Missouri State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Missouri, with full citations and the original source on every page.
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If a customer's extended-warranty company authorizes and gets billed for a repair, does the auto dealer have to charge Missouri sales tax on the parts used, even though the warranty company claims it's tax-exempt?
Yes. The dealer's sales of repair parts to the warranty company are subject to Missouri state and local sales tax, because the parts aren't being resold and the warranty company's 'Multi-State Certifi…
I'm a Missouri resident who bought an aircraft from a private seller in Missouri, had it repaired and stored here for a few months, and then moved it to Kansas where it's now hangared -- do I owe Missouri use tax on the purchase?
Yes. Because the aircraft was stored and used in Missouri for several months before being moved to Kansas, the purchase is subject to Missouri consumer's use tax -- aircraft don't qualify for the moto…
If a hotel guest's room charges are billed directly to the federal government (including via a GSA SmartPay travel card), does the hotel need to charge Missouri state and local sales and use tax on that stay?
No. Missouri ruled that a hotel's lodging charges are exempt from state and local sales and use tax whenever payment is made directly by the U.S. government, including through a GSA SmartPay travel ca…
As a Canadian wholesaler of fabrics with no physical Missouri presence but sales over the state's economic nexus threshold, do I have to register, collect, and remit Missouri sales tax?
No, not as a wholesaler. A wholesaler selling for resale is not required to register, collect, or remit Missouri sales tax, even after exceeding the economic nexus threshold, because wholesale sales f…
If I separately state my delivery charge on the invoice for concrete I sell and deliver in Missouri, do I have to charge sales or use tax on that delivery charge?
No. As long as the delivery charge is usual and customary and is separately stated on the invoice apart from the price of the goods, Missouri law excludes it from taxable gross receipts, so no sales o…
If I sell and install grave monuments that get permanently attached to a concrete foundation and become part of the cemetery property, do I need to charge my customers sales tax?
It depends on how you sell the monument. If you install it as part of the sale and it becomes a permanent part of the real property, you're acting as a contractor and don't charge the customer sales t…
If I rent portable cold-storage units to customers and already paid sales tax when I bought the units, do I have to charge my customers sales tax on the rental, storage, delivery, and other fees I bill them?
Mostly no, with one exception. Because the operator already paid sales tax when it bought the storage units, its recurring rental charges, on-site storage fees, mandatory and optional delivery/pickup/…
If I manufacture equipment and hire a subcontractor (who isn't licensed as a Missouri contractor) to install it at a customer's Missouri site, is the subcontractor's installation labor subject to Missouri sales tax, and how do exemption certificates flow between everyone involved?
No, the installation labor itself is not taxable because installation is not one of the services listed as taxable under Section 144.020, RSMo -- only materials the subcontractor sells as part of that…
If my out-of-state online retail company uses a Missouri third-party logistics (3PL) warehouse to fulfill orders, do I owe Missouri sales tax or use tax, and does it depend on where the order ships?
It depends on where the goods are located and where title transfers. Orders shipped from outside Missouri to a Missouri address owe Missouri use tax; orders never touching or delivered to Missouri owe…
If a contractor builds a home addition under a lump-sum contract and separately invoices the homeowner for the sales tax it paid on materials, who is legally responsible for that sales tax -- the contractor or the homeowner?
The contractor is. Under Missouri law, a contractor who purchases materials to fulfill a lump-sum construction contract is the final user and consumer of those materials, so the contractor -- not the …
If my company anodizes, electroplates, etches, and cleans customers' metal parts but never sells any product, do I need to charge sales tax on those services, and do I owe tax on the chemicals and supplies I use to perform them?
No and yes. Missouri does not tax anodizing, electroplating, etching, or cleaning services because they aren't among the specific services listed as taxable in Section 144.020, RSMo -- but the company…
As an out-of-state roofing contractor who buys materials and rents equipment in Missouri and pays sales tax on them, but doesn't charge my customers sales tax, am I following Missouri law, and do I need a Missouri sales tax license?
