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This is Missouri’s first Cyber Monday with ‘Wayfair Tax’

Law places sales tax on most online sales
charlie cyber monday.jpg
Posted at 5:13 PM, Nov 27, 2023
and last updated 2023-11-27 19:40:41-05

KANSAS CITY, Mo. — Cyber Monday shoppers in Missouri will pay a little more this year than last for most online purchases.

A law Governor Mike Parson signed in 2021 took effect January 1, 2023. The law says companies located outside Missouri which sell more than $100,000 worth of items inside the state have to collect state and local taxes on those sales. In year’s past, Missourians didn’t pay sales taxes on most online purchases.

"It really makes the playing field even for the businesses here in our state and doesn't give out-of-state companies or businesses an advantage over our businesses here,” Parson said after signing the bill in the summer of 2021.

The amount of sales tax retailers collect and send to the Missouri Department of Revenue depends on each jurisdiction’s tax rate. Missouri, as a whole, has a 4.225 percent sales tax. Jackson County collects 1.375 percent. Kansas City’s sales tax rate is 3.25 percent. This brings the total sales tax collected from an online shopper living in all three jurisdictions to 8.85 percent.

Missouri was the last state to adopt this law, often referred to as the “Wayfair Tax.” Many states started adopting it following a 2018 U.S. Supreme Court ruling in the South Dakota v. Wayfair, Inc. lawsuit.