Missouri – Alcohol Sales Made by Political Subdivision Not Taxable

SALT Report 2305 – The Missouri Department of Revenue issued a letter ruling regarding sales of alcoholic beverages at a public golf club owned by a political subdivision. The Taxpayer requested guidance regarding its sales of golf alcoholic beverages and food when all revenues derived from these sales are kept by the Taxpayer.

In its ruling the Department referred to Section 144.020.1(6), RSMo which imposes sales tax on, “the amount of sales or charges for all rooms, meals and drinks furnished at any hotel, motel, tavern, inn, restaurant, eating house, drugstore, dining car, tourist cabin, tourist camp or other place in which rooms, meals or drinks are regularly served to the public.”

However, section 144.030.2(18), RSMo, provides an exemption from sales tax for, “all amounts paid or charged for admission or participation or other fees paid by or other charges to individuals in or for any place of amusement, entertainment or recreation, games or athletic events, including museums, fairs, zoos and planetariums, owned or operated by a municipality or other political subdivision where all the proceeds derived there benefit the municipality or other political subdivision and do not inure to any private person, firm, or corporation.”

Although the charges for meals and drinks are generally taxable, the golf club qualifies as a place of amusement and the Taxpayer is a political subdivision. Therefore, the Taxpayer’s golf club qualifies for the sales tax exemption in section 144.030.2(18), RSMo and its sales of alcohol are not subject to tax.

For Further Information

Missouri Department of Revenue – Letter Ruling #LR 7188