Missouri – Taxability of Computer Equipment and Security Systems

SALT Report 2007 – The Missouri Department of Revenue issued a letter ruling regarding a Taxpayer’s purchases of computer equipment and security systems for use both in and out of Missouri.  The Taxpayer has 20 office locations throughout the United States; however its corporate office is located in Missouri.  Each office provides professional design services, shares resources, and is under the management and direction of the Taxpayer’s corporate office.

The Taxpayer requested guidance as to whether it was entitled to claim the sales tax exemption for its purchases of computers, computer software, and computer security systems for use by the corporate office as provided in §144.030.2(29), RSMo.

The statute provides that purchases of “computers, computer software and computer security systems purchased for use by architectural or engineering firms headquartered in the state” are exempt from sales and use tax so long as “the office for the administrative management of at least four integrated facilities operated by the taxpayer is located in the state of Missouri.”

The Department determined that the Taxpayer qualified for the exemption because its 20 office locations are under the central management and direction of the corporate office located in the state. Therefore, the Taxpayer is entitled to claim the exemption in §144.030.2(29), RSMo, when making purchases of computers, computer software, and computer security systems for its own use.

For Further Information:

Missouri Department of Revenue – Letter Ruling LR 7205