Missouri – Out-of-State Contractor’s Use of Tax Number Issued by Another State

SALT Report 2392 – The Missouri Department of Revenue issued a letter ruling regarding purchases made by an out-of-state contractor who used a tax license number that was issued by another state. The Taxpayer is an HVAC dealer who sells, installs and maintains heating, ventilation, and air conditioning systems. The Taxpayer doesn’t have any customers in Missouri and doesn’t conduct any business in the state that would require a Missouri sales tax license. However, the Taxpayer’s supplier is located in Missouri.

In most cases, the supplier will ship all systems and parts to the Taxpayer by common carrier. However, if an item is needed quickly, the Taxpayer will drive its own truck to the supplier’s Missouri location and pick up the required items. In this situation, the supplier charges the Taxpayer sales tax on the specific transaction. The supplier will not accept a resale certificate, as it is under the impression that the Taxpayer must be registered with Missouri before the resale exemption can be claimed.

The Taxpayer requested a ruling as to whether it can use its sales tax number from its home state and whether it can use a signed exemption certificate, Form 149, when purchasing items from its Missouri supplier.

In its response, the Department stated that because the Taxpayer is purchasing these items for resale and not for its own final use or consumption, the Taxpayer may purchase these items exempt from Missouri sales tax. The Taxpayer must provide its Missouri supplier with a signed exemption certificate, Form 149, to claim these purchases as exempt. Further, the Taxpayer is not required to have a Missouri sales tax license and can use the sales tax license number issued by its home state when purchasing items in Missouri for resale.

However, the Taxpayer cannot use an exemption certificate when purchasing items from its Missouri supplier that will be installed onto real property or used to repair real property fixtures in another state as provided in Missouri Code of State Regulations 12 CSR 10-112.010.

For Further Information

Missouri Department of Revenue – Letter Ruling #LR 7233