PURPOSE: This rule aids in the determination of when transportation sales tax applies.

1. (1) For the purposes of the transportation sales tax law, all retail sales are conclusively presumed to have been consummated at the place of business of the seller/retailer without regard to the location or point of passage of title. The privilege of engaging in the business of selling tangible personal property or rendering taxable services within taxing jurisdictions subjects the seller to the transportation sales tax law.
2. (2) The sale is subject to transportation sales tax when a seller makes a taxable sale to a purchaser at the seller’s place of business or when the order is taken by mail, telephone or by a salesman, even though the property is to be delivered from the seller’s place of business located within the taxing jurisdictions to the customer at a point in Missouri outside the limits of the taxing jurisdiction. The sale is consummated at the seller’s location, not at the point of delivery.
3. (3) Example 1. Mr. Mars is a customer of the Orange Company, a Missouri seller located in Sun County, a local taxing jurisdiction. Mr. Mars orders merchandise from Orange Company for delivery to his place of business outside the limits of Sun County. Orange Company delivers the merchandise from the stock of goods on hand to Mr. Mars. Orange Company is subject to Sun County’s transportation sales tax on the merchandise sold to Mr. Mars.
4. (4) Example 2. The Mighty Milk Company is located in Sun City, a local taxing jurisdiction. Mighty Milk has route salesmen and independent salesmen who sell milk in Sun City and in neighboring cities. Some of the neighboring cities have their own local tax and some do not. All sales of Mighty Milk’s route salesmen and the independent salesmen are subject to Sun City’s transportation sales tax since the sales are considered to be consummated at the place of business from which the salesman works.

AUTHORITY: section 94.615, RSMo 1986. T.T. regulation 620-2 originally filed as C.S.T. regulation 540-4 Dec. 31, 1975, effective Jan. 10, 1976. Made applicable by statute and T.T. regulation 615-1, last filed Dec. 31, 1975, effective Jan. 10, 1976.