A Message to Small Businesses: Vote Yes on Amendment 4 to Protect Your Company
The Missouri Department of Revenue is moving to expand sales taxes to services without a vote of the people. The first attempt was done on businesses like dance studios, yoga studios, and personal trainers – where unelected Jefferson City bureaucrats decided that these institutions should pay sales taxes on the services they provide for the first time. These attempts were so far reaching that they demanded these businesses remit payment for the last 5 years, even though the businesses were not aware they should have collected the tax.
Now the Department of Revenue is trying to place a new sales tax on delivery services and have stated that wholesale and retail delivery services would be affected.
New sales taxes on services have been proposed in the last seven sessions of the Missouri General Assembly. Just this year, Missouri’s neighboring states of Oklahoma and Illinois have discussed taxing services. Other states, such as North Carolina and Washington State, have started imposing new sales taxes on services this year.
The threat is real, and new sales taxes can have disastrous consequences for our businesses:
- The state can suspend your license for lack of payment
- You are liable for the collection of the taxes, not the state
- Taxes could be levied on all sales, not just collections – meaning you might have to pay sales tax on money you haven’t even received
- This adds additional costs, time, and bureaucratic regulations to your businesses