PURPOSE: This rule provides that delivery from a seller located within a taxing city to a purchaser outside the taxing city still makes the sale subject to the city sales tax and interprets and applies section 94.530, RSMo (1986).

1. (1) When a seller, located within a taxing city, makes a taxable sale to a purchaser and the property is to be delivered from a point in Missouri but outside the limits of the taxing city to another point in Missouri the sale is subject to the city sales tax.

   1. (A) Example. Ms. Venus is a customer of the Orange Company a Missouri seller located in Sun City, a local taxing jurisdiction. Ms. Venus orders merchandise from Orange Company for delivery at her home located outside the corporate city limits of Sun City. Orange Company delivers the merchandise to Ms. Venus from its warehouse located in Round City. Orange Company is subject to Sun City’s city sales tax on the merchandise sold to Ms. Venus.

AUTHORITY: section 94.530, RSMo 1986. C.S.T. Regulation 540-5 originally filed Oct. 28, 1975, effective Nov. 7, 1975. Fabick and Co. v. Schaffner, 492 SW2d 737 (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. See also Mobil-Teria Catering Co., Inc. v. Spradling, 576 SW2d 282 (Mo. en banc 1978). For purposes of public mass transportation tax and transportation sales, “place of business” of mobile food service business referred to place where trucks were parked, wares displayed, initial orders taken and filed, payments made and sales consummated. Thus, the public mass transportation tax or transportation sales tax could not be imposed by municipal corporation on gross receipts from places of business outside the geographical limits of the city of municipality. Due to similarity with rule, see also section 94.540.5., RSMo.