Wayfair tax invoices are issued from each chambers – however with some variations

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Wayfair tax invoices are issued from both chambers - but with some differences

JEFFERSON CITY, Mon. – Both the House and Senate passed versions of a Right of way tax Legislative priority was advanced on Thursday when the session reached its midpoint.

SB 153 from Sen. Andrew Koenig and rep. J. Eggleston‘s HB 554 would both allow the state to impose a value added tax via online purchases by vendors with physical presence in the state, a practice adopted by 43 other states so far.

“Right now, without Wayfair, we have an incentive for people to shop at companies outside of Missouri,” Koenig told reporters on Thursday. “Just from a tax point of view, that’s one of the worst things you can have in tax law.”

Both versions were Perfected earlier this week with little resistance.

“That bill has come a long way,” said Eggleston. “I want to thank everyone for helping us get this far enough that we can agree on a way to help our small businesses across the state.”

The Senate passed its version by 28 votes to 4, while the House’s number of votes was 96 to 59.

The Senate version extends the definition of “business activity within the state” and requires the levying of a usage tax. The House version would allow local governments to subject online retailers to a use tax if voters in the region agree to such a measure. Both bills also lower individual income tax.

Koenig said lawmakers would work together to even out the differences between the bills.

“I think when the house bill comes here, we have to make it look like the bill we passed out,” said Koenig. “There are some problems with the mechanics of how the house bills work. I hope to work with Rep. Eggleston and hopefully convince him that what we did is better.”

Gov. Mike Parson identified tax as a priority This session hoped to boost the state’s economy through an ever-growing online trade. He said he was glad to see it move towards his desk.

“I’m just grateful that they passed it in some form and in any way,” Parson told reporters. “I know it’s always about how we spend the money or how you make it revenue-neutral, but I just want to start by making the playing field fair for Missouri companies that have to compete with non-government corporations. If ever there is time, it will be this year. ”

Not all Missourians are interested in this proposal. Paul Hamby, owner of an agricultural mail order business recently passed away The potential impact on small businesses and the argument that the tax would make the market less fair and reduce competition.

Internet tax laws have been enacted in many states in the past few years after 2018 South Dakota versus Wayfair, Inc., in which the US Supreme Court said states could levy taxes on distance sales. Until now, states have only been able to levy taxes on transactions with companies that maintain a physical presence in the state. Since the ruling, many states have passed their own laws establishing an economic context or taxable threshold for online sales.

Cameron Gerber studied journalism at Lincoln University. Prior to Lincoln, he earned an associate degree from State Fair Community College. Cameron is from Eldon, Missouri.

Contact Cameron at cameron@themissouritimes.com.