Kirkwood City Council To Explore Internet Sales Tax

With a looming budget deficit and spending cuts as the theme for this year's Missouri legislature, it's no surprise that communities are looking for new ways to generate revenue.

Kirkwood Mayor Art McDonnell suggests that an Internet sales tax is an option worth exploring.

Missouri does not tax goods and services bought on the Internet, even though more than 10 percent of all national retail occurred online last year, according to McDonnell.

"There's a lot of purchasing going on that we aren't getting revenue from," the mayor said. "And if the online shopping is taking business from local shops, it's like a double-whammy."

Currently, state law does not allow for the city of Kirkwood, or any other municipality, to pass and enforce an Internet sales tax. That could all change, however, as dozens of communities across the state are expected to appeal to their local representatives on the subject of Internet sales.

McDonnell says that he has a "good working relationship" with several representatives in Jefferson City. Before any final decisions are made, the city must explore the possible pro's and con's of enacting such a tax.

"We'll probably ask the finance committee to look at it sometime down the road," McDonnell said, "just so we can have some official numbers, something tangible to show people."

Any new tax won't happen overnight, but McDonnell believes that it is inevitable.

"The way purchasing on the Internet is going, I think you'd be crazy not to think that this thing wouldn't eventually happen," McDonnell said.