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Wed Jan 2, 2013, 06:33 PM

Report: Missouri loses $468M in online sales tax

KANSAS CITY, Mo. -- Missouri loses about $468 million per year in uncollected sales tax on purchases made over the Internet, according to researchers at the University of Missouri Truman School of Public Affairs.

The state misses the money in part because it hasnít signed onto a 1999 agreement to simplify and encourage voluntary collection of sales taxes by e-commerce retailers, The Kansas City Star reported. Only about half of the states have signed the agreement.

The U.S. Supreme Court has ruled that states cannot levy sales and use taxes on businesses that donít have a store, office or other physical location in the state. Missouri consumers are technically required to pay taxes on purchases from outside the state, but almost none comply.

To remedy that situation, the National Governors Association and the National Conference of State Legislatures created the Streamlined Sales and Use Tax, which is meant to simplify sales tax collection across jurisdictions that have varying tax rates. The governing body for the Streamlined Sales agreement says about 1,400 retailers voluntarily collect sales taxes under the agreement.


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Reply Report: Missouri loses $468M in online sales tax (Original post)
Sherman A1 Jan 2013 OP
Tempest Jan 2013 #1
Sherman A1 Jan 2013 #2
Tempest Jan 2013 #3

Response to Sherman A1 (Original post)

Wed Jan 2, 2013, 07:31 PM

1. Reason why CA now taxes on-line purchases

I remember when the critics were saying it would cause Amazon to leave CA.

They're bigger than ever in the state.

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Response to Tempest (Reply #1)

Wed Jan 2, 2013, 08:21 PM

2. Yes,

eventually this is going to come to pass for all online and mail order sales. It won't be right away, but there is too much money involved for it not to happen. It also levels the playing field for brick & mortar operations competing with online firms such as Amazon.

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Response to Sherman A1 (Reply #2)

Wed Jan 2, 2013, 08:28 PM

3. The level playing field is the reason I support it

I purchase on-line (and pay taxes on them) only on things I can't get locally.

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