SALT Report 1437 – The Missouri Department of Revenue ruled that the retail sale of body armor and uniforms to law enforcement agents are not subject to Missouri sales tax. The Department determined that law enforcement agencies are an agency of the state and the body armor and uniforms are pre-approved, necessary work-related items.
Missouri Code of State Regulations 12 CSR 10-110.955(3)(B) states that “all sales of tangible personal property or taxable services to the state of Missouri or its political subdivisions are exempt from tax.” The exemption applies because the body armor and uniforms are required by the agency, the employees cannot perform their job without these items, and the employee’s expenses are reimbursed by the agency.
Additionally, employees may purchase the body armor and uniforms exempt from sales tax with a tax exemption letter provided to them by the agency. Retailer’s should indicate on each invoice or bill of sale the name of the purchaser and agency claiming the exemption and maintain a copy of the agency’s tax exemption letter.
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