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Online shoppers get off tax free
Posted: 12.18.2008 at 6:39 PM
John Garlock

John Garlock is 6 and 10pm news anchor with KTVO.

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GREENTOP, MO. -- If you're buying products online from another state besides where you live, chances are you aren't paying any sales tax for those items.

Fact Finder learned that a 1992 Supreme Court ruling states that if an online retailer has no physical presence in a certain state, it's not required to collect sales tax for sales in that state.

KTVO went to Western's Smokehouse in Greentop Thursday where they ship meat products all over the country.

Nancy Wood said an estimated 70 percent of Western's online business is done outside Missouri.

She said keeping track of who owes sales tax and who doesn't is made easy thanks to computer technology.

"We have our program set up so that it just automatically figures the sales tax depending on where it's going to. So, it's not a big issue with us as far as, we've got everything set up so we don't have to worry about figuring it," said Wood.

Fact Finder learned that Missouri law states that you can buy up to $2,000 worth of merchandise online from out-of-state companies and legally pay no sales taxes.

The Missouri Department of Revenue says trying to enforce that is a problem, if not impossible.

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