LR 8380
Taxability of Promotional Items Sold to Non-Profit Organizations
January 08, 2026
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 20, 2025.
The facts as presented in your letter ruling request are summarized as follows:
Applicant has a Missouri resale license. Applicant occasionally purchases educational, marketing, and promotional items such as pens, key chains, banners, flags, manuals, brochures, etc. Applicant resells these items and collects sales tax at the point of sale. Applicant sells to numerous not-for-profit organizations and does not assess them sales tax at the point of sale. Applicant has on file a Limited Exemption from Missouri Sales and Use Tax on Purchases and Sales Form from at least one such not-for-profit organization.
ISSUE 1:
Can Applicant continue not collecting sales tax on the resale of items to not-for-profit organizations?
RESPONSE 1:
Yes. Applicant must not collect sales tax on sales to not-for-profit organizations, so long as such organizations have a relevant exemption form.
Section 144.030.2(19), RSMo, provides the following exemption:
All sales made by or to religious and charitable organizations and institutions in their religious, charitable or educational functions and activities and all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities.
Section 144.030.2(20), RSMo, provides an exemption for:
...all sales made by or to not-for-profit civic, social, service, or fraternal organizations...in their civic or charitable functions and activities...
Missouri Code of State Regulations CSR 10-110.955(3)(D) provides:
All sales made by or to religious and charitable organizations and institutions in their religious, charitable or educational functions and activities are exempt from tax. All sales by the same type of organizations and institutions of other states are exempt from tax providing such organizations and institutions are exempt from a similar tax on their own states.
Section 144.030.2(19), RSMo, provides an exemption for sales made to religious and charitable organizations in their religious, charitable, or educational functions and elementary and secondary schools. Section 144.030.2(20), RSMo, provides an exemption for sales made to not-for-profit civic, social, service, or fraternal organizations in their civic or charitable functions and activities. Applicant resells some education, marketing, and promotional items to various not-for-profit organizations. These sales are exempt from sales tax to the extent they are in furtherance of the civic, charitable, or educational function of the not-for-profit organization.
ISSUE 2:
Should Applicant collect a sales tax exemption form from each not-for-profit organization to whom Applicant sells items?
RESPONSE 2:
Yes. Applicant must collect a sales tax exemption form from each not-for-profit organization to whom Applicant sells items without collecting sales tax.
Section 144.210.1 RSMo, provides:
The burden of proving that a sale of tangible personal property, services, substances or things was not a sale at retail shall be upon the person who made the sale, except that with respect to sales, services, or transactions provided for in section 144.070. The seller shall obtain and maintain exemption certificates signed by the purchaser or his agent as evidence for any exempt sales claimed...
Applicant is a vendor to the extent they resell educational, marketing, and promotional items. Applicant should receive an exemption certificate or other written evidence of exemption authorized by the relevant taxing authority from any organizations Applicant does not collect sales tax from at the point of sale.
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, Gabriel Barnes, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Trish Vincent