LR 8284
Taxability of Wedding Venues
January 25, 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 21, 2023.
The facts as presented in your letter ruling request are summarized as follows:
Applicant operates a location on their farm that allows customers to use their outdoor areas for ceremonies and indoor for recreational purposes and dressing rooms. Applicant's location is used as a wedding venue, and Applicant does not offer food or drink services, nor does it offer rooms for overnight accommodations.
ISSUE:
Are Applicant's sales or rentals of its venue for weddings subject to tax?
RESPONSE:
Yes. The amount Applicant receives for the rental of its venue to members of the public is subject to sales tax.
Section 144.020.1(6), RSMo, imposes:
A tax equivalent to four percent on the amount of sales or charges for all rooms, meals and drinks furnished at any hotel, motel, tavern, inn, restaurant, eating house, drugstore, dining car, tourist cabin, tourist camp or other place in which rooms, meals or drinks are regularly served to the public. The tax imposed under this subdivision shall not apply to any automatic mandatory gratuity for a large group imposed by a restaurant when such gratuity is reported as employee tip income and the restaurant withholds income tax under section 143.191 on such gratuity[.]
Applicant regularly rents a room, its venue, to the public. In The Sawyer Room, LLC v. Director of Revenue, Case No. 14-0444 RS (Mo. Admin. Hear'g Comm'n 2018), the Administrative Hearing Commission determined that the sales or rentals of a space for weddings, receptions, and corporate events are taxable. Since Applicant's space similarly provides a rental space for weddings, the amount received for the rental of its venue to members of the public is subject to sales tax.
It is noted that Applicant cites to several provisions of Senate Bill 535. It appears this Bill, while proposed, was never adopted, and therefore did not become law. SB 535's added language in section 144.020.1(6) and 144.190, RSMo, was never added to the actual statutes.
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 Associate Counsel J. Ross Shelton General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Wayne Wallingford