LR 8191
Textbooks and Supply Sales for Adult Education are Exempt from Sales Tax
May 02, 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 letter dated March 31, 2022.
The facts as presented in your letter ruling request and in a phone conversation with Senior Counsel Thomas A. Houdek are summarized as follows:
Applicant received a previous letter ruling regarding the taxability of textbooks and supplies for adult education on June 5, 2019. Applicant's exempt status and the scope of its business activities have not changed since that ruling was issued.
Applicant is a public school district providing primary and secondary education. Additionally, Applicant offers post-secondary adult education classes. Students in the adult education classes are required to purchase their textbooks and supplies for their courses directly from Applicant. Applicant does not operate a retail bookstore; instead, the textbooks and supplies are ordered by Applicant and then delivered to the students when they begin their classes.
ISSUE:
Are Applicant's sales of textbooks and supplies to students for its adult education courses subject to Missouri state and local sales tax?
RESPONSE:
No. Applicant's sales of textbooks and supplies to students for its adult education courses are not subject to Missouri state and local sales tax.
Section 144.020.1, RSMo, imposes a sales tax on retail sales of tangible personal property. Section 144.030.2(19), RSMo, exempts from sales tax "all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities[.]"
Applicant is a public school district providing primary and secondary education. The adult education classes Applicant offers are within its educational functions and activities. Therefore, Applicant's sales of textbooks and supplies for its adult education courses are exempt from Missouri state and local sales tax.
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 If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.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 Thomas A. Houdek, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, (573)-751-0961.
Sincerely,
Wayne Wallingford