LR 8248
Taxability of Digital Subscriptions
June 28, 2023
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 communication of April 27, 2023.
The facts as presented in your letter ruling request, as well as communications with you, are summarized as follows:
Applicant offers subscriptions for digital music subscriptions and digital signature subscriptions.
ISSUE:
Are digital music and signature subscription services taxable under state sales and use tax law?
RESPONSE:
No. Digital music and signature subscription services are not taxable under state sales and use tax law.
Section 144.020.1.(4) RSMo, specifically excludes amounts paid for access to interactive computer services from the sales tax imposed upon telecommunication services. In this instance, the interactive digital subscriptions offered are also excluded from the tax placed on telecommunications services.
No representation is made regarding the applicability of local taxation under the 2007 Video Services Providers Act, Sections 67.2675 to 67.2714 RSMo. Also, no representation is made regarding the applicability of federal taxes under the Federal Goods and Services 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 If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.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