The 2018 U.S. Supreme Court ruling in South Dakota v. Wayfair has changed the dynamic of sales tax in a number of ways. Where almost every state in the union has already enacted economic nexus legislation for remote sellers, states like Florida and Missouri have been late to the party to impose sales tax with respect to seller’s economic nexus in the state. On April 19, 2021, Florida lawmakers finally joined the other 43 states to impose an economic nexus threshold, and now Missouri is also set to finally pass a similar law.
The Missouri legislature approved S.B. 153 in a 102-42 vote, following some modifications in the bill. Missouri Rep. John Eggleston said, “We have to be fair to out-of-state businesses because that’s what the Supreme Court said, and we want to help our in-state businesses to better compete.” He also added, “After a lot of negotiation, I think we’re at a pretty good spot.”
Taxpayers who are not required to file a tax return may want to do so. They might be eligible for a tax refund and don’t even know it. Some taxpayers might qualify for a tax credit that can result in money in their pocket. Taxpayers need to file a 2017 tax return to claim these credits.
Here is information about four tax credits that can mean a refund for eligible taxpayers:
- Earned Income Tax Credit. A taxpayer who worked and earned less than $53,930 last year could receive the EITC as a tax refund. They must qualify for the credit, and may do so with or without a qualifying child. They may be eligible for up to $6,318. Taxpayers can use the 2017 EITC Assistant tool to find out if they qualify.
Prior to 2013, taxpayers who paid Missouri sales tax on exempt purchases of machinery, equipment and parts were required to request a refund from the seller. However, House Bill 1504 which was signed into law by the Governor on July 10, 2012 and went into effect on Aug. 28, 2012 now provides an easier alternative for purchasers to obtain refunds directly from the Missouri Department of Revenue. Rather than requesting a refund directly from the seller, purchasers can now obtain a notarized assignment of rights form (“AOR form”) from the seller. Read More
This month we travel to the “Show Me” state of Missouri. The people of Missouri have earned their motto as the “Show Me” state for their very practical skepticism of the fads that sweep other parts of the country. This attitude manifests itself in the state government’s approach to business encouragement and regulation. So, let’s look at the state and see how their approach could help your business.