Senate committee hears House Bill that would give sellers the ability to absorb sales tax

It is currently illegal in Missouri for sellers to entice buyers with an offer to pick up the sales tax tab. But a bill heard in a Senate committee would allow this practice.

Under existing law, any business or individual offering an item for sale could be charged with a misdemeanor if they sold an item and paid the sales tax themselves instead of collecting the sales tax from the buyer.

House Bill 440, sponsored by Rep. Andrew Koenig, R-, would allow these transactions to happen as long as the seller provided an invoice or receipt showing how the sales tax was absorbed into the total purchase price.

In 2014 a similar bill was passed by the general assembly but was vetoed by the governor when other legislation was added to the bill. The Missouri Chamber is supportive of this legislation and testified on its behalf.

“This simple statute change would give sellers one more tool to help encourage business and stimulate sales while making it clear that the duty to pay sales taxes is being fulfilled,” said Tracy King, Missouri Chamber vice president of governmental affairs.

For more information about tax issues, please contact Tracy King, vice president of governmental affairs for the Missouri Chamber of Commerce and Industry at tking@mochamber.com or by phone at 573-634-3511.

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About mochamber

The Missouri Chamber of Commerce and Industry understands that the quality of life in our state depends on quality jobs for Missourians. To that end, we have one simple mission: to protect and advance Missouri business.

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