Statement on SB 153 The Wayfair Fix
Jason Hall, CEO of Greater St. Louis, Inc., issued the following statement after the Missouri General Assembly passed SB 153, commonly referred to as the Wayfair Fix.
“Today, the Missouri General Assembly gave final approval to SB 153, or the ‘Wayfair Fix,’ a bill that levels the playing field for Main Street and small businesses throughout the state. Currently, small businesses in Missouri are required to collect sales taxes every time a purchase is made while their out-of-state online competitors are not. This legislation fixes that unfairness. Missouri is the last state in the nation to pass this pro-small business policy that will help our Main Street businesses recover from the pandemic and provide a much-needed boost to state and local government revenues.
This bill was one of Greater St. Louis, Inc.’s top legislative priorities and it aligns with the STL 2030 Jobs Plan recommendation to prioritize support for small and Main Street businesses. After being stalled for years in the legislature, our team worked with Republicans and Democrats to encourage compromise on the projected $67 million increase to the state general revenue fund as a result of the Wayfair Fix.
The compromise solution includes income tax relief for low- and middle-income Missourians in the form of the Earned Income Tax Credit (EITC), a priority of Greater St. Louis, Inc. and the Ferguson Commission Report. This creates a policy-level change to support inclusive growth.
The passage of SB 153 will help Missouri’s Main Street businesses compete, provide tax relief for working families, and stimulate local economies throughout the state. On behalf of the St. Louis business community, we applaud the leaders in both chambers who made passage possible. Most notably, we thank St. Louis metro legislator Senator Andrew Koenig (R-Ballwin) and Representative J. Eggleston (R-De Kalb) who worked for years to get this policy across the finish line, and Governor Mike Parson who made the Wayfair Fix a top priority in his State of the State speech this year. We would also like to recognize Senator Lauren Arthur (D-Kansas City) and Senate Minority Floor Leader John Rizzo (D-Kansas City) for their hard work in finding a compromise with the income tax cuts and the Earned Income Tax Credit included in SB 153.”
In June 2018, the United States Supreme Court ruled in the case South Dakota v. Wayfair that states can collect online sales tax from businesses with no physical presence in their state. Today, Missouri is the only state in the nation without a mechanism to collect internet sales tax from out-of-state retailers. This places Missouri’s Main Street businesses at a distinct disadvantage since retailers operating solely from a different state are not required to collect sales tax on online orders from Missourians.