KANSAS CITY, Mo. - Some state lawmakers and small-business owners are renewing their efforts in the upcoming legislative session to require the collection of sales tax on Internet purchases.
More people shopped online this holiday season, and initial research shows that convenience and price were part of the reason. It's estimated that Missouri will lose out on nearly $188 million from uncollected taxes on Internet sales this year.
Small-business advocates such as the Greater Kansas City Chamber of Commerce are among supporters of collecting the tax. Mike Sutherland, a consultant at Missouri Budget Project, says not doing so hurts small businesses in the Show Me State.
"Missouri small businesses are the base of our economy, and in many communities they're really the vitality of a community. I think there's a recognition that our tax code is putting those retail businesses and communities at a disadvantage to out-of-state businesses."
Similar efforts in past years have failed. By law, consumers are required to pay to the state a 'use tax' on non-taxed purchases that they make through mail-order or online. States cannot force companies to pay sales or "use tax" unless they have a physical presence in the state.
While consumers are always looking to save a few dollars, Sutherland says they also see the big economic picture of what small businesses mean to their community.
"They're recognizing there's a competitive disadvantage to bricks and mortar, businesses to those that are remote sellers or out-of-state, and there's also recognition there's an erosion to the tax base."
Twenty-four other states already collect sales tax on Internet purchases. U.S. Sen. Roy Blunt, R-Mo., is co-sponsoring a similar bill, the Marketplace Fairness Act, on the federal level.
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In a significant development for family caregivers across America, AARP is spearheading initiatives at both federal and state levels to provide tax relief for those caring for loved ones. The organization is championing the Credit for Caring Act, which proposes a $5,000 federal tax credit, while also pursuing similar legislation at the state level in Ohio.
Jenny Carlson, AARP Ohio state director, said it's a comprehensive approach to supporting the 48 million Americans who serve as family caregivers.
"We're doubling down on this initiative! We feel strongly that it's going to work on the national level. We are turning our attention to the state law, working towards (a) swift package so that family caregivers could take advantage of it for their 2026 returns," she explained.
Carlson added that Ohio is home to approximately 1.5 million family caregivers, providing an estimated $21 billion worth of unpaid care each year. She added they struggle to balance caregiving with full-time jobs, often sacrificing income and retirement savings. The proposed tax credit has received bipartisan support.
AARP has been vocal in its support for Rep. Mike Carey, R-OH, who is sponsoring the legislation in Congress. Carlson emphasized the importance of enabling caregivers to continue working while supporting their loved ones.
"It's called the Credit for Caring Act, which would provide eligible working caregivers a tax credit to help offset the costs of care that they offer. It would allow them to continue to work while caring for a loved one through illness, disability and aging in place," Carlson said.
A recent AARP backed survey found that 84% of voters across party lines support a tax credit for family caregivers. However, some experts caution that while tax relief is helpful, broader policies-such as increased Medicaid coverage for home care may be necessary to fully address the challenges caregivers face. The bill's future now rests with Congress.
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Dozens of local leaders from California are in the nation's capital this week, joining about 2,800 colleagues from around the country at the National League of Cities' Congressional City Conference.
The group met with White House officials Tuesday and is set to see Sen. Alex Padilla, D-Calif., today.
David Sander, a council member and former mayor in the city of Rancho Cordova and immediate past president of the league, said local leaders want to find out how the "DOGE" cuts could impact their cities' bottom lines.
"Because there are so many changes potentially underway, we're really focused on certainty and stability," Sander explained. "Because it's hard in local government, where everything has to work, and we're held accountable."
Local officials are concerned the budget bill being prepped in Congress could eliminate the tax-free status cities now get on their municipal bonds, financing priorities like roads and schools. And in the upcoming transportation bill, local leaders want to continue the previous Trump administration practice of sending funds directly to municipalities, rather than routing them through the state.
Sanders pointed out the briefing on immigration covered the many legal issues surrounding cities' policies on cooperation with federal Immigration and Customs Enforcement.
"There's an awful lot in the hands of the courts right now," Sanders observed. "Trying to understand the role of a federal detainer versus a federal warrant, versus a local warrant; trying to understand the legalities around all those and what cities can or can't do."
California is home to multiple so-called sanctuary cities, including Berkeley, Fremont, Oakland, Los Angeles, San Francisco, Santa Ana and Watsonville. The conference wraps up today.
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It is the North Dakota Senate's turn to ramp up debate on property tax reform, a key issue of this session and lawmakers are hearing from a range of groups, including farmers, to ensure a fair plan.
Several bills to establish property tax relief have already cleared the North Dakota House. Yesterday, a Senate committee took up some of the proposals. All the measures have different language, but a consistent provision is an annual 3% cap on property tax hikes sought by local governments.
Parrell Grossman, legislative director for the North Dakota Soybean Growers Association, told lawmakers he hopes a final package will include agricultural properties.
"Some of these landowners might certainly have significant land and others might be facing huge debt because of their machinery, livestock costs, or low crop prices," Grossman pointed out.
The arguments come as farmers navigate land price issues and other market forces in an era of corporate consolidation. Advocates also acknowledged the need for balance, so small and large communities are not hamstrung in maintaining their infrastructure. Some rural leaders worry about proposed caps limiting their ability to raise enough revenue to not harm vital services.
Brenton Holper, city administrator for the City of Horace, a town of more than 3,000 people just outside Fargo, elaborated on potential service disruptions if local governments are weighed down by any property tax restrictions.
"Instead of plowing the street when there's a couple inches of snow, it might be five, six inches," Holper pointed out. "The thresholds are going to be different."
Still, Holper was among those who said they recognize many people are "fed up" with their property taxes. In a ballot question last fall, North Dakota voters rejected the idea of largely doing away with property taxes but polling has indicated they want policymakers to take meaningful action to keep their yearly bills in check.
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