Missouri Rules Sale and Installation of Grave Monuments Not Taxable

Tuesday, March 26th, 2013

 
 
Share
Link
Missouri
General

The Missouri Department of Revenue (DOR) recently ruled that the sale and installation of grave monuments is not subject to sales tax. Mo. Ltr. Rul. No. LR 7218 (Dept. of Revenue Feb. 19, 2013).

The party that requested the letter ruling sells and installs grave monuments, which are permanent structures attached to concrete foundations. Title to the monument passes to the purchaser after the monument is installed. The monument installer requested a ruling to determine whether its sales of grave monuments are subject to sales tax as sales of tangible personal property.

In Missouri, when tangible personal property is affixed to real property and title to the tangible personal property then transfers to the purchaser, the transaction is not subject to tax. Mo. Code Regs. tit. 12, sec. 112.010(3)(A). Also, contractors in Missouri are considered to be the final consumers of tangible personal property purchased to complete a contract to improve real property. Therefore, there is no taxable sale of tangible personal property when contractors attach tangible personal property to real property. Mo. Code Regs. tit. 12, sec. 112.010(1).

The DOR determined that the sale of a grave monument when (1) the monument installer is acting as a contractor and (2) transfer of title to the monument occurs after the monument is affixed to the foundation is not a sale of tangible personal property. Therefore, the DOR ruled that the sale and installation of a grave monument is not subject to tax.

However, the DOR also explained that a taxable sale would occur if (1) the grave monument is sold without installation or (2) the installation charge and the monument are separately stated and title to the monument passes to the purchaser before installation.

Additionally, the DOR explained that if the monument installer acts as a retail seller on some occasions and as a contractor on others, it should purchase the monuments under a resale exemption certificate and pay no tax at the time of its purchases. Then, in those cases when the monument installer acts as a retailer, it should collect and remit sales tax on its sales of the monuments. But, in the cases when the taxpayer acts as a contractor, it should self-accrue tax on the purchase price of the monument installed.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

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.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...

South Dakota Provides Guidance on the Taxation of Churches

Wednesday, October 3rd, 2018 -The South Dakota Department of Revenue (DOR) recently released guidance that provides information about how sa...