12 CSR — Department of Revenue

Division 10 Director of Revenue

Chapter 1 Organization of Department of Revenue

12 CSR 10-1.010 Organizational Structure {#sec-12-csr-10-1.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-1.010}

PURPOSE: The rule contains a description of the organization and the general courses and methods of operation of the Department of Revenue.

(1) The Department of Revenue is the charge of a director of revenue appointed by the governor, by and with the advice and consent of the senate. The department has divisions as provided by law. The department collects all taxes and fees payable to the state as provided by law. Those taxes and fees include but are not limited to income tax, sales and use tax, cigarette tax, motor fuel tax, tire and battery tax, financial institutions tax, and fees for certificates of title and registration of motor vehicles and for drivers’ licenses. The department also administers the safety responsibility statutes.

(2) The powers, duties, and functions of the State Tax Commission have been transferred under the Reorganization Act of 1974 by type III transfer (see section 1.7(1)(c) of the Act) to the department.

(3) The public may obtain information from or make submissions to or requests of the department in person or by mail, telephone, or email to the director of revenue at the Department of Revenue offices in Jefferson City, Missouri. Any information from, submission to, or requests of the State Tax Commission may be made to the commission at its office in Jefferson City, Missouri.

History

AUTHORITY: section 536.023.3, RSMo 2016. This version of rule filed Dec. 31, 1975, effective Jan. 10, 1976. Amended: Filed March 28, 2023, effective Oct. 30, 2023. Original authority: 536.023.3, RSMo 1975, amended 1976, 1997.

12 CSR 10-1.020 Letter Rulings {#sec-12-csr-10-1.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-1.020}

PURPOSE: This rule establishes procedures for issuing letter rulings pursuant to section 536.021.10, RSMo.

(1) Letter Rulings.

(A) The director or his/her duly authorized agent as authorized under section 536.021.10, RSMo shall issue letter rulings subject to the terms and conditions set forth in this rule.

(B) When an issue on which a letter ruling is requested is clearly covered by a duly enacted statute, regulation, administrative rule, or a well-established principle of interpretation of the law, the director may decline to issue a letter ruling or issue an information letter instead of a letter ruling. An information letter is not a letter ruling and is not binding on the department. An information letter calls attention to a well-established principle or interpretation of the law and is merely a response for informational purposes.

(2) A letter ruling request must be made on the form or in the format specified by the director for letter ruling requests by email to gco@dor.mo.gov or by the online submission of that form through the director’s website. Alternatively, the letter ruling request may be made in writing to: Director of Revenue, PO Box 475, Jefferson City, MO 65105.

(3) A letter ruling request must specifically state— (A) That a “letter ruling is requested pursuant to section 536.021.10, RSMo”;

(B) The applicant’s— 1. Name (the name of the person, partnership, corporation, or entity to whom the facts presented in the request apply);

Address and phone number;
Social Security or federal identification number; and 4. Appropriate Department of Revenue license, registration, or identification number, where applicable;

(D) The issue(s) on which a letter ruling is requested, stated clearly and concisely;

(E) A complete, clear, and concise statement of all relevant facts on which the letter ruling is requested;

(F) The applicant’s desired result and the legal basis for that result, including reference to the applicable statutes, regulations, and case law;

(G) Whether the issue, as it regards the applicant, is presently under investigation or audit by the Department of Revenue.

The term investigation or audit includes but is not limited to a notice of adjustment, notice of deficiency, assessment, notice of loss of driving privilege, or notice of suspension or revocation; and (H) Whether the applicant is presently pursuing any protest, litigation, or negotiation on the issue with the Department of Revenue, as well as the name of any other person, partnership, corporation, or entity whom the applicant or his/her duly authorized representative knows is involved with the identical issue pending before or with the Department of Revenue.

(4) The applicant may provide a draft letter ruling for the department’s consideration.

(5) A request for a letter ruling must be signed by the applicant or an authorized agent of the applicant. If the letter ruling request is made on the form or in the format specified by the director by email or by the online submission of that form through the director’s website, a digital or electronic signature by the applicant or authorized agent of the applicant satisfies this requirement.

(6) The director or his/her duly authorized representative may request additional information from the applicant as deemed necessary to issue a letter ruling. Failure to provide the requested information shall relieve the director of the obligation to issue the letter ruling.

(7) A letter ruling shall have the following effect:

(A) The letter ruling shall apply only to the particular fact situation stated in the letter ruling request;

(B) The letter ruling shall apply only to the applicant;

(D) The letter ruling shall bind the director, his/her duly authorized agents, and their successors as to transactions of the applicant that occur within three (3) years after the date of the issuance of the letter ruling; and (E) An unfavorable letter ruling shall not bind the applicant and shall not be appealable to any forum.

(8) The letter ruling shall cease to be binding if— (A) A pertinent change is made in the applicable law by the (9/30/23) John R. Ashcroft General Assembly;

(B)

A pertinent change is made in the department’s regulations;

(C) A pertinent change in the interpretation of the law is made by a court of law or by an administrative tribunal; or (D) The actual facts are determined to be materially different from the facts set out in the applicant’s letter ruling request.

(9) The director will respond to letter ruling requests within sixty (60) days of the date of receipt of a complete request.

(10) The director may refuse to issue a letter ruling for good cause. The director, in a letter, must indicate the specific reasons for refusing to issue the letter ruling. Good cause includes but is not limited to the following:

(A) The request does not substantially comply with the information required by this regulation;

(B) The request involves hypothetical situations or alternative plans;

(C) The applicant requests the director to determine whether a statute is constitutional under the Missouri Constitution or the United States Constitution;

(D) The facts or issue(s) presented in the request are unclear, overbroad, insufficient, or otherwise inappropriate as a basis upon which to issue the letter ruling;

(E) The issue about which the letter ruling is requested is primarily one of fact;

(F) The issue is presently being considered in a rulemaking procedure, contested case, or other agency or judicial proceeding that may definitively resolve the issue;

(G) The issue cannot be reasonably resolved prior to the issuance of regulations;

(H) The applicant is under investigation or audit relating to that issue, or the issue is the subject of investigation, audit, administrative proceeding, or litigation;

(I) The issue relates to the application of the law to members of a business, trade, professional or industrial association, or to other similar group(s); and (J) The applicant is not identified or is anonymous.

(11) A letter ruling shall include:

(A) A statement that: “This is a letter ruling issued by the director pursuant to section 536.021.10, RSMo;” and (B) The signature of the director or any person duly authorized to issue letter rulings on his/her behalf.

(12) The applicant may withdraw the request for a letter ruling, in writing or by email, prior to the issuance of the letter ruling.

History

AUTHORITY: section 144.190.9, RSMo Supp. 2021, and section 536.021.10, RSMo 2016. Original rule filed Sept. 1, 1989, effective Dec. 11, 1989. Amended: Filed Oct. 20, 2005, effective May 30, 2006. Amended: Filed Feb. 1, 2022, effective Aug. 30, 2022. Nonsubstantive change filed April 20, 2023, published June 30, 2023. Original authority: 144.190, RSMo 1939, amended 1941, 1943, 1945, 1979, 1986, 1988, 1991, 1999, 2001, 2002, 2003, 2012, 2016, 2019, and 536.021, RSMo 1975, amended 1976, 1989, 1992, 1993, 1994, 1997, 2004.

Chapter 2 Income Tax

12 CSR 10-2.016 Quarter-Monthly Period Reporting and Remitting Withholding Tax {#sec-12-csr-10-2.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.016}

12 CSR 10-2.017 Transient Employer Financial Assurance Instrument for Employer’s {#sec-12-csr-10-2.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.017}

12 CSR 10-2.019 Determination of Withholding for Work Performed at Temporary {#sec-12-csr-10-2.019 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.019}

12 CSR 10-2.030 Non-Standard Tax Periods, Subsequent Change of Accounting Period, {#sec-12-csr-10-2.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.030}

12 CSR 10-2.040 Transitional Adjustments in Accounting Methods {#sec-12-csr-10-2.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.040}

12 CSR 10-2.067 Failure to Pay Estimated Tax for Tax Years Ending After {#sec-12-csr-10-2.067 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.067}

12 CSR 10-2.085 Credit for New or Expanded Business Facility {#sec-12-csr-10-2.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.085}

12 CSR 10-2.090 Computation of Federal Income Tax Deduction for Consolidated {#sec-12-csr-10-2.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.090}

12 CSR 10-2.110 Penalty for Filing Incomplete or Misleading Income Tax Returns {#sec-12-csr-10-2.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.110}

12 CSR 10-2.120 Information at Source Reporting Requirements {#sec-12-csr-10-2.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.120}

12 CSR 10-2.145 Regulation for Computation of Interest on Investment Tax Credit {#sec-12-csr-10-2.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.145}

12 CSR 10-2.160 State Income Tax Deduction Add-Back. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 {#sec-12-csr-10-2.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.160}

12 CSR 10-2.190 Partnership and S Corporation Annual Return Filing Requirements, Composite Returns, and Nonresident Partner/Shareholder Income {#sec-12-csr-10-2.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.190}

12 CSR 10-2.255 Allocation and Apportionment for Nonresident Shareholders of S Corporations and Nonresident Partners of Partnerships {#sec-12-csr-10-2.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.255}

12 CSR 10-2.260 Apportionment Method for Broadcasters (Beginning on or After {#sec-12-csr-10-2.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.260}

12 CSR 10-2.720 Reporting Requirements for Individual Medical Accounts {#sec-12-csr-10-2.720 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.720}

12 CSR 10-2.005 Questions and Answers {#sec-12-csr-10-2.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.005}

Mobil Oil Corp. v. State Tax Commission of Missouri, 513 SW2d 319 (1974). In authorizing the prescription of rules relating to the administration of the income tax laws, former section 143.200, RSMo does not delegate to the director of revenue the power to promulgate rules of substantial law. The rules which the director of revenue is empowered by former section 143.200, RSMo to prescribe are limited to procedural rules useful in the administration and enforcement of the income tax laws. However, the statutory direction that the rules shall follow the federal rules as nearly as practicable does not require or authorize the director to ignore a specific, pertinent, applicable state statute and promulgate rules in conflict therewith (subject matter of section 143.200, RSMo now covered by section 143.961, RSMo Supp. 1973).

History

AUTHORITY: section 143.961, RSMo 1986. This rule was previously filed as Income Tax Release 73-11, Jan. 29, 1974, effective Feb. 8, 1974. Rescinded: Filed April 4, 2002, effective Oct. 30, 2002.

12 CSR 10-2.010 Income Tax of Current or Former Spouses {#sec-12-csr-10-2.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.010}

PURPOSE: This rule sets forth the method to be used by married persons filing joint federal income tax returns in allocating capital losses between the spouses for Missouri income tax purposes and explains the proper method of determining and reporting the taxable portion of Social Security benefits in cases where both spouses have income and how the combined Missouri adjusted gross income is computed on a combined return for purposes of computing each spouse’s separate income tax liability.

(1) Estimated tax of spouses. Where a combined declaration of estimated tax has been made for the tax year, the estimated tax payments for that tax year may be divided in any amount between husband or wife as they together elect on a combined Missouri return or separate Missouri returns. Where one (1) or both spouses (or former spouses) file, or are required to file, separate Missouri returns and they have not together elected how to divide one (1) or more of such estimated tax payments (for example, when no returns are filed or when inconsistent estimated payment amounts are reported on separate Missouri returns), those specific estimated tax payments for the tax year shall be divided as follows, regardless of the name of the payor or bank account from which the amount was paid:

(A) Each spouse (or former spouse) shall divide his or her actual Missouri individual income tax for the tax year for which the estimated tax was paid by the sum of the actual Missouri individual income taxes of both spouses (or former spouses) for that tax year; and (B) The result of this division shall be multiplied by the total of the estimated tax payments in question.

(2) Losses. This general rule is to be used in arriving at each spouse’s portion of their joint federal adjusted gross income to be used on their combined Missouri income tax return in situations involving losses from sale or exchange of capital assets. If the losses from the sale or exchange of capital assets exceed the net gains from the sales, then, subject to the limitation provided for in Internal Revenue Code (IRC) Section 1211, allocate the excess to the spouse responsible for the excess. (For examples 1-3 below, the Section 1211 limitation is $3,000.) If both spouses are responsible for the excess, then allocate the excess, subject to IRC Section 1211 limitation, between the spouses on a pro rata basis.

(A) Example No. 1: Assume the following facts on the joint Gain (loss) ($2,000) ($3,000) ($5,000)

Federal adjusted gross income (FAGI) $12,000 Missouri Answer: The amount of the excess is $5,000 but, because of the limitation of IRC Section 1211, the deductibility of the loss is limited to $3,000. Since both spouses are responsible for the excess, then allocate the $3,000 on a pro rata basis, that is—Spouse 1 (2/5 x 3,000) and Spouse 2 (3/5 x 3,000). deduction ($1,200) ($1,800)

FAGI $8,800 $3,200 $12,000

(B) Example No. 2: Assume the following facts on the joint Short-term gain (loss) ($200) ($300) ($500)

Long-term gain (loss) ($8,000) ($3,000) ($5,000)

FAGI $12,000

Missouri Answer: The amount of the excess is $5,500 but, because of the limitation of IRC Section 1211, the deductibility of the loss is limited to $3,000. The $5,500 excess includes $5,200 for Spouse 1 and $300 for Spouse 2. Since both spouses are responsible for the excess, then allocate the $3,000 on a pro rata basis, that is, Spouse 1 (5,200/5,500 x 3,000) and Spouse 2 (300/5,500 x 3,000). deduction ($2,850) ($150)

FAGI $7,150 $4,850 $12,000

(C) Example No. 3: Assume the following facts on the joint Short-term gain (loss) $1,000 ($1,000) $0 Long-term gain (loss) ($8,000) $3,000 ($5,000)

FAGI $12,000

Missouri Answer: Since there are no net short-term losses, all of the IRC Section 1211 limitation of $3,000 should be allocated from excess long-term losses. Since Spouse 1 is responsible for the excess, the entire amount of the limitation is allocated to Spouse 1. deduction ($3,000) $0 FAGI $7,000 $5,000 $12,000 (3) Social Security benefits. For spouses who file a joint federal income tax return for the tax year, Social Security benefits that are included in federal adjusted gross income (AGI) must be allocated between spouses on the Missouri combined individual income tax return using the Form MO-1040 for the appropriate tax year. They must be allocated between spouses based on the proportionate share of gross Social Security benefits received by each spouse, multiplied by the portion of the benefits included in federal adjusted gross income.

