Columbia businesses cheer Supreme Court ruling

5 months 3 weeks 2 hours ago Thursday, June 21 2018 Jun 21, 2018 Thursday, June 21, 2018 5:18:00 PM CDT June 21, 2018 in News
By: Blake Sammann, KOMU 8 Reporter
loading

COLUMBIA - A Supreme Court ruling that allows states to charge online retailers sales tax has Columbia businesses rejoicing.

On Thursday, the Court ruled states now have the power to force Internet retailers to pay sales tax in states where they don't have a physical presence, overruling their own decision in the 1992 case Quill Corporation v. North Dakota

Columbia business leaders cheered the decision, hailing it as an equalizer for brick and mortar stores forced to pay a sales tax their online competitor were previously exempt from.

"Overall, it's a win. It's a victory for leveling the playing field and it's good for the business climate in Columbia," Columbia Chamber of Commerce Government Affairs Director Jerry Dowell said.

The Court's decision also has Columbia government officials breathing a sigh of relief. Much of Columbia's government revenue stems from sales tax, something that has suffered greatly at the hands of online competition. 

"I think it's the first in a series of steps that have to happen before we address some of the long term revenue trends we've seen," City Council member Matt Pizter said. "Columbia, like a lot of other city and municipalities, has been losing a lot of revenue to online sales over the past number of years."

Dowell said it's hard to convince people to to buy a product from a local store when they know they can get for a lower price online. 

"People are creatures of habit, looking for the lowest cost product for the best price and when you can get a 6,7,8 percent advantage by not charging sales tax in that state, you know, people are creatures of habit," Dowell said. "They want to save the most amount of money they can and get the same product."

Dowell said the advantage of online retailers would always show itself the same way.

"Somebody will try on a pair of shoes or take a look at something, a radio or whatever and see what they think about it, see if it fits, if they like it and then they'll go online and buy it," he said.

According to a recent study by the United States Government Accountability Office, Missouri misses out on anywhere from $180 to $275 million annually in state and local sales tax.

According to the Missouri Budget Group, the Court's ruling is a chance for Missouri to revitalize it's communities. 

“Taxes owed for online purchases have gone mostly uncollected, and have made it harder for both our state and our towns to meet the needs of Missourians all across the state," Executive Director Amy Blouin. "The Court’s ruling means we can start to reinvest in our communities.”

While the Missouri Budget Group is urging lawmakers to take action and make sure Missouri cashes in on the ruling, Dowell said it will take some time for the decision to trickle down to the city level.

"It'll be a complicated thing that'll be have to worked out, I'm sure there's going to have to be some legislation to fix some of the things to implement and regulate how the tax collection is going to occur," he said.

Tyson Hunt is the co-founder of Logboat Brewery and a member of the Chamber of Commerce. He said in the wake of the ruling, people should shop locally, especially now that there isn't an advantage to doing it online.

"Let's support our local businesses that are here in this community and doing things the right way," he said.

More News

Grid
List
COLUMBIA - A second-degree domestec assault charge against Missouri Football defensive end will not be filed, according to the... More >>
3 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 8:24:00 PM CST December 11, 2018 in News
COLUMBIA - The University of Missouri recently joined the ranks of many colleges across the country by starting up an... More >>
3 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 8:08:00 PM CST December 11, 2018 in News
JEFFERSON CITY - An investigation into a First Student bus concern has lead to an increased police presence in one... More >>
4 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 7:29:00 PM CST December 11, 2018 in News
JEFFERSON CITY - After almost three years, Jefferson City now has new and improved fire trucks. Jefferson City Fire... More >>
4 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 7:03:00 PM CST December 11, 2018 in News
COLUMBIA - Neighbors on Lasso Circle in Columbia's Old Hawthorne neighborhood feel safe, but are more vigilant exactly a year... More >>
5 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 6:07:00 PM CST December 11, 2018 in News
FULTON - Fulton Soup Kitchen is working to open its new location in Fulton, but a $1,700 utilities down payment... More >>
6 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 5:18:00 PM CST December 11, 2018 in News
OZARK, Mo. (AP) — The southwest Missouri city of Ozark that had said it was removing a Christian cross from... More >>
6 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 5:17:00 PM CST December 11, 2018 in News
COLUMBIA- The Columbia Police Department is investigating a death downtown. CPD announced the investigation on Twitter just after 4... More >>
6 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 4:44:00 PM CST December 11, 2018 in News
ST. LOUIS (AP) — An eastern Missouri doctor has been sentenced to more than three years in prison for prescribing... More >>
8 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 2:48:09 PM CST December 11, 2018 in Continuous News
KANSAS CITY (AP) — A Kansas City man who told officers he was planning to kill someone and was "kinda... More >>
8 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 2:42:49 PM CST December 11, 2018 in Continuous News
JEFFERSON CITY - As Missouri's Secretary of State waits for a response from the State Auditor, a political expert weighed... More >>
9 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 2:41:00 PM CST December 11, 2018 in News
COLUMBIA - The Columbia Police Department has been dispatched to Ballenger Lane in North Columbia 11 times so far this... More >>
9 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 2:21:00 PM CST December 11, 2018 in News
JEFFERSON CITY - Walgreens is giving Missouri a new tool in the fight against opioid abuse, and it's a simple... More >>
9 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 2:02:00 PM CST December 11, 2018 in News
TAOS - A school bus holding 38 students ranging from K-12 was hit head-on Tuesday morning while stopped on Dove... More >>
11 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 12:19:00 PM CST December 11, 2018 in News
KANSAS CITY (AP) — Both U.S. senators from Missouri are demanding answers about the death of a veteran after an... More >>
12 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 10:58:05 AM CST December 11, 2018 in News
COLUMBIA - Gunfire in the neighborhood around Blue Ridge Elementary School led to a modified lockdown Tuesday afternoon, and police... More >>
13 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 10:39:00 AM CST December 11, 2018 in News
JEFFERSON CITY - Jefferson City Public Schools has named the first football head coach for the new Capital City High... More >>
13 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 9:55:00 AM CST December 11, 2018 in News
JEFFERSON CITY - The agreement between the Jefferson City School District and the city will reimburse the school district up... More >>
16 hours ago Tuesday, December 11 2018 Dec 11, 2018 Tuesday, December 11, 2018 7:30:00 AM CST December 11, 2018 in News
Columbia, MO
Broken Clouds 47°
12am 44°
1am 43°
2am 42°
3am 40°