Lawmaker pulls back on bowling tax break

~ Rep. Ron Richard, R-Joplin, said he's just trying to help protect small businesses from being taxed twice.

JEFFERSON CITY, Mo. -- A state lawmaker who runs a bowling company has withdrawn his proposed legislation that would have given a tax break to bowling alley operators on materials purchased for their business.

But Rep. Ron Richard, R-Joplin, said Wednesday that the idea could resurface.

Richard said he decided to wait and see what tax policy changes Gov. Matt Blunt proposes next year and determine if his bowling tax break idea fits in.

But he said he sees no problem with proposing a law exempting bowling alley owners from paying state and local sales taxes on purchases for their business even as he runs a bowling company.

"I guess it indirectly would" help me, he said. "I don't care about all that. I'm chair of Economic Development [Committee]. Anytime I can help small businesses stay in business, I'm in favor of that. If it turns out to be controversial to keep Mom and Pop doing business, that's OK with me."

Richard is president of C&N Bowl Corp., which has two bowling alleys in Joplin and one in Fort Smith, Ark. He said it's a family business that he has been involved with all his life. He's also a former president of the Missouri State Bowling Proprietors Association and former regional leader of the national group.

"I understand the industry better than anybody else," he said.

Richard said he's just trying to help protect small businesses from being taxed twice.

"They don't mind paying tax on the final product, but they're paying tax again when they buy a product to resell it," he said.

Support for idea

He also said some St. Louis County bowling alleys have backed the idea for years and particularly need help because they're competing with casinos for entertainment dollars. Richard noted similar legislation was introduced in the late 1990s by other lawmakers, but it didn't get very far.

The legislation also follows court action on how bowling alleys are taxed.

The Department of Revenue said it has been taxing the rental of bowling shoes since winning a court case in the 1960s allowing it.

In 2003, a divided Missouri Supreme Court upheld that policy. Tropicana Lanes of St. Louis County tried to recover state taxes paid on proceeds from shoe rentals. The company argued that because it paid sales taxes on shoes it purchased, it was due a refund of $23,890 for taxes paid on rental fees it charged customers.

The Supreme Court said it found such income was taxable in 1977, but the dissenters pointed to a 1999 ruling that found a country club that paid taxes on golf cart purchases didn't have to pay taxes on income from fees to use them.

Richard isn't the only lawmaker to get involved with an issue that affects his profession outside the Capitol.

For example, last year the Legislature created a law requiring most Missouri gasoline to contain a 10 percent ethanol blend starting in 2008.

Seven rural lawmakers at the time were investors in ethanol plants, including Sen. John Cauthorn, the leading Senate backer of the mandate, along with Reps. Steve Hobbs, Brian Munzlinger, John Quinn, Therese Sander, Wes Shoemyer and Terry Witte. Five of the seven voted for the bill, while Shoemyer and Witte did not vote.

Missouri ethics rules allow lawmakers to vote on bills involving issues they have a personal stake in, so long as they disclose their interest before voting, and all had.

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