Columbia continues to lose major tax revenue to internet sales

1 year 3 months 1 week ago Tuesday, October 11 2016 Oct 11, 2016 Tuesday, October 11, 2016 1:26:00 PM CDT October 11, 2016 in News
By: Lauren Donovan, KOMU 8 News

COLUMBIA - Columbia continues to lose out on major tax revenue due to an increase in the popularity of online shopping. 

Online retailers do not have to charge a sales tax to shoppers in states where the business holds no physical presence. Big online retailers like Amazon capitalize on this tax hole. 

Cha Boutique, a fashion retailer in downtown Columbia, has seen a recent up tick in out-of-state customers online. Jennifer Pestle is the store manager of the boutique. Online sales do not dominate the store's sales, but to remain competitive in the market she said they have worked to offer more of their products to consumers online. 

"I think that online is always growing. I mean, I think people love to shop online its so easy," Pestle said. 

The sales tax makes up 28 percent of the city's total revenue, an estimated $23.8 million for 2016. These funds go to an array of public services including law enforcement and the fire department. 

"Well just about everything, with very few exceptions is funded in the fire department through sales tax... so it really has a huge impact on the services we provide" Columbia Fire Chief Brad Frazier said. 

Columbia was recently named the fourth largest city in Missouri. "The population is growing, the calls for service for the fire department are going up and our staffing has stayed the same. We are seeing our resources spread thinner," Frazier said. 

Columbia currently has a sales tax of 9 percent, 2 percent of which actually goes to the city. Missouri as a state has a highly complex tax system with more jurisdictions than any other state but Texas. 

More News

Grid
List
JEFFERSON CITY (AP) — Missouri's unemployment rate has edged up slightly. Data released Wednesday by the state Department... More >>
6 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 7:26:31 PM CST January 17, 2018 in News
JEFFERSON CITY (AP) — Citing new testimony from a state school board member, a Springfield teacher is asking a... More >>
6 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 7:22:00 PM CST January 17, 2018 in News
JEFFERSON CITY (AP) — Professional hair braiders would face fewer regulations under a bill passed by the Missouri House.... More >>
7 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 7:15:17 PM CST January 17, 2018 in News
COLUMBIA - The next step in construction of a new middle school in Columbia is a public vote scheduled for... More >>
7 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 7:00:00 PM CST January 17, 2018 in News
JEFFERSON CITY - With the Jan. 19 deadline looming for Congress to pass a federal spending bill and keep the... More >>
7 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 6:46:00 PM CST January 17, 2018 in News
COLUMBIA - People who work at a Columbia shelter say more people would volunteer if they knew how gratifying it... More >>
9 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 4:55:00 PM CST January 17, 2018 in News
COLUMBIA - On Tuesday night, Columbia City Council approved a $12.3 million improvement to sections of Nifong and Forum Boulevard.... More >>
10 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 4:06:00 PM CST January 17, 2018 in News
JEFFERSON CITY - As many lawmakers have released statements regarding Gov. Eric Greitens admitting to an extramarital affair, they are... More >>
10 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 3:40:00 PM CST January 17, 2018 in News
JEFFERSON CITY - The state treasurer wants to spread the word that Missourians are now able to withdraw from a... More >>
10 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 3:32:00 PM CST January 17, 2018 in News
COLUMBIA – Walmart is now offering a product that destroys opioids before they can be abused, and it is offering... More >>
11 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 3:00:00 PM CST January 17, 2018 in News
COLUMBIA — This winter season, people are battling the widespread flu alongside bitter cold temperatures. The Centers for Disease... More >>
11 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 3:00:00 PM CST January 17, 2018 in News
COLUMBIA - A Centralia man was sent to the hospital with life-threatening injuries after a car crash in a Columbia... More >>
11 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 2:54:00 PM CST January 17, 2018 in News
COLUMBIA - With winter weather hitting mid-Missouri hard this past week, one store is doing its best to keep Missouri... More >>
11 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 2:32:00 PM CST January 17, 2018 in News
MAPLEWOOD (AP) — A man in St. Louis County is accused of jabbing his boyfriend with hypodermic needles and holding... More >>
12 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 2:19:00 PM CST January 17, 2018 in News
JEFFERSON CITY -Right now, Missouri can charge 17-year-olds as adults. One group wants to change that immediately. "It is... More >>
12 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 2:11:00 PM CST January 17, 2018 in News
JEFFERSON CITY (AP) — The Missouri House has passed legislation to require some businesses to hang posters advertising the... More >>
13 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 1:09:00 PM CST January 17, 2018 in News
JEFFERSON CITY - Officials with Jefferson City Public Schools announced the groundbreaking ceremony for the city's second high school, which... More >>
13 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 12:59:00 PM CST January 17, 2018 in News
JEFFERSON CITY (AP) — Missouri House lawmakers have approved a ban on most lobbyist gifts to themselves and other... More >>
14 hours ago Wednesday, January 17 2018 Jan 17, 2018 Wednesday, January 17, 2018 12:20:14 PM CST January 17, 2018 in News
Columbia, MO
Broken Clouds 11°
3am 15°
4am 15°
5am 15°
6am 15°