Missouri – State Considers New Economic Nexus Legislation

Last year at this time, Missouri lawmakers introduced a couple of bills relating to remote sales tax. Both sought to implement economic nexus, requiring out-of-state vendors with a certain amount of sales in the state to collect and remit sales tax. And both would require marketplace facilitators to handle sales tax on behalf of their third-party sellers. Neither made it into law.

Missouri legislators are trying again this year. Senate Bill 529 would:

  • Impose a use tax collection obligation on remote vendors with at least $100,000 in cumulative gross receipts from the sale of tangible personal property in the state in the previous 12-month period (effective October 1, 2020)
  • Require marketplace facilitators meeting the above threshold to register with the Missouri Department of Revenue and collect and remit sales and use tax on direct and third-party sales in the state (by January 1, 2022)
  • Require the Missouri Department of Revenue to create and maintain a mapping feature for use tax information
  • Require the Missouri Department of Revenue to provide and maintain a downloadable electronic database of taxing jurisdiction boundary changes and tax rates

The sales and use tax system in Missouri is incredibly complex: There are more than 2,200 local tax jurisdictions, each of which may have multiple sales and use tax rates (e.g., a general rate, a rate for food, a rate for domestic utilities, etc.); it’s extremely difficult to determine the correct rate because special tax jurisdictions overlap; and rates change frequently.

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cpa practice advisor
by gail cole
december 18, 2019