LR 8360
Taxability of Roofing Materials Used by a Roofing Company
June 27, 2025
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 May 9, 2025.
The facts as presented in your letter ruling request are summarized as follows:
Applicant is a Texas based commercial roofing company that occasionally does a project in Missouri. When working in Missouri, Applicant brings its crews into the state to perform labor on roof installation. It purchases roofing materials and pays its suppliers Missouri Sales Tax. When it rents equipment locally, it pays Missouri Sales Tax to the rental company. Applicant does not charge their customer's sales tax.
ISSUE 1:
Are Applicant's practices outlined above in compliance with Missouri Sales Tax Law?
RESPONSE 1:
Yes. The outlined practices are in compliance with Missouri Sales Tax Law.
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."
12 CSR 10-112.010 provides:
(1) In general, a contractor is the final user and consumer of the materials and supplies used and consumed in fulfilling a construction contract and which become part of a completed real property improvement. Consequently, persons selling materials and supplies to a contractor are subject to tax on the gross receipts from all such sales because the purchase is not for resale as tangible personal property.
Sales of tangible personal property are subject to tax unless a specific exemption applies, and tax exemptions and exclusions are strictly construed against the taxpayer, with any doubt to be resolved in favor of the tax.
Since Applicant is a contractor, it should pay sales tax on property purchased.
ISSUE 2:
Does Applicant need to obtain a sales tax license?
RESPONSE 2:
No. Applicant does not need to obtain a sales tax license. No provision of Missouri law requires a purchaser of tangible personal property or taxable services to obtain a sales tax permit.
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,
Trish Vincent