Missouri Enacts Economic Nexus & Marketplace Facilitator Laws

Missouri Enacts Economic Nexus & Marketplace Facilitator Laws

July 23, 2021

The final domino has fallen. Missouri Governor Mike Parson signed Senate Bills 153 & 97 on June 30, 2021, establishing economic nexus provisions in the state effective January 1, 2023. With the legislation now passed, Missouri becomes the final state to enact such laws. States have enacted these laws over time since the Supreme Court’s landmark decision in South Dakota v. Wayfair Inc. (2018).

Specifically, the act modifies the definition of “engaging in business activities within this state” to include vendors that

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. The act does not establish a transaction threshold as has been the case in some other jurisdictions.

Marketplace Facilitator Provisions

Also included in this legislation and effective January 1, 2023, are marketplace facilitator provisions. Marketplace facilitators will be required to register with the Department of Revenue to collect and remit use tax on sales delivered into the state through the marketplace facilitator’s marketplace, by or on behalf of a marketplace seller. These 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.

We Welcome Your Questions

The REDW State and Local Tax (SALT) team welcome your questions on economic nexus provisions in the State of Missouri or any state. Our deep knowledge and resources will help you manage your overall tax strategy and exposure. For guidance, please contact REDW Principal George Rendziperis, or SALT Senior Manager Americo Rodriguez.

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