Missouri Senate

Introduced

INCOME TAX

Current law provides for a reduction in the top rate of income tax over a period of years from 6% to 5.5%, with each cut becoming effective if net general revenue collections meet a certain trigger, with an additional reduction in the top rate of tax of 0.4% to take effect in the 2019 calendar year. For all tax years beginning on or after January 1, 2020, this act provides for further possible reductions in the top rate of tax. If the amount of net general revenue collected under the Simplified Remote Sales Tax, established under this act, during the previous fiscal year equals or exceeds $40 million, the top rate of tax shall be reduced by 0.025%. For each additional $20 million collected during the same fiscal year, the top rate of tax shall be further reduced by 0.025%. The aggregate amount of reductions under this act shall not exceed 0.4%. (Section 143.011)

SALES TAX ECONOMIC NEXUS

This act requires sellers who do not maintain a physical presence in this state to collect and remit sales tax on purchases delivered into the state if such seller: 1) has gross revenue from the delivery of tangible personal property into this state in the previous or current calendar year of at least $100,000, or 2) sold tangible personal property into this state in 200 or more separate transactions during the previous or current calendar year. (Section 144.021)

SIMPLIFIED REMOTE SALES TAX

This act establishes the Simplified Remote Sales Tax Remittance Program to facilitate the collection, reporting, and remittance of sales tax by remote sellers.

Sellers who do not maintain a physical presence in this state and who make taxable sales of tangible personal property into this state may apply to the Department of Revenue to participate in the program. Only sellers approved by the Department shall collect and remit the simplified remote sales tax. The Department shall develop and make available to eligible sellers an easily accessible, online system in which to collect, report, and remit the simplified remote sales tax. Sellers shall comply with all laws and procedures in order to remain in the program. (Section 144.540)

In lieu of the sales or use tax otherwise due on sales made into this state, participating sellers shall collect and remit the simplified remote sales tax at the rate of 6.5% of the sales price on any tangible personal property other than motor vehicles, trailers, and other vehicles required to be titled, or at a rate of 3.5% of the sales price on food sold or delivered into the state. No other rate or sales or use tax shall be required to be collected, regardless of the actual combined tax rate that may be otherwise applicable at the location of the purchaser. The seller shall provide the purchaser with a statement or invoice showing that the simplified remote sales tax was collected and is to be remitted on the purchaser's behalf. (Section 144.545)

Any purchaser who pays a simplified remote sales tax that is higher than the actual combined state and local sales tax levied in the locality where the sale was delivered may file for a refund of the excess amount paid. Such refund claims shall be filed according to procedures established by the Department. Purchasers filing for a refund shall maintain records documenting the amount of simplified remote sales tax paid. (Section 144.550)

The revenue generated by the simplified remote sales tax paid shall be distributed by a formula to be determined by the Director of Revenue. The manner of distribution of revenue to localities shall occur as determined by the Department. (Section 144.555)

MARKETPLACE FACILITATORS

By January 1, 2020, marketplace facilitators, as defined in the act, that meet the sales tax economic nexus threshold established in the act shall register with the Department to collect and remit sales tax on sales made into the state through the marketplace facilitator's marketplace by or on behalf of a marketplace seller, as defined in the act. Such retail sales shall include those made directly by the marketplace facilitator as well as those made by marketplace sellers through the marketplace facilitator's marketplace.

Marketplace facilitators required to collect and remit sales tax under this act may do so under the provisions of the Simplified Remote Sales Tax Remittance Program established by the act. Marketplace facilitators properly collecting and remitting sales tax in a timely manner shall be eligible for any discount provided for under current law.

Marketplace facilitators shall provide purchasers with a statement or invoice showing that the sales tax was collected and shall be remitted on the purchaser's behalf. (Section 144.560)

JOSHUA NORBERG