JEFFERSON CITY, Mo. – Missourians who order products online might soon have to pay sales tax.
The House perfected legislation Tuesday that would require companies to charge sales tax when people shop from online stores. The tax is named after the large online store Wayfair. According to the bill’s sponsor, Rep. J. Eggleston (R-Mayville), 43 other states have a sales tax.
In 2018, the U.S. Supreme Court approved that each state can apply a sales tax to online retailers.
“That’s helping to level the playing field which helps our brick and mortars compete with those online entities,” Eggleston said.
With an increase in revenue for the state, Eggleston added language to House Bill 554 that would lower the state’s income tax by .1% the same year the tax goes into place and may be reduced to 5.1% over a period of years.
“This softens the blow for our consumers, so they don’t get hit with a big tax increase,” Eiggleston said.
The Wayfair tax is something on Gov. Mike Parson’s agenda. This would create a sales tax for Etsy, eBay, and some Amazon stores that don’t have a physical building in Missouri.
Rep. Brian Seitz (R-Branson) says there are some people in Missouri who cannot buy the products they need locally.
“I was elected to lower taxes and therefore am against this bill,” Seitz said.
The bill needs final vote in the House before moving to the Senate.