Sales/Use Tax

(Chapter 144, RSMo) The state’s sales tax is imposed on the purchase price of tangible personal property or taxable service sold at retail. The 4.225 percent state sales tax is distributed into four funds to finance portions of state government – General Revenue (3.0 percent), Conservation (0.125 percent), Education (1.0 percent), and Parks/Soils (0.10 percent). Cities and counties may impose a local sales tax. Special taxing districts (such as fire districts) may also impose additional sales taxes. Generally, the department collects and distributes only state and local sales taxes. More detailed information is listed below.

The state’s use tax is also 4.225 percent, and it is imposed on the use, storage or consumption of tangible personal property shipped into Missouri from out of state. The amount of use tax paid on a transaction depends on the combined local use tax rate in effect at the Missouri location to which the tangible personal property is shipped. The use tax is paid in one of two ways – either the out-of-state seller will collect and remit the use tax directly to the department, or the purchaser is responsible for remitting the tax to the department if the out-of-state seller does not collect use tax on the transaction. Local use taxes are distributed in the same manner as sales tax. Individuals may owe use tax (Form 4340) if online or out-of-state purchases exceed $2000 in a calendar year and Missouri use tax was not charged on the purchases. Form 4340 is available on the Sales/Use Tax Forms page. More detailed information about use tax is listed below.

Sales Tax

Sales tax is imposed on retail sales of tangible personal property and certain services. All sales of tangible personal property and taxable services are generally presumed taxable unless specifically exempted by law. Persons making retail sales collect the sales tax from the purchaser and remit the tax to the Department of Revenue. The state sales tax rate is 4.225%. Cities, counties and certain districts may also impose local sales taxes as well, so the amount of tax sellers collect from the purchaser depends on the combined state and local rate at the location of the seller. The state and local sales taxes are remitted together to the Department of Revenue. Once the seller remits sales tax to the department, the department then distributes the local sales taxes remitted by the sellers to the cities, counties and districts.

Use Tax

Use tax is imposed on the use, storage or consumption of tangible personal property shipped into Missouri from out of state. The state use tax rate is also imposed at a rate of 4.225%. In addition, cities and counties may impose local use tax. The amount of use tax paid on the transaction will depend on the combined local use tax rate in effect at the Missouri location to which the tangible personal property is shipped. Either the out-of-state seller will collect and remit the use tax directly to Missouri or the purchaser is responsible for remitting the tax to the department if the out-of-state seller does not collect use tax on the transaction. Local use taxes are distributed in the same manner as sales tax. Missouri cannot require out of state companies that do not have nexus or “direct connection” with the state to collect and remit use tax.

Any vendor and its affiliates selling tangible personal property to Missouri customers should collect and pay sales or use tax in order to be eligible to receive Missouri state contracts, regardless of whether that vendor or affiliate has nexus with Missouri.

Section 34.040.6 states, "The commissioner of administration and other agencies to which the state purchasing law applies shall not contract for goods or services with a vendor if the vendor or an affiliate of the vendor makes sales at retail of tangible personal property or for the purpose of storage, use, or consumption in this state but fails to collect and properly pay the tax as provided in chapter 144, RSMo. For purposes of this section, "affiliate of the vendor" shall mean any person or entity that is controlled by or is under common control with the vendor, whether through stock ownership or otherwise."

Sales Tax Rate Changes

Access the latest sales and use tax rate changes for cities and counties. Local sales taxes are effective on the first day of the second calendar quarter after the Department of Revenue receives notification of the rate change (January, April, July, October). Local taxes can also have an expiration date, lowering the sales or use tax rate for that particular city or county. Expirations also take place on the first day of a calendar quarter (January, April, July, October). The Department of Revenue notifies every business impacted by any local sales or use tax rate change during the month prior to the effective date of the change.
Sales and Use Tax Changes | Use Tax Changes