Yes, this roofing contractor's practices comply with Missouri law. As a construction contractor, it is the final user/consumer of the materials and equipment it uses on a job, so it correctly pays sal…
Does Missouri's sales and use tax exemption for research and development apply to a business whose R&D activities (experimentation, prototyping, and testing) are not connected to manufacturing, processing, or producing a product?
No. Missouri's R&D sales/use tax exemption under Section 144.054.2, RSMo only covers equipment, machinery, and materials used in research and development that is related to manufacturing, processing, …
If our PAC buys branded t-shirts or tote bags to give supporters in exchange for their donations, do we owe sales or use tax on those items?
Yes. The PAC itself owes Missouri sales tax on promotional gift items bought in-state, or use tax on the same items bought out-of-state, because giving them to donors counts as the PAC using and consu…
As an out-of-state ticket broker who buys and resells tickets to Missouri events, do I have to collect and remit Missouri sales or use tax on those resales?
No. Because the broker buys tickets in arm's-length transactions for fair market value from venues that already collect and remit sales tax on the initial sale, the broker's later resale of those same…
If my company processes donor biological samples through leukapheresis to create a new cell-therapy product for research and therapeutic customers, are the materials I purchase for that process exempt from Missouri sales and use tax?
Yes. Missouri ruled that materials purchased for use in a cell therapy and leukapheresis process -- which separates white blood cells from donor biological samples to create a new, marketable product …
If our app lets customers order food for pick-up or delivery from local restaurants and we use a third-party company's drivers, are we a marketplace facilitator, and do we have to collect and remit tax on those orders?
It depends on where the restaurant is located. The platform is a marketplace facilitator, but for orders from Missouri restaurants delivered to Missouri customers, the restaurant (not the platform) re…
Is a conveyor system that moves raw fertilizer into storage bins before blending exempt as manufacturing equipment?
No. Because the conveyor system only transports raw fertilizer material into storage bins before the actual blending process begins at the mixers, it doesn't change the material's use, identity, or va…
When a Missouri facility straddles two cities, which city's local sales and use tax rate applies?
Both local sales and use tax are sourced to Berkeley, because that's where the wholesaler's orders are taken and where its purchased items are first delivered in Missouri -- not to Ferguson, even thou…
Can an electrical contractor buy its tools and materials tax-free under the new public-utility electricity exemption?
No. Because the new Section 144.058, RSMo electricity-generation exemption is limited to purchases by registered public utilities, and this electrical contractor is neither a utility provider nor regi…
Does an online food-ordering app have to collect Missouri sales tax on restaurant orders, or does the restaurant handle it?
The Missouri restaurant itself, not the online ordering platform, is responsible for sales tax on orders from Missouri restaurants to Missouri diners -- but the platform, as a Marketplace Facilitator,…
Can a contractor buy consumable supplies and rent equipment tax-free on a tax-exempt university construction project?
Split ruling: rented machinery and equipment like lifts and construction fencing stay fully taxable even on a tax-exempt university project, but true consumables that get used up on the job, like plyw…
Does a Missouri company doing custom, one-off machining and laser work to each customer's own specifications qualify for the manufacturing exemption under Sections 144.030 or 144.054, RSMo?
No, under either statute. Because the company's machining and laser work is custom-made to each individual customer's own specifications, its output is not a "product" that could be marketed to variou…
Does sales tax or use tax apply to Rent-to-Own payments on a portable building, and does it depend on whether the dealer is inside or outside Missouri and where the building is delivered?
It depends on where the dealer and the building are located: an in-state dealer renting to an in-state customer for delivery inside Missouri owes sales tax on the rental payments; delivery outside Mis…
If an out-of-state seller ships materials into Missouri for a Missouri fabricator to modify before shipping them back out of state to an out-of-state customer, does Missouri sales tax or use tax apply?
