Missouri – Fuel Surcharge Not Taxable

SALT Report 1566 – The Missouri Department of Revenue issued a Letter Ruling regarding the taxability of a taxpayer’s mandatory fuel surcharge. The Taxpayer is a dental supply and service distributor who adds a fuel surcharge, in addition to a parts and service charge, to his customer’s bill when a technician is required to travel to the customer to make repairs. The purpose of the fuel surcharge is to defray the cost of the fuel used during the service call.

Missouri section 144.020 lists the services that are subject to sales tax; any services not listed in section 144.020 are not taxable. Based on the above facts, the Department determined that the fuel surcharge would be included with the repair services, which is not one of the services listed in section 144.020, and therefore, not taxable.


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