LR 8185
Car Wash is Not Subject to Sales Tax
March 25, 2022
Dear Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your request dated February 15, 2022.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is a self-service car wash. Applicant's service provides water and chemicals for customers to wash their cars, and Applicant is charged sales tax on the water and chemicals at the time of purchase.
ISSUE:
Are charges Applicant imposes for customers to wash vehicles subject to Missouri Sales Tax?
RESPONSE:
No. The charges Applicant imposes for customers to wash vehicles are not subject to Missouri Sales Tax.
Section 144.020.1, RSMo, provides, "[a] tax is hereby levied and imposed upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state."
Applicant's charges to customers are for the service of washing cars, which is not one of the enumerated taxable services under section 144.020, RSMo.
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 If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.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 Legal Counsel J. Ross Shelton, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, (573)-751-0961.
Sincerely,
Wayne Wallingford