April 21, 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 letter dated March 6, 2008.
The facts as presented in your letter are summarized as follows:
Applicant is a non-Missouri company that sells non-prescription durable medical supplies. Applicant has no property or employees in Missouri but Applicant does advertise its non-prescription durable medical supplies in Missouri. Applicant maintains no property, employees, or other presence in the state. Applicant does sell non-prescription durable medical supplies to customers in Missouri, and all of Applicant’s sales to Missouri customers are shipped by the U. S. Postal Service. Medicare, Medicaid, or supplemental insurance covers the purchase of the durable medical supplies.
Is Applicant required to file a Missouri use tax return and collect and remit use tax on its sales to Missouri customers?
No, based upon the facts provided, Applicant lacks sufficient nexus with the State of Missouri and is not required to file a Missouri use tax return and collect and remit use tax on its sales to Missouri customers.
Section 144.610, RSMo, Missouri’s compensating use tax, imposes a tax on the privilege of storing, using or consuming tangible personal property in Missouri. Section 144.635 places on vendors the burden to collect and remit this use tax.
12 CSR 10-114.100(3)(B) states:
A vendor does not have sufficient nexus if the only contact with the state is delivery of goods by common carrier or mail, advertising in the state through media, or occasionally attending trade shows at which no orders for goods are taken and no sales are made.
Based upon the facts provided, Applicant does not have sufficient nexus with Missouri to require Applicant to collect and remit use tax to the state. Applicant does not have employees or property in the state. Applicant ships its products into Missouri only by the U. S. Postal Service.
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 If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.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 Senior Counsel Ron Clements, Office of General Counsel, Post Office Box 475, Jefferson City, Missouri 65105-0475 (phone 573-751-0961), or me.
Sincerely,
Omar D. Davis