PURPOSE: The purpose of this rule is to clarify the incidence of local tax on the sale of natural and propane gas.

1. (1) For purposes of local sales tax on metered pipeline sales of natural gas, the meter located at the residence of the purchaser shall constitute the place of business of the retailer. The local sales tax rate in effect at the location of the meter shall apply to the metered pipeline sale.
2. (2) Where bulk deliveries of propane or natural gas are made by the seller by service truck and where the fuel is dispensed into either a customeror retailer-owned tank which does not have a metering device and the customer purchases and owns the contents, the sale shall be deemed to be consummated at the seller’s principal place of business. The local sales tax rate in effect at the seller’s principal place of business shall apply to the sale.
3. (3) Where bulk deliveries of natural or propane gas are made by the seller by service truck to a storage tank which has a metering device used to measure the consumption of fuel used by the consumer for billing purposes, and where the seller maintains control of the fuel in the tank, the sale shall be deemed to be consummated where the tank is located. The local sales tax rate in effect at the location of the tank shall apply to the sale. AUTHORITY: section 94.530, RSMo 1986. Original rule filed Oct. 15, 1985, effective Jan. 26, 1986.