With Missouri’s economic nexus law set to go into effect January 1, 2023, taxpayers have some nexus evaluations to do to avoid penalties and interest. Here’s what to expect.
Missouri’s economic nexus law goes into effect January 1, 2023. According to SB 153, nexus will be triggered for taxpayers who have taxable sales in Missouri that exceed $100,000 in 2023. For subsequent years, the law will also impose a 200 transaction-per-year threshold. Missouri will implement separate rules for sourcing transactions for sales that are completed through a marketplace that differ from the current sourcing regime. Missouri is the last state of the 46 that impose a sales tax to impose both an economic nexus and marketplace facilitator rule.
Taxpayers should work with their tax provider to review their 2022 gross receipts from taxable sales to determine if they exceeded the $100,000 threshold on January 2, 2023. For those with economic nexus (and other forms of nexus), taxpayers are obligated to collect and remit the sales tax during the next 12 months. Talk with your TaxOps advisor about a nexus analysis for Missouri and all the other states that could result in registrations that might be required to avoid penalties and interest.