PURPOSE: This rule indicates that transportation sales tax applies to rental or leasing receipts where tax was not paid at the time of purchase and interprets and applies section 94.620.5, RSMo (1986).

1. (1) Persons renting and leasing tangible personal property on which Missouri state sales tax was not paid at the time of purchase are subject to the transportation sales tax on the rental and leasing receipts if the rented or leased properties are generally nonmovable and are used or installed within a local taxing jurisdiction imposing a transportation sales tax for a period of over thirty (30) calendar days, regardless as to where the renter or lessor is located. Persons renting and leasing generally movable items for periods of thirty
2. (30) calendar days or less are subject to the transportation sales tax on the lease or rental receipts imposed by the local taxing jurisdiction in which the renter or lessor is located when it cannot readily be determined where the items will be used.
3. (2) If, at a later date, the renter or lessee decides to purchase the property which s/he previously had been renting or leasing, the seller, renting or leasing, is subject to the transportation sales tax based on the seller’s location since the sale is consummated at his/her location. If the seller has more than one (1) location, the taxable situs will be the location where the initial order was taken. No deduction or allowance of any kind is to be allowed for any transportation sales tax previously paid on rent or lease receipts.
4. (3) When a customer within a local taxing jurisdiction in Missouri rents or leases tangible personal property from an out-of-state seller, the seller is subject to the appropriate transportation sales tax imposed by the local taxing jurisdiction in which the renter or lessee will use or install the property. These transactions are not sales at retail but constitute taxable services.
5. (4) Persons leasing or renting tangible personal property to religious, civic and charitable organizations or institutions and elementary and secondary schools operated at public expense are subject to the transportation sales tax on the lease or rental receipts.

AUTHORITY: section 94.615, RSMo 1986. T.T. regulation 620-6 originally filed as C.S.T. regulation 540-7 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.