City of Cape Girardeau City Manager Scott Meyer has agreed to serve on the Missouri Municipal League’s E-commerce Tax Committee. The five-person committee’s purpose is to provide feedback and recommendations for potential legislation regarding electronic commerce, or e-commerce.
The E-commerce Tax Committee was created because of the the state of Missouri’s inability to collect sales and use taxes for online out-of-state transactions. According to a study by the University of Missouri, the state of Missouri lost an estimated $2.3 billion on e-commerce tax revenue from 2001-2009.
States currently cannot charge sales and use tax for online, electronic out-of-state transactions if the purchasing entity does not have a physical presence within the state. Federal legislation prohibits states from collecting sales and use taxes in this way.
A bill introduced to Congress called the Marketplace Fairness Act of 2013 would allow sales tax to be charged on online purchases.
Others members of the committee include city manager of the City of Springfield Greg Burris, director of finance of the City of Kansas City Randall Landes, city administrator of the City of Maryland Heights Mark Levin and finance director of the City of Creve Coeur Dan Smith.