PURPOSE: This rule aids in determining the place of business where the sale is consummated for city sales tax purposes and interprets and applies section 94.540.5., RSMo (1986).

1. (1) If a seller has more than one (1) place of business in Missouri which participates in a sale, the local tax of the location where the initial order was taken shall apply. For the purposes of this rule, place of business shall include, but not be limited to, sales offices, administrative offices, catalog stores, retail stores, warehouses and factories. Where the seller has no recognizable physical facility, the place of business of the seller shall be where the purchaser actually obtains possession.

   1. (A) Example. The Story Company has a sales office in Tall City and a combination sales office and warehouse in Short City. Both Tall City and Short City have a city sales tax. The Story Company takes an order at its Tall City location from a customer located in Long City which also has a city sales tax. The Story Company ships the order from its warehouse in Short City to the customer in Long City. Tall City’s city sales tax would apply as the initial order was taken in Tall City.

AUTHORITY: section 94.530, RSMo 1978. C.S.T. regulation 540-4A originally filed Dec. 31, 1975, effective Jan. 10, 1976. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Fabick and Co. v. Schaffner, 492 SW2d 737 (Mo. 1973). Jurisdictional arguments based upon lack of reciprocal benefit under city tax law are unavailing because the retailer is within the city imposing the tax and is the recipient of governmental services provided by the city. The contention that only a rebuttable presumption was intended by the phrase “shall be deemed to be consummated at the place of business of the retailer;” was rejected. The obvious purpose of the premium was to fix the taxable situs of transactions which might have a nexus with more than one municipality. City sales tax of Jefferson City, like to state sales tax, is a gross receipts tax, not a transactions tax. Due to similarity with rule, see also section 94.540.5., RSMo.