Missouri Puppy Mills May Owe Millions in Unpaid Sales Taxes

A coalition of dog protection advocates has presented the Missouri Department of Revenue with evidence of potential tax fraud in Missouri’s puppy mill industry, and requested an industry-wide investigation into a possible tax-evasion scheme that could be costing the people of Missouri several million dollars a year in lost revenue.

An investigation of Missouri puppy mills revealed that many of the facilities – some of which have more than 100 adult dogs on site – were not collecting sales tax on retail dog purchases, a clear violation of the Missouri tax code. The 11 large-scale puppy mills identified in the investigation may owe the state Department of Revenue more than $70,000 between them in sales tax annually. When this level of non-compliance is multiplied by the number of sales made by the 1,523 state-licensed commercial breeders and dealers in the state, it appears the state could be losing several million dollars a year to unscrupulous puppy dealers.

“The puppy mill industry has repeatedly shown a shocking level of disregard for the laws of this state,” said Barbara Schmitz, Missouri State Director for the Humane Society of the United States. “It seems animals are not the only victims of this industry’s greed – Missouri taxpayers are being fleeced as well.”

All 11 of the commercial puppy mills sampled also have long histories of violating  animal welfare standards, as documented in both federal and state inspection reports. Several of these facilities have been cited for allowing their dogs to live in their own waste without access to clean food and water, as well as for egregious veterinary care violations. Thus, not only are they depriving the animals in their care of the humane treatment they deserve, but these commercial breeders are also depriving the citizens of Missouri of much-needed funds during this tough economy.