SB 805 - This act modifies several provisions relating to sales taxes.SALES AND USE TAX MAPPING
Current law requires the Department of Revenue to create and maintain a mapping feature on its website that displays various sales tax information. This act requires such mapping feature to include use tax information. (Section 32.310)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 872 (2020), SCS/HB 1700 (2020), HB 1895 (2020), and HB 2172 (2020).
SALES TAX RATES
For all tax years beginning on or after January 1, 2021, all taxing jurisdictions levying a local sales tax shall reduce such levy to a rate that will produce substantially the same amount of revenue collected from such sales tax during fiscal year 2019, plus five percent of such amount. Such taxing jurisdictions shall provide data to the State Auditor substantiating that such tax rate complies with such rollback, as described in the act. (Section 32.087)
Current law imposes a statutory state sales tax at a rate of 4%. Beginning January 1, 2022, this act reduces such rate by an amount to be determined under an agreement between the Director of Revenue and the State Treasurer and shall be an amount that is substantially equivalent to the use tax collections made under the provisions of this act during the 2021 calendar year. (Section 144.020)
ECONOMIC NEXUS
Beginning January 1, 2021, this act provides that a vendor shall be considered to be engaging in business activities in this state if such vendor had cumulative gross receipts of at least $100,000 from the sale of tangible personal property for the purpose of storage, use, or consumption in this state in the previous twelve-month period, as described in the act. Vendors meeting such criteria shall be required to collect and remit the use tax as provided under current law. (Section 144.605)
This provision is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 872 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 1967 (2020), HB 2172 (2020), and HB 2238 (2020).
TAXING JURISDICTION DATABASE
This act requires the Director of Revenue to provide and maintain a downloadable electronic database at no cost to the user of the database for taxing jurisdiction boundary changes and tax rates. Such databases may be directly provided by the Director, or may be provided by a third party as designated by the Director.
Vendors shall not be liable for reliance upon erroneous data provided by the Director on tax rates, boundaries, or taxing jurisdiction assignments. (Section 144.637)
This provision is identical to a provision contained in HB 1895 (2020), and is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 659 (2020), SB 872 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), and HB 2172 (2020).
LOCAL USE TAX BALLOT LANGUAGE
This act modifies ballot language required for the submission of a local use tax to voters by including language stating that the approval of the local use tax will eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers. (Section 144.757)
This provision is identical to SB 652 (2020) and HB 1584 (2020), and to a provision contained in SS#2/SCS/SB 648 (2020), SB 659 (2020), HCS/SS#2/SB 704 (2020), SCS/SB 770 (2020), SB 872 (2020), SS#2/SCS/HCS/HB 1854 (2020), HB 1895 (2020), HB 2172 (2020), HB 2238 (2020), SCS/SB 189 (2019), SS/SCS/SBs 46 & 50 (2019), SS/HCS/HB 255 (2019), SCS/HCS/HB 674 (2019), and HB 701 (2019), is substantially similar to a provision contained in SCS/SB 529 (2020) and SCS/HB 1700 (2020), and is similar to a provision contained in HCS#2/HB 1957 (2020).
MARKETPLACE FACILITATORS
By January 1, 2021, marketplace facilitators, as defined in the act, that meet the use tax economic nexus threshold established in the act shall register with the Department to collect and remit sales and use 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 shall report and remit sales and use tax collected under this act on a separate form developed by the Department. Marketplace facilitators properly collecting and remitting sales and use 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 and use tax was collected and shall be remitted on the purchaser's behalf.
No class action shall be brought against a marketplace facilitator in any court in this state on behalf of purchasers arising from or in any way related to an overpayment of sales or use tax collected on retail sales facilitated by a marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim.
If the Department audits a marketplace facilitator, it shall only audit such facilitator and not the marketplace sellers on behalf of whom the marketplace facilitator facilitates sales.
Marketplace facilitators may apply to the Department for relief from liability for the failure to collect and remit the correct amount of sales or use tax on retail sales facilitated for marketplace sellers under certain circumstances, as described in the act. Relief from liability shall be a percentage of the sales and use tax collected by the marketplace facilitator, with such percentage being four percent for sales made during the 2021 calendar year, two percent for sales made during the 2022 calendar year, one percent for sales made during the 2023 calendar year, and zero percent thereafter.
The Department may grant a waiver from the requirements of the act if a marketplace facilitator demonstrates to the satisfaction of the Department that all of its marketplace sellers are already registered to collect and remit sales and use tax. If such waiver is granted, the sales or use tax due shall be collected and remitted by the marketplace seller. (Section 144.752)
This provision is identical to a provision contained in SB 659 (2020) and is substantially similar to a provision contained in SCS/SB 529 (2020), SS#2/SCS/SB 648 (2020), SB 872 (2020), SCS/HB 1700 (2020), HCS#2/HB 1957 (2020), HB 2172 (2020), HB 2238 (2020), and SCS/SBs 46 & 50 (2019).
JOSH NORBERG