The Missouri Department of Revenue ("Department") recently determined that purchases of computers, software, and computer security systems by certain architectural or engineering firms are exempt. An architectural firm headquartered in Missouri and operating multiple facilities worldwide requested a ruling from the Department about the taxability of its purchases of computers, software, and computer security systems. The Firm engaged in architectural, engineering, planning, interiors, graphics, and consulting services. In addition to its headquarters, the firm had another Missouri-based office. The domestic and foreign offices were separate and distinct businesses operated as separate profit centers but were consolidated for tax purposes because the offices represent one firm.

Missouri exempts computers, computer software, and computer security systems from sales and use tax when purchased for use by architectural or engineering firms headquartered in the state. "Headquartered in the state" is defined as "the office for the administrative management of at least four integrated facilities operated by the taxpayer is located in the state of Missouri." Because the firm had more than four integrated facilities and its headquarters located in Missouri, it qualified for the exemption.

The Missouri Department of Revenue ("Department") recently determined that self-service car washes were not subject to sales tax. A self-service car wash company requested a ruling from the Department on the taxability of their services. The company provides a place for people to wash their own cars and supplies water and chemicals to the customers as part of the service. The company pays tax to its suppliers on the water and chemicals at the time of purchase.

Missouri taxes sales of tangible personal property and designated services unless an exemption applies. Providing self-service car wash services is not designated as taxable. As a result, the Department determined that the company's services were not taxable.

The Wisconsin Tax Appeals Commission ("Commission") recently determined that taxicab rental fees were subject to the state rental vehicle fee. A taxicab company rented driverless vehicles licensed as taxicabs to independent contractor licensed taxi drivers. The taxicab company obtained revenue from the lease rate fees paid by drivers under the lease agreement as well as through fees to cover marketing and software costs associated with delivering taxicab transportation services and administrative fees.

Wisconsin imposes a rental vehicle fee on short term rentals of Type 1 motor vehicles. A "short term rental" refers to a period of 30 days or less. "Type 1 motor vehicles" are motor vehicles designed and used primarily to carry people, but cannot be classified as motor buses, motorcycles, mopeds, or motor bicycles. The company only rented its taxicabs to drivers for periods of 6 to 12 hours. The Commission determined that a taxicab qualified as a Type 1 motor vehicle. The Commission also concluded that the subsequent marketing, software, and administrative fees charged by the company did not alter the nature of the taxicab rental transaction. So, the state rental vehicle fee applied to the taxicab lease agreements.