Columbia continues to lose major tax revenue to internet sales

1 year 11 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
SPRINGFIELD — President Trump held a campaign-style rally in Springfield Friday. Trump spoke in front of an at-capacity crowd... More >>
7 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 10:15:00 PM CDT September 21, 2018 in News
KANSAS CITY (AP) — A 46-year-old woman who set a fire that resulted in the deaths of two Kansas City... More >>
11 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 6:22:51 PM CDT September 21, 2018 in News
COLUMBIA - This week's high school action features a few outstanding matchups. A cross-town rivalry is the Friday Night Fever... More >>
12 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 5:36:00 PM CDT September 21, 2018 in Top Stories
ST. LOUIS (AP) — Emissions near a troubled St. Louis County landfill once posed health concerns for workers and nearby... More >>
12 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 5:02:52 PM CDT September 21, 2018 in News
JOPLIN (AP) — Missouri Southern State University has abandoned plans for a dental school that would've operated in partnership with... More >>
13 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 4:51:59 PM CDT September 21, 2018 in News
COLUMBIA - Below are scores from football games around mid-Missouri. Final scores are in bold. ... More >>
13 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 4:46:00 PM CDT September 21, 2018 in Friday Night Fever
ST. LOUIS (AP) — Some St. Louis police officers are still struggling with injuries more than a year after protesters... More >>
13 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 4:44:27 PM CDT September 21, 2018 in News
COLUMBIA - Columbia police said a fifth arrest has been made in connection with an alleged homicide on Sylvan Lane... More >>
14 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 3:50:00 PM CDT September 21, 2018 in News
JEFFERSON CITY - Police arrested a man early Friday after reportedly finding him outside an apartment complex, looking into a... More >>
14 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 3:27:00 PM CDT September 21, 2018 in News
KANSAS CITY - The Missouri Western District Court of Appeals ruled Friday to allow the Clean Missouri Initiative to stay... More >>
15 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 2:53:00 PM CDT September 21, 2018 in News
COLUMBIA – MU is one of only two Southeastern Conference universities to experience double-digit growth in new freshmen, while several... More >>
16 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 1:12:00 PM CDT September 21, 2018 in News
SPRINGFIELD - President Donald Trump is set to campaign at the JQH Arena for U.S. Senate candidate Josh Hawley,... More >>
17 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 12:43:00 PM CDT September 21, 2018 in News
COLUMBIA - The University of Missouri Board of Curators announced a resolution Friday supporting the University of Missouri-Columbia's efforts to... More >>
18 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 11:23:00 AM CDT September 21, 2018 in News
COLUMBIA - 82,000 Americans are still missing as the result of our country's biggest wars. POW/MIA Recognition Day is... More >>
18 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 10:59:00 AM CDT September 21, 2018 in News
COLUMBIA - The Columbia Planned Parenthood clinic will stop abortion services after Oct. 1 following a court ruling allowing the... More >>
19 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 10:20:00 AM CDT September 21, 2018 in News
WASHINGTON (AP) — President Donald Trump challenged the woman accusing his Supreme Court nominee of sexual assault by name Friday,... More >>
20 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 9:31:00 AM CDT September 21, 2018 in News
FERGUSON, Mo. (AP) — The daughter of an 84-year-old woman with dementia alleges in a lawsuit that... More >>
21 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 8:45:00 AM CDT September 21, 2018 in News
VIENNA - 27 year-old Anthony Macclugage has been charged with endangering the welfare of a child, felony Domestic Assault and... More >>
23 hours ago Friday, September 21 2018 Sep 21, 2018 Friday, September 21, 2018 6:22:00 AM CDT September 21, 2018 in News
Columbia, MO
Broken Clouds 56°
6am 54°
7am 52°
8am 54°
9am 58°