Sales tax from internet sales – revenues state legislatures have been chasing for years – is starting to arrive in states that have passed measures to harness these dollars.
This week in Missouri, the House Committee on Ways and Means heard testimony on a House Bill 1477, sponsored by Rep. Rick Brattin, R-Harrisonville, which contains provisions that would authorize Missouri to enter into the multistate Streamlined Sales and Use Tax Agreement, which would set up the mechanisms necessary to start collecting tax from Internet sales to Missourians.
The provision was within an omnibus tax bill, and in addition to addressing Internet sales, Rep. Brattin’s bill would also eliminate all state tax credits, phase in a flat income tax rate, and increase the sales and use tax by .25 percent.
Internet sales tax could be a significant windfall for state revenues as this market sector continues to grow. Online sales growth has outpaced that of traditional stores for years. By 2015, $175 billion a year will migrate online from stores, according to Deloitte Consulting.
For information on tax issues, contact Tracy King, Missouri Chamber vice president of governmental affairs, at email@example.com, or by phone at 573-634-3511.