor vehicles licensed for a gross weight in excess of 54,000 pounds. Section 301.140, RSMo, states in part
that no refunds shall be made on the unused portion of any license plates.
10. If I am a common carrier and qualified for the common carrier exemption or the commercial motor vehicle or trailer exemption, but
I paid sales tax when I titled my vehicle or trailer, can I apply for a refund? Yes, if you or your company meets the definition of a
common carrier; the commercial vehicle is licensed for a gross weight of 24,000 pounds or more; the commercial vehicle is not a vehicle
on the Department’s non-qualifying vehicles chart; and either Sales Tax Exemption Statement for Authorized Common Carriers (Form 5095)
or the Application for Sales Tax Exemption - Commercial Motor Vehicles or Trailers Greater Than 54,000 Pounds (Form 5435) is submitted
and completed in its entirety.
11. If my claim for a tax credit or refund is denied, may I appeal that decision? You may appeal any decision by the Department denying
a tax credit or refund. To appeal the denial, you must file a petition with the Administrative Hearing Commission located at 301 West High
Street, Harry S Truman State Office Building, P.O. Box 1557, Jefferson City, Missouri 65102, within 60 days after the date the decision was
mailed or the date it was delivered, whichever date was earlier. If any such petition is sent by registered mail or certified mail, it will be
deemed filed on the date it is mailed. If it is sent by any other method other than registered or certified mail, it will be deemed filed with the
Commission on the date it is received by the Commission.