Missouri Code of State Regulations
Title 12 - DEPARTMENT OF REVENUE
Division 10 - Director of Revenue
Chapter 117 - Sales/Use Tax-Local Taxes
Section 12 CSR 10-117.100 - Determining the Applicable Local Sales or Use Tax
Universal Citation: 12 MO Code of State Regs 10-117.100
Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This amendment makes minor grammatical corrections and adds clarifying language.
(1) In general, taxing entities may impose a local sales tax on transactions that are subject to state sales tax. Counties and municipalities may also impose a local use tax at a rate no higher than the rate of the local sales tax in effect in that jurisdiction. When a transaction is subject to state sales tax, the transaction is also subject to the local sales tax adopted by the political subdivision where the seller's place of business is located. When a transaction is subject to state use tax, the transaction is also subject to the local use tax adopted by the county or municipality where the tangible personal property is first delivered in Missouri.
(2) Definition of Term.
(A) Place of business-a place where business
is transacted in Missouri and that is maintained, occupied, or used, directly
or indirectly, by a seller or agent of the seller. A place that is temporarily
maintained, occupied, or used may be a place of business if all orders that are
received at the temporary location are immediately filled from that
location.
(3) Basic Application of Taxes.
(A) Sales Tax.
1. All sales of tangible personal property
subject to state sales tax in which the order is taken at a Missouri place of
business are subject to the local sales tax in effect at that place of
business.
2. If an outside sales
employee or agent who works out of a Missouri place of business takes an order
for a sale of tangible personal property subject to state sales tax, the sale
is subject to the local sales tax in effect at the place of business from which
the employee or agent works.
3. If
an outside sales employee or agent who does not work out of a Missouri place of
business takes an order in Missouri for a sale of tangible personal property
subject to sales tax, the sale is subject to the local sales tax in effect
where the order is taken.
4. If the
order is taken outside Missouri for a sale of tangible personal property
subject to Missouri sales tax, the sale is subject to the local sales tax in
effect where title to the item transfers to the purchaser. An exception would
exist if the merchandise is shipped from one (1) of the seller's Missouri
locations to the Missouri customer. In that instance, the sale is subject to
the local sales tax at the location of the Missouri seller from where the
merchandise was shipped.
5. A sale
of services subject to state sales tax is subject to the local sales tax in
effect where the service is rendered or delivered.
6. Metered sales (e.g., natural gas and
utilities) subject to state sales tax are subject to the local sales tax in
effect where the meter is located.
7. Sales made entirely at a temporary
location, such as a food truck, will be subject to the local sales tax in
effect at that location.
(B) Use Tax-A sale of tangible personal
property subject to state use tax is subject to the local use tax in effect
where the item is first delivered in Missouri.
(C) Both Sales and Use Tax.
1. Sales of metered water services,
electricity, electrical current, and natural, artificial, and propane gas,
wood, coal, or home heating oil for domestic use may be subject to local tax at
the meter's location even though they are exempt from state tax. This would
apply if the local government has imposed a local sales tax.
2. When goods otherwise subject to state
sales or use tax are purchased under a resale exemption certificate and later
withdrawn from inventory for the purchaser's own use, the goods are subject to
the local sales or use tax that would have been due if the original purchase
had not been exempt. If the goods are commingled so that the purchaser cannot
determine where the goods withdrawn from inventory were originally purchased,
the goods are subject to the local sales tax in effect at the location of the
purchaser.
3. All provisions of the
state sales and use tax law apply to local tax. The tax permits, exemption
certificates, and retail licenses required for the administration and
collection of state sales and use tax also satisfy the requirements for local
sales and use tax.
(4) Examples.
(A) A seller has a place of business in
Missouri. The seller's outside sales people work out of seller's place of
business in Missouri. These sales people accept orders at customer locations.
Goods are shipped from plants and warehouses located throughout Missouri and in
other states. Sales to customers located in Missouri are subject to the local
sales tax in effect at the seller's place of business.
(B) An outside sales person takes an order in
Missouri. The salesperson works out of an office located in a neighboring
state. The salesperson fills the order from inventory, the salesperson carries
and receives payment. The sale is subject to the local sales tax in effect
where the order was taken. The result is the same even if the seller also has a
place of business in Missouri because the salesperson does not work out of the
Missouri location.
(C) A
manufacturer accepts an order at its office outside Missouri from a customer in
Missouri. As part of the sale, the manufacturer delivers and assembles the
goods in Missouri. The parties agree that title to the goods transfers after
assembly. The sale is subject to the local sales tax in effect where title to
the goods transfers. The result is the same even if the seller also has a place
of business in Missouri.
(D) A sign
manufacturer accepts an order at its office outside Missouri from a customer in
Missouri. The customer takes title and possession of the sign at the
manufacturer's location outside Missouri and has the sign delivered to the
customer's Missouri location. The purchase is subject to the local use tax in
effect where the sign is first delivered in Missouri.
(E) A refinery located outside Missouri sells
fuel to Missouri customers through an agent located in Missouri. The customers
are billed for fuel usage indicated on a meter located at the agent's Missouri
facility. The sales are subject to the local sales tax in effect where the
meter is located.
(F) A lumberyard
purchases lumber exempt from tax because the lumber is purchased for resale.
The lumberyard removes lumber from its inventory to build a storage shed at the
lumberyard. The lumberyard should accrue tax on the lumber removed from
inventory based on the type (sales or use) and rate of tax that would have been
paid if the original purchase had not been exempt. If the lumber is commingled
with lumber from other suppliers so that the lumberyard cannot determine where
the lumber used was purchased, the lumber is subject to the local sales tax in
effect at the lumberyard.
(G) A
taxpayer operates a mobile food service business. It sells sandwiches and
drinks from its trucks. Local sales tax is due based upon the location where
the trucks are parked because all orders are taken and filled and all payments
are made at that location.
(H) A
water company provides service to residents of a community. Local sales tax is
due based upon the location of the customers' residence.
(I) Taxpayer has four (4) places of business
in Missouri, which participate in a sale. Location A takes the initial order.
Location B approves the application for credit. Location C ships the goods from
inventory contained in the warehouse to the customer instate. Location D bills
the customer. The applicable local sales tax is the tax in effect at Location
A, where the initial order is taken.
(J) A seller located in Kirkwood, Missouri,
which is located in St. Louis County, receives an order from a buyer located in
Macon, Missouri. The merchandise is shipped to Columbia, Missouri. The sale is
subject to Kirkwood city and St. Louis County sales taxes.
*Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961; and 144.705, RSMo 1959.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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