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

Friday, March 13th, 2015

A free standing storage unit.

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.


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.

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...

Economic Nexus in Utah

Wednesday, August 1st, 2018 -Effective January 1, 2019, certain out-of-state sellers will be required to collect and pay Utah sales or use ...