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May 26, 2021

Missouri legislature approves marketplace facilitator and remote seller nexus rules

The alert was revised to clarify that taxable sales are used to determine if the economic nexus threshold has been met.

The Missouri General Assembly approved Senate Bill 153 (MO SB 153), which would establish marketplace facilitator and remote seller nexus rules effective January 1, 2023. Once in effect, vendors subject to the new nexus rules will be required to collect and remit the taxes covered by this bill separately from any tax they were previously required to collect and remit prior to January 1, 2023. The bill has been sent to the governor, who has publicly supported these provisions.

A significant change under MO SB 153 would be to the definition of "engages in business activities within this state" to include vendors with cumulative gross receipts exceeding $100,000 from taxable sales in the previous 12-month period of tangible personal property for the purpose of storage, use or consumption in Missouri. The vendor would calculate gross receipts from taxable sales at the end of each calendar quarter for the preceding 12-month period ending on the last day of the preceding calendar quarter. If the economic threshold is met, the vendor would be required to collect and remit tax for at least 12 months, beginning within three months after the quarter's close. The vendor would continue to collect and remit the tax for as long as it engages in business activities in, or maintains a substantial nexus with, Missouri.

MO SB 153 would expand "seller" subject to the seller's gross receipts tax to include marketplace facilitators that meet the economic nexus threshold. Marketplace facilitators would be required to separately state on the invoice the use tax collected and remitted on behalf of the marketplace seller. Specifically excluded from the definition of marketplace facilitators are those who: (1) provide internet advertising services or product listings without collecting payment from the purchase; (2) travel agency service providers; and (3) third-party financial institutions appointed by a merchant or a marketplace facilitator to handle various forms of payment transactions.

MO SB 153 would expand the timely discount on sales tax returns to include timely filed use tax returns by remote retailers and marketplace facilitators.

Additional provisions were included on income tax, the prohibition of new franchise fees on video service providers and the authorization of the Missouri Department of Revenue to consult and work with the Streamlined Sales and Use Tax Agreement Governing Board.


If MO SB 153 is enacted, Missouri will update its statutes to impose an economic threshold of $100,000 in taxable sales of tangible personal property to determine whether out-of-state sellers of tangible personal property or marketplace facilitators are engaged in business activities in Missouri and subject to sales-and-use-tax-collection requirements. Beginning January 1, 2023, sellers and marketplace facilitators would need to track their gross receipts of goods sold to customers in Missouri to know whether a sales or use tax obligation exists. Affected taxpayers would also need to update their systems and processes to account for these new nexus provisions.

If SB 153 becomes law, then all states imposing a sales and use tax, including the District of Columbia and Puerto Rico, will have marketplace facilitator and remote seller nexus provisions in place.


Contact Information
For additional information concerning this Alert, please contact:
State and Local Taxation Group
   • Natalie Haynes (