Missouri Rules Free-Standing Storage Units Not an Improvement to Real Property

Friday, March 13th, 2015

 
 
A free standing storage unit.
Share
Link
Missouri
Manufacturing

The Missouri Department of Revenue ruled that free-standing closet organization products are taxable tangible personal property.

The taxpayer was a nationwide seller of home organization products with locations in Missouri. The taxpayer was creating a new closet organization product ("Product") that could either stand freely or be attached to the walls of a home. The Product is attached with small screws and finishing nails that limit damage to the wall. The taxpayer asked if the Product was subject to sales tax.

Missouri taxes sales of tangible personal property. Tangible personal property does not include improvements to real property. Improvements to real property are items that are attached to real property in such a way that they become part of the real property.

The Product was subject to sales tax. The Product was tangible personal property, not an improvement to real property. The Product did not have to be attached to a wall and, if it was attached, was easily removed with little damage. Therefore, the taxpayer had to collect sales tax on Product sales.

http://dor.mo.gov/rulings/show.php?num=7513


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.

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...

Iowa Supreme Court Determines Taxable Carpentry Services...

Wednesday, January 9th, 2019 -The Iowa Supreme Court has recently addressed the taxability of various installation services. The taxpayer wa...

Tax Applies to Metallurgical Coke in Illinois

Monday, January 7th, 2019 -Illinois recently ruled that use tax was due on purchases of metallurgical coke. The taxpayer was a business t...