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Missouri’s sales and use tax rate is 4.225 percent for sales of tangible personal property. Many cities, counties and special districts also implement an additional sales tax rate. Businesses collect taxes on retail sales and remit sales tax reports (including use tax reports) and payments to the Missouri Department of Revenue.
Types of taxes
In addition to sales and use taxes, Missouri charges several local sales taxes and special taxes.
Sales and use tax
Missouri’s sales and use tax rate is 4.225 percent. A filer pays one tax or the other as the use tax complements the sales tax. If a business purchases a taxable tangible personal property and does not pay tax on it and uses it or stores it instead of reselling it, the business must pay the use tax on it.
Municipalities may enact a tax of up to 3 percent for lodging for people renting a room for 31 days or less. The tax is in addition to any other taxes. For example, if a county has only the transient rental tax and the state sales tax, and the transient rental tax is 2 percent, a business would add the two taxes (2 plus 4.225) for a total of 6.225. Multiply the tax rate by the sale total to get the amount to collect from the customer.
If a business pays sales tax on the vehicles it purchases for the purposes of leasing or renting; it does not have to pay sales taxes on the rentals. However, a business may elect to pay sales tax by applying to the Missouri Department of Revenue and paying an annual fee of $250 plus the sales tax it collects on vehicle rentals.
Marijuana excise tax
Missouri has legalized marijuana for medical purposes. Retailers selling medical marijuana must submit a 4-percent tax on sales of medical marijuana. Businesses may file reports and remit payments online or by completing the Medical Marijuana 4% Tax Return Form.
Food and beverage tax
Missouri has a reduced tax rate for certain food. If the food is not prepared or heated, the sales tax rate is 1.225 percent. If the food is to be consumed on the premises, it is taxed at the regular rate of 4.225 percent.
Examples of taxable foods include:
- Nonfood items sold in a grocery store.
- Hot items sold in a vending machine. Cold items qualify for the reduced tax rate.
- Microwavable items sold at room temperature. The establishment provides a microwave to heat the items. These foods qualify for the reduced tax rate.
- Frozen foods, such as burritos in a convenience store, that the customer heats himself in a microwave the store provides or at home qualify for the reduced rate.
- Cold food items, such as salads, at a fast food restaurant. If the cold items are less than 80 percent of the restaurant’s gross receipts, the items are taxable at the regular rate.
- Prepared cold sub sandwiches, cold drinks, ice cream, hot dogs, and chili at a convenience store. The cold items qualify for the reduced rate while the hot dogs and chili, which are hot, do not.
Missouri levies an excise tax on manufacturers, wholesalers, and solicitors of alcohol as follows:
- Liquor: $2 per gallon
- Wine: $0.42 per gallon
- Beer products: $0.06 per gallon
Licensees must submit monthly excise tax reports and payments via electronic filing by the 15th day of the month following the sale. Even if the manufacturer did not sell any alcohol, it must still file an excise tax report.
Discretionary taxes (Local tax rates)
Many of Missouri’s counties and cities have discretionary taxes. To determine which local taxes your business should pay, you can look up the tax rate at the Missouri Department of Revenue.
Registering for and filing Missouri’s taxes
To obtain a sales tax license, register at the Missouri Department of Revenue’s online system. If a business does not have internet access, it can submit the tax form “Missouri Tax Registration Application, Form 2643.” It is easier to submit sales tax and other reports and remit payments through the online portal, so unless you absolutely cannot get the internet at the business location, you should register and file online.
Due dates for Missouri’s sales taxes
If the business collects $500 or more in state sales taxes each month, it must file reports and remit taxes on a monthly basis. Do not count the local taxes you collect. Monthly reports and payments are due on or before the last day of the month following the month for which the business collected taxes.
If the business collects less than $500 in state sales tax each month, it can file on a quarterly basis. Quarterly returns and payments are due on or before the last day of the month following the end of the quarter. For example, If you collected $300 in state sales taxes for January, $400 for February, and $100 for March, the tax is due on or before the last day in April.
Finally, if the business collects less than $200 in state sales tax each month, the filer can file reports and remit payments on an annual basis. Annual returns and the tax obligation are due on or before the last day of January of the new year. For example, if you collected $150 in state sales tax every month through 2022, the report and payment are due on or before January 31, 2023.
Calculating Missouri’s sales and use tax for sales of goods
To calculate Missouri’s sales and use taxes, add the tax rates for the state, county, and city for the total rate. Multiply the rate by the total sale. For example, if the business location is in a county that charges an additional 2 percent, the tax rate is 4.225 plus 2, which is 6.225 percent. Multiply .06225 by the total sale (let’s use $100) for sales tax of $6.23. The total the business collects from the customer is $106.23.
The exceptions to the rule:
- If the state substitutes another tax rate for the general state sales tax rate and use tax rate, use the other rate. For example, most food is taxed at 1.225 percent instead of 4.225 percent.
- If the municipality collects local taxes on the total due, figure the state sales tax on the amount due. Then, figure the local tax on the total. For example, you sell Widget A for $100. The county charges 2 percent on gross receipts. Figure the state sales tax: 4.225 times 100 equals 4.23. Add that amount to 100 for a subtotal of $104.23. Multiply the county rate by 104.23: 104.23 times .02 equals $2.08. The total sale is $106.31.
Missouri sales tax holiday
Missouri has a sales tax holiday that begins on the first Friday in August and ends the following Sunday. Only some back-to-school items such as school supplies and clothing are exempt from sales tax. The holiday begins at 12:01 a.m. on Friday and ends that Sunday (two days later).
Missouri sales tax exemptions
Missouri offers many sales tax exemptions. Thus, the state created a convenient searchable database. To find out if a product a business sells is exempt, run a search based on the classification of your business.
Remote and marketplace sellers
Out-of-state sellers are not required to collect Missouri’s sales and use taxes. However, the Missouri resident purchaser must pay use tax on the items. In most cases, other states collect sales taxes as a convenience to the purchaser.
Missouri’s general sales tax is 4.225 percent. Certain food items have a lower tax liability and are taxed at the 1.225 percent rate instead. Missouri local jurisdictions also have several sales and other taxes they add to the state sales tax rate.
Complete the Missouri Department of Revenue Sales and Use Tax Exemption Certificate. Give a copy to the seller and keep a copy in the business files. A business must also keep track of the tax-exempt sales it makes.
It depends on the state’s thresholds. Some states do not require you to collect its sales and use taxes unless you have $100,000 or 200 separate transactions. However, most businesses collect other states’ sales and use taxes as a convenience to the consumer.
Yes. If a tax form asks for gross sales, it includes taxable and non-taxable sales.
Yes. The business must still file a sales tax return and use tax return on time.
Yes. If a business files its tax return and tax obligation by the due date, the state grants a two-percent timely payment allowance. Multiply the amount of the tax due by .02. Subtract the amount from the amount of tax due. For example, if you owe $100, the allowance is $2. The business pays $98.