MO HB1042

Redefines "engaging in business" in Missouri to include any person with a "substantial nexus" through activities like maintaining warehouses, distribution centers, or fulfillment centers in the state, regardless of ownership structure.

Establishes that vendors are presumed to engage in business activities in Missouri if affiliated persons maintain distribution facilities, warehouses, or storage places in the state that facilitate delivery of the vendor's products to customers.

Creates a rebuttable presumption that vendors with affiliate marketing agreements generating over $10,000 in cumulative gross receipts from referred customers in the preceding 12 months are engaging in business in Missouri and must collect sales tax.

Voids any existing rulings, agreements, or contracts between persons and Missouri state agencies that exempt them from collecting sales and use taxes despite maintaining warehouses or fulfillment centers in the state unless approved by majority vote of both houses of the General Assembly.

Removes previous exemptions from vendor requirements for sellers with less than $500,000 in Missouri gross receipts or $12.5 million nationwide, provided they maintain no physical presence and have no selling agents in the state.