JEFFERSON CITY, Mo. — Missouri is one step closer to joining the rest of the country in enacting a sales tax on online purchases, commonly known as a Wayfair tax.
The bill from Sen. Andrew Koenig would allow the state to impose a sales tax on online purchases made through vendors with a physical presence in the state, a practice adopted by most other states. The latest version includes various taxation provisions, from the elimination of income tax on COVID-19 stimulus funds to the creation of an Urban Agricultural Zone Fund, in addition to a House amendment clarifying language. Wayfair would take effect in 2023 under the bill.
“I believe we have constructed a package that is fair to all of the players involved. We have to be fair to out-of-state businesses because that’s what the Supreme Court said, and we want to help our in-state businesses to better compete,” said handler Rep. J. Eggleston. “After a lot of negation, I think we’re at a pretty good spot.”
- The bill passed 102-42. Rep. Peter Merideth opposed the measure on the House floor, pointing to tax cuts in the bill that could jeopardize the state’s allocation of federal relief funds.
- The bill would also phase out video service provider fees, modify the use tax economic nexus, and enact a Voluntary Firefighter Cancer Benefits Trust, among other changes.
- Gov. Mike Parson identified Wayfair as a priority in his 2021 State of the State address, hoping the “House and Senate will consider legislation to address the unfair advantage online retailers have over small businesses in Missouri.”
Cameron Gerber studied journalism at Lincoln University. Prior to Lincoln, he earned an associate’s degree from State Fair Community College. Cameron is a native of Eldon, Missouri.
Contact Cameron at firstname.lastname@example.org.