Special Elections Held In Southeast Missouri Nov. 2nd Determine 'Internet Sales Use Tax' Adoption On Local Level
Special elections were held on Nov. 2nd in various counties in Missouri, regarding the issue of an internet sales use tax. The new tax comes in wake of the federal Wayfair decision that requires retailers to collect the same tax for online sales as if purchases were made locally.
John Mehner, President and CEO of the Cape Girardeau Area Chamber of Commerce spoke with KRCU about the new tax.
"A use tax is basically a sales tax on items that are purchased out-of-state for use in a particular location.”
According to Mehner, Cape Girardeau county passed their Internet use tax about two years ago, and now it’s up to individual cities on whether or not they’d also introduce the new tax.
“Right now, if you purchase things online, the State of Missouri already collects a use tax, and Cape Girardeau county already collects a use tax, but certain cities have not passed that."
The towns and cities in Cape Girardeau County voted on the tax on Nov. 2nd. Mehner went into detail about how it will look in the City of Cape Girardeau specifically.
"In the vote yesterday [Nov. 2nd], the City of Cape Girardeau voters decided that they would agree with that tax being collected on internet sales for use of items that ended up in Cape Girardeau. And So that additional Cape Girardeau 2.75% sales tax rate would be added to the current rate that was being collected online. But what it does is it matches the overall sales tax rate for the city of Cape."
According to Mehner, the new tax doesn’t go into effect until Jan. 2023.