Transportation Development Districts
Transportation development districts (TDD) can impose a sales tax in increments of 1/8% up to one percent (1%). TDD sales taxes have historically been collected by the district or local authority. House Bill 191 amended section 238.235, RSMo to require the Department of Revenue (Department) to begin collecting sales taxes imposed by TDDs. While the legislation is effective August 28, 2009, the statute includes a provision that the collection of taxes by the Department are effective on the first day of the second calendar quarter after the Department receives notification from the district. Based on district notifications, the Department will first begin collecting a transportation development district’s tax for tax periods beginning January 1, 2010.