Summary: Missouri’s economic nexus law, effective January 1st, 2023 will allow Missouri and local jurisdictions to collect sales tax from online retailers who sell and deliver more than $100,000 in tangible goods to consumers in the state annually.
Understanding Missouri’s Economic Nexus Law
Like every other state with sales tax, Missouri has now signed an economic nexus law that will go into effect on January 1st, 2023. This new law, signed by Governor Mike Parson on June 30, 2022, will allow Missouri and local jurisdictions to collect sales tax from online retailers, remote sellers, and marketplace facilitators who sell and deliver more than $100,000 tangible goods to consumers in the state regardless of the retailer’s physical location.
Here is the breakdown of Missouri’s economic nexus threshold:
- The vendor has economic nexus in Missouri if the seller’s gross receipts from taxable sales from delivery of tangible personal property into the state exceeds $100,000, during the 12-month period ending on the last day of the preceding calendar quarter.
- Many states have a combination of transaction and/or dollar thresholds, but Missouri will only have the monetary threshold mentioned above with 2023 being the initial year.
- To determine whether a seller has met the $100,000 threshold on January 1, 2023, the seller should review their 2022 gross receipts from taxable sales.
If the vendor meets the economic nexus requirements, then the vendor is required to collect and remit the tax over the next 12 months, beginning not more than three months following the close of the preceding calendar quarter.
Where You Can Go for More Information About Missouri’s Economic Nexus Law ?
If you have additional questions about Missouri’s use tax requirements for remote sellers, you should check Missouri’s Senate Bill 153 & 97 (see page 156, line 67).