LR 8298
Taxability of Laundry Services
April 29, 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 January 19, 2024.
The facts as presented in your letter ruling request are summarized as follows:
Applicant operates a coin operated laundry mat as well as offering a wash, dry, and fold service.
ISSUE 1:
Are Applicant's collection of money for the use of coin operated laundry machines subject to Missouri sales tax?
RESPONSE 1:
Yes. If the Applicant did not pay tax on the purchase of the machines and instead gave the seller a resale exemption certificate, then Applicant's collection of money is subject to Missouri sales tax. In such case sales tax must be paidon the amounts paid by customers to use the machines. If tax was paid by Applicant on the original purchase of the machines, then no tax is due on the amounts paid by customers to use the machines
Section 144.020.1, RSMo, provides:
A tax is hereby levied and imposed [...] 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. Sales of tangible personal property are subject to tax unless a specific exemption applies. Rentals of tangible personal property are taxed the same as sales of tangible personal property.
Applicant's collection of money in exchange for the right to use coin operated laundry machines are a sale of tangible personal property subject to sales tax except as stated above.
ISSUE 2:
Are Applicant's sales of their wash, dry, and fold services subject to Missouri sales tax?
RESPONSE 2:
No. Applicant's sales of their wash, dry, and fold services are not subject to Missouri sales tax.
Section 144.020.1, RSMo, provides:
A tax is hereby levied and imposed [...] 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.
Sales of services at retail are subject to tax only if included in a statute.
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 If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest, and penalties, which may be imposed prospectively from the date of the change.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 Kent L. Brown, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Wayne Wallingford