The Missouri Senate has passed a bill that would require the Department of Revenue to enter into the Streamlined Sales and Use Tax (SST) Agreement. The Department would be required to enter into the SST Agreement, effective January 1, 2015. Specifically, the bill would provide for the following: Cities imposing sales taxes would be required to notify the department within 10 days of changing their boundaries. Any sales tax changes due to a boundary change would take effect on the first day of the calendar quarter 120 days after the department receives notice of the change; When a political subdivision changes its local sales tax rate or taxing boundary, such change would take effect on the first day of the calendar quarter 120 days after the department receives notice of the change; All state and local sales taxes would be required to have the same basis by requiring identical exemptions at the state and local level; Uniform sourcing rules would be required; Political subdivisions would be prohibited from opting out of sales tax holidays; The department would be required to participate in an online registration system for sales tax collection. Registration in the system could not be used as a factor to determine nexus with the state. The department would be required to accept electronic payments; The department would be required to provide electronic databases for taxing jurisdiction boundary changes, tax rates, and a taxability matrix detailing taxable property and services. Sellers would be relieved from liability if they fail to properly collect tax based upon certain information provided by the department; Amnesty would be available for sellers under certain circumstances following registration with the state; Monetary allowances would be provided to sellers and certified service providers for collecting and remitting state and local taxes equal to 2% of the taxes collected; and for products that are bundled, with one item being taxable and the other nontaxable, the entire product would be subject to taxation unless the provider could properly identify the nontaxable portion. For products that are bundled items with different tax rates, the highest tax rate would be used for the entire product unless the provider could properly identify the lower-taxed item. The provisions in this bill are similar to provisions in the bill S.B. 26. At this time, it does not appear that this bill will be passed during the 2013 regular legislative session. We will continue to monitor the activities. (H.B. 253, as passed by the Missouri Senate on May 8, 2013)