State Rep. Rory Ellinger to Hold Press Conference Introducing State Sales Tax Fairness Initiative

 is hosting a press conference, that according to its owner, will start leveling the playing field between on-line and bricks-and-mortar stores.

On Monday, March 21, at 9am Missouri State Representatives Rory Ellinger (University City) and Margo McNeil (Florissant) will host a press conference announcing their plans to push for sales tax fairness legislation in Missouri.  

A University of Tennessee study projects that total state and local sales and use tax revenue losses from e-commerce sales will likely exceed $184 million in Missouri in 2010 alone. This figure will grow to $234 million in 2012.

The current sales tax inequity means that locally-owned businesses work at a significant competitive disadvantage. Each year, this inequity grows, forcing them to cut benefits, jobs, or even close.  

Kelly von Plonski, owner of Subterranean Books in University City said, "We are losing more and more business every year to folks buying books from Amazon instead of from us, and I have no doubt that it's because purchases from Amazon start with a 10% tax-free advantage.  That's a scenario where we lose, University City loses and the state of Missouri loses.  We collect sales taxes from both our in-store and our online sales.  There's no reason that these huge Internet companies with their in-state affiliates should be let off that hook.  It's more than just an unfair starting point.  It's the law in Missouri and they are willfully breaking it."

This is Not a New Tax    

Importantly, this is not a discussion about the imposition of a new tax. This is an issue of tax compliance. Missouri should not be allowing online retailers with nexus in the state (because of their affiliates who act as sales agents) to skirt their responsibility to collect and remit sales tax. The failure of these online retailers to abide by existing sales tax law is a disservice to all the law-abiding businesses and to their communities, which depend on the vital services funded in part through this revenue.

Federal law clearly defines nexus as a retail store, warehouse, office, or sales agent.

It is indisputable that any out-of-state online retailer that has one or more affiliates based in Missouri -- affiliates that clearly act as solicitors on the online retailer's behalf and earn commissions based on sales -- has nexus in Missouri.