No Missouri sales tax applies, because title to the material passed to the buyer outside Missouri (upon pickup by the common carrier in Illinois). However, Missouri vendor's use tax does apply, becaus…
Does a contractor operating a federal DOE/NNSA facility, and managing a related Missouri construction project, owe Missouri sales/use tax on the tangible personal property and utilities it purchases on the government's behalf?
No. All three categories -- tangible personal property, utilities, and construction-project purchases -- are exempt from Missouri sales/use tax because title and ownership pass directly from the vendo…
As a contractor, I store construction supplies in my Missouri warehouse before using them at various job sites -- which local use-tax rate applies, and do I owe more once I know the installation site?
The correct use-tax rate is the rate at your warehouse location, not the rate where the supplies are eventually installed. Because a contractor is the "final consumer" of construction supplies at the …
I sell mobile homes in Missouri but deliver and install some of them out of state -- do I owe Missouri sales tax on those out-of-state sales?
No -- Applicant owes no Missouri sales or use tax on these out-of-state mobile home sales. Under 12 CSR 10-133.200.3(A), title to the mobile home doesn't transfer until the seller completes its delive…
I sell building materials wholesale into Missouri from out of state and my customers give me resale certificates -- do I have to register and collect Missouri use tax?
No, not unless your Missouri sales cross $100,000 in a calendar year. Missouri law defines an out-of-state seller like this as a "vendor," but a vendor only has to register and collect use tax once it…
Does Missouri LR 8270 exempt a telecommunications provider's purchase of portable equipment huts and their HVAC units from sales or use tax?
NO to both -- neither the portable equipment huts nor their climate-control HVAC units qualify for Missouri's manufacturing-equipment sales/use tax exemption, because supporting infrastructure that me…
Does an out-of-state company that leases equipment physically located in Missouri, but has no other presence in the state, have to collect Missouri use tax as a vendor?
YES, an out-of-state lessor with no other Missouri presence still creates 'physical presence' nexus simply by having its own leased equipment physically located in Missouri, so it must register and co…
Does a nonprofit marketplace platform have to collect Missouri use tax on donated-goods sales made for other charities?
NO, the sales are exempt from Missouri use tax, so the nonprofit marketplace platform does not even need to register as a marketplace facilitator. Applicant, a California-based 501(c)(3) nonprofit, ru…
Which parts of a utility-scale solar farm are exempt from Missouri sales and use tax?
The core components of a utility-scale solar photovoltaic system -- solar panels, racking and supports, combiner boxes, inverters, solar collection transformers, and the project substation/interconnec…
Does a manufacturer collect Missouri sales tax on a structure that becomes real property once installed, or does the manufacturer pay tax on its own materials instead?
IT DEPENDS entirely on WHEN legal title to the structure passes to the buyer. If title passes before the structure is installed, the sale is treated as a sale of tangible personal property: Applicant …
Does a Missouri medical spa owe sales or use tax on cosmetic injection products like Botox and dermal fillers that it buys from out-of-state vendors?
YES, the medical spa's out-of-state purchases of cosmetic injection products (Botox, Xeomin, Dysport, Sculptra, Restylane, Juvederm, and RHA fillers) are subject to Missouri use tax, because the spa i…
Are audiometers exempt from Missouri sales tax under the hearing aid exemption?
NO, audiometers are not exempt -- they are fully taxable, because Missouri's sales tax exemption in Section 144.030.2(18), RSMo, covers hearing aids and hearing aid supplies, but an audiometer (a devi…
Is splicing tape that a drywall manufacturer uses to bond rolls of material together during production subject to Missouri sales or use tax?
NO for state tax and local use tax -- Applicant's purchases of splicing tape used to bond rolls of drywall material together during continuous production are exempt as materials 'used and consumed in …
Can a subcontractor use a Form 149 exemption certificate to buy materials tax-free because the work is ultimately for the U.S. Government?
