With Parson signing, Missouri finally implemented a Wayfair tax plan

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JEFFERSON CITY, Mo. – With the govt. Mike Parsonsigning, Missouri became the latest state to adopt a sales tax on online purchases, commonly known as the Wayfair tax.

SB 153 and 97 of sen. André Koenig allows the state to impose a sales tax on online purchases made through sellers with a physical presence in the state, a practice that Parson said had already been adopted by 49 states and Washington DC Parson said the change would benefit more than 570,000 small businesses across the state.

The new tax is expected to come into effect in 2023.

“Wayfair is something we’ve all worked on for years – including when I was in the Senate – and being able to sign it today is a big deal for the state of Missouri and a big deal for our small businesses.” he said. “With everything we’ve been through in this crisis over the past 16 months, if there’s a time to do it and get it right, now is the time.”

Parson applauded the effort of the General Assembly to get the legislation to its office; Wayfair was one of the priorities listed during its State Address State this year and had been a three-year thrust into the legislature by Koenig. This past the house on the last day of the session.

“We had the worst thing you can have in a tax code: something that tells Missourians to buy from a non-Missouri company. We had to make this change, ”Koenig said. “I’m very happy that we were able to put tax cuts here, reducing Missouri income tax to 4.8 percent. This will help attract businesses and people to the state of Missouri. “

Parson Wayfair Koenig
Governor Mike Parson signs a Wayfair tax into law. (THE MISSOURI TIMES / CAMERON GERBER)

The move caught the attention of the Missouri Municipal League (MML), a supporter of the legislation.

“This is a great victory for cities in Missouri, their residents and local businesses,” said MML President Chuck Caverly. “The unfair advantage enjoyed by out-of-state suppliers is now corrected. They will simply pay the same level of taxes our local businesses have been paying for decades, and that money will go directly to essential services such as first responders, street repairs, park maintenance and more.

The bill includes various tax provisions, ranging from the elimination of income tax COVID-19 Stimulus Fund to the creation of a Urban Agricultural Zone Fund. The bill will also gradually decrease video service provider fees to settle at 2.5% of gross revenue in 2027, change the economic linkage of user tax and enact a volunteer firefighter cancer benefits trust, as well as various changes to local tax processes .

States have passed internet tax laws in recent years after 2018 South Dakota vs. Wayfair, Inc., in which the Supreme Court of the United States these states could levy taxes on distance sales. Previously, states could only levy taxes on transactions with companies with a physical presence in the state. Since the verdict, many states have passed their own legislation establishing an economic link or tax threshold on online sales.

Wayfair is the last law promulgated by the Republican executive this year. Other important bills include a prescription drug monitoring program (PDMP), a controversial gun rights bill, and an expansion of the state protection order policies.


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