(A) Example: A husband receives eight thousand dollars ($8,000) in Social Security benefits and the wife receives two thousand dollars ($2,000), for total gross benefit of ten thousand dollars ($10,000). The husband’s proportionate share is eighty percent (80%) and the wife’s is twenty percent (20%).

If four thousand dollars ($4,000) in benefits were included in federal adjusted gross income, then the husband’s allocated portion on the Missouri return would be three thousand two hundred dollars ($3,200) and the wife’s portion would be eight hundred dollars ($800). This is arrived at by multiplying four thousand dollars by eighty percent ($4,000 × 80%) for the husband and four thousand dollars by twenty percent ($4,000 × 20%) for the wife. These amounts must be used in calculating the Missouri AGI of the husband and wife.

(4) Missouri adjusted gross incomes of spouses. In general, if a married couple files a combined Missouri income tax return, the combined Missouri adjusted gross income equals the sum of each spouse’s separate Missouri adjusted gross income. The spouse’s separate Missouri adjusted gross income is based on that spouse’s portion of joint federal adjusted gross income as determined under instructions published by the Department of Revenue for the tax year. Each spouse’s portion of joint federal adjusted gross income is then adjusted by the state addition and subtraction modifications under, for example, sections 143.121.2, 143.121.3, and 135.647.2, RSMo, to arrive at the spouse’s separate Missouri adjusted gross income.

(A) Examples.

A married couple reported federal adjusted gross income of thirty-nine thousand dollars ($39,000) on their joint federal income tax return. On their combined Missouri income tax return, one (1) spouse reported separate federal adjusted gross income of thirty-eight thousand dollars ($38,000), and the other spouse reported separate federal adjusted gross income of one thousand dollars ($1,000) and a five thousand dollar ($5,000) subtraction for interest from exempt U.S. government obligations. The combined Missouri adjusted gross income equals thirty-four thousand dollars ($34,000) (thirty-eight thousand dollars ($38,000) plus negative four thousand dollars (-$4,000)).
A married couple reported federal adjusted gross income of thirty-nine thousand dollars ($39,000) on their joint federal income tax return. On their combined Missouri income tax return, one (1) spouse reported separate federal adjusted gross income of thirty-eight thousand dollars ($38,000), and the other spouse reported separate federal adjusted gross income of one thousand dollars ($1,000) and a five thousand dollar ($5,000) subtraction for a contribution to a Missouri Savings for Tuition (MOST) account. The combined Missouri adjusted gross income equals thirty-four thousand dollars ($34,000) (thirtyeight thousand dollars ($38,000) plus negative four thousand dollars (-$4,000)).

(5) Coordination with 12 CSR 10-2.710. Where the spouses’ joint federal adjusted gross income as determined under federal income tax law is negative or zero ($0), then, for purposes of Missouri income tax, each spouse shall begin his or her calculation of separate Missouri adjusted gross income with a portion of federal adjusted gross income equal to zero ($0). Where the spouses’ joint federal adjusted gross income is positive, yet one spouse would have a negative portion of joint federal adjusted gross income as determined under instructions published by the Department of Revenue for the tax year, then— (A) Such spouse (the spouse who would otherwise have a negative portion of joint federal adjusted gross income) shall begin his or her calculation of separate Missouri adjusted gross income with a portion of federal adjusted gross income equal to zero ($0); and (B) The other spouse shall begin his or her calculation of separate Missouri adjusted gross income as though his or her portion of the federal adjusted gross income equaled the entire joint federal adjusted gross income determined under federal income tax law. Example: A married couple reported federal adjusted gross income of thirty-two thousand dollars ($32,000) on their joint federal income tax return. When filing their combined Missouri income tax return, the wife computed a share of federal adjusted gross income in the amount of thirtyeight thousand dollars ($38,000), while the husband computed a share of federal adjusted gross income equal to negative six thousand dollars (-$6,000). On their combined Missouri income tax return, wife should begin her calculation of separate Missouri adjusted gross income with a federal adjusted gross income figure of thirty-two thousand dollars ($32,000) while husband should begin his calculation of separate Missouri adjusted gross income with a federal adjusted gross income figure of $0.

(6) Notwithstanding any provision of this rule to the contrary,

Amended: Filed Oct. 2, 2018, effective April 30, 2019. Amended:

Filed July 17, 2023, effective Feb. 29, 2024. Amended: Filed Nov. 6, 2025, effective April 30, 2026. *Original authority: 135.647, RSMo 2007, amended 2013, 2014, 2018; 143.181, RSMo 1972, amended 1983, 2003; and 143.961, RSMo 1972.

History

AUTHORITY: sections 143.181 and 143.961, RSMo 2016, and section 135.647, RSMo Supp. 2025. This rule was previously filed as Income Tax Release 73-11, Jan. 29, 1974, effective Feb. 8, 1974.

12 CSR 10-2.015 Withholding of Tax {#sec-12-csr-10-2.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.015}

PURPOSE: This rule provides guidance for the withholding of Missouri income taxes from wages or retirement income.

(1) Registration of Employers. Every employer required to deduct and withhold any amount of tax under section 143.191, RSMo, must register with the Missouri Department of Revenue by completing the Missouri Tax Registration Application Form 2643 or through the online business registration feature on the Missouri Department of Revenue’s website. A Missouri tax identification number will be assigned. A new registration is required, and a new Missouri tax identification number will be assigned, when any change in ownership or ownership type occurs. An employer who receives a new Missouri tax identification number as a result of a change in ownership type must file a Final Report Form 5633, to close the old account. These Missouri tax identification numbers are not transferable. It is recommended that the Missouri tax identification number be included in all reports and correspondence from the employer to the Missouri Department of Revenue concerning withholding. If a business is discontinued, transferred, or sold, or if an employer closes or indefinitely ceases to pay wages, the employer must close the employer’s withholding account by filing a Final Report (Form 5633). If the business of another employer is acquired, do not use the Missouri tax identification number assigned to that business; a new Missouri tax identification number must be obtained.

(A) Employer With More Than One (1) Payroll Unit—Complex Employer. If a consolidated report and remittance of the tax withheld cannot be made by the employer because of the complexity of the organization, branch offices or divisions of the employer may be designated as withholding agents. These agents can perform the actual withholding and remitting.

However, regardless of any internal arrangements which may be established by the complex employer, the legal responsibility and liability under the law still rests with the employer and any other entity or person made liable under state law. If the complex employer has designated withholding agents, and the agents wish to claim the compensation deduction on behalf of the employer, only one (1) agent will be entitled to the full deduction and the remaining agents will be entitled to one-half of one percent (0.5%) deduction of income taxes withheld if the returns and remittances are filed and made timely, but in no event shall the complex employer receive an aggregate compensation deduction greater than what would be allowed by law had the employer not elected to use designated withholding agents under this provision.

(2) Seasonal. If an employer is only open for several months out of the year, the employer may register as a seasonal employer on Form 2643. Notwithstanding any section of this rule to the contrary, a seasonal employer is not required to file the Employer’s Return of Income Taxes Withheld (Form MO-941) for the withholding tax periods that the employer indicates to the Missouri Department of Revenue it will not have employees, if the seasonal employer does not pay wages during such periods.

(3) Wages and Employees. The term wages for Missouri withholding purposes means wages as defined by section 3401(a) of the Internal Revenue Code of 1986, as amended.

The term employee for Missouri withholding purposes has the same meaning as used in section 3401(a) of the Internal Revenue Code of 1986, as amended.

(4) Interstate Transportation Employees. An employer is not required to withhold Missouri income tax from the wages of an interstate transportation employee if such withholding requirement is prohibited by an applicable federal statute, or if a federal statute exempts all the wages paid by an employer to the interstate transportation employee from Missouri income tax. For example, under 49 U.S.C. Section 11502, the compensation paid by certain rail carriers to employees who perform regularly assigned duties on a railroad in more than one (1) state is subject to income tax only in the employee’s state of residence.

(5) Nonresident Employees. If a nonresident employee performs all services within Missouri, tax shall be withheld from all wages paid as in the case of a resident. If a nonresident employee performs all services outside Missouri, his or her wages are not subject to Missouri withholding. If services are performed partly within and partly outside the state, the nonresident employee shall provide a completed Certificate of Nonresidence or Allocation of Withholding Tax (Form MO W-4A) to the employer, and only wages paid for services performed within Missouri are subject to Missouri withholding tax. If only a portion of an employee’s wages is subject to Missouri withholding tax, then the amount of Missouri tax required to be withheld is calculated using a percent of the amount listed in the withholding tables. The calculation begins by determining the amount that would be withheld if all the wages were subject to Missouri withholding. This amount is then multiplied by a percent, which is determined by dividing the wages subject to Missouri withholding tax by the total federal wages.

(A) Example: Nonresident earns $20,000 in wages, $12,000 from Missouri sources. Missouri withholding would be 60% ($12,000 ÷ $20,000 equals 60%) of the withholding required on $20,000. Therefore, if $100 per month should be withheld for an individual earning $20,000, then for this nonresident, $60 should be withheld each month (100 x 60% = $60).

(6) Resident of Missouri Employed in Another State. All wages received for a Missouri resident’s services performed in another state not having a state individual income tax are subject to Missouri withholding. All wages received for a Missouri resident’s services performed in another state having a state individual income tax that is a lower rate than Missouri’s individual income tax rate are subject to Missouri withholding for the amount of the difference between that state’s and Missouri’s withholding requirements.

(7) Supplemental Wage Payments. If supplemental wages are paid, such as bonuses, commissions, a lump-sum distribution from the employer, overtime pay, back pay, including retroactive wage increases or reimbursements for nondeductible moving expenses in the same payment with regular wages, Missouri income tax shall be withheld as if the total of the supplemental and regular wages were a single wage payment for the regular payroll period. If supplemental wages are paid in a different payment from regular wages, the method of withholding income tax depends in part on whether income tax is withheld from the employee’s regular wages.

(A) If income tax is withheld from the employee’s regular wages, choose either one (1) of the following methods for withholding income tax on the supplemental wages:

Method One. Withhold at a flat percentage rate that is equal to the highest individual income tax rate determined under section 143.011, RSMo, for the current tax year of the supplemental wages; or 2. Method Two. Add the supplemental wages to the employee’s regular wages paid to the employee within the same calendar year for the payroll period and determine the income tax to be withheld as if the aggregate amount were one (1) payment. Subtract the tax already withheld from the regular wage payment and withhold the remaining tax from the supplemental wage payment.

(B) If income tax has not been withheld from the regular wages (for example, where an employee’s standard deduction exceeds his or her wages), use Method Two described in paragraph (7)(A)2. of this rule. Add the supplemental wages to the regular wages paid within the same calendar year for the payroll period and withhold income tax on the total amount as though the supplemental wages and regular wages were one (1) payment for a regular payroll period.

(8) Tips Treated as Supplemental Wages. Employers must withhold Missouri income tax based upon total tips reported by the employee, unless the amount of tips received by the employer and remitted to the employee is greater in which case the greater amount shall be withheld. If an employee shares tips, the employer shall withhold only from the employee who actually receives the shared tips. Employers shall withhold income tax on tips using the same options indicated for withholding on supplemental wage payments.

(9) Vacation Pay. Vacation pay received by an employee is subject to withholding as though it were a regular wage payment made for the payroll periods during the vacation.

If vacation pay is paid in addition to regular wages for the vacation period, the vacation pay is treated as a supplemental wage payment. An employee who is not a resident of Missouri but works in Missouri is subject to withholding on his or her vacation pay.

(10) Retirement Income. Every Missouri resident receiving retirement income or a pension from an entity in this state may elect to have an amount withheld as a payment of state income tax provided such income is taxable in this state. The recipient should determine the amount to be withheld and file Withholding Certificate for Pension or Annuity Statements (Form MO W-4P) with the administrator of his or her retirement or pension plan. The administrator of the retirement or pension plan must retain the Form MO W-4P for a minimum of three (3) years after the date the taxes to which they relate become due, or the date the taxes are paid, whichever is later.

(11) Exemption for Certain Individuals. This section applies to a Missouri nonresident performing services in Missouri or a Missouri resident. Exemption from withholding for an individual is valid only if the employee submits to the employer a completed Employee’s Withholding Certificate Form MO W-4, certifying that the employee has no income tax liability from the previous year and expects none for the current year. The employee must file a Form MO W-4 annually if the employee wishes to continue to be exempt.

(12) Employee Withholding Certificate. Each employee subject to Missouri income tax is required to complete and provide to the employee’s employer a Form MO W-4 that reflects the filing status on his or her income tax return. The Form MO W-4 must be used by the employer to determine the amount of Missouri income tax which must be withheld from each paycheck. If an employee has more than one (1) employer, he or she may want to withhold an additional amount on Line 2 of Form MO W-4 for his or her principal employer to ensure that the total amount withheld approximates the actual income tax liability.

