HB 578 Summary

• Amends Missouri's definition of "business" to establish that a person engages in business in the state if they "engage in business in this state" or "maintain a place of business in this state" under section 144.605.

• Voids any ruling, agreement, or contract between a person and the state that exempts them from collecting sales and use tax despite maintaining a warehouse, distribution center, or fulfillment center in Missouri, unless specifically approved by majority vote of both houses of the general assembly.

• Expands the definition of "engages in business activities within this state" to include maintaining distribution facilities, warehouses, or storage places that facilitate delivery to customers, and conducting other activities significantly associated with establishing or maintaining a market in Missouri.

• Establishes a presumption that vendors with affiliated persons conducting specified activities in Missouri (such as maintaining facilities, making deliveries, or facilitating pickups) are engaged in business activities in the state, with a rebuttable presumption based on whether those activities are significantly associated with the vendor's market establishment.

• Creates a nexus presumption for vendors with affiliate marketing agreements generating over $10,000 in referral sales during the preceding twelve months, rebuttable by proof that residents did not engage in significant solicitation activities on the vendor's behalf.