Missouri retail businesses face a big disadvantage against many internet sellers that are not required to collect sales tax on goods sold in our state.
The Missouri Chamber is advocating for legislation that will put brick-and-mortar businesses back onto an even playing field with online sellers. Lawmakers must pass legislation requiring internet retailers doing business in Missouri to collect the tax, regardless of whether the retailer has a physical presence in the state.
The change would not create a new tax; it would simply apply Missouri’s existing sales and use tax fairly.
This concept, often simply referred to as “Wayfair,” comes in response to a 2018 U.S. Supreme Court ruling in South Dakota v. Wayfair, which determined that economic nexus rather than physical nexus is all that is needed to require collection of sales taxes.
Missouri is one of the few states with a sales tax that has not yet passed such a law.
The Missouri Chamber is closely watching all legislation related to online sales tax implementation and supports adopting a responsible framework for collection of sales tax from out-of-state sellers.
This is an especially relevant priority due to the economic hardship Missouri-based employers have faced during the pandemic — including the rapidly growing trend of customers choosing to shop online instead of in-store.
Specifically, the Missouri Chamber is recommending that remote sellers be taxed only if they meet or exceed a threshold of $100,000 or more in sales of tangible personal property from outside Missouri to a destination within Missouri, which will minimize the administrative burden on both the sellers and the Missouri Department of Revenue.
There are several measures under consideration in the Capitol this year that include this important change for restoring fairness to Missouri businesses.
So far, three House bills that include Wayfair language have been heard in committee. One Senate bill version was heard this week as well, with several more scheduled to be discussed in the coming weeks.