Review of the Missouri Department of Revenue Sales and Use Tax

The State Auditor’s Office has released the annual review of the Missouri Department of Revenue Sales and Use Tax. While not noting any serious issues in the release of information, Auditor Scott Fitzpatrick did note that Missouri has the most generous timely sales and use tax discount in the nation. According to Fitzpatrick the State of Missouri originally established the discount so businesses could recover a portion of their cost for compliance with state sales tax laws and to encourage timely remittance of taxes. Now, he recommends that state lawmakers re-evaluate and consider a monthly cap on the amount of the discount.
State Representative Jeff Knight from Lebanon says that is something he would like to consider…

Some states like Arkansas have a similar 2 percent discount, but they have a cap of $1,000 per month. Representative Knight shared his thoughts on a cap…

In 2022, the 2 percent retention for paying in a timely manner, resulted in Missouri businesses keeping $ 158 million dollars of sales and use tax collection in their pockets.