SALT Report 1386 – The Missouri Department of Revenue ruled that an online consignment company that sells items through its website are taxable. The items for sale are stored at the company’s place of business or in a storage facility located in Missouri. Once an item is sold, it is either shipped to the buyer’s location or picked up by the buyer.
Section 144.020.1, RSMo imposes sales tax “upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state.” And, Missouri Code of State Regulations 12 CSR 10-113.200(1) provides that the, “sale of tangible personal property is subject to sales tax if title to or ownership of the property transfers in Missouri . . .”
The Department determined that the taxpayer is selling tangible personal property and that title for items shipped to a Missouri location transfers when the items are delivered. If a buyer picks up an item at a Missouri location, transfer of title occurs at the location where the item is picked up. Therefore, the taxpayer’s sales are subject to Missouri sales tax.
Additionally, the local sales tax rate for the company’s business location applies to sales of items shipped to or picked up in Missouri. Since the company auctions its items through their website that is based in Missouri and the initial order is placed through a Missouri location, the local tax rate at the company’s location will apply to all sales shipped to or picked up in Missouri.
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