Associated Industries of Missouri President/CEO Ray McCarty testified before the House Ways and Means Committee regarding two bills that would prepare Missouri to more effectively collect taxes on internet transactions.
McCarty told the Committee of his history with the Streamlined Sales Tax Project, having been a Missouri delegate to that group in the late 1990’s and early 2000’s. He also presented a plan that was inspired as he listened to an accurate history of the issue presented by the Chairman of a subcommittee on the subject on internet taxation, Rep. J. Eggleston.
The plan would require the State of Missouri to contract with Certified Service Providers (CSP) that would provide information regarding the correct rate and taxability of transactions to sellers. The CSP services would be paid for by the State of Missouri and would be available to any business wanting to use their services to collect the tax. McCarty explained this was a novel approach that would allow the state to collect the taxes without an undue burden on foreign retailers and without massive changes to Missouri’s sales tax laws.
The Committee took no action on the bills that were heard at the hearing. A previous internet taxation bill by Rep. Eggleston had previously advanced from that Committee. This approach to internet taxation is already part of SB 46, a Senate bill dealing with the same subject filed by Sen. Andrew Koenig.