Failure to withhold enough from each payroll period could cause an employee to be subject to underpayment penalties.

If an employee expects to have income other than his or her wages, or income from multiple jobs, he or she may request additional amounts be withheld in addition to the standard withholding calculations that are based on the standard deduction for the filing status indicated on the Form MO W-4.

The additional amount should be included on Form MO W-4, Line 2. Employees who expect to receive a refund (as a result of itemized deductions, modifications, or tax credits) on their tax returns may direct the employer to only withhold the amount indicated on Form MO W-4, Line 3, in which case the employer will not use the standard calculations for withholding. If the employee does not indicate an amount to be withheld or if the amount indicated is more than is available for the payroll period, the employer will use the standard calculations.

Employers are required to submit a copy of each completed Form MO W-4 or an equivalent form for each new employee to the Missouri Department of Revenue within twenty (20) calendar days of hire. “Date of hire” is defined as the date the employee reports to work or the date the employee signs the federal W-4 form, whichever is earlier. The department will in turn forward the Form MO W-4 to the Division of Child Support Enforcement.

(13) Determining Amount to be Withheld. Except as otherwise provided in this rule, an employer required to deduct and withhold tax under sections 143.191, RSMo, must withhold the amount of tax set forth for that withholding tax period in the withholding tables published by the Missouri Department of Revenue, or by using a percentage withholding formula published by the Missouri Department of Revenue. To determine income tax withholding, an employer must take into account wages paid during the withholding tax period, as well as filing status, as there are different withholding calculations or amounts for single, married, and head of household employees.

(A) Withholding Tables. Withholding using the withholding tables prepared by the Missouri Department of Revenue is based on wages. In determining the amount of tax to be withheld, the employer should use the table for the correct payroll period—daily, weekly, bi-weekly, semimonthly, and monthly periods. Any other period would be a miscellaneous pay period. Tables show wage brackets in the two (2) left-hand columns. The filing status is shown at the top of each of the remaining columns.

(B) Percentage Withholding Formula. A percentage withholding formula has been published by the director of revenue and it may be used on electronic data processing equipment for withholding Missouri income tax. Missouri withholding is calculated by subtracting the annual standard deduction from the employee’s annual wages and multiplying the result by the applicable tax rate. The formula is illustrated in the “Employer’s Tax Guide (Form 4282).”

(14) Form MO-941 Reporting Requirement. Every employer withholding Missouri income tax from employee’s wages is required by statute to report and remit the tax to the state of Missouri with the Employer’s Return of Income Taxes Withheld (Form MO-941) or, for a quarter-monthly filer, as specified in

section (16) of this rule.

(A) The employer’s name, address, and Missouri tax identification number must appear as filed on previous returns and the period for which the remittance is made must be indicated. To avoid the issuance of non-filer notices, if an employer temporarily ceases to pay wages or has no payroll for a reporting period, a return must still be filed for each period indicating that no tax was withheld.

(15) Annual Filing of Forms W-2, 1099-R, and MO W-3. For each year an employer is required to withhold Missouri income tax, the employer must also file with the Missouri Department of Revenue copies of all Forms W-2 and Forms 1099-R issued to employees subject to Missouri income tax, which shall be accompanied by a completed Transmittal of Tax Statements (Form MO W-3). This filing requirement applies only where the employer has paid or credited one thousand two hundred dollars ($1,200) or more to such an employee, and only if the Form W-2 or Form 1099-R is required to be filed with the United States Internal Revenue Service. The due date for this filing requirement is February 28 following the year for which the Forms W-2 or 1099-R were issued. However, for employers with two hundred and fifty (250) or more employees required to file Form(s) W-2 electronically, the due date to file the Form(s) W-2 is January 31 following the year for which the Form(s) W-2 were issued. Unless a copy of a waiver of the federal requirement to file electronically has been filed with the Missouri Department of Revenue, employers with two hundred and fifty (250) or more employees must file the Form(s) W-2 electronically. Do not include the fourth quarter or twelfth month return with the Form W-2(s)/1099-R(s) and Form MO W-3. The last annual remittance must be sent separately with Form MO-941.

(A) Filing by Mail or Non-Electronic Delivery. Paper filings must also be accompanied by a list, preferably an adding machine tape or a computer printout, of the total amount of the Missouri income tax withheld shown on all “Copy 1s” of Form W-2 and Form 1099-R. The Department of Revenue will accept computer-produced magnetic tape or digital records, including those stored in compact discs or flash drives, instead of the paper Form W-2 or Form 1099-R. The employer must meet tape data or digital file specifications which are included in the “Employer’s Tax Guide” (Form 4282) published annually by the Department of Revenue.

(B) Electronic Filing. Electronic filing must be completed through the webpage or online portal specified on the Missouri Department of Revenue’s website. Electronic filing of Form(s) W-2 and Form(s) 1099 must be completed in a manner consistent with the “Missouri Employer Reporting of W-2s Instructions and Specifications Handbook” and “Missouri Employer Reporting of 1099 Instructions and Specifications Handbook,” respectively, which are published annually by the Missouri Department of Revenue. A separate Form MO W-3 is not required if the Form(s) W-2 and Form(s) 1099 are electronically filed.

(16) Time and Place for Filing Returns and Remitting Tax.

(A) All returns and remittances must be filed with the Department of Revenue at the specific mailing address indicated on the form, using an electronic filing and payment method provided by the Missouri Department of Revenue, or as otherwise provided in this rule. There are three (3) filing frequencies: monthly, quarterly, and annually, with some monthly filers being required to make quarter-monthly payments. A newly registered employer is initially assigned a filing frequency on the basis of the employer’s estimation of future withholdings. If the assigned filing frequency differs from the filing requirements established by statute or rule, it is the employer’s responsibility to immediately notify the Department of Revenue. The dates on which the returns and payments are due are as follows:

Quarter-Monthly. Employers required to withhold nine thousand ($9,000) or more per month for at least two (2) months during the preceding twelve (12) months shall remit payment to the Missouri Department of Revenue on a quartermonthly basis. The quarter-monthly periods are the first seven (7) days of a calendar month; the eighth to the fifteenth day of a calendar month; the sixteenth to the twenty-second day of a calendar month; and the twenty-third day through the last day of a calendar month. Notwithstanding any provision of this

rule to the contrary, remittances must be made electronically within three (3) banking days after the end of the quartermonthly period. Banking days shall not include Saturday, Sunday, or legal holidays. If there is no payroll during a quartermonthly period, no quarter-monthly payment is necessary for that quarter-monthly period. Quarter-monthly filers are required to pay by use of an electronic funds payment system established by the department. If quarter-monthly filers are unable to use the electronic funds payment system, alternative electronic payment methods are outlined in the “Employer’s Tax Guide” Form 4282. An Employer’s Return of Income Taxes Withheld (Form MO-941) reconciling the quarter-monthly payments and detailing any underpayment of tax shall be filed by the fifteenth day of the following month except for the third month of a quarter in which case the Employer’s Return of Income Taxes Withheld (Form MO-941) shall be filed the last day of the succeeding month;

Monthly. Employers required to withhold five hundred dollars ($500) per month for at least two (2) months during the preceding twelve (12) months shall file on a monthly basis.

Return and payment must be made by the fifteenth day of the following month except for the third month of a quarter in which case the return is due the last day of the succeeding month;

Quarterly. Employers not required to file and pay taxes withheld on a monthly basis who withheld at least one hundred dollars ($100) per quarter during at least one (1) quarter of the preceding four (4) quarters shall file on a quarterly basis.

Return and payment must be made on or before the last day of the month following the close of the calendar quarter; and 4. Annually. Employers required to withhold less than one hundred dollars ($100) during each of the preceding four (4) quarters shall file on an annual basis. Return and payment must be made on or before January 31 of the succeeding year.

(B) When the due date falls on a Saturday, Sunday, or legal holiday in this state, the return and payment will be considered timely if made on the next business day (section 143.851, RSMo).

(C) An employer who has been placed on a quarter-monthly payment frequency who has not withheld nine thousand dollars ($9,000) or more in two (2) months of the prior twelve (12) months, may request permission from the Department of Revenue to pay on a less frequent basis. An employer that has been placed on a quarter-monthly payment frequency must pay on a quarter-monthly basis for a minimum of twelve (12) months before obtaining a change in payment frequency.

(17) Correcting Mistakes in Reporting or Withholding.

(A) Overpayment and Refund. If withholding tax has been over-reported, the employer must file an Amended Employer’s Return of Income Taxes Withheld, Form MO-941, along with supporting documentation, such as a copy of the payroll ledger. If the employer will be requesting a refund of the overpayment, an Employer Withholding Tax Refund Request (Form 4854) must be attached to the Amended Employer’s Return of Income Taxes Withheld (Form MO-941). No claim for credit or refund will be allowed after the expiration of the period of limitation prescribed in section 143.801, RSMo.

Pursuant to section 143.781.3, RSMo, a refund will only be issued to the employer if the overpayment amount was not actually deducted and withheld from an employee’s wages by the employer. Pursuant to section 143.211, RSMo, any amount of tax actually deducted and withheld under sections 143.011 to 143.996, RSMo, in a calendar year is deemed paid by the employee from whom it was withheld for the employee’s income tax year beginning in that calendar year, and is not considered paid by the employer for purposes of determining an overpayment by the employer. To reduce the risk of overpayment claim denial and inadvertent underpayment, before attempting to apply credit of an overpayment of Missouri withholding tax from one period to any other period, employers should first verify with the Missouri Department of Revenue the amount of overpayment the employer is authorized to claim.

(B) Underpayment. If withholding tax has been underreported, the employer must file an Amended Employer’s Return of Income Taxes Withheld (Form MO-941) to report the corrected withholding.

(18) Employer Compensation. For every remittance made to the director of revenue, on or before the respective due date for the payment involved, each employer (except the United States, the state of Missouri, and all agencies and political subdivisions of the state of Missouri or the United States government) may deduct and retain as compensation the following percentages of the total amount of the tax withheld and paid annually: two percent (2%) of the first five thousand dollars ($5,000) or less; one percent (1%) of the amount in excess of five thousand dollars up to ten thousand dollars ($5,000– $10,000); one-half of one percent (0.5%) of the amount collected in excess of ten thousand dollars ($10,000). The employer is not entitled to any compensation if the remittance is not made on or before the due date. Compensation for complex employers is covered in section (1). The employer compensation deduction generally does not apply for withholding and remittance by an entity administering a pension or retirement fund or program pursuant to section 143.265, RSMo.

(19) Responsible Party Liability – Corporations. Any officer, director, statutory trustee, or employee of any corporation who has direct control, supervision, or responsibility for filing returns and making payments of the Missouri withholding tax, who fails to file or make payment, may be personally assessed the unpaid tax, including interest, additions to tax and penalties pursuant to section 143.241.2, RSMo.

(20) Statements for Employees. Unless an alternative form is prescribed by the Department of Revenue, to comply with

section 143.201, RSMo, two (2) copies of the “W-2 Wage and Tax Statement” published by the Internal Revenue Service must be provided to each employee to whom wages were paid and were subject to withholding whether or not tax was withheld on the payments. The employer shall show on the Form W-2 the amount of wages paid by the employer to the employee, and the amount, if any, deducted and withheld as Missouri income tax. If it becomes necessary to correct the amount of wages or, if applicable, the amount of Missouri income tax deducted and withheld, after the Form W-2 has been issued to an employee, two (2) corrected statements showing the amount of wages paid to the employees and the amount, if any, deducted and withheld as Missouri income tax must be issued to the employee and a copy mailed to the Department of Revenue. The corrected statements must be clearly marked “Corrected by Employer.” In case a withholding statement is lost or destroyed, a substitute copy must be issued to the employee and must be clearly marked “Reissued by Employer.”

Withholding statements must be furnished to employees not later than January 31 following the calendar year covered by the statement. However, if employment terminates during the year, two (2) copies of Form W-2 must be provided to the employee within thirty (30) days of the last payment of wages, on which the employer shall show the amount of wages paid to the employee, and the amount, if any, deducted and withheld as Missouri income tax. Interrupted or intermittent employment is not considered terminated as long as there is reasonable expectation of further employment on the part of both the employer and the employee. If an employee’s employment is terminated and a Form W-2 has been provided for the period worked during the year and the employee is later reemployed by the same employer during the calendar year, another withholding statement showing the amount of wages paid to the employee and the amount, if any, deducted and withheld as Missouri income tax must be provided to the employee covering only the later period of employment within the calendar year.

(21) Records to Be Kept by Employers.

(A) The following records must be retained:

Name, address, Social Security number, and period of employment for all employees;
Amounts and dates of all wage payments subject to the Missouri withholding tax for all employees;
All Form(s) W-2, Form(s) 1099-R, state income tax withholding certificates (Form MO W-4), and Certificates of Nonresidence or Allocation of Withholding Tax (Form MO W-4A) provided to or by any employee;
Employer’s Missouri tax identification number;
Record of quarter-monthly, monthly, quarterly, and annual returns filed including dates and amounts of payments;
Records that would assist the Missouri Department of Revenue in auditing the employer’s records.

(B) The above listed records must be kept by the employer for at least three (3) years after the date the taxes to which they relate become due, or the date the taxes are paid, whichever is later. However, any employee’s copies of the Withholding Statement required by section 143.201, RSMo, which cannot be delivered to the employee after reasonable effort is exerted must be kept by the employer for at least four (4) years.

