General Assembly should make Wayfair legislation priority when it returns

With many businesses closed and individuals observing Missouri Gov. Mike Parson's stay-at-home order, consumers are turning more to online stores for purchases.

Local municipalities, which were already facing steep sales tax hits due to the pandemic, will be further challenged to fund basic government operations unless they have a use tax in place. Additionally, local retailers will continue to be put at a disadvantage compared to online competitors.

The U.S. Supreme Court decided in 2018 that states could pass legislation to require out-of-state retailers to collect sales taxes. Missouri has yet to pass this Wayfair legislation, though individual municipalities have put a use tax on the ballot for voters to decide. Locally, Cape Girardeau, Bollinger and Perry counties have a use tax in place. But the cities of Cape Girardeau and Jackson, among others, do not.

We have previously editorialized about the need for a mechanism to collect sales taxes from out-of-state retailers doing business online. To us, it's about creating a level playing field for local businesses. You can buy one product at a local retailer and pay sales tax or purchase the exact item from an online retailer and not be charged the same sales tax. Simply put, it puts our local businesses at a disadvantage, and the cascading negative effects for our local economy are real.

We're firm believers that it's important to shop close to home. It helps the local economy and funds basic government operations. But the coronavirus pandemic has, understandably, led more people to shop online to adhere to social distancing guidance.

Missouri Gov. Mike Parson has previously shared his support for Wayfair legislation. When the state's General Assembly returns on April 27, this legislation should be made a priority. The economic foundation of our state depends on it.