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Missouri lawmakers vote to collect online sales taxes

Under the pending bills, only businesses that make at least $100,000 a year in online sales to Missouri residents would have to collect sales taxes
Credit: Urupong - stock.adobe.com

JEFFERSON CITY, Mo. — The GOP Legislature on Wednesday passed bills that would require out-of-state online stores to collect sales taxes on Missourians' purchases.

The House and Senate passed slightly different versions of the proposal. Both bills still need at least another vote to go to Republican Gov. Mike Parson's desk by lawmakers' Friday deadline.

Missouri is the only state that hasn’t approved some kind of requirement that out-of-state online stores collect sales taxes on items sold to residents, not including the states that don’t collect sales taxes at all.

But it's difficult to pass anything that could be interpreted as a tax increase in the GOP Legislature.

Under the pending bills, only businesses that make at least $100,000 a year in online sales to Missouri residents would have to collect sales taxes. The requirement would take effect in 2023.

Proponents argued it’s unfair that local Missouri stores have to charge sales taxes while out-of-state online retailers don’t.

Buyers currently are still required to pay that tax to the state even if online stores don't collect it. But many people don't know that, and it's challenging to enforce without the help of retailers.

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