Amazon Begins Collecting Missouri Sales Tax

Pam Huelsman, Principal, Tax Services, Brown Smith Wallace

Content sponsored by PNC

Effective February 1, 2017, Amazon will begin charging Missouri consumers sales tax for purchases made online. The state sales tax of 4.225% will be charged on all Amazon online purchases. No sales tax is charged on gift cards, according to Amazon customer service, but purchases made with a gift card will be subject to the state sales tax.

Shoppers in over 30 states already pay state sales taxes when they buy goods from Amazon. Missouri is one of only 17 states without an Amazon distribution center, so the company had not previously collected sales tax in Missouri, because it did not have a physical presence in the state.

As of February 1, Amazon will collect sales tax in Mississippi, Rhode Island, South Dakota and Vermont as well.

Amazon recently announced that it will hire 100,000 full-time workers at new fulfillment centers in Texas, California and Colorado. There is speculation that the company will open distribution facilities in Missouri, but there is no word yet on how many employees would be hired.

Some experts believe that the added sales tax on Amazon purchases could level the playing field for brick and mortar stores as shoppers find they aren’t saving as much by purchasing online.

Content sponsored by PNC

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