Missouri Poised to End Their Sales Tax’s Status as a Relic of a Bygone Era

Posted on May 26, 2021

Despite the hardships businesses have endured due to COVID-19, online retailers have performed evidently stronger than brick and mortar stores in recent years due to easier client accessibility and lower overhead costs. Missouri officials have taken note of this discrepancy and settled on a bipartisan vote to join the rest of the states in taxing online sales.

After Florida passed their new economic nexus legislature, Missouri was the last of the states to have no regulation on out-of-state online sales. On May 14, 2021, the Missouri legislature voted to pass an online sales tax bill over to Gov. Mike Parson for signing. These efforts are to restructure the state's tax code with aims to increase both state and local revenue, taking effect Jan 1, 2023. The bill imposes a sales tax on taxable transactions purchased by Missouri residents through remote sellers and marketplace facilitators that bring in at least $100,000 in annual revenue.

Critics of this proposal argue that the income state tax cut, which is presented alongside the Wayfair tax bill, will offset the attempt to bring Missouri localities increased revenue. Overall, this bill has a strong chance of passing as the Governor of Missouri has been an intense advocate of this type of legislature for a few years now. Businesses should begin preparing for this change by evaluating how their prices will adjust and how consumer preferences are bound to shift.

Tips for the Taxpayer

Sales tax laws are constantly changing and becoming more complex. Allyn recommends that the taxpayer conduct a thorough analysis of the locations outside of their home state to which sales are being sourced to and keep up to date with changes in each location's tax code. Allyn encourages the taxpayer to maintain full tax compliance as the neglect of such changes can result in an increase in liabilities for the seller, such as penalties and interest for underpaid taxes. More consequential damages can occur under an audit to the taxpayer, potentially resulting in a high amount of retroactive sales tax due.

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.

Allyn files state and local sales tax returns in every US taxing jurisdiction. Allyn obtains sales tax data, analyzes it for proper tax basis, and exemptions, and ensures timely and accurate sales tax return filing and sales tax payment processing. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company.

Our clients rely on us to consult on any and all unexpected tax questions that come their way, of which there are no shortages. Our significant expertise in this area means you can focus on your core business while we focus on ensuring you are paying your fair share in taxes and not a penny more.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact tax@allynintl.com.

We routinely conduct opportunity reviews in all US states for companies and advise clients with proactive measures to improve their tax compliance.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact tax@allynintl.com.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News & Publications at www.allynintl.com.

Contributor: Eleene Islmail


About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn’s clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.