Missouri Enacts Economic Nexus

By Robert Dumas on Tue, Jul 06, 2021 @ 11:00 AM

Missouri has officially become the last state with a state-wide sales tax to enact economic nexus. 

 The Show Me State follows on the heels of Florida, where economic nexus kicked in as of July 1 for remote sellers and marketplace facilitators. 

Missouri Gov. Mike Parson has signed SB153 (combined with SB97) into law, allowing Missouri and local jurisdictions to collect use tax and, proponents say, help protect local brick-and-mortar businesses.  

The new law allows Missouri and local jurisdictions to collect a use tax from remote sellers who sell and deliver more than $100,000 intangible goods to consumers in the state annually. Collection and remittance obligations do not begin until January 1, 2023.  

Following 44 other states and Washington D.C., Missouri will be the final state to implement an economic nexus law since the Supreme Court’s Wayfair decision in 2018. 

June 21 marked three years since the landmark decision in the South Dakota v. Wayfair  case. The years since June 2018 have been unlike anything in the history of sales tax. 

States have generally set individual economic nexus triggers based on in-state transaction counts. More states are also sharpening their nexus requirements and have started talking about serious enforcement for non-compliance. 

Now, as businesses and governments alike, adapt to the aftermath and continued reeling of the pandemic, it has become even more evident that e-commerce and economic nexus are here to stay.

If you think your business may be impacted by sales tax developments or you’re just tired of trying to keep up with it all on your own, contact TaxConnex. TaxConnex provides services to become your outsourced sales tax department. Get in touch to learn more. 

Robert Dumas

Written by Robert Dumas

Accountant, consultant and entrepreneur, Robert Dumas began his public accounting career on the tax staff at Arthur Young & Co., followed by a brief stint at Grant Thornton. In 1998, Robert founded Tax Partners, which became the largest sales tax compliance service bureau in the country, and later sold it to Thomson Corporation. Robert founded TaxConnex in 2011 on the principle that the sales tax industry needed more than automation to truly help clients, thus building within TaxConnex a proprietary platform and network of sales tax experts to truly take sales tax off client’s plates.