Get Ready to Pay Taxes in Missouri for Online Purchases
It's finally come down to what is fair, is fair. Missouri is the last state to require charging of taxes on online out-of-state purchases. Time to level the playing field.
In an online story from ky3.com:
Bipartisan proponents have argued that it’s unfair that local Missouri stores have to charge sales taxes while out-of-state online retailers don’t.
The Show-Me State, according to the article, is the only one in the U.S. that has a sales tax that that hasn’t approved some kind of requirement that out-of-state online stores collect taxes on items sold to residents.
During the upturn in buying on the internet during the pandemic, this has caused Missouri to lose out on potential revenue.
The online sales tax bill that was sent to Gov. Mike Parson, would make it mandatory for out-of -state retailers with annual sales of at least $100K in Missouri to start collecting local and state taxes in 2023.
Of course there is a caveat to the whole deal. To help make it happen, state income taxes would be cut to help boost tax collections from online sales. In 2024 the individual income tax rate would fall by one-tenth of a percentage point.
A boost of revenue in excess of $150 million from the deal could also lead to another provision in the deal. A state tax credit would be created for lower income working Missourians. If everything takes place as planned, in 2023 the tax credit would begin. The excess revenue of $150M would kick in another increase in subsequent years.