Missouri’s state House passed legislation last week that waived the state’s sales tax on vehicles built within its borders. Supporters hope the tax break will spurn residents to purchase more locally-assembled vehicles, ultimately encouraging automakers to build even more local facilities. Daimler-Chrysler's Chrysler Group, Ford Motor Company and General Motors already have plants in the "Show Me" state.

"This waiver would help car manufacturers and auto workers," said Rep. Michael Spreng. "Job retention and job creation is what this is all about." Ford’s St. Louis Assembly plant, which Ford plans to close, is in Spreng’s district.

Analysis of this first-of-its-kind legislation and its impact can be found at the link. While the legislation has its proponents, it remains unclear whether the move will hold any sway with manufacturers, or whether it will simply serve consumers. As Rep. Ed Robb (who opposed the waiver) said, "This is not going to cause any motor vehicle manufacturer to stay in Missouri... It just doesn't have a possibility of making a difference."

[Source: Detroit News]