Amazon, the online seller - first of first books and, now, everything under the sun - began collecting Missouri's 4.225 percent sales tax Feb. 1.
Missouri residents, who now are paying the tax on Amazon orders, likely won't be cheering on the move. But it's a matter of fairness that should have been addressed years ago.
The giant retailer now collects sales tax in more than 30 states, including four others that were included along with Missouri at the beginning of the month.
Legally, Amazon doesn't have to collect sales tax in states such as Missouri, where it doesn't have brick-and-mortar facilities. But that could change soon. The St. Louis Business Journal recently reported Amazon is considering St. Louis as a new distribution center.
David Overfelt, president of the Missouri Retailers Association (MRA), told the St. Louis Post-Dispatch:
"This is going to be good for Missouri and good for our communities, because we provide a lot of services, and finding resources is getting tougher and tougher. This is a long time coming. We can't continue down the way we are without hurting Main Street businesses."
MRA is a Jefferson City-based trade group that supports requiring online retailers to collect sales tax.
The organization argues online retailers have an unfair competitive advantage over Missouri stores.
Their argument is just. Retailers often tell stories about customers who shop for items in their stores, but end up buying them online, where businesses can operate with a lower overhead because they don't pay tax and don't have the expenses of brick-and-mortar stores.
The issue isn't just with Amazon. Missouri's tax code should be updated to require internet retailers to collect tax and remit it to the Missouri Department of Revenue.
The issue has been brought up for years in the Missouri Legislature but has yet to be approved.
It would even the playing field between internet retailers and brick-and-mortar stores in the state. And, as an added bonus, it would bring in some much-needed revenue to the state at a time when various proposed funding cuts are about to be debated.
News Tribune