NO. A subcontractor's purchases of materials used in work performed for a Government Contractor are NOT exempt from Missouri sales tax, even with a Form 149 marked 'purchases on behalf of the U.S. Gov…
Does an out-of-state business that sells and installs window coverings in Missouri have to charge its customers sales tax, and does it owe use tax on the materials it installs?
IT DEPENDS ON WHICH TAX: Applicant should NOT charge its Missouri customers sales tax on window coverings, because the blinds, shades, and shutters become part of the customer's real property once ins…
Does a political subdivision that runs riverboat excursion tours have to charge Missouri sales tax on its ticket prices, and on its onboard food and souvenir sales?
IT DEPENDS ON WHAT'S BEING SOLD: The Applicant's ticket fees and charges for riverboat tours, cruises, and charters are NOT taxable, because Section 144.030.2(17), RSMo, exempts admission fees to a pl…
Does a utility company have to charge sales tax on utilities it sells to hotels, motels, and other transient accommodation establishments?
IT DEPENDS ON WHERE THE UTILITIES ARE USED: Applicant, a utility company, should NOT charge sales tax on utilities sold to hotels, motels, or other transient accommodation establishments when those ut…
Does an out-of-state company that leases printers and copiers to a Missouri customer, and occasionally hires Missouri independent contractors to maintain that equipment, have to collect Missouri use tax as a vendor?
YES. Applicant, an out-of-state company that leases printers and copiers to a Missouri client while retaining title, is liable for collecting Missouri use tax as a vendor under Section 144.635, RSMo. …
Is an advertising company that permanently attaches billboards and other promotional items to buildings and the ground exempt from Missouri sales and use tax as an advertiser?
No. The Missouri Department of Revenue ruled that a company permanently affixing billboards and other promotional items to buildings and the ground is NOT an exempt advertiser -- it is acting as a con…
Do sandpaper and router bits that a furniture maker uses up while making furniture qualify for Missouri's manufacturing exemption?
Yes. The Missouri Department of Revenue ruled that sandpaper and router bits consumed by a furniture maker in the furniture-making process qualify as 'materials and supplies' exempt from state sales a…
Is a hydro coil embolization system used to block abnormal blood flow in a blood vessel exempt from Missouri sales and use tax as medical equipment?
YES, TAXABLE: Missouri ruled that Applicant's sales of hydro embolization coils -- used to occlude abnormal blood flow in blood vessels, including intracranial aneurysms and other vascular malformatio…
Does Missouri sales tax apply to gift card purchases, and does a coffee stand owe use tax on ingredients used for free drinks given to customers, employees, or loyalty-program members?
IT DEPENDS ON WHICH ISSUE: Selling a gift card or gift certificate is NOT subject to Missouri sales tax, because a gift card itself is not tangible personal property or a taxable service (though the l…
Does an out-of-state ticket broker have to collect Missouri sales or use tax when it resells event tickets it bought at arms' length from unaffiliated venues?
No to both. Applicant, an out-of-state ticket broker, is not required to collect and remit Missouri sales tax or use tax on its resales of event tickets, because it bought the tickets in arms' length …
What does Missouri LR 8192 conclude about Items Offered for Donations are Subject to Sales/Use Tax?
Yes. Missouri LR 8192 holds that a political action committee owes sales tax (on in-state purchases) or use tax (on out-of-state purchases) on branded promotional gift items it buys and then gives to …
What does Missouri LR 8189 conclude about Computer/Software Purchased by Engineering Firm Headquartered in Missouri?
Yes. Missouri ruled that an architectural/engineering firm whose administrative headquarters for its 20+ integrated offices worldwide is located in Missouri qualifies for the Section 144.030.2(28), RS…
Does an out-of-state HVAC/plumbing company have to charge Missouri sales tax on its installation and repair services, and does it owe use tax on the materials it uses?
No and yes: the Applicant should not charge Missouri sales tax to its customers for HVAC/plumbing installation and repair services, but it must pay Missouri consumer's use tax on the cost of parts and…
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These are official tax letter rulings and advisory opinions issued by Missouri's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.