(C) In addition to the records listed in paragraphs (21)(A)1.–6., all records of the allocation of working days in the state of Missouri must be retained for all employees that, during the withholding period, worked one (1) or more days outside of Missouri and one (1) or more days in Missouri. This subsection (21)(C) does not require an employer to create such records of the allocation of working days.

(22) Interest at the statutory rate must be included on all payments of Missouri withholding tax not made on a timely

basis. Interest is subject to change on an annual basis pursuant to section 32.065, RSMo.

(23) An employer’s failure to file a timely return, unless due to reasonable cause and not due to willful neglect, will result in additions to tax of five percent (5%) per month or a fraction of a month not to exceed twenty-five percent (25%) pursuant to

section 143.741.1, RSMo.

(A) Failure to timely pay tax requires a five percent (5%) addition to tax pursuant to section 143.751.3, RSMo, if such failure is due to negligence or intentional disregard of rules and regulations (but without intent to defraud).

(24) Quarter-Monthly Underpayment Penalty. A quartermonthly penalty of five percent (5%) will be imposed on a quarter-monthly period underpayment determined pursuant to section 143.225.6, RSMo. The penalty imposed by section 143.225.6, RSMo, applies, in lieu of all other penalties, interest, or additions to tax, only to violations of section 143.225, RSMo, in making quarter-monthly remittances. Where the quartermonthly filer has failed to pay all or part of the withholding tax due for the month by the due date of the employer’s monthly return for that month, the quarter-monthly filer is subject to addition to tax, penalties, and interest on such underpayment, pursuant to sections 143.731 and 143.751, RSMo, in the same manner as if the quarter-monthly filer were a monthly filer with regard to that month.

(25) Notwithstanding any provision of this rule to the contrary,

Emergency amendment filed Jan. 13, 1983, effective Jan. 23, 1983, expired May 23, 1983. Amended: Filed Jan. 13, 1983, effective April 11, 1983. Amended: Filed March 9, 1984, effective July 1, 1984.

Amended: Filed June 2, 1993, effective Nov. 8, 1993. Amended:

Filed July 28, 1995, effective Jan. 30, 1996. Amended: Filed Feb. 6, 1998, effective Aug. 30, 1998. Emergency amendment filed Nov. 30, 1999, effective Dec. 10, 1999, expired June 6, 2000. Amended:

Filed Nov. 30, 1999, effective June 30, 2000. Amended: Filed April 1, 2002, effective Oct. 30, 2002. Emergency amendment filed April 16, 2019, effective April 26, 2019, expired Feb. 5, 2020. Amended:

Filed April 16, 2019, effective Nov. 30, 2019. Amended: Filed Nov. 8, 2023, effective June 30, 2024. Amended: Filed Oct. 27, 2025, effective April 30, 2026. *Original authority: 136.120, RSMo 1945; 143.191, RSMo 1972, amended 1988, 1990, 1992, 1994, 2014, 2015; 143.221, RSMo 1972, amended 1983, 1985, 1998, 2016; 143.225, RSMo 1983, amended 2003; 143.571, RSMo 1972; and 143.961, RSMo 1972.

History

AUTHORITY: sections 136.120, 143.191, 143.221, 143.225, 143.571, and 143.961, RSMo 2016. This rule was previously filed as “Missouri Employer’s Tax Guide,” Feb. 20, 1973, effective March 2, 1973. Original rule filed Jan. 29, 1974, effective Feb. 8, 1974.

12 CSR 10-2.016 Quarter-Monthly Period Reporting and Remitting Withholding Tax {#sec-12-csr-10-2.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.016}

(Rescinded May 30, 2024)

Amended: Filed March 9, 1984, effective June 11, 1984. Amended:

Filed June 2, 1993, effective Jan. 31, 1994. Amended: Filed April 14, 1995, effective Sept. 30, 1995. Amended: Filed Feb. 6, 1998, effective Aug. 30, 1998. Rescinded: Filed Nov. 8, 2023, effective May 30, 2024.

History

AUTHORITY: section 143.961, RSMo 1994. Emergency rule filed Oct. 13, 1982, effective Nov. 1, 1982, expired Feb. 28, 1983. Original rule filed Oct. 13, 1982, effective Jan. 13, 1983. Emergency amendment filed Nov. 12, 1982, effective Nov. 22, 1982, expired Feb. 28, 1983.

12 CSR 10-2.017 Transient Employer Financial Assurance Instrument for Employer’s Withholding Tax {#sec-12-csr-10-2.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.017}

PURPOSE: This rule establishes guidelines for filing financial assurance instruments to secure payment of withholding tax by out-of-state transient employers. publication of the entire text of the material that is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

(1) Out-of-State Transient Employer Defined. “Transient employer” has the same meaning as used in section 285.230, (2) Every transient employer shall file with the director of revenue a financial assurance instrument including but not limited to a cash bond, surety bond, or an irrevocable letter of credit, which has the same meaning as used in section 400.5- 103, RSMo.

(3) Types of Financial Assurance Instruments. Financial assurance instruments which may be posted to secure payments of taxes by out-of-state transient employers shall be in the form of a surety bond, cash bond, an irrevocable letter of credit issued by any state or federal financial institution, an assignment of certificate of deposit, or any other financial assurance instrument which is deemed acceptable by the director of revenue. Other financial assurance instruments will be reviewed for approval on a case-by-case basis.

(A) A surety bond shall be issued by an insurance company licensed for bonding in Missouri on behalf of the applicant on the Surety Bond Form 331. The form shall bear the seal of the insurance company, the effective date, and it shall be accompanied by a power of attorney letter or form if signed by the attorney-in-fact. Surety bond form shall also contain the signature of the applicant.

(B) A cash bond shall be paid to the director of revenue in the form of a cashier’s check, money order, or certified check and be accompanied by a Cash Bond Form 332.

(C) An irrevocable letter of credit issued by any state or federal financial institution may be submitted to the Department of Revenue on a Irrevocable Letter of Credit Form 2879.

The letter of credit shall be irrevocable and the beneficiary shall be the Department of Revenue. Payment shall be made immediately upon presentment of a demand for payment signed by the director of revenue or a designated representative.
All letters of credit shall conform to the Department of Revenue’s required format in the Irrevocable Letter of Credit Form 2879. The letter of credit must include an authorization for release of confidential information allowing the director of revenue or a designee to release confidential tax information to the issuing bank.
A demand for payment upon a letter of credit shall be presented for payment only for the reason that bond proceeds are needed to satisfy any delinquencies or claims as provided for in section 285.230, RSMo.
Letters of credit shall have a term of one (1) year and shall be automatically renewable on an annual basis for an additional one (1) year. A letter of credit may be canceled by the issuer sixty (60) days after written notice is delivered to the Department of Revenue. Upon the notice of cancellation, the transient employer shall be required to file a new financial assurance instrument on or before the expiration of the sixty- (60-) day period. If the required financial assurance instrument is not received within that time period, the employer commits the crime of failure to file a financial assurance instrument if the employer knowingly fails to comply.
If a transient employer ceases business or desires to substitute a financial assurance instrument for their letter of credit, the director of revenue shall retain the letter of credit for a period of ninety (90) days or until the director of revenue is satisfied that no claims exist against the letter of credit.
A transient employer shall be required to increase the amount of the letter of credit or provide an additional financial assurance instrument in any situation where the employer would be required to increase or provide an additional financial assurance instrument as provided for in section 285.230, RSMo.

An increase to the amount of the letter of credit shall be deemed the submission of an additional financial assurance instrument for the amount of the increase.

(D) An assignment of certificate of deposit may be submitted to the Department of Revenue using Form 4172. The certificate of deposit must be issued by a state or federally chartered financial institution.

(4) Amount of Financial Assurance Instrument. The amount of the financial assurance instrument shall be determined by the director of revenue. This financial assurance instrument shall not be less than the average estimated quarterly withholding tax liability of the taxpayer, but in no case less than five thousand dollars ($5,000) nor more than twenty-five thousand dollars ($25,000).

(A) Example 1: Mr. Kansas Contractor has been awarded a contract to renovate a building in Kansas City, Missouri. Mr.

Kansas Contractor has employed ten (10) Missouri residents to assist in the renovation. The employees are being paid four hundred dollars ($400) in wages per week. The average estimated quarterly withholding tax liability of Mr. Kansas Contractor is less than five thousand dollars ($5000). Mr. Kansas Contractor is required to post the minimum five thousand dollar ($5,000) financial assurance instrument.

(B) Example 2: Mrs. Illinois Drywaller accepts a contract to drywall several new apartment complexes in St. Louis, Missouri.

Mrs. Illinois Drywaller hires numerous Missouri resident drywallers to assist in the work. Mrs. Illinois Drywaller’s Missouri monthly withholding is two thousand three hundred dollars ($2,300). Mrs. Illinois Drywaller is required to post a financial assurance instrument in the amount of six thousand nine hundred dollars ($6,900). The six thousand nine hundred dollars ($6,900) is the approximate amount of withholding for these employees for one (1) calendar quarter.

(5) General Financial Assurance Instrument Examples. The following are general examples illustrating the out-of-state transient employer financial assurance instrument requirement:

(A) Example 1: Mr. Jones, an out-of-state contractor, has been awarded a contract to perform work in Missouri. He must obtain and file an application for a Missouri Employer’s Withholding Tax Identification Number. Furthermore, he does not meet the criteria to be exempt from the financial assurance instrument requirement. Mr. Jones, therefore, must submit a financial assurance instrument with the application before he can obtain his Missouri Withholding Tax Identification Number;

(B) Example 2: Mrs. Davis is an out-of-state contractor whose principal place of business is in a county of another state which borders Missouri. Mrs. Davis is a transient employer and must file an application for a Missouri Employer’s Withholding Tax Identification Number. Mrs. Davis has not been under contract to perform work in Missouri for at least sixty (60) days each year for the past two (2) calendar years and, therefore, must submit a financial assurance instrument with the Missouri Tax Registration Application; and (C) Example 3: Mr. Smith, an out-of-state contractor, has been awarded a contract to perform work in Missouri. Mr.

Smith is a transient employer and must file an application for a Missouri Employer’s Withholding Tax Identification Number.

Mr. Smith does meet all the criteria for exemption from the financial assurance instrument requirement. Therefore, he is not required to file a financial assurance instrument with the application but must notify the Department of Revenue of his exemption status.

(6) Replacing or Applying for Return of Financial Assurance Instrument.

(A) If a cash bond is replaced by a different type of financial assurance instrument, the cash bond will be refunded to the taxpayer, provided all taxes due are paid and the taxpayer files a request for refund on the forms provided by the Department of Revenue.

(B) If a surety bond is replaced by a different type of financial assurance instrument, the surety bond will be canceled, provided the issuing insurance company provides the Department of Revenue with a written notice sixty (60) days prior to the cancellation date. This cancellation shall not affect any liability incurred or accrued prior to the termination of the sixty- (60-) day period.

(C) If an irrevocable letter of credit is replaced by a different type of financial assurance instrument, the irrevocable letter of credit will be returned to the issuing financial institution, provided the financial institution provides the Department of Revenue with a written notice sixty (60) days prior to the cancellation date. Cancellation shall not affect any liability incurred or accrued prior to the termination of the sixty- (60-) day period.

(D) If an assignment of certificate of deposit is replaced by a different type of financial assurance instrument, the taxpayer may file a request with the Department of Revenue asking to assign and transfer the certificate of deposit back to the taxpayer. If the taxpayer has filed such a request and all of the taxpayer’s taxes due are paid, the Department of Revenue will assign and transfer the certificate of deposit back to the taxpayer. The taxpayer must pay, and will solely be responsible for any fees, penalties, charges, or liability arising from any assignment and transfer of the certificate of deposit to or from the taxpayer.

(7) Exemptions from the Out-of-State Transient Employer Financial Assurance Instrument Requirement. Employers meeting all the criteria in section 285.230.2, RSMo, are not required to file a transient employer withholding tax financial assurance instrument.

(8) Certification of Workers’ Compensation Insurance. Every transient employer shall certify to the director of revenue that the employer has sufficient Workers’ Compensation insurance either through a self-insurance program or policy of workers’ compensation insurance issued by an approved workers’ compensation carrier. A transient employer shall provide the Department of Revenue with a copy of its Workers’ Compensation insurance policy to be verified consistent with

section 285.234.1(2), RSMo.

(9) The forms Surety Bond Form 331, Cash Bond Form 332, Irrevocable Letter of Credit Form 2879, and the Assignment of Certificate of Deposit Form 4172 are incorporated by reference and made a part of this rule as published by Missouri Department of Revenue, and available at www.dor.mo.gov or Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65101, dated June 1, 2023. This rule does not incorporate any subsequent amendments or additions.

Amended: Filed July 13, 2023, effective Feb. 29, 2024. *Original authority: 136.120, RSMo 2016.

History

AUTHORITY: section 136.120, RSMo 2016. Original rule filed Aug. 8, 1989, effective Nov. 26, 1989. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995.

12 CSR 10-2.019 Determination of Withholding for Work Performed at Temporary Work Location {#sec-12-csr-10-2.019 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.019}

(Rescinded October 30, 2023)

History

AUTHORITY: sections 136.120, 143.191.3(1), 143.511, and 143.961, RSMo 2016. Emergency rule filed Jan. 6, 2021, effective Jan. 21, 2021, expired July 19, 2021. Original rule filed Jan. 11, 2021, effective July 30, 2021. Rescinded: Filed April 5, 2023, effective Oct. 30, 2023.

12 CSR 10-2.020 Difference in Basis on December 31, 1972 {#sec-12-csr-10-2.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.020}

Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

History

AUTHORITY: section 143.961, RSMo 1986. Regulation 1.121-3(b) was originally filed March 15, 1974, effective March 25, 1974.

