Individual Consumer’s Use Tax
- What is Consumer’s Use Tax?
- What types of purchases are subject to use tax?
- Why am I required to file?
- What tax rate should I use?
- How do I compute what I need to file?
- What is the due date for filing and paying?
- Can I pay my consumer’s use tax liability with my individual income tax refund?
- Where do I mail my consumer’s use tax return and payment?
- Who do I call if I have questions regarding consumer’s use tax?
Use tax is imposed on the storage, use, or consumption of tangible personal property in this state. You must pay consumer’s use tax on tangible personal property stored, used, or consumed in Missouri unless you paid sales or use tax to the seller or the property is exempt from tax.
If a seller does not collect sales or use tax from the purchaser, the purchaser is responsible for remitting the use tax to Missouri (unless the property is purchased for resale or otherwise exempt by statute). Also, a seller not engaged in business is not required to collect Missouri sales or use tax but the purchaser in these instances is responsible for remitting use tax to Missouri. A purchaser is required to file a use tax return if the cumulative purchases subject to use tax exceed $2,000 in a calendar year. Use tax is computed on the purchase price of all goods once purchases exceed $2,000.
- Catalog purchases
- Magazine subscriptions
- Cross-border purchases of goods
- TV marketing purchases
- Computer software and hardware
- Mail-order supply purchases
- Furniture and equipment purchases from out-of-state sellers
- Purchases of goods bought over the Internet
- Purchases of goods bought over the telephone
- Purchases of goods from outside the United States
When you make purchases on which the seller is not required to collect sales or use tax, you must pay the use tax directly to the state of Missouri.
The use tax rate you must use to figure your consumer’s use tax due is determined by the use tax rate in effect where the goods are first delivered. The use tax rate for Missouri is 4.225% unless the city and/or county for your residential location have entered a local option use tax, which will increase the tax rate. The correct use tax rate can be found here.. Use the “USE RATE” column to ensure correct rates. If you are uncertain what jurisdiction the goods were delivered into and the associated use tax rate, access https://dors.mo.gov/tax/strgis/index.jsp
You may be required to use both Lines A and B of the Form 4340 if goods are delivered to different locations during the calendar year.
Compile a list of purchases made during the year for which you have not previously paid Missouri sales or use tax. This information is available from invoices, bills, credit card statements, cancelled checks, etc. The total of all purchases during the year that were not previously taxed must be used in computing the amount of use tax due on the Form 4340 (Individual Consumer’s Use Tax Return) or Form 53U-1 (Use Tax Return).
Mr. Smith located in a Missouri city and county that does not impose a local use tax, purchases cleaning supplies from two companies, Company X and Company Y. Company X and Company Y are both located in Iowa, and do all their business in Missouri strictly by mail order. During October 2011, Mr. Smith purchased $4,000 worth of merchandise from each company. Both companies delivered the cleaning supplies to Mr. Smith’s residence. Company X is registered with the Department of Revenue and collects the use tax on Mr. Smith’s purchases. Company Y is not registered, does not collect the tax, and does not file a return with the state of Missouri.
Mr. Smith must file a consumer’s use tax return indicating the amount of purchases ($4,000) from Company Y and pay the use tax on those purchases ($4,000 x 4.225% = $169). He must send his use tax return, along with a check, to the Missouri Department of Revenue.
The due date for filing the return is April 15 of the year following the calendar year the purchases were made.
No, you cannot pay your use tax liability with your individual income tax refund or mail it with your individual income tax return.
P.O. Box 840
Jefferson City, MO 65105-0840
For questions regarding the Missouri consumer’s use tax, please e-mail [email protected] or call (573) 751-2836. Speech and hearing impaired may use TDD (800) 735-2966 or fax (573) 526-1881.