Missouri Becomes Final State to Enact Wayfair Sales Tax Laws
by July 7, 2021
When Governor Mike Parson signed Senate bills 153 and 97 into law on June 30, 2021, Missouri became the final U.S. state to enact economic nexus and marketplace facilitator sales tax laws.
With these new laws, Missouri joins the rest of the nation in enacting sales tax laws resulting from the South Dakota v. Wayfair Supreme Court ruling in 2018.
What does this mean for e-commerce businesses when it comes to sales tax compliance?
Missouri’s New Economic Nexus Law
Under Missouri’s economic nexus law, retailers who make at least $100,000 of retail sales to buyers in the state in the previous 12-month period must collect sales tax from Missouri buyers.
This law is similar to the economic nexus provisions found in many other states. And like many states, there is no transaction threshold that retailers must exceed before being considered liable to collect Missouri sales tax.
Does your e-commerce business gross more than $100,000 in sales from Missouri buyers? The good news is that you have plenty of time to get compliant. The economic nexus law goes into effect on January 1, 2023.
However, when the law does go into effect, this means that your business is required to register for a Missouri sales tax permit and begin collecting sales tax from buyers in Missouri.
Need a refresher on economic nexus laws and how they work? Check out our explainer post on economic nexus sales tax laws in every state.
Missouri’s New Marketplace Facilitator Law
Under Missouri’s new marketplace facilitator sales tax law, third-party marketplaces must collect and remit sales tax on behalf of third-party sellers who sell through the marketplace.
This means that marketplace facilitators like Amazon, Walmart, and eBay will, starting January 1, 2023, be required to collect and remit sales tax to the state of Missouri on behalf of third-party sellers who list and sell items via these services.
This can be good news for e-commerce retailers, especially those who only sell on third-party marketplaces like Amazon or Etsy. Missouri is the final U.S. state to pass a marketplace facilitator sales tax law. This means that, starting January 1, 2023 when the law goes into effect, qualifying marketplaces will collect sales tax on behalf of marketplace sellers in every U.S. state with a sales tax.
Need a refresher on marketplace facilitator laws? Can you cancel your sales tax permit if a marketplace collects sales tax on your behalf? Find out in our marketplace facilitators laws explainer blog post.
Need help with sales tax compliance?
Are you unsure whether you’ll need to collect sales tax in Missouri? TaxJar’s Economic Nexus Insights Dashboard is here to solve that mystery. The Economic Nexus Insights Dashboard also shows you when you have, or are approaching, economic nexus in other states.
