LR 8387
Taxability of Delivery Charges
March 24, 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 February 10, 2026.
The facts as presented in your letter ruling request are summarized as follows:
Applicant states that delivery charges for concrete delivery are separately stated from the purchase price for the concrete. Applicant is a Missouri ready-mix concrete company engaged in the sale of ready-mix concrete to commercial and residential customers within the state of Missouri. Applicant sells ready-mix concrete at a stated sales price, typically based on the quantity of concrete purchased. Customers frequently request that the Applicant deliver the concrete to the job site using Applicant's mixer trucks. When delivery is requested, Applicant separately states the delivery charge on the customer invoice, apart from the charge for the concrete itself. The delivery charge represents the cost of transporting the concrete from the Applicant's facility to the customer's designated location and is not bundled into or included in the sales process of the concrete. Applicant's invoices clearly distinguish between charge for the concrete and charge for delivery services. Delivery charge is a customary and usual charge for transportation services and does not represent consideration for the concrete itself.
ISSUE:
Are the separately stated delivery charges billed by Applicant subject to Missouri sales and use tax?
RESPONSE:
No. Separately stated delivery charges billed by Applicant are not subject to Missouri sales and use tax so long as the charges are customary and usual.
Section 144.020.1, RSMo, imposes a sales tax upon all sellers of tangible personal property in Missouri for the privilege of engaging in the business of selling tangible personal property within the state of Missouri. Taxpayers bear the burden of demonstrating that they qualify for an exemption. DI Supply I, LLC v. Director of Revenue, 601 S.W.3d 195, 196-97 (Mo. banc 2020). "Exemptions from taxation are to be strictly construed against the taxpayer and any doubt is resolved in favor of application of the tax." Id. Section 144.610.1, RSMo, imposes a use tax on the privilege of storing, using or consuming within this state any article of tangible personal property in an amount equivalent to the percentage imposed by the sales tax. For purposes of this analysis, the same exemptions granted by the sales tax laws apply to the use tax laws. Compare Section 144.615, RSMo.
Section 144.010(4), RSMo, provides: "The term gross receipts shall not include usual and customary delivery charges that are stated separately from the sale price ...." Section 144.605(8), RSMo, provides: "The sales price shall not include usual and customary delivery charges that are separately stated."
The separately stated delivery charges are not subject to tax as long as they are usual and customary.
This 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), or me.
Sincerely,
Trish Vincent