Tax collection obligations for out-of-state retailers that do not have a physical presence in Missouri will need to pay a Wayfair sales and use tax beginning in January 2023 after Governor Mike Parson signed the legislation into law back on June 30, 2021 and becomes effective on January 1, 2023. The statute’s Wayfair name comes from the landmark U.S. Supreme Court case in South Dakota v. Wayfair, Inc. in 2018. Missouri is one of the last remaining states to implement this sales and use tax since that decision was handed down. It applies to both businesses with direct sales and marketplace facilitators like Amazon who sell and deliver products to consumers on behalf of other businesses. The sales and use tax is only applicable to businesses and marketplace facilitators whose gross receipts in Missouri are more than $100,000 in a rolling 12-month period.
Since this sales and use tax expense will most likely be passed on by sellers to the consumer, several consumer off-sets were included in the bill. However, Missouri consumers should still expect to see increased sales and use taxes as a result of this legislation beginning in 2023. Contact your Whitlock Co. advisor for more information. As additional details become available in the run up to the implementation of this sales use tax, The Whitlock Co. will provide updated information on our blog.