12 CSR 10-2.025 Adjustment to Avoid Double Taxation {#sec-12-csr-10-2.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.025}

Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

History

AUTHORITY: section 143.961, RSMo 1986. Regulation 1.121-3(c) was originally filed March 15, 1974, effective March 25, 1974.

12 CSR 10-2.030 Non-Standard Tax Periods, Subsequent Change of Accounting Period, and Personal and Dependency Exemption Deductions {#sec-12-csr-10-2.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.030}

PURPOSE: This rule addresses changes in tax periods, short tax periods, 52-53 week tax periods, and the determination of the amount of an individual taxpayer’s allowable personal and dependency exemption deductions.

(1) If a taxpayer’s taxable year is changed for federal income tax purposes, the Missouri taxable year will automatically be changed. No application for change of accounting period for Missouri income tax purposes will be required. If a short taxable period for federal income tax purposes results from a change in the taxpayer’s accounting period, the taxpayer also shall file a Missouri income tax return for that short taxable period.

(2) If there is a short taxable period, Missouri taxable income shall be computed on the basis of the short taxable period for which the return is made and in accordance with the statutory provisions of sections 143.011 to 143.996, RSMo, applicable to the determination of Missouri taxable income generally, except that the amount of deductions allowed by sections 143.151 and 143.161, RSMo, shall be reduced to the amount which bears the same ratio to the full amount for those deductions as the number of months in the short taxable period bears to twelve (12) months.

(3) Pursuant to section 143.151, RSMo, a resident shall generally be allowed a personal exemption deduction of two thousand one hundred dollars ($2,100) for such resident and two thousand one hundred dollars ($2,100) for such resident’s spouse if the resident is entitled to a deduction for such personal exemptions for federal income tax purposes. A resident with a Missouri adjusted gross income of less than twenty thousand dollars ($20,000) shall generally be allowed an additional deduction of five hundred dollars ($500) for such resident and an additional five hundred dollars ($500) for such resident’s spouse if the resident is entitled to a deduction for such personal exemptions for federal income tax purposes, and the spouse’s Missouri adjusted gross income is less than twenty thousand dollars ($20,000). None of the deductions described in sections 143.151, RSMo, or in subsections 1 or 3 of

section 143.161, RSMo, shall be allowed for a given tax period if the exemption amount as defined under 26 U.S.C. section 151 is zero (0) for that tax period.

(4) A resident who qualifies as an unmarried head of household or as a surviving spouse for federal income tax purposes may generally deduct an additional one thousand four hundred dollars ($1,400) pursuant to section 143.161.2, RSMo. This additional deduction for a taxpayer who qualifies as an unmarried head of household or a surviving spouse is not dependent on the taxpayer’s eligibility for a dependency exemption deduction under section 143.161.1, RSMo.

(5) Example: Tom Taxpayer, a resident individual, has been filing his federal and Missouri income tax returns on the basis of a fiscal year ending September 30. He changes to a calendar year basis and files a federal income tax return for the short taxable period October 1 to December 31. He qualifies as a surviving spouse for federal income tax purposes. For his short taxable period, the exemption amount defined under 26 U.S.C.

section 151 is zero (0). He has no federal income tax liability for the tax year. His federal adjusted gross income (FAGI) for the short taxable period is as follows:

Salary $3,000 United States bond interest $ 40 Savings bank interest $ 60 FAGI $3,100 His Missouri taxable income is as follows:

FAGI $3,100

Less modification for United States bond interest $ (40)

Missouri adjusted gross income $3,060 Federal itemized deduction $(250)

(note that no federal standard deduction is allowable for short-period returns resulting from a change in tax period; no Missouri modifications to the itemized deduction are applicable in this example)

Surviving Spouse Additional Exemption Deduction ($1,400 × 3/12)= $(350)

Missouri taxable income $2,460 (6) A taxpayer which, for federal income tax purposes, has elected to use a taxable year that varies from 52 to 53 weeks is referred to by this rule as “52-53 Week Taxpayer.” A 52-53 Week Taxpayer shall determine the effective date or the applicability of any provision of sections 143.011 to 143.996, RSMo, that is expressed in terms of taxable years beginning, including, or ending with reference to a specified date which is the first or last day of a month by treating the taxpayer’s 52-53 week taxable year as though it begins on the first day of the calendar month beginning nearest to the first day of such taxable year, or as though it ends with the last day of the calendar month ending nearest to the last day of such taxable year, as the case may be. See 26 U.S.C. section 441. The terms “tax year” and “taxable year” are generally used interchangeably for Missouri (A) Example: ABC Corporation is a 52-53 Week Taxpayer that has a tax year ending December 28, 2024. A new Missouri income tax deduction is created within sections 143.011 to 143.996, RSMo, and the new deduction expressly applies to all tax years ending on or after December 31, 2024. A new mandatory Missouri corporate income tax apportionment method is created, and expressly applies to all tax years ending on or after December 31, 2024. ABC Corporation is eligible for the new deduction, and must use the new mandatory corporate income tax apportionment method, for its 52-53 week taxable year ending December 28, 2024.

(B) Example: XYZ Corporation is a 52-53 Week Taxpayer that has a tax year beginning December 29, 2024. Pursuant to a change in law, a Missouri income tax subtraction that XYZ Corporation previously qualified for expressly no longer applies for any tax year beginning on or after January 1, 2025.

XYZ Corporation is not eligible for this tax subtraction for its 52-53 week taxable year beginning December 29, 2024. A new statute, which became law on August 28, 2024, increases the corporate income tax rate by one percent (1%), and expressly applies to all tax years beginning on or after January 1, 2025.

The new increased corporate income tax rate applies to the entirety of XYZ Corporation’s tax year beginning December 29, 2024. Note that Missouri’s income tax law contains no statute directly corresponding to 26 U.S.C. section 15.

Amended: Filed Dec. 28, 2023, effective July 30, 2024. *Original authority: 143.271, RSMo 1972, and 143.961, RSMo 1972.

History

AUTHORITY: sections 143.271 and 143.961, RSMo 2016. Regulation 1.271-2 was originally filed March 8, 1974, effective March 18, 1974.

12 CSR 10-2.035 Conformity of Missouri With Federal Accounting Methods {#sec-12-csr-10-2.035 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.035}

PURPOSE: The rule provides that a taxpayer must employ the same method of accounting for Missouri income tax purposes as is used for federal income tax purposes.

(1) A taxpayer must employ the same method of accounting in determining Missouri taxable income as is used for federal income tax purposes. The term method of accounting refers not only to the overall method of accounting (such as cash or accrual) but also to the accounting treatment of particular items of income, gain, loss or deduction, such as depreciation, bad debts, inventory valuation, research and experimental expenditures.

(2) If the taxpayer is allowed or is required to change an accounting method for federal income tax purposes, a similar change in the accounting method for Missouri income tax purposes will automatically be made. No application for change of accounting method for Missouri income tax purposes shall be required.

Armco Steel Corporation v. State Tax Commission, 580 SW2d 242 (Mo. banc 1979). Appellant filed a consolidated federal tax return for 1969, making certain intercorporate payments to its subsidiaries for their tax losses incurred. Appellant then claimed as a deduction on its Missouri tax return the amount of federal tax that would have been paid if the appellant had filed as a separate entity. For deduction purposes on Missouri income tax returns, United States income taxes “assessed” are those that are actually paid. And, although the director of revenue is to “follow as nearly as practicable the rules and regulations prescribed by the United States government on income tax assessments and collection,” the director cannot interpret the statute in accordance with the federal regulations if to do so will change the substantive rules of the Missouri statute.

History

AUTHORITY: section 143.961, RSMo 1986. Regulations 1.281-1 and 1.281-2 were originally filed March 8, 1974, effective March 18, 1974.

12 CSR 10-2.040 Transitional Adjustments in Accounting Methods {#sec-12-csr-10-2.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.040}

Filed April 4, 2002, effective Oct. 30, 2002.

History

AUTHORITY: section 143.301, RSMo 1986. Regulation 1.301 was originally filed April 3, 1974, effective April 13, 1974. Rescinded:

12 CSR 10-2.045 Missouri Consolidated Income Tax Returns {#sec-12-csr-10-2.045 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.045}

PURPOSE: This rule sets forth the requirements for the filing of Missouri consolidated income tax returns by affiliated groups or corporations. publication of the entire text of the material that is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

(1) Affiliated group. The term affiliated group means those members of an affiliated group of corporations as defined by Internal Revenue Code (IRC) Section 1504 which participate or are required to participate in the filing of a federal consolidated income tax return for the taxable year.

(2) Missouri consolidated return year. The term Missouri consolidated return year means a taxable year for which a Missouri consolidated return is filed or required to be filed by an affiliated group under this rule.

(3) IRC section. The term IRC section shall mean the pertinent provision of the Internal Revenue Code for the taxable year.

(4) Required member. The term required member shall mean any corporation included on the federal consolidated return for the affiliated group, except— (A) An express company which is subject to an annual tax on its gross receipts in this state pursuant to section 153.020, RSMo;

(B) An insurance company which is subject to an annual tax on its gross premium receipts in this state;

(C) A Missouri mutual or extended Missouri mutual insurance company organized under Chapter 380, RSMo; or (D) An association or credit union which is subject to an annual tax pursuant to section 148.620, RSMo.

(5) Director. The term director, except as otherwise specifically provided in this rule, shall mean the director of revenue or his/ her duly authorized agent or designee.

(6) Computing Missouri Consolidated Taxable Income From All Sources. The Missouri consolidated taxable income (all sources) of an affiliated group shall be its federal consolidated taxable income for the taxable year, adjusted to reflect the applicable modifications provided in section 143.121, RSMo,

section 143.431.4, RSMo, section 143.141, RSMo, to reflect the federal income tax deduction under section 143.171, RSMo, and to reflect the exclusion (for purposes of calculating Missouri consolidated taxable income) of any members of the affiliated group that are not required members.

(7) Computing Missouri Consolidated Taxable Income From Missouri Sources.

(A) The Missouri consolidated taxable income (Missouri sources) of an affiliated group shall be so much of its Missouri consolidated taxable income (all sources) as is derived from sources within Missouri pursuant to the apportionment and allocation rules set forth in section (14) of this rule, reduced, to the extent applicable, by the Missouri dividends deduction under section 143.431.2, RSMo.

(B) If only part of the Missouri consolidated taxable income (all sources) is derived from sources within Missouri, the Missouri consolidated taxable income (Missouri sources) shall only reflect the effect of the consolidated net operating loss deduction allowed by IRC Section 172 to the extent applicable to Missouri. The extent to which this deduction is applicable to Missouri shall be determined by multiplying the amount that would otherwise affect Missouri consolidated taxable income (all sources) by the ratio of Missouri consolidated taxable income (Missouri sources) for the year divided by the Missouri consolidated taxable income (all sources) for the year. For the

purpose of the preceding sentence, Missouri consolidated taxable income shall not reflect the consolidated net operating loss deduction allowed by IRC Section 172.

(C) If an affiliated group files a Missouri income tax return in which one (1) or more members of the affiliated group are not required members, the federal income tax deduction for such Missouri income tax return shall be determined by multiplying the federal income tax liability of the affiliated group by a fraction, the numerator of which is the sum of the positive federal taxable incomes of the required members and the denominator of which is the sum of the positive federal taxable incomes of all members of the affiliated group, and then multiplying that result by fifty percent (50%). For purposes of the preceding sentence, a federal taxable income of zero is considered positive, and the federal income tax deduction shall not be allowed if the aforementioned numerator and denominator are both zero dollars ($0).

(8) Qualifying for Privilege to File Consolidated Return. An affiliated group (other than one which is required to file a Missouri consolidated return for the year) shall be qualified to file a Missouri consolidated return if it files a federal consolidated return for the taxable year and the affiliated group is not disqualified from filing a Missouri consolidated return for the year under sections (25)–(28) of this rule.

(9) Election to File. If an affiliated group qualified to file a Missouri consolidated return wishes to elect to file a Missouri consolidated return, the election must be exercised by the filing of a Missouri consolidated return on or before the due date (including extensions of time) for the filing of the common parent’s separate Missouri return. Notwithstanding the foregoing, the director may grant an affiliated group a relief extension of this due date, even after the due date specified in the prior sentence has passed, if the affiliated group submits a letter ruling request under 12 CSR 10-1.020, as it may be amended from time to time, and which substantially complies with the requirements of 26 CFR section 301.9100-3, as amended May 6, 2024, by providing evidence to establish to the satisfaction of the director that the taxpayer acted reasonably and in good faith, and that the grant of a relief extension will not prejudice the interests of the state.

(10) Election Irrevocable. The exercise of an election to file a Missouri consolidated return is irrevocable and may not be withdrawn after the due date (including extensions of time) for the filing of the common parent’s separate Missouri return, except as provided in sections (25)–(28) of this rule.

(11) Continued Filing Requirement. Except as provided in sections (25)–(28) of this rule, an affiliated group which filed (or was required to file) a Missouri consolidated return for the immediately preceding taxable year is required to file a Missouri consolidated return for the current taxable year.

