LR 8281
Taxability of the Sale of Mobile Homes
January 04, 2024
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 November 10, 2023.
The facts as presented in your letter-ruling request are summarized as follows:
Applicant sells mobile homes in Missouri. Occasionally they sell mobile homes to customers located outside of Missouri such as Illinois. According to the Applicant, they do not hold the Manufacturer's Statement of Origin for a unit in a transaction. Additionally, the Applicant is responsible for delivery and installation of the mobile home in Illinois.
ISSUE:
Is Applicant's sale of mobile or manufactured homes to customers in Illinois subject to Missouri sales tax?
RESPONSE:
No. Applicant's sale of mobile/manufactured homes are not subject to Missouri state and local sales tax.
Section 144.020.1 RSMo, levies tax "...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."
12 CSR 10-133.200.1 provides:
In general, a sale of tangible personal property is subject to sales tax if title or ownership to the property transfers in Missouri unless the transaction is in commerce...[i]f a sale is not subject to Missouri sales tax but the property is stored, used or consumed in Missouri, the transaction is subject to use tax...[i]f a sale of tangible personal property is not subject to Missouri sales tax and the property is not stored, used or consumed in this state, no Missouri tax is due.
Additionally, in section 12 CSR 10-133.200.3(A), the regulation continues:
Title transfers when the seller completes its obligations regarding physical delivery of the property, unless the seller and buyer expressly agree that title transfers at a different time.
Here, Applicant does not transfer the title equivalent to the mobile/manufactured home to the purchaser and does not complete its obligations in the sale until the home is delivered and installed in Illinois. This means that the taxable event takes place in Illinois, so no Missouri sales or use tax is owed for the transaction.
Applicant must ask the Illinois Department of Revenue to determine the method and rate of Illinois tax to be paid on the transaction.
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, phone (573) 751-0961.
Sincerely,
Wayne Wallingford