PURPOSE: This rule indicates that the timely payment of taxes entitles the seller to a deduction and interprets and applies section 144.140, RSMo (1986).

1. (1) For every remittance of tax made on or before the due date as required, the seller is entitled to deduct and retain an amount equal to two percent (2%) for timely payment. Note: A purchaser is not entitled to this deduction.

   1. (A) Example: Mr. C operates a retail store and the amount of tax levied and imposed is between fifteen dollars ($15) and two hundred fifty dollars ($250) per month. Therefore, Mr. C files a quarterly return due on or before the thirtieth day of the month following each quarter. If the return is paid and 12 CSR 10-5

mailed on or before the thirtieth, Mr. C is entitled to the two percent (2%) discount. The postmark date is prima facie evidence of timely payment.

AUTHORITY: section 94.530, RSMo 1986. C.S.T. regulation 540-3 originally filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled Dec. 31, 1975, effective Jan. 10, 1976. Farm and Home Savings Assn. v. Spradling, 538 SW2d 313 (Mo. 1976). Purpose of allowing retention of two percent (2%) tax due was to compensate seller who was required, as part of his regular course of business, to collect sales tax from buyer, keep records and make remittance to director, all of which could increase seller’s cost of doing business; it was not primary purpose of statute to give tax reduction simply because tax was paid when due, although deductions may very well encourage prompt payment.