(12) Improper Separate Return Filing. If an affiliated group filed (or was required to file) a Missouri consolidated return for the immediately preceding taxable year and, without authorization under sections (25)–(28) of this rule, one (1) or more required members of an affiliated group attempt to file Missouri corporate income tax returns on a separate basis for the taxable year, then— (A) If the common parent has filed a Missouri corporate income tax return for the taxable year, the Missouri return of the common parent shall be deemed the sole Missouri consolidated return of the affiliated group and other Missouri corporate income tax returns filed by other required members of the affiliated group shall be void (with any payments made therewith being credited to the affiliated group);

(B) If the common parent has not filed a Missouri corporate income tax return for the taxable year, the affiliated group shall be deemed not to have filed a Missouri corporate income tax return for the taxable year until a Missouri income tax return is filed by the common parent, and the other returns filed by other required members of the affiliated group shall be void (with any payments made therewith being credited to the affiliated group).

(13) Filing Consolidated Return in Special Circumstances.

Notwithstanding that an affiliated group may be disqualified to file a Missouri consolidated return for the current taxable year under sections (25)–(28) of this rule, the director may permit the affiliated group to file a Missouri consolidated return for the current taxable year. Application for permission shall be directed to the director’s Taxation Division exclusively by email to corporate@dor.mo.gov, and approval of the application shall be subject to such terms and conditions as the director may prescribe.

(14) Apportionment and Allocation of Net Income for Missouri Consolidated Return. In the determination of that portion of the Missouri consolidated taxable income (all sources) as is derived from sources within Missouri, the affiliated group shall apportion and allocate its Missouri consolidated taxable income (all sources) according to the provisions of sections 143.455.1–.12, RSMo, except as otherwise provided in section (14) of this rule.

(A) Method Under Section 143.455.13, RSMo. The affiliated group, through its common parent, may petition, or the director may require, an alternative method of allocation or apportionment to be used in determining Missouri consolidated taxable income from Missouri sources consistent with sections 143.455.13(2)–(5), RSMo, and 12 CSR 10-2.076. The approval of an alternative allocation or apportionment method for an affiliated group to use on a Missouri consolidated return does not constitute approval of the use of such alternative allocation or apportionment method on any separate Missouri return.

(B) Members to Which Different Apportionment and Allocation Methods Apply. If the affiliated group is composed of a membership such that, if separate Missouri returns were filed by each member, the same apportionment and allocation method under sections 143.455.1 through 143.455.12, RSMo (relating to general business corporations), 143.455.14, RSMo (relating to transportation), 143.455.15, RSMo (relating to railroads, and the like), 143.455.16, RSMo (relating to interstate bridges), 143.455.17, RSMo (relating to telephone or telegraph companies), 143.455.13, RSMo (other approved methods), or

12 CSR 10-2.260 would not apply to each member, then the affiliated group, as a whole, shall determine that portion of its Missouri consolidated taxable income (all sources) as is derived from sources within Missouri by application of— 1. The apportionment and allocation method under sections 143.455.1 through 143.455.12, RSMo, as further clarified by 12 CSR 10-2.076; {#sec-12-csr-10-2.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.260}

The apportionment and allocation approved or required for the affiliated group under sections 143.455.13(2)–(5), RSMo; or 3. The percentage obtained by the method set forth in subsection (14)(C) of this rule, but only if paragraph (14)(B)2. of this rule does not apply.

(C) Members to Which Different Apportionment and Allocation Methods Apply—Special Rule. If an affiliated group is described in subsection (14)(B) of this rule, but paragraph (14)

(B)2. of this rule does not apply to the affiliated group, and it elects to use the method referred to in paragraph (14)(B)3. of this rule, it shall arrive at a percentage of Missouri consolidated taxable income (all sources) as is derived from sources within Missouri in the following manner:

Each member shall determine its own federal taxable income (loss) for the year, computed as though each member had filed a separate federal income tax return for the year. For the purposes of this paragraph, the separate federal taxable income (loss) of each member shall not reflect the deduction for net operating loss allowable by IRC Section 172;
Each member shall adjust its own separate federal taxable income (loss) so determined to reflect only the modifications provided in sections 143.121 and 143.141, RSMo, applicable to those members (therefore, the federal income tax deduction under section 143.171, RSMo, for example, is not taken into account for purposes of computing the percentage under this subsection). If, as a result of the computation contained in this paragraph (14)(C)2., a member has a separate Missouri taxable loss for the year, that member, for purposes of computing the percentage under subsection (14)(C), shall be considered to have zero Missouri taxable income (all sources) for the year;
The amount determined pursuant to paragraphs (14)(C)1. and (14)(C)2., for the purposes of computing the percentage under subsection (14)(C), shall be considered the separate Missouri taxable income (all sources) of each member for the year;
Each member shall determine that portion of its own separate Missouri taxable income (all sources) as is derived from sources within Missouri by application of whichever apportionment and allocation method under section 143.455, RSMo, and its related regulations, is applicable to each member (for example, a method under 12 CSR 10-2.260 may be applicable to one member, while the method under section 143.455.15, RSMo, is applicable to another), to arrive at a figure which will be called preliminary Missouri taxable income which shall not reflect further deductions or modifications such as the Missouri Dividends Deduction; and 5. The combined amounts of the preliminary Missouri taxable income of each member, so determined, shall be divided by the combined amounts of the Missouri taxable income (all sources) of each member, so determined, to arrive at a percentage and the percentage thus obtained shall be deemed to be that percentage of the Missouri consolidated taxable income (all sources) as is derived from sources within Missouri.

If the combined amounts of the preliminary Missouri taxable income of each member total to zero, then the percentage shall be deemed zero percent (0%) even if the denominator is also zero.

(15) Intercompany Transactions. All transactions between required members of the affiliated group for the Missouri consolidated return year shall be eliminated for purposes of the Missouri consolidated income tax return. This includes all gross receipts, for purposes of section 143.455, RSMo, resulting from such transactions.

(16) Subsequent Missouri Consolidated Return Years. In the determination of Missouri consolidated taxable income (Missouri sources) for its second and succeeding Missouri consolidated return years, the affiliated group shall use the same apportionment and allocation method as it used in its first year, or select a different apportionment and allocation method to the extent permitted pursuant to subsection (14)(B) of this rule.

(17) Election of Interstate Division of Income Method. For any taxable year, the apportionment and allocation method elected under subsection (14)(B) is irrevocable for that taxable year, regardless of when such election is made.

(18) Computation of Tax Liability. The Missouri corporate income tax liability of an affiliated group for a Missouri consolidated return year shall be determined by adding together— (A) The tax imposed by section 143.071, RSMo, on the Missouri consolidated taxable income (Missouri sources) for each year;

(B) The additions to tax imposed by section 143.741, RSMo;

(C) The additions to tax and penalties imposed by section 143.751, RSMo; and (D) The additions to tax imposed by section 143.761, RSMo.

(19) Liability For Tax. The common parent corporation and each required member which was a member of the affiliated group during any part of the Missouri consolidated return year shall be jointly and severally liable for the tax computed in accordance with this rule, together with the interest on the tax, computed in accordance with section 143.731, RSMo, with the exception of any required members who are entirely exempt from Missouri corporate income tax for the Missouri consolidated return year pursuant to section 143.441.2, RSMo. No agreement entered into by one (1) or more members of the affiliated group with any other member of the group or with any other person in any case shall have the effect of reducing the liability prescribed.

(20) Consolidated Return Made by Common Parent. The Missouri consolidated return shall be made by the common parent on Form MO-1120 (Corporation Income Tax Return) and shall be filed by the common parent. By filing the consolidated return, the common parent warrants that it has or has obtained, where necessary, any consent or authorization by a subsidiary or affiliate within the affiliated group to comply with the provisions of Missouri statutes and regulations pertaining to the consolidated return and to serve as their agent consistent with section (22) of this rule.

(21) Attachments to Form MO-1120. In addition to those matters required of all corporations, an affiliated group filing a consolidated Missouri return shall be required to submit the following items in paper or electronic format:

(A) A detailed schedule— 1. Identifying any members of the affiliated group that are required members and included on the Missouri consolidated return;

Identifying any members of the affiliated group that are not required members and the reason for exclusion; and 3. Showing all adjustments to federal consolidated taxable income due to the exclusion of any members of the affiliated group that are not required members;

(B) A copy of the federal consolidated return, with all attachments and schedules, that was filed or is being filed with the Internal Revenue Service for the same taxable year (if any);

(C) The affiliated group shall attach to its Form MO-MS (Corporation Allocation and Apportionment of Income) a detailed schedule in which the interstate division of income data of each member of the affiliated group is set forth.

(22) Common Parent as Agent for All Other Members. The common parent, for all purposes regarding Missouri corporate income tax under Chapter 143, RSMo, shall be the sole agent for each subsidiary member in the affiliated group, duly authorized to act in its own name in all matters relating to the Missouri income tax liability for the Missouri consolidated return year.

No subsidiary member shall have authority to act for or to represent itself in any matter regarding Missouri corporate income tax for the same Missouri consolidated return year. The identification of the common parent on or with the filing of the MO-1120 for the Missouri consolidated return year, or a prior year, constitutes the designation of the common parent as an authorized representative for purposes of section 32.057, RSMo, with respect to each and all subsidiary members, and authorizes the disclosure of all tax information of any subsidiary member (for the Missouri consolidated return year and all prior years) to the common parent. For the Missouri consolidated return year, the common parent will file claims for refund or credit regarding Missouri corporate income tax and any Missouri corporate income tax refund will be made directly to and in the name of the common parent and will discharge any liability of Missouri in respect to that refund to any subsidiary member, and the common parent in its name will execute closing agreements and all other documents regarding Missouri corporate income tax and any agreement or any other documents so executed shall be considered as having also been given or executed by each subsidiary member. Notwithstanding the provisions of this section, any notice of deficiency, in respect to the tax for a Missouri consolidated return year, may name each corporation which was a member of the affiliated group during any part of the period (but a failure to include the name of any member will not affect the validity of the notice of deficiency as to the other members); any notice and demand for payment may name each corporation which was a member of the affiliated group during any part of the period (but a failure to include the name of any member will not effect the validity of the notice and demand as to the other members); and any other proceeding to collect the amount of any assessment, after the assessment has been made, may name the corporation from which the collection is to be made. The provisions of this section shall apply whether or not a Missouri consolidated return is made for any subsequent year and whether or not one (1) or more subsidiaries have become or have ceased to be members of the affiliated group at any time. Notwithstanding the provisions of this section, the director, upon notifying the common parent, may deal directly with any subsidiary member of the affiliated group with respect to its liability, in which event that member shall have full authority to act for itself.

(23) Notification of Deficiency to Corporation Which Has Ceased to be a Member of an Affiliated Group. If a subsidiary has ceased to be a member of an affiliated group and if the subsidiary files written notice of the cessation with the director, then the director, upon written request of that subsidiary, will furnish it with a copy of any notice of deficiency with respect to the tax for a Missouri consolidated return year for which it was a member and a copy of any notice and demand for payment of the deficiency. The filing of the written notification and request by a subsidiary corporation shall not limit the scope of the agency of the common parent provided in section (22) of this rule. Failure by the director to comply with the written request shall not limit the liability of the corporation provided in section (22) of this rule.

(24) Effect of Dissolution of Common Parent. If a common parent contemplates dissolution, or is about to be dissolved, or if for any other reason its existence is about to terminate, it shall notify the director of that fact and designate, subject to the approval of the director, another member of the affiliated group to act as agent in its place to the same extent and subject to the same conditions and limitations as are applicable to the common parent (including as authorized representative pursuant to

section 32.057, RSMo), notwithstanding any provision of this

rule to the contrary. If the notice thus required is not given by the common parent, or the designation is not approved by the director, the remaining members of the affiliated group, subject to the approval of the director, may designate another member of the group to act as the agent in place of the common parent (including as authorized representative pursuant to section 32.057, RSMo), notwithstanding any provision of this rule to the contrary, and notice of that designation shall be given to the director. Until a notice in writing designating a new agent has been approved by the director, any notice of deficiency or other communication mailed to the common parent shall be considered as having been properly mailed to the agent and authorized representative (for purposes of section 32.057, RSMo) of the affiliated group; or if the director has reason to believe that the existence of the common parent has terminated, if s/ he deems it advisable, s/he may deal directly with any member of the affiliated group with respect to its Missouri consolidated tax liability, and such member shall be deemed an authorized representative of each and all members of the affiliated group for purposes of section 32.057, RSMo.

(25) Automatic Termination of Right to File Missouri Consolidated Return. The right of an affiliated group to file a Missouri consolidated return for the taxable year shall be dependent upon that group filing a federal consolidated return for the same year. Upon the discontinuance of the filing of a federal consolidated return, the filing of a Missouri consolidated return shall similarly be discontinued.

(26) Permission to Discontinue Filing Missouri Consolidated Return—Substantial Change in Law or Regulation. Upon timely written notice to the director, an affiliated group may discontinue the filing of a Missouri consolidated return for the taxable year (or may withdraw a Missouri consolidated return previously filed for the taxable year) if the net result of all amendments to applicable law and the corresponding rules with effective dates commencing within the taxable year has a substantial adverse effect on the Missouri consolidated tax liability of the affiliated group for that year relative to what the aggregate Missouri tax liability would be if the members of the affiliated group filed separate Missouri returns for the year.

(A) Prima Facie Substantial Change. The difference between the Missouri consolidated tax liability, taking into account the changes in the law or regulations effective for the year and the aggregate Missouri tax liability of the members of the affiliated group computed as if each member filed a separate Missouri return for the year, also taking into account the changes in the law or regulations effective for the year (postlaw difference), shall be compared with the difference between the Missouri consolidated tax liability of the affiliated group for the taxable year, without regard to the changes in the law or regulations, and the aggregate Missouri tax liability of the members of the affiliated group computed as if separate Missouri returns had been filed by the members for the year, also without regard to the changes in the law or regulations (prelaw difference). If the postlaw difference is one hundred fifteen percent (115%) greater than the prelaw difference and that difference is at least thirty thousand dollars ($30,000), a substantial adverse change shall be deemed to have occurred.

