Transportation development districts (TDD) are separate political subdivisions authorized under Chapter 238 RSMo.
Sales taxes for transportation development districts are currently collected locally. House Bill 191 requires the Department of Revenue to begin collecting the tax for transportation development districts on the first day of the second calendar quarter after the TDD notifies the Department. The first tax period for which the TDD tax can be collected by the Department is January 2010.
If your business location is currently in a TDD and the district notified the Department, you must begin reporting the tax to the Department for the January 2010 tax period and thereafter.
Transportation development district sales tax applies on all retail sales made in the district which are subject to taxation pursuant to the provisions of sections 144.010 to 144.525, RSMo, except:
- Motor vehicles
- Outboard motors
- Electricity or electrical current
- Gas, natural or artificial
- Telephone service (local or long distance)
Additionally, state sales tax exemptions authorized by statute, are applicable to transportation development district sales tax. The same sales tax permit, and exemption certificates required by sections 144.010 to 144.525, RSMo, for the administration and collection of the state sales tax satisfies the requirements of transportation development districts.
For questions regarding the exemptions, e-mail us at: [email protected]
Reporting the Transportation Development District Tax (TDD)
Tax Periods Prior to January 1, 2010 - You will still report the Transportation Development District (TDD) taxes you collect through December 31, 2009 to your local taxing authority as you have in the past. This includes resolving any reporting issues with the TDD for tax periods through December 31, 2009.
Tax Periods Beginning January 1, 2010 - You will remit the TDD taxes collected beginning January 1, 2010 to the Missouri Department of Revenue (Department) instead of the local taxing authority, providing the district notified the Department of their TDD. See list of districts that have reported their TDD to the Department.
As a result of the TDD notification to the Department, the tax rate you normally collect for the Department will increase by the amount of tax that the TDD has imposed for that district. Example, if your tax rate was 7.725% and you are in a TDD that has imposed a 1% tax, your total rate you will collect and remit to the Department is 8.725%.
|BUSINESS LOCATION||CODE||GROSS RECEIPTS||ADJUSTMENTS (+ OR -)||TAXABLE SALES||RATE (%)||AMOUNT OF TAX|
|123 Main Street TDD||$3000.00||-$1000.00||$2000.00||8.725||$174.50|
If you have two locations in a city, one location in the TDD and one outside of the TDD, your return will have two locations listed for that city/county. The return will have one line for the sales collected outside of the TDD and another line for the sales collected within the TDD. This also applies if you have sales only locations in the same city, one in the TDD and sales outside the district in that city. See the below example of a TDD using the city/county code for Jefferson City, Cole County.
|BUSINESS LOCATION||CODE||GROSS RECEIPTS||ADJUSTMENTS(+ OR -)||TAXABLE SALES||RATE (%)||AMOUNT OF TAX|
|Sales / TDD||37000 051||$1000.00||-||$1000.00||8.725||$87.25|
If you have any questions, please contact us:Missouri Department of Revenue
P.O. Box 358
Jefferson City, MO 65105-0358
Fax: (573) 751-9409
Telephone: (573) 751-2836
E-mail: [email protected]