Columbia losing revenue as state collects first Cyber Monday Amazon sales tax

10 months 3 weeks 1 day ago Monday, November 27 2017 Nov 27, 2017 Monday, November 27, 2017 6:46:00 PM CST November 27, 2017 in News
By: Danielle Katz, KOMU 8 Reporter
loading

COLUMBIA - Cyber Monday could set a sales record, but Columbia will not see much, if any, revenue from it.

Amazon began charging sales tax for Missouri in February, so this Cyber Monday is the first time the state could benefit. Columbia will not though, since the city will not get any money from this surge in online shopping. 

The city tried to get about $1 million dollars from taxes on online purchases through the use tax proposal, but it failed earlier this month for the third time. The use tax would have collected city sales tax when people spent more than $2,000 out-of-state.

Second Ward Council Member Michael Trapp said online sales undermine Columbia's finances. The city made budget cuts to increase revenue, because sales tax growth has steadily declined since the 2011 fiscal year. In 2011, sales tax growth came in at 5.8 percent compared to a projected 1 percent growth for 2018. Third ward council member Karl Skala has previously attributed this decline to online sales.

“Just because someone makes their purchases from an out-of-state provider instead of a local brick-and-mortar shop doesn’t mean that they shouldn’t pay for police and fire and parks like folks who are shopping at the mom and pop stores in Columbia," Trapp said.

He said he does not expect more revenue in the near future since the proposal failed, but said the city will have to make more cuts if nothing changes.

“Ultimately, we’re going to have to begin cutting some popular programs,” Trapp said.

Local stores need to respond, he said.

"Stores are going to have to adapt to the changing realities," he said. 

Amazon is responsible for about 43 percent of online sales in Missouri, according to past reporting. KOMU 8 reached out to the Department of Revenue to see how Cyber Monday's sales could affect the state, but has not received any information back as of Monday night.

More News

Grid
List
COLUMBIA – Nineteen members of Missouri Task Force One returned to Boone County Fire Protection District headquarters Saturday morning after... More >>
1 hour ago Saturday, October 20 2018 Oct 20, 2018 Saturday, October 20, 2018 3:16:00 PM CDT October 20, 2018 in News
SPRINGFIELD (AP) — A man has been criminally charged days after a woman's body was found near Fellows Lake at... More >>
2 hours ago Saturday, October 20 2018 Oct 20, 2018 Saturday, October 20, 2018 1:58:08 PM CDT October 20, 2018 in News
SPRINGFIELD (AP) — A Springfield woman who killed her live-in boyfriend with a crowbar in 2017 has been sentenced to... More >>
2 hours ago Saturday, October 20 2018 Oct 20, 2018 Saturday, October 20, 2018 1:48:36 PM CDT October 20, 2018 in News
ST. LOUIS (AP) — A restored St. Louis prairie of native grasses and flowers is in bloom, but the nature... More >>
7 hours ago Saturday, October 20 2018 Oct 20, 2018 Saturday, October 20, 2018 8:50:24 AM CDT October 20, 2018 in News
COLUMBIA - Sen. Claire McCaskill spoke about health care in Columbia on Friday at Laborers Local 955, as part of... More >>
21 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 7:35:00 PM CDT October 19, 2018 in News
COLUMBIA - After realizing the underrepresentation of Hispanic business owners in mid-Missouri, three Hispanic professionals established a group of 12... More >>
22 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 5:49:00 PM CDT October 19, 2018 in News
COLUMBIA - This is the last week of the regular season and it's a cold one. Our game of... More >>
23 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 5:20:00 PM CDT October 19, 2018 in Friday Night Fever
COLUMBIA - Two Midwest companies issued separate food recalls this week for bacterial contamination concerns. Hy-Vee said its supplier,... More >>
23 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 4:53:00 PM CDT October 19, 2018 in News
CAMDEN (AP) — Toxicology tests show that a boater was drunk when he slammed into a bluff at Missouri's Lake... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 3:41:35 PM CDT October 19, 2018 in News
COLUMBIA - The Legion of Black Collegians and the FourFront Marginalized Student Council held a solidarity walk Friday to show... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 3:39:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - The Missouri State Medical Association (MSMA), along with multiple medical associations, reaffirmed their opposition to the three... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 2:50:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - For the fourth consecutive year, Project Homeless Connect provided services Friday for people who are experiencing homelessness... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 2:39:00 PM CDT October 19, 2018 in News
DES MOINES, Iowa (AP) — The Mega Millions jackpot has soared to an estimated $1 billion, as the second-largest lottery... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 12:10:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - Police want the public's help finding a man who allegedly ran from a traffic stop after hurting... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 11:42:00 AM CDT October 19, 2018 in News
COLUMBIA - Two MU residence halls and an atrium were officially dedicated on Friday honoring three former MU students. Lucile... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 10:09:00 AM CDT October 19, 2018 in News
WASHINGTON (AP) — Just 1 in 4 people thinks Brett Kavanaugh was completely honest when as a Supreme Court nominee... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 9:58:13 AM CDT October 19, 2018 in News
(CNN) -- The US moved closer to acknowledging the role of Saudi Arabia in journalist Jamal Khashoggi's apparent death as... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 9:36:16 AM CDT October 19, 2018 in News
RANDOLPH COUNTY - MoDOT announced they will close Randolph County Route CC from Route FF to Route K on Monday,... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 8:30:00 AM CDT October 19, 2018 in News
Columbia, MO
Broken Clouds 63°
5pm 57°
6pm 54°
7pm 50°
8pm 47°