Business groups work to ban delivery sales tax

Ray McCarty represented Associated Industries of Missouri by testifying for a bill that would exempt delivery charges from sales and use taxes, an issue that stems from a 2015 Supreme Court ruling allowing the state to impose the levy. The uncertainty of whether the tax should be collected or not has created confusion for many businesses across the state.

“Delivery charges have historically been a non taxable service,” said McCarty “All of a sudden the court just said, ‘well here, we’re going throw a monkey wrench into the works.’ So now nobody knows whether they should charge it or not.  They just need clarity as to whether it should be charged or not.  And since it hasn’t been charged in the past, we would rather not have a tax increase.  We need to make it clear there are a lot of companies that are affected by this.”

Eleven organizations, including AIM, testified before the Senate Ways and Means Committee, who handles tax issues. All organizations were in favor of banning the delivery sales tax, including the Missouri Budget Project.

SB 16 is sponsored by Senate Ways and Means Chairman Will Kraus.