PURPOSE: This rule indicates that delivery from outside Missouri does not remove the seller’s liability for transportation sales tax and interprets and applies section 94.620.5, RSMo (1986).

1. (1) When a Missouri seller makes a taxable sale to a Missouri purchaser and the property is to be delivered from a point outside Missouri to a point either within or beyond the limits of a local taxing jurisdiction, the sale is subject to the transportation sales tax.

   1. (A) Example 1. Mr. Strong is a customer of the Barbell Company, a Missouri seller located in Sun City, a local taxing jurisdiction. Mr. Strong orders merchandise from the Barbell Company for delivery at his place of business and home located outside the corporate city limits of Sun City. Barbell Company orders the merchandise for Mr. Strong from a manufacturing company located outside the state of Missouri. The manufacturing company ships the merchandise by common carrier directly to Mr. Strong’s place of business. Barbell Company is subject to Sun City’s transportation sales tax on the merchandise sold to Mr. Strong.
   2. (B) Example 2. Ms. Stone, a Missouri purchaser located in Sun City, has a mail-order catalog from Rock Company, a vendor located outside Missouri, with no office, property or salesmen in Missouri. Ms. Stone sends an order in the mail to Rock Company for merchandise to be delivered to her place of business by common carrier. Ms. Stone is subject to the Missouri use tax if the merchandise is for storage, use or consumption. The sale is not subject to transportation sales tax.
   3. (C) Example 3. Mr. Mudd, a Missouri purchaser, lives outside the corporate city limits of Sun City. He places an order with Mr. Kleen, a salesman for the Dazzle Company, a vendor located outside of Missouri. Mr. Kleen works from his office in his home in Sun City. The Dazzle Company does not have any other office or property in Missouri. The Dazzle Company fills the order from its warehouse located outside Missouri and ships the merchandise directly to Mr. Mudd’s home. The Dazzle Company is subject to Sun City’s transportation sales tax on the merchandise sold to Mr. Mudd.
   4. (D) Example 4. Mr. LeBeau, a Missouri purchaser located in Sun City, contacts Mr. Dudly, a salesman for the Kam Company, a vendor located outside Missouri without an office in Missouri. Mr. Dudly calls on Mr. LeBeau at Mr. LeBeau’s place of business. Mr. Dudly takes the order for merchandise and returns to his out-of-state location from which the merchandise is then shipped to Mr. LeBeau’s place of business. The Kam Company is subject to Sun City’s transportation sales tax on the merchandise sold to Mr. LeBeau since the Kam Company is in the business of selling tangible personal property within Sun City.

AUTHORITY: section 94.615, RSMo 1986. T.T. regulation 620-5 originally filed as C.S.T. regulation 540-6 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. 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 the state sales tax, is a gross receipts tax, not a transactions tax. Mobile-Teria Catering Co., Inc. v. Spradling, 576 SW2d 282 (Mo. en banc 1978). For purposes of transportation sales tax, “place of business” of mobile food service business referred to places where trucks were parked, wares displayed, initial orders filled, payments made and sales consummated.