PURPOSE: This rule indicates the duties and responsibilities of out-of-state vendors for Missouri state use taxes and interprets and applies sections 144.620 and 144.635, RSMo.

1. (1) Out-of-state vendors who have sufficient contact with Missouri must register with the Department of Revenue and submit returns. The extent of the contact with the state and the nature of business of the vendor will determine what tax the vendor is subject to.

2. (2) The Department of Revenue has established criteria to be used, but not exclusively, in determining if an out-of-state vendor is subject to the sales tax. If the out-of-state vendor is not subject to the sales tax, s/he is subject to the use tax. A vendor is required to pay or collect and remit the tax imposed if, within this state, s/he directly or by any agent or other representatives—

   1. (A) Has or utilized an office, distribution house, sales house, warehouse, service enterprise or other place of business;
   2. (B) Maintains a stock of goods;
   3. (C) Regularly solicits orders whether or not the orders are accepted in this state, unless the activity in this state consists solely of advertising or of solicitation by direct mail;
   4. (D) Regularly engages in the delivery of property in this state other than by common carrier or United States mail; or
   5. (E) Regularly engages in any activity in connection with the leasing or servicing of property located within this state.

3. (3) Out-of-state vendors who solicit sales in Missouri by television broadcast or other advertising media are subject to Missouri use tax on sales of goods delivered to the purchaser in Missouri, if one (1) of the following conditions is met:

   1. (A) The out-of-state vendor has an office, distribution house, sales house, warehouse, service enterprise or other place of business in Missouri; or
   2. (B) The out-of-state vendor makes the sales through the local television station(s), cable companies or other advertising media agents(s) for the out-of-state vendor. This section shall not include any sales which Missouri is prohibited from taxing under the constitution or laws of the United States of America.
4. (4) This state does not seek to impose use tax collection requirements on any retailer over whom the previously mentioned standard does not confer jurisdiction in this state.

AUTHORITY: section 144.705, RSMo 1994.* U.T. regulation 615-2 originally filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Amended: Filed May 16, 1989, effective Sept. 11, 1989. *Original authority: 144.705, RSMo 1959. Primary Steel, Inc. v. Director of Revenue, Case No. RS-82-0059 (A.H.C. 9/7/83). The issue in this case was whether there was sufficient nexus between the state of Missouri and the taxpayer to justify imposing upon the taxpayer the duty of collecting vendor use tax for sales made to Missouri customers. The court looked to the decision in Miller Bros. Co. v. Maryland, 347 U.S. 340 (1954) which seemed to establish a standard of a continuous local solicitation versus no solicitation other than the incidental acts of general advertising. The commission found that there must be continuous, or at least regular local solicitation, and that the occasional trips made to the state of Missouri by taxpayer’s salesmen did not constitute regular solicitation. For that reason it was found that there was no nexus in the state of Missouri.