Missouri – MO Amazon starts taxing sales, but local impact is unclear

Columbia Tribune

By MATTHEW SANDERS msanders@columbiatribune.com | 815-1716

“Amazon is collecting state taxes on sales in Missouri, but it’s not clear whether the online retail giant is levying local taxes.

The St. Louis Post-Dispatch reported last week that the company would collect state sales tax starting Wednesday, with some speculating the move was a precursor to setting up a distribution center in Missouri.

Under state law, a company must collect sales tax only if it has a physical presence in the state, which Amazon does not currently have. However, a use tax equal to the state’s 4.225 percent sales tax can be charged on products purchased outside of the state but used or stored here.

City and county officials last week said Amazon would not be collecting local sales taxes, but local Amazon customers began seeing tax charges of more than 4.225 percent on purchases Wednesday.

The tax charges varied from a little more than the state rate to the full 7.975 percent charged on purchases made within Columbia’s city limits”…

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