LR 8228
Taxability of Fuel Surcharges
December 30, 2022
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 November 9, 2022.
The facts as presented in your letter ruling request, along with research into your operations, are summarized as follows:
Applicant makes products such as aggregates, cement, ready mix, and asphalt. The Applicant has found it necessary to impose a fuel surcharge on product sales. The surcharge is a separate line item on customer invoices in addition to the separate line item of delivery charge.
ISSUE:
Are the Applicant's separately stated fuel surcharges taxable?
RESPONSE:
Yes, the fuel surcharge is taxable.
Section 144.021.1, RSMo, imposes a tax upon the gross receipt for the privilege of engaging in the business of selling tangible personal property.
Section 144.010.1(4), RSMo, defines "gross receipts" to include the total amount of the sale price of the sales at retail including services other than usual and customary delivery charges that are stated separately from the sale price, and charges related to the extension of credit.
In this instance, the fuel surcharge is not a usual and customary delivery charge, and because it is mandatory, it is subject to 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 If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.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 Legal Counsel Nathan Jefferson, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Wayne Wallingford
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