PURPOSE: This rule indicates the county sales tax law as it applies to rental or leasing receipts when the tax was not paid at the time of purchase.

1. (1) Persons renting and leasing tangible personal property on which Missouri state sales tax was not paid at the time of purchase are subject to the county sales tax on the rental and leasing receipts if the rented or leased properties are used or installed within a county imposing a county sales tax for a period of over thirty (30) days, regardless as to where the renter or lessee is located. Persons renting and leasing items for periods of thirty
2. (30) calendar days or less are subject to the county sales tax on the lease or rental receipts imposed by the county in which the renter or lessor is located when it cannot readily be determined where the items will be used.
3. (2) If, at a later date, the renter or lessee decides to purchase the property which s/he previously had been renting or leasing, the seller, renting or leasing, is subject to the county sales tax based on the seller’s location since the sale is consummated at his/her location. If the seller has more than one (1) location, the taxable situs will be the location where the initial order was taken. No deduction or allowance of any kind is to be allowed for any county sales tax previously paid on rent or leased receipts.
4. (3) When a customer within a taxing county in Missouri rents or leases tangible personal property from an out-of-state seller, the seller is subject to the appropriate county sales tax imposed by the county in which the renter or lessee will use or install the property. These transactions are not sales at retail but constitute taxable services.

AUTHORITY: sections 67.515 and 67.706, RSMo 1986. Original rule filed Sept. 7, 1984, effective Jan. 12, 1985.