(B) Timely Notice. Any notice to discontinue the filing of Missouri consolidated returns on account of section (26) shall be made in writing to the director on or before the later of— 1. Ninety (90) days before the due date (including extensions of time) for the filing of the Missouri consolidated return for the taxable year; or 2. One hundred and eighty (180) days after the effective date of the law or regulation on account of which a substantial change is alleged to have occurred.

(C) In the event that a prima facie substantial change does not exist and the director determines that a substantial change in law or regulation adversely changing the Missouri consolidated tax liability has not occurred, the director may treat an attempt by the affiliated group to file on a non-consolidated basis as the affiliated group having engaged in improper separate return filing consistent with section (12) of this rule. Affiliated groups are strongly encouraged to obtain a binding letter ruling pursuant to 12 CSR 10-1.020 prior to any attempt to discontinue the filing of Missouri consolidated returns on account of a substantial change in law or regulation adversely changing income tax liability.

(27) Permission to Discontinue Filing Missouri Consolidated Returns For Good Cause. Upon the timely written application by the affiliated group and upon showing of good cause for the action, the director may permit the affiliated group to discontinue the filing of Missouri consolidated returns. Any application for permission to discontinue the filing of Missouri consolidated return on account of section (27) shall be made to the director no later than the 90th day before the due date (including extensions of time) for the filing of the Missouri consolidated return for the year. A relief extension of the due date to apply for permission to discontinue the filing of Missouri consolidated return may be granted even after such due date has passed, subject to the same procedure, conditions, and requirements as the relief extension discussed in section (9) of this rule.

(28) Revocation of Right to File Missouri Consolidated Return. The director, upon finding that the filing of Missouri consolidated returns by the affiliated group does not clearly reflect the Missouri taxable income derived from sources within Missouri and for the purpose of preventing avoidance of Missouri tax liability, may terminate the right of an affiliated group to file a Missouri consolidated return for that year or, in the alternative, may distribute, apportion, or allocate items of income, deductions, credits, or allowances between or among the members of the affiliated group so that the portion of the Missouri consolidated taxable income (all sources) as is derived from sources within Missouri is clearly reflected. The procedure outlined in sections 143.611–143.691, RSMo, inclusive, shall be applicable to actions of the director under this section.

(29) Estimated Tax on Consolidated Basis. Beginning with its third Missouri consolidated return year, an affiliated group shall file its declaration of estimated tax on a consolidated basis for that year and for each subsequent Missouri consolidated return year. The group shall be treated as a single corporation for purposes of sections 143.521 through 143.541, RSMo (relating to the declaration and payment of estimated tax). If separate Missouri returns are filed by the members for a taxable year, the amount of any estimated tax payments made with respect to a Missouri consolidated declaration of estimated tax for that year shall be credited against the separate Missouri tax liabilities of the members in any manner designated by the common parent which is satisfactory to the director. The consolidated declaration of estimated tax shall be filed and payment shall be made by the common parent.

(30) Estimated Tax on Separate Basis. For each taxable year preceding the third Missouri consolidated return year, declarations of estimated tax may be filed and payments of estimated tax may be made on either a consolidated or separate member basis. For the first two (2) Missouri consolidated return years, the amount of any estimated tax payments made for the year by the members of the affiliated group shall be credited against the Missouri consolidated tax liability of the affiliated group for that year.

(31) Additions to Tax For Failure to Pay Estimated Tax on Consolidated Basis. If the affiliated group is required to file a Missouri consolidated declaration of estimated tax under

section (29) of this rule for a taxable year, then, if the group— (A) Files a Missouri consolidated return for that taxable year, the “tax shown on the return,” as that phrase is used for the purposes of section 143.761.4(1), RSMo, shall be the tax shown on the Missouri consolidated return for the preceding taxable year, and the term “facts shown on his return,” for purposes of

section 143.761.4(4), RSMo, shall mean the facts shown on the Missouri consolidated return for the preceding taxable year; or (B) Does not file a Missouri consolidated return for the taxable year, the term “amount, if any, of the installment paid,” for purposes of section 143.761.2(2), RSMo, shall mean, with respect to a member, the amount allocated to that member in a manner designated by the common parent which is satisfactory to the director. For purposes of section 143.761.4(1), RSMo, the “tax shown on the return” for any member shall be the portion of the tax shown on the Missouri consolidated return for the preceding taxable year allocated to that member in a manner designated by the common parent which is satisfactory to the director. For purposes of section 143.761.4(4), RSMo, the “facts shown on his return” shall be the facts shown on the Missouri consolidated return for the preceding taxable year and the tax computed pursuant to section 143.761.4(4), RSMo, shall be allocated to the members in a manner designated by the common parent and satisfactory to the director.

(32) Additions to Tax For Failure to Pay Estimated Tax on Separate Basis. If the members of an affiliated group are treated as separate corporations for the taxable year under section (30) of this rule and the affiliated group files a Missouri consolidated return for the year, then, for the purposes of section 143.761.2(1), RSMo, the “tax shown on the return for the taxable year” for any member shall be the portion of the tax shown on the Missouri consolidated return allocable to that member in a manner designated by the common parent and satisfactory to the director.

(33) Nothing in this rule shall be interpreted or construed as guideline of a federal agency, with the exception of Treasury

Regulation section 301.9100-3, as found in Title 26, Section 301.9100-3 of the Code of Federal Regulations (last amended May 6, 2024), which is hereby incorporated by reference (only for the limited purposes specified below), as published by the United States Government Publishing Office, 732 N. Capitol Street NW, Washington, DC 20401-0001, phone: toll-free (866) 512-1800, DC area (202) 521-1800, website: bookstore.gpo.gov.

The incorporation by reference of Treasury Regulation section 301.9100-3 applies only to the relief extensions expressly specified in sections (9) and (27) of this rule. Nothing in this rule shall be understood to create or authorize a relief extension other than those expressly specified, using the exact phrase “relief extension,” in this rule. This rule does not incorporate any subsequent amendment or additions to Treasury Regulation

section 301.9100-3.

History

AUTHORITY: sections 32.057 and 143.961, RSMo 2016, and section 143.431, RSMo Supp. 2025. Regulation 1.431-3 was first filed July 21, 1975, effective July 31, 1975. Amended: Filed Oct. 16, 2002, effective June 30, 2003. Amended: Filed Dec. 1, 2009, effective June 30, 2010. Amended: Filed Oct. 27, 2025, effective April 30, 2026. Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014; 143.431, RSMo 1972, amended 2004, 2007, 2018; and 143.961, RSMo 1972.

12 CSR 10-2.050 Elective Division of Income {#sec-12-csr-10-2.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.050}

PURPOSE: This rule sets forth the fundamental requirements for a petition by a corporate taxpayer for permission to use a special method of allocating income to Missouri.

(1) Authority for Rule. This rule is being issued under the in section 143.961, RSMo which became effective on January 1, 1973.

(2) Applicability and Scope of Rule. This rule is intended as an interpretive guideline in the application of section 143.461, RSMo and it sets forth the fundamental requirements for a petition for permission to use a special method of allocation under section 143.461.2., RSMo. This rule applies to all taxable years beginning on or after January 1, 1973, and it also applies with respect to all fiscal year taxable periods which contained parts of each of the years 1972 and 1973 for those corporate taxpayers which had properly elected to determine their tax and taxable income under the provisions of sections 143.011– 143.996, RSMo. Chapter 143, RSMo and the corresponding regulations shall continue in force and effect with respect to all other taxable years.

(3) Definitions. As used in this rule— (A) The term director, except as specifically otherwise provided in this rule, shall mean the director of revenue or his/ her duly authorized agent or designee; and (B) The term Missouri taxable income from all sources shall mean so much of the federal taxable income of the corporation for the taxable year increased or decreased, as the case may be, by the modifications provided for in sections 143.121 and 143.141, RSMo. There shall be subtracted, to the extent included in federal taxable income, corporate dividends from sources within Missouri and there also shall be subtracted the federal income tax deduction provided for in section 143.171.1., RSMo. The amount of dividends deducted shall depend on the apportionment method selected. If single factor apportionment is selected, the corporation shall deduct dividends based on whether they are Missouri source dividends or non-Missouri source dividends. This also applies to special methods selected.

If the three (3)-factor apportionment method is selected, the dividend deduction shall be based on the apportionment percentage calculated before taking into account any allowable nonbusiness income. Business dividends, as defined by the Multistate Tax Compact, are to be multiplied by the apportionment factor in order to calculate the deduction. Also, a corporation with a commercial domicile in Missouri can deduct any nonbusiness dividends as defined by the compact.
The director of revenue may adopt procedures for verifying the actual amount of dividends deducted and may prescribe what documents are necessary for verification.

(4) Required Use of Statutory Methods. A corporate taxpayer shall determine income applicable to this state for the taxable year by either—a) multiplying the total Missouri taxable income from all sources for the taxable year by the fraction determined under section 143.451, RSMo, or b) allocating and apportioning the total Missouri taxable income from all sources for the year in the manner determined under

section 32.200 article IV. 1.–17., RSMo and by subtracting from the amount so determined, its deduction, if any, for a prior year’s federal income tax under section 143.171.2., RSMo. The preceding sentence shall not apply to those corporations which have received written permission from the director of revenue him/herself to—a) use another method of allocation pursuant to section 143.461, RSMo for the taxable year, or b) use another method of allocation and apportionment pursuant to

section 32.200 article IV.18., RSMo if the other approved method is applicable to the taxpayer year and the corporate taxpayer actually uses the other approved method for the taxable year.

A corporate taxpayer which uses an authorized method of determining income applicable to this state for the taxable year shall not be entitled to subsequently change to another method with respect to that same taxable year.

(5) Request for Permission to Use Other Method. A corporation may make a written petition to the director for permission to determine income applicable to this state for the taxable year by use of its own allocation method if the books and records of the taxpayer are kept in a manner as to show such other method of allocation between this state and other states involved, of income from transactions partly within and partly without this state, including gross income and deductions applicable to gross income, and the method does show the income applicable to this state, including gross income and deductions applicable to gross income.

(6) Petition for Use of Other Approved Method. A petition for permission to use a method of allocation disclosed in the taxpayer’s books and records shall be typewritten, delivered to the director of revenue in Jefferson City, Missouri at least sixty (60) days before the end of the taxable year with respect to which the permission is sought, shall be made on the best information, knowledge and belief of the petitioner and shall be subscribed under a declaration that it is made under penalties of perjury. The petition shall contain the name, federal identification number and address of the principal place of business of the petitioner; the address of each location at which the taxpayer conducts business and the nature of the business conducted at each location; the place(s) at which the books and records of the taxpayer are located; the beginning and ending dates of the first taxable year with respect to which permission to use another method is sought; a detailed explanation of the allocation method disclosed in the corporation’s books and records; a clear demonstration of the application of the method by showing each item of income and expense for the taxable year immediately preceding the taxable year with respect to which permission is sought, the states to which income and expense are allocated, and the amounts of each item of income and expense allocated to each state; and other data and information which the corporate taxpayer would urge upon the director in his/her consideration of the petition.

(7) Granting of Permission to Use Other Approved Method. If, upon the basis of the facts contained in the petition, other facts which may come to the attention of the director of revenue and all hearings, if any, held with respect to the petition, the director of revenue shall find that the allocation method disclosed in the books and records of the corporate taxpayer does show the income applicable to this state including gross income and deductions applicable to gross income, the director of revenue him/herself or his/her specifically designated representative shall send written notification over his/her personal signature to the corporation at least thirty (30) days prior to the last day on which the corporation’s return for that taxable year is required to be filed (determined with regard to extensions of time for filing) that it may use that method as long as the method shows the income applicable to this state, including gross income and deductions applicable to gross income. No permission shall be deemed to have been granted unless it is granted by the director of revenue him/herself or his/her specifically designated representative in writing over his/her personal signature. The mere use or continued use by the corporate taxpayer of a special method without specific disapproval by the director of revenue or his/her specifically designated representative shall not constitute the granting of permission. A corporate taxpayer which does not receive explicit written permission from the director of revenue him/ herself or his/her specifically designated representative as provided shall be required to determine income applicable to this state under section (4) of this rule.

(8) Revocation of Prior Approved Method. A corporation having previously received explicit written permission from the director of revenue him/herself of his/her specifically designated representative to use a special method of allocation shall cease using that method whenever that method ceases to show income applicable to this state, including gross income and deductions applicable to gross income and shall further cease using that method whenever the director of revenue him/herself or his/her specifically designated representative finds and notifies the corporation in writing on or before ninety (90) days before the end of the taxable year that the method does not so show. The revocation of a prior approved method shall not preclude the taxpayer from petitioning to the director of revenue, as prescribed, for permission to use some other method of allocation determined under its books and records.

(9) Failure to Timely Acquire Permission for Other Approved Method or to Continue Use of a Prior Approved Method. The failure, after a prior approved method has been revoked, to timely submit a petition for permission to use another method or the failure to make a return on a basis which has been approved by the director of revenue and which stands unrevoked shall constitute an election by the taxpayer to determine income applicable to this state by use of the method provided for in section (4) of this rule. A corporation may use a method which had been approved by the director of revenue for the taxable year only if the prior approved method was applicable to the immediately preceding taxable year and the corporate taxpayer used that other approved method in the immediately preceding taxable year.

