PURPOSE: This rule interprets the state use tax law as it applies to vendors use tax vs. consumers use tax and interprets and applies sections 144.620 and 144.635, RSMo.

1. (1) A seller located outside Missouri selling tangible personal property to Missouri customers where the property is shipped or delivered to the customer who stores, uses or consumes the property in Missouri is required to collect and remit to the state of Missouri vendors use tax on all sales if the seller has sufficient nexus with Missouri (see 12 CSR 10-4.085).

2. (2) A Missouri customer who purchases tangible personal property from an out-of-state vendor and who uses, consumes or stores the property in Missouri is required to report and remit consumer use tax. A Missouri customer will not be required to report and remit consumers use tax until his/her untaxed purchases exceed two thousand dollars ($2,000) in a calendar year. Once the Missouri customer’s untaxed purchases exceed two ($2,000) in a calendar year, the customer must report and remit consumers use tax on all untaxed purchases for the entire calendar year. The Missouri customer is relieved from liability if s/he receives a receipt showing the tax was paid from the out-of-state vendor authorized by the director of revenue to collect the tax.

   1. (A) Example: Mr. Brown, a Missouri contractor, purchases a truck load of materials for two thousand five hundred dollars ($2,500) from a supplier in Kansas. The Kansas supplier does not charge or collect sales tax from Mr. Brown. Mr. Brown is required to report and remit consumers use tax to the Department of Revenue on his purchase price of two thousand five hundred dollars ($2,500) for the materials.
   2. (B) Example: Mr. Green, a Missouri resident, purchases a necklace for one thousand five hundred dollars ($1,500) from a vendor located in Oklahoma. Mr. Green does not purchase anything else during the calendar year from a vendor located outside the state of Missouri. The Oklahoma vendor does not charge or collect sales tax from Mr. Green. Mr. Green is not required to report and remit consumer use tax to the Department of Revenue on his purchases for the calendar year because they did not exceed two thousand dollars ($2,000).

AUTHORITY: section 144.705, RSMo 1994.* Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995. *Original authority: 144.705, RSMo 1959.