Wayfair legislation approved in the regular legislative session has been signed by Governor Parson in a signing ceremony held at the State Capitol. The legislation was sponsored by Missouri 2nd District Representative J Eggleston.
Senate Bills 153 and 97 allows Missouri and local jurisdictions to collect a use tax from online retailers who sell and deliver more than $100,000 in tangible goods to consumers in the state annually.
A U.S. Supreme Court decision in South Dakota vs Wayfair, Incorporated allowed states to collect sales and use taxes from businesses not physically located in their state but sold and delivered into the state.
Collection and remittance obligations will begin on January 1, 2023. Sales and uses taxes cannot be retroactive and will be collected by the Missouri Department of Revenue. Following 49 other states and Washington D.C., Missouri will be the final state to implement such a tax since the Supreme Court’s decision in 2018.
The thought behind the tax is to equal the playing field between online retailers and physical business locations. Currently, Missouri businesses lose sales because out-of-state, online retailers are not subject to the same state sales tax laws that local businesses are. The current system also burdens Missouri businesses because they are required to remit sales and use taxes to other states, but out-of-state businesses selling to Missourians do not.