An estimated $768.3 million in Amazon.com goods were shipped to Missouri in 2014. Those goods did not have state and local taxes added to the sales, totaling a loss of $60.2 million for Missouri, according to a new study.
The study says $44.1 billion of product was sold nationally in 2014, equating to $625 million in lost tax revenue. The sales are the equivalent of 3,215 storefronts nationwide, according to the study.
The study uses a broad theory.
In Missouri, the $768.3 million in shipped sales equal 540 storefronts. Those storefronts equal 1.9 million square feet of commercial space which would have led to $7.6 million in property taxes and 4,704 retail jobs.
Between the sales and property tax revenues lost, the study estimates a total hit of $67.8 million to the state of Missouri, roughly $29 per household.
What does it mean for local business?
It means if small brick and mortar businesses want to stay competitive, they have to offer something the internet doesn’t.
“You just don’t get a very full experience with tailored clothing online,” says Houndstooth owner Jeffrey Covitz.
Covitz’s Rivertown Market shop offers higher end men’s tailored clothing.
“You can feel and touch the fabrics, you can feel and touch how the garment feels on you. I think it’s an experience you can not get online,” said Covitz.
What does it mean for shoppers?
It means yes, you may be getting a more affordable product, but you may not be getting better services from your local governmental departments.
“In Missouri it’s especially important because streets services are especially important,” said Eclectic Gallery’s Jenny Isenberg. “We don’t mind having them pay the sales tax. We don’t mind collecting the sales tax because we do see the benefits that happen when a collective group of people each put in a small amount of money in order to gain bigger services.”
What can the state do?
The study says about 27 states charge sales tax on Amazon purchases. Missouri is not one of them and would require legislation to change that.
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Brian Abel can be reached at brian.abel@kshb.com.
