Products Sold to Common Carriers That Attach Directly to a Vehicle or Trailer Exempt from Tax in Missouri

Thursday, March 29th, 2012

 
 
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Missouri
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The Missouri Department of Revenue recently issued a private letter ruling discussing the taxability of items sold to a common carrier (Mo. Ltr. Rul. No. LR 7068 (Dept. of Revenue Mar. 15, 2012)). The applicant, a registered vendor in Missouri, sells various products to common carriers. These products include items for on-vehicle usage, including driver's logbooks, safety pocketbooks, etc. and items that attach directly to the vehicle or trailer, including placards, decals, trailers seals, and load tie down straps. The applicant wanted to know which items sold to common carriers may be exempt from tax.

In Missouri, "materials, replacement parts and equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling stock or aircraft engaged as common carriers of persons or property," are specifically exempt from tax. Of the items that the Applicant sells to common carriers, those that can be attached directly to the vehicle or trailer will be exempt from tax. All other items will be subject to tax at the full rate.


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

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