SALT Report 1567 – The Missouri Department of Revenue issued a Letter Ruling regarding a Taxpayer’s sales of donated items. The Taxpayer is a 501(c)(3) non-profit corporation and has a Missouri sales and use tax exemption certificate. The Taxpayer’s organization provides shelter, counseling, advocacy, and support for women and children affected by domestic violence and drug abuse. The organization owns and operates a resale store where they accept donated clothing and household items that they resell to the public. All proceeds go to support the Taxpayer’s charitable programs and services.
Missouri section 144.030.2(19) provides an exemption to sales made by charitable organizations that are within the “religious, charitable or educational functions and activities” of the organization. Therefore, the Taxpayer’s sales of donated items are exempt from sales tax and since the Taxpayer does not purchase items for resale they are not required to collect and remit sales tax.
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