Missouri Department of RevenueLR 4868
Newsletters
July 3, 2008
Dear Applicant:
This is a letter ruling issued by the Director of Revenue pursuant to Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020 in response to your e-mail received on May 12, 2008.
The facts as you presented them in your e-mail are summarized as follows.
Applicant is an out-of-state corporation that publishes a newsletter. The newsletter is sold annually and delivered on a monthly basis via the United States Postal Service. The newsletter is not subject to tax in Applicant’s state. Currently, Applicant uses an independent third party to print and mail the newsletters from Applicant’s out-of-state facility. Applicant is considering using a third party printer located out-of-state and a mail house located in Missouri to print and distribute the newsletter.
ISSUE 1:
Are newsletters that are mailed via the United States Postal Service from Missouri to Applicant’s customers located in Missouri subject to sales tax?
RESPONSE 1:
Yes, newsletters that are mailed via the United States Postal Service from Missouri to Applicant’s customers located in Missouri are subject to sales tax.
Section 144.020.1, RSMo, imposes a sales tax “the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state.”
Missouri Code of State Regulations 12 CSR 10-113.200(3)(C) provides,
When an out-of-state seller delivers tangible personal property to a third-party common or contract carrier for delivery to Missouri, title transfers in Missouri. If delivery is made to seller or an agent of seller (other than a third-party common or contract carrier) in Missouri and subsequently delivered to the buyer in Missouri, the sale is subject to Missouri sales tax. If delivery is made directly from the out-of-state seller to the buyer in Missouri, the sale is subject to sales tax if the order was approved in Missouri. If the order was approved outside Missouri, the sale is not subject to sales tax, but the transaction is subject to use tax unless otherwise exempt.
Section 144.020.1, RSMo, imposes a sales tax on sales of tangible personal property in Missouri. Applicant is an out-of-state seller that is using a mail house in Missouri to distribute its product. The newsletters that will be distributed to Missouri customers are subject to sales tax. The sales tax rate should include the local tax rate at the mail house location if Applicant does not have a business location within Missouri.
ISSUE 2:
Are newsletters that are mailed via the United States Postal Service from Missouri to Applicant’s customers located outside Missouri subject to Missouri sales or use tax?
RESPONSE 2:
No, newsletters that are mailed via the United States Postal Service from Missouri to Applicant’s customers located outside Missouri are not subject to Missouri sales or use tax because Applicant is selling tangible personal property to customers outside of Missouri and shipping those newsletters by common carrier. See Response 1.
This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Associate Counsel Amy Bartolomucci, Office of General Counsel, Post Office Box 475, Jefferson City, Missouri 65105-0475 (phone 573-751-0961), or me.
Sincerely,
Omar D. Davis