Individual Consumer’s Use Tax
What is Individual Consumer’s Use Tax?
Since 1959, use tax has been imposed on the storage, use, or consumption of tangible personal property in this state. You must pay individual consumer’s use tax on your purchase of tangible personal property stored, used, or consumed in Missouri unless you paid tax to the seller or the property is exempt or excluded from tax.
Unlike sales tax, which requires a sale at retail in Missouri, use tax is imposed directly upon the person that stores, uses, or consumes tangible personal property in Missouri.
You must pay individual consumer’s use tax if:
- You make a purchase from an out-of-state seller and you did not pay Missouri use tax to the seller; or
- You make a purchase from any seller that is not engaged in business.
Individual consumer’s use tax does not apply if:
- You make a purchase from a Missouri retailer and pay to Missouri sales tax to the seller; or
- You make a purchase from an out-of-state seller and you pay Missouri use tax to the seller.
Purchases which may be subject to use tax include:
- Catalog purchases
- Magazine subscriptions
- Cross-border purchases of goods
- TV marketing purchases
- Computer software and hardware purchases
- 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
A purchaser must file a consumer’s use tax return if the cumulative purchases subject to use tax exceed $2,000 in a calendar year. The $2,000 filing threshold is not an exemption or exclusion. Once you have accumulated $2,000 in taxable purchases in a calendar year, you must pay tax on all your purchases subject to consumer’s use tax. Compute consumer’s use tax based on the purchase price of the goods.
Mr. Smith, located in Unionville, Missouri, purchases cleaning supplies from two companies, Company X and Company Y. Company X and Company Y are both located in Des Moines, Iowa, and do all their business in Missouri strictly by mail order. During October 2009, Mr. Smith purchased $4,000 worth of merchandise from each company. 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 applicable for Unionville, MO ($4,000 x 4.225% = $169). He must send his use tax return, along with a check, to the Missouri Department of Revenue.
How to File
Compile a list of purchases made during the calendar 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 Individual Consumer’s Use Tax Return. The due date for filing the return is April 15 of the year following the year in which you made the purchases subject to consumer’s use tax.
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 use tax rate. The correct use tax rate can be found here. Use the "USE RATE" column to unsure correct rates. If you are uncertain what jurisdiction the goods were delivered into and the associated use tax rate, access the Sales Tax Rate Information System.
If the use tax rate is greater than 4.225%, enter your taxable purchased on Line A and the applicable tax rate on the Form 4340 or Form 53U-1.
If the use tax rate is 4.225%, enter your taxable purchases on Line B and compute the amount due at the state use tax rate of 4.225% on the Form 4340 or Form 53U-1.
You may be required to use both Lines A and B of the Form 4340 if goods are delivered to different location during the calendar year.
Mailing Address and Contact Information
Mail your consumer's use tax return and payment to:Department of Revenue
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.