Missouri May Finally Jump on the Wayfair Bandwagon

Thoughtware Alert Published: Jan 22, 2021
Tax Private Client Finance Insurance

Missouri has yet to respond to the U.S. Supreme Court’s seminal decision in Wayfair v. South Dakota, which essentially authorized economic nexus statutes for sales and use tax purposes. However, a Missouri legislator recently proposed HB 244, which would impose a use tax filing obligation for remote vendors if their cumulative gross receipts from sales of tangible personal property, digital goods, and services to purchasers in Missouri is at least $100,000 in the current or preceding calendar year beginning January 1, 2022. Note the legislation does not include the common 200 or more transactions aspect adopted by several other states. In addition, it must be noted the filing requirement would be imposed for vendor’s use tax purposes rather than sales tax purposes (the state use tax rate currently stands at 4.225 percent). The registration requirements with the Missouri Department of Revenue (DOR) for the vendor’s use tax may differ from the sales tax. 

HB 244 also would require, beginning no later than January 1, 2022, marketplace facilitators to register with the Missouri DOR to collect and remit tax on sales made through the marketplace facilitator’s marketplace by or on behalf of marketplace sellers that are purchased in or delivered into the state. The marketplace facilitator provision used the same threshold of $100,000 in the current or preceding calendar year. 

To learn more about HB 244, contact your BKD Trusted Advisor™ or submit the Contact Us form below.

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