Our Voice: Prioritize streamlined sales tax

There is approximately $20 million in annual revenue waiting to be taken right now by the state of Missouri. With a federal push, that number climbs to nearly $400 million.

And what’s more, there’s no organized political opposition to taking it.

So what’s the hold up? The answer is, it’s laborious and a little complicated.

Those estimated funds would come as a result of streamlining sales tax to make our processes and definitions similar to other states that are already collecting the additional tax. Ultimately, it means taxing online purchases, so internet vendors play by the same rules as brick and mortar stores in our communities.

This is not a new proposal. It’s been floating around for a few years, with bills occasionally passing the House or Senate, but never finding their way all the way through.

There are 24 states that have signed on to the Streamlined Sales Tax Act. Should Missouri become the 25th, it would have rules and definitions similar to the other states already taking part. It would then collect approximately $20 million in uncollected sales tax from companies that are voluntarily complying with the act.

That amount alone is significant. It may not sound like much compared to the state’s overall budget, but we’re constantly working with a shortfall every year. In response, Gov. Jay Nixon withheld about $115 million from the budget.

So putting $20 million back in the budget would be felt positively somewhere — either education, health or another department that’s feeling the pinch from withholdings.

Senate Bill 795 has been filed to get this done in 2016, but it could be tough again. Changing the tax code, even making minor adjustments, requires a lengthy, complicated bill.

For elected officials with a lot on their plates, digging into a dense bill could be pushed to the side.

However, Missouri legislators must make streamlining sales tax a priority in 2016. We can’t afford to turn away even $20 million, and there’s potentially more to be had.

The really big money — upwards of $380 million a year — comes with federal legislation.

A new federal rule would compel companies to pay sales tax on internet sales. If Missouri is one of the states signed on to the Streamlined Sales Tax Act, it starts reaping the benefits immediately.

We’re not talking about piling on a sales tax. We’re talking about collecting the tax that already exists — the tax that local businesses with their store fronts in Springfield must already pay.

We shouldn’t let internet vendors get a break that our hometown businesses lack. And we shouldn’t sit on our hands when there’s badly needed revenue waiting to be taken.

The only thing in our way is effort. Let’s make streamlining Missouri’s sales tax a priority in 2016.

This editorial is the view

of the News-Leader Editorial Board

Allen Jones President

Paul Berry Executive Editor

Cheryl Whitsitt Managing Editor

Stephen Herzog Engagement Editor