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Report Suggests Missouri Missing Out On Internet Sales Tax Revenue

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It appears that Missouri has lost more than $2 billion in revenue over the past nine years because it does not collect sales taxes on purchases made over the Internet.  A report issued by the University of Missouri’s Truman School of Public Affairs says that averages out to around $468 million a year.  Jacob Hummel, the top Democrat in the Missouri House, says collecting taxes on Internet sales could help fund several critical needs, including K-12 schools.

“I think if you look at just levels of school funding, when adjusted for inflation, we’re back at levels in the early (19)90’s," says Hummel. "Clearly this is a way to enhance revenue.”

Republican legislative leaders contacted for this story have so far not responded – however, they’re on record as saying that authorizing Internet sales tax collections would be equal to a tax increase on Missouri businesses. 

The 2013 regular session begins next week.

Marshall Griffin is the Statehouse reporter for St. Louis Public Radio.
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