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Authors

Hannah Hope

Abstract

The case of South Dakota v. Wayfair opened the door for states to tax remote sellers who did not have a physical presence in the state. In its wake, states have scrambled to implement an economic nexus and start collecting revenue. The results widely vary, from states that have essentially implemented the exact criteria that was seemingly approved by the Court in Wayfair—such as sales and transaction thresholds—to states with no threshold at all. Then there is Missouri, which has so far failed to introduce an economic nexus, despite the millions in revenue it is missing out on.

This note discusses and summarizes the various responses and analyzes how Missouri could implement a similar nexus. It discusses the proposed Senate Bills that, though ultimately did not pass, shed light on Missouri’s expected approach, and whether this approach fits with Missouri’s unique tax jurisdictions and needs. With over 2000 autonomous tax jurisdictions, it is not likely that Missouri will hit all the criteria laid out in Wayfair—particularly a uniform tax administration—however, this note concludes that the suggested thresholds which are in line with the Wayfair requirements, combined with a thorough tax-mapping feature, serve as a sufficient compromise.

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