Potential New Sales Tax for Online Shopping

4 years 2 weeks 2 days ago Thursday, November 07 2013 Nov 7, 2013 Thursday, November 07, 2013 6:50:49 PM CST November 07, 2013 in News
By: Andie Lowenstein, KOMU 8 Reporter
loading

COLUMBIA - When shopping online, you may almost never see a sales tax. However, that may be changing.

The U.S. House of Representatives may consider the Marketplace Fairness Act (MFA) which, according to state Department of Revenue estimates, could potentially bring in $845 million in additional sales tax revenue to state and local governments from 2015 to 2017. That's if the bill passes before the 2014 holiday shopping season, but so far lawmakers have not scheduled a vote.

The legislation passed the Senate in May by a 69 to 27 margin. Early October, U.S. Representative Bob Goodlatte released a set of seven principles to provide framework for debate. He wants to ensure the Internet sales tax will be fair for both online businesses and traditional ones.

Currently there are 24 states that have the sales tax in place. According to Matt McCormick, President of the Columbia Chamber of Commerce, the other half of the states that don't have it, including Missouri, "are making a big push to try to get this taken care of because it is such an important thing for our cities and for our local governments."

A 2013 analysis from the National Conference of State Legislature says Missouri is missing out on approximately $430 million.

Those who favor the online tax approve of putting online retailers on the same playing field with brick-and-mortar stores.

Elly Bethune, owner of Elly's Couture in downtown Columbia, says the amount of online purchases through the store's website has increased over the last couple years. Currently, about 20 percent of the store's sales are from online purchases. Bethune isn't worried about a sales tax affecting business.

"It's kind of like your sales tax when you're at a store and you purchase something, You're not always looking at the sales tax." Bethune said. "If you really want something you're not really noticing the extra tacked on sales tax. I think some people are probably very conscious to it but the majority are not. So I think if they really did want something online they would find a way to purchase it."

She says if consumers are upset about an online sales tax, there are things business owners can possibly do to counteract it such as offer free shipping.

"We ship a lot, like a lot to Canada so I would hope that would not interfere with something like that because at the end of the day you're in business you're trying to make sales so I would just try to keep the customer as happy as possible and see what we could do to still make the sale happen."

According to McCormick, one of the challenges of the sales tax bill is the different tax laws in each state. "Some states they have a cap that across the state it doesn't go any higher than X amount of percentage. In Columbia, depending on where you shop depends on what the sales tax is." He says the sales tax laws would have to be simplified so that an online shopper can plug in their zip code and the sales tax for their area would be calculated. This would make it easier for the businesses to collect the appropriate tax.

"It's a tax that should've been there," McCormick said. "A lot of people have taken advantage of the fact that it's not. So, you know it's one of those things that everybody would have to get used to, there would be a bit of a process to get through, but everybody would eventually get to where it would just become part of the buying process."

According to a Gallup Poll, 57 percent of Americans are currently against online sales taxes so federal lawmakers will continue discussing ways to pass the bill.

To learn more about the bill, visit the Marketplace Fairness Act site.

More News

Grid
List
COLUMBIA -Racism, sexism, homophobia and animal abuse have all had a home on Reddit, but the website is taking steps... More >>
1 hour ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 1:25:26 PM CST November 24, 2017 in News
KANSAS CITY, Mo. (AP) — A jail inmate has been charged with first-degree assault and armed criminal action after authorities... More >>
2 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 12:11:47 PM CST November 24, 2017 in News
COLUMBIA - A Columbia man involved in a deadly shooting in May has been indicted by a federal grand jury... More >>
2 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 11:40:00 AM CST November 24, 2017 in News
COLUMBIA - Police arrested a man early Thursday morning for various drugs and weapons charges. CPD says officers smelled... More >>
3 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 11:37:00 AM CST November 24, 2017 in News
KIMBERLING CITY, Mo. (AP) — Two tangled bucks that drowned in a Missouri lake last month have been memorialized in... More >>
3 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 11:05:18 AM CST November 24, 2017 in News
ST. LOUIS (AP) — Three Thanksgiving Day killings in St. Louis have brought this year's homicide total to 188, matching... More >>
3 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 10:58:31 AM CST November 24, 2017 in News
ST. LOUIS (AP) - A soldier home for Thanksgiving in St. Louis is OK, but he lost his car and... More >>
3 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 10:44:30 AM CST November 24, 2017 in News
KANSAS CITY, Mo. (AP) — A man who was arrested after sleeping in a Kansas storage unit with his two... More >>
4 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 10:32:21 AM CST November 24, 2017 in News
ST. LOUIS (AP) — St. Louis police are investigating after two officers fatally shot a man and wounded a 14-year-old... More >>
4 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 10:13:19 AM CST November 24, 2017 in News
COLUMBIA - Police said Thursday night's shooting at the Columbia Mall was an accident, and happened as a man tried... More >>
6 hours ago Friday, November 24 2017 Nov 24, 2017 Friday, November 24, 2017 7:43:00 AM CST November 24, 2017 in News
FORT LEONARD WOOD - Soldiers attending 787th Military Police Battalion for Military Police One Station Unit Training enjoy a traditional... More >>
17 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 8:45:00 PM CST November 23, 2017 in News
COLUMBIA - Columbia Parks and Recreation had big plans in mind when it first started building a championship level disc... More >>
18 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 7:49:00 PM CST November 23, 2017 in News
COLUMBIA – Shoppers put down their forks and picked up their wallets as Black Friday deals ran into Thanksgiving. ... More >>
18 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 7:39:00 PM CST November 23, 2017 in News
COLUMBIA - Volunteers, young and old, served food to hundreds of people for Almeta Crayton’s Everybody Eats 20th Annual Thanksgiving... More >>
23 hours ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 2:50:00 PM CST November 23, 2017 in News
MEXICO - A 34-year-old man died Thursday morning after he crashed his vehicle. Omar Guadencio Cruz-Martinez, of Mexico, Missouri,... More >>
1 day ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 12:47:42 PM CST November 23, 2017 in News
BOONE COUNTY - The Boone County Sheriff's Department confirmed a pedestrian died after being struck by a car on Wednesday... More >>
1 day ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 12:19:00 PM CST November 23, 2017 in News
COLUMBIA - There are school choirs, church choirs, and mixed choirs, but now there is the opportunity to join a... More >>
1 day ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 11:57:00 AM CST November 23, 2017 in News
BOONVILLE - The breeding home of the Budweiser Clydesdales, Warm Springs Ranch, is hosting its inaugural Holiday Lights Festival starting... More >>
1 day ago Thursday, November 23 2017 Nov 23, 2017 Thursday, November 23, 2017 10:39:00 AM CST November 23, 2017 in News
Columbia, MO
Broken Clouds 74°
3pm 74°
4pm 73°
5pm 69°
6pm 63°

Select a station to view its upcoming schedule:

Coming Up Next

12:00p
NHL Hockey
3:00p
Dr. Phil
4:00p
Jeopardy!
2:00p
Maury
3:00p
The Robert Irvine Show
4:00p
The Goldbergs

Tonight's Schedule

7:00p
Dr. Seuss' How the Grinch Stole Christmas
7:30p
Trolls Holiday Special
8:00p
Dateline NBC
7:00p
iHeartRadio Music Festival, Night 2
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld