Wayfair receives first round approval in the Missouri Senate
March 10, 2021 - After years of debating the issue, the Missouri Senate today gave first round approval to a bill expanding liability for collection and remittance of taxes on internet and other remote sales to companies without a physical presence in the state.
Here are some of the key provisions of the bill:
The bill would enact economic nexus for sellers lacking physical presence in Missouri if they make more than $100,000 in taxable sales to Missouri customers in the previous 12 months;
Taxes resulting from sales by "marketplace facilitators" would be placed in a Cash Operating Expense Fund;
DOR must expand their rate mapping feature to include use tax rates;
An additional three 0.1% reductions in income tax would be enacted if the revenue growth triggers in current law are met;
A state level earned income tax credit is created, dubbed the "Missouri Working Family Tax Credit Act";
Standard "marketplace facilitator" language is adopted, including some relief as those sellers begin to collect and remit the taxes;
Permission is granted for the DOR to contract with the Streamlined Sales and Use Tax Governing Board for purposes of central registration and negotiation of rates of compensation for Certified Service Providers (CSP), such compensation to be paid from the seller's timely filing allowance;
Mandatory local sales and use tax recognition of sales tax holidays and exemption of manufacturing inputs under section 144.054, RSMo;
Purchasers and sellers would be relieved of liability if they rely on erroneous information provided by a Certified Service Provider, and CSP's are relieved of liability if they rely on information provided by the DOR;
A taxability matrix and downloadable tax rate database must be provided by the DOR;
Distibution of the local use tax in St. Louis County would be distributed based on population with special provisions relating to the St. Louis Metropolitan Zoological Park and Museum District;
The due date for monthly sales tax returns would be changed to the last day of the succeeding month (rather than the 20th day in current law); and,
Changes would be made to the local franchise taxes due from video service providers to local governments.
The provisions relating to sales and use and income taxes would be effective January 1, 2023. Changes to the video franchise fees would be effective August 28, 2023. The remaining provisions would be effective August 28, 2021. The bill faces a final vote before moving to the Missouri House.