(10) Information Required to be Submitted With Missouri Income Tax Return. For each taxable year with respect to which a corporation files a Missouri income tax return determining income applicable to this state by use of a special method approved by the director of revenue, there shall be submitted with the return for that taxable year the following items: a copy of the written notice bearing the signature of the director of revenue him/herself where permission to use the other approved method was granted and a statement indicating whether or not there has been a material change in the business operations or accounting procedures from those in existence in the first taxable year with respect to which the permission was originally granted. The failure, refusal or inability of a corporation to submit the items mentioned in the preceding sentence shall constitute an election by the corporation to determine income applicable to this state by use of the methods described in section (4) of this rule.

Filed April 4, 1984, effective July 12, 1984. Amended: Filed Aug. 14, 1990, effective Feb. 14, 1991.

In re Kansas City Star Co., 142 SW2d 1029 (1940). Trial court did not err by rejecting offered finding that state auditor had promulgated a rule during the years 1934, 1935 and 1936 declaring the total net income of manufacturing and business companies subject to income tax unless they had a branch house or capital investment outside the state. This rule had been promulgated under former Missouri St. Ann. section 10115, but subsequently overturned by Supreme Court.

History

AUTHORITY: section 143.961, RSMo 1986. Regulation 1.461 was originally filed on Dec. 22, 1975, effective Jan. 2, 1976. Amended:

12 CSR 10-2.052 Optional Single Sales Factor {#sec-12-csr-10-2.052 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.052}

History

AUTHORITY: section 143.961, RSMo 2000, and section 143.451.2(3), RSMo Supp. 2013. Original rule filed Sept. 18, 2013, effective March 30, 2014. Rescinded: Filed July 11, 2023, effective Feb. 29, 2024.

12 CSR 10-2.055 Failure to File Tax Returns {#sec-12-csr-10-2.055 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.055}

Estate of Clifford Bockelman v. Director of Revenue, Case No. RV-83-3510 (A.H.C. 5/14/86). The personal representative’s attorney had told her that they did not need to worry about the Missouri estate tax return until such time as all federal estate tax matters had been completed. The Administrative Hearing Commission determined that the personal representative had exercised ordinary business care and prudence and thus the failure to file Missouri estate tax return in a timely fashion was due to reasonable cause and not willful neglect.

Estate of Orpha T. Neusteter v. Director of Revenue, Case No.

RV-86-2063 (A.H.C. 11/6/87). The personal representative had not established the daily volume of mail handled by his office nor a record of timely filings over a period of time. These facts, the commission stated, were essential. In addition, the commission noted that the personal representative had nine months to file and the taxpayer in Armco had fifteen days. Based on this, the personal representative did not establish that his failure to file was due to reasonable cause and not willful neglect. Therefore, the additions were properly imposed by the department.

History

AUTHORITY: section 143.961, RSMo 1986. Regulation 1.741 was originally filed Dec. 22, 1975, effective Jan. 2, 1976. Amended: Filed Sept. 1, 1993, effective April 9, 1994. Rescinded: Filed Nov. 7, 2003, United States v. Boyle, 105 S. Ct. 687 (1985). The issue in this case was whether the taxpayer had proved reasonable cause for the late filing of a federal estate tax return under Internal Revenue Code 6651(a)(1). The language in this section is very similar to the language contained in section 143.741, RSMo and other Missouri revenue penalty statutes. To show reasonable cause, the Supreme Court said the taxpayer must “demonstrate that he exercised ‘ordinary business care and prudence’ but nevertheless was ‘unable to file the return within the prescribed time;”

12 CSR 10-2.060 Failure to Pay Tax {#sec-12-csr-10-2.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.060}

History

AUTHORITY: section 143.961, RSMo 1986. Regulation 1.751 was first filed Dec. 22, 1975, effective Jan. 2, 1976. Amended: Filed Sept. 1, 1993, effective April 9, 1994. Rescinded: Filed Nov. 7, 2003,

12 CSR 10-2.065 Failure to Pay Estimated Tax {#sec-12-csr-10-2.065 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.065}

History

AUTHORITY: section 143.961, RSMo 1986. Regulation 1.761 was originally filed Dec. 22, 1975, effective Jan. 2, 1976. Amended: Filed Nov. 5, 1982, effective Feb. 11, 1983. Rescinded: Filed April 4, 2002, effective Oct. 30, 2002.

12 CSR 10-2.067 Failure to Pay Estimated Tax for Tax Years Ending After December 31, 1989 {#sec-12-csr-10-2.067 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.067}

PURPOSE: This rule clarifies the requirement for filing declaration of estimated income tax by individuals and corporations, the determination of the amount of the installments required to be paid by the appropriate due dates, and the additions to tax imposed for the underpayment of estimated tax.

(1) Applicability and Scope of Rule. This rule is applicable only with respect to taxable years ending after December 31, 1989, and is intended as an interpretive guideline in the application of Chapter 143, RSMo.

(2) Definitions. As used in this rule— (A) The term “director” shall mean the director of revenue or his/her duly authorized agent or designee;

(B) The term “farmer” shall mean an individual described in section 143.531.2, RSMo. The term does not include a corporation and income from catching, taking, harvesting, cultivating, or farming any aquatic forms of animal and vegetable life (other than oyster farming) does not constitute gross income from farming; and (C) The term “other corporation” shall mean any corporation not defined as a “large corporation” in section 143.761, RSMo.

(3) General Rule. Section 143.761, RSMo, imposes an addition to tax in the case of any underpayment of estimated tax by an individual or a corporation (with certain exceptions described in section 143.761.4., RSMo). This addition to tax is in addition to any applicable civil or criminal penalties (including, but not limited to, an addition to tax or penalty under section 143.751, RSMo). If the amount of Missouri estimated tax is reasonably expected to be at least the amount that requires a declaration of estimated tax under section 143.521, RSMo, then the addition to tax under section 143.761, RSMo, is imposed without regard to any reasonable cause or lack of willful neglect for the underpayment. There is no provision for the payment of interest with respect to any underpayment of estimated tax.

(4) Amount of Underpayment. The amount of the underpayment for any installment date is the excess of— (A) Ninety percent (90%) in the case of corporations or individuals (sixty-six and two-thirds percent (66 2/3%) in the case of a farmer) of the tax shown on the return for the taxable year, or if no return was filed, ninety percent (90%) in the case of corporations or individuals (sixty-six and two-thirds percent (66 2/3%) in the case of a farmer) of the tax for the year, divided by the number of installment dates prescribed for the taxable year, over; and (B) The amount, if any, of the installment paid on or before the last day prescribed for its payment.

(5) The amount of the addition is determined by the application of the rate set forth in section 32.065, RSMo, to the amount of underpayment of any installment of estimated tax for the period beginning with the date the installment was required to be paid until the earliest of the following:

(A) The fifteenth day of the fourth month following the close of the taxable year; or (B) With respect to any portion of the underpayment, the date on which such portion is paid.

For the purpose of determining the period of underpayment, the date prescribed for the payment of any installment of estimated tax shall be determined without regard to any extension of time; and a payment of estimated tax on any installment date, to the extent that it exceeds the amount of the installment determined under subsection (4)(A) of this rule for the installment date, shall be considered a payment of any previous underpayment.

(6) In determining the amount of the installment paid on or before the last day prescribed for payment of the installment, the estimated tax shall be computed without any reduction for the amount which the taxpayer estimates as his/her credit for taxes withheld at the source on wages, and the amount of that credit shall be deemed a payment of estimated tax.

An equal part of the amount of the credit shall be considered paid on each installment date for the taxable year unless the taxpayer establishes the dates on which all amounts were actually withheld. In the latter case, all amounts withheld shall be considered as payments of estimated tax on the dates the amounts were actually withheld.

(7) Statement Relating to Underpayment. If there has been an underpayment of estimated tax as of any installment date prescribed for its payment and the taxpayer believes that one (1) or more of the exceptions described in section 143.761.4, RSMo, precludes the imposition of the addition to the tax, the appropriate Missouri form should be attached to the income tax return for the taxable year showing the applicability of an exception. Failure to show the applicability of an exception will result in the imposition of the additions to tax on the total amount of the underpayment of the installment and not on the amount by which the taxpayer fails to come within one (1) of the five (5) exceptions.

(8) Exceptions to Imposition of Additions to Tax. Exceptions shown in subsections (8)(A)–(D) apply to individuals. Exceptions shown in subsections (8)(A)–(E) apply to all corporations except large corporations as defined in section 143.761, RSMo. Only the exceptions shown in subsections (8)(B), (C), and (E) apply to large corporations. The addition to the tax under section 143.761, RSMo, will not be imposed for any underpayment of any installment of estimated tax, if, on or before the date prescribed for payment of the installment, the total amount of all payments of estimated tax equals or exceeds the least of the following amounts.

(A) The amount which would have been required to be paid tax were the tax shown on the return for the preceding taxable year, provided that the preceding taxable year was a year of twelve (12) months and a return showing a liability for tax was filed for that year.

(B) The amount which would have been required to be paid tax were an amount equal to ninety percent (90%) in the case of other corporations or individuals (sixty-six and two-thirds percent (66 2/3%) in the case of a farmer) of the tax computed by placing on an annualized basis the taxable income for the calendar months in the taxable year preceding that date. The taxable income shall be placed on an annualized basis as follows.

Multiply by twelve (12) (or the number of months in the taxable year if less than twelve (12)) the taxable income (computed without the standard deduction and without the deduction for personal and dependency exemptions, if any) or the Adjusted Gross Income (AGI) if the standard deduction is to be used for the calendar months.
Divide the resulting amount by the number of those calendar months.
Deduct from that amount the standard deduction, if applicable, the deductions for personal and dependency exemptions, if any, determined as of the date prescribed for payment, and the deduction for federal income tax liability.
Multiply, in the case of an other corporation, the amount determined in paragraph (8)(B)3. of this rule by the applicable apportionment percentage determined as of the last day of the month preceding the date prescribed for payment. For tax years beginning on or after January 1, 2020, the applicable apportionment percentage is determined under

section 143.455, RSMo. For tax years beginning before January 1, 2020, the applicable apportionment percentage is determined under either section 143.451 or 32.200, RSMo.

basis of the actual taxable income for the calendar months in the taxable year preceding the date prescribed for payment.

(D) The amount which would have been required to be paid tax were an amount equal to a tax determined on the basis of the tax rates and the taxpayer’s status with respect to personal and dependency exemptions, if any, for the taxable year, but otherwise on the basis of the facts shown on the return for the preceding taxable year and the law applicable to that year, in case of a taxpayer required to file a return for the preceding taxable year.

(E) The amount which would have been required to be paid tax were an amount equal to ninety percent (90%) of the tax computed by placing on an annualized basis the taxable income for the calendar months in the taxable year preceding that date. The taxable income shall be placed on an annualized

basis as follows.

Multiply by twelve (12) the taxable income for the “applicable period” identified in paragraph (8)(E)3. below.
Divide the resulting amount by the whole number of months within the “applicable period” used in paragraph (8)

(E)1. above (that is, 3, 5, 6, 8, 9, or 11, as the case may be).

Determine the “applicable period” for use in paragraphs (8)(E)1. and 2. as follows.

A. The first three (3) months of the taxable year, in the case of an installment required to be paid in the fourth month.

B. The first three (3) months or the first five (5) months of the taxable year, in the case of an installment required to be paid in the sixth month.

C. The first six (6) months or the first eight (8) months of the taxable year, in the case of an installment required to be paid in the ninth month.

D. The first nine (9) months or the first eleven (11) months of the taxable year, in the case of the installment required to be paid in the twelfth month.

(F) Example: An individual filed an income tax return for his/her taxable year 2022, which showed an income tax of four thousand dollars ($4,000). The individual always files on a calendar year basis. The individual pays installments of estimated tax of one thousand dollars ($1,000) each on April 15, June 15, and September 15 of 2023, and on January 15 of 2024.

The individual files an income tax return for his/her taxable year 2023 on April 15, 2024, and the return shows an income tax of thirteen thousand dollars ($13,000). The individual is not liable for an addition to tax for the failure to pay estimated tax, as the individual has timely paid installments of estimated tax in amounts that meet the exception in subsection (8)(A) of this

rule.

(G) Example: A farmer files an income tax return on February 15 of the succeeding year paying his/her total tax liability of five thousand dollars ($5,000) on that date. In this case, there is no underpayment of estimated tax since the filing of the return and full payment of the tax on or before March 1 of the succeeding year is considered as the farmer’s declaration of estimated tax which was required to be filed by January 15 of the succeeding taxable year pursuant to section 143.521.6, RSMo. In the event that the farmer in this example had filed his/her declaration of estimated tax on or before January 15 of the succeeding year, s/he would have only been required to pay sixty-six and two-thirds percent (66 2/3%) of his/her total tax liability for the year on that date.

(H) Example: An individual (other than a farmer) files an income tax return on February 15 of the succeeding year paying his/her total tax liability of five thousand dollars ($5,000) on that date. In this case, there is an underpayment of estimated tax. The individual has not paid any installments of estimated tax. Unless the individual meets one (1) of the exceptions in subsections (8)(A)-(D) of this rule, an addition to tax for failure to pay estimated tax will be imposed.

(9) Example: The following example illustrates the application of the exception in subsection (8)(E) of this rule to the imposition of the addition to tax for an underpayment of estimated tax for a calendar year corporation. Assume that a corporation has eighty thousand dollars ($80,000) of Missouri taxable income from January through June, and one hundred thousand dollars ($100,000) of Missouri taxable income from January through August. Further assume that the corporate income tax rate is four percent (4%), and that the first two (2) installments for the year already meet the exception in subsection (8)(E) of this rule.

The third installment payment must be at least four thousand fifty dollars ($4,050) for it to meet the exception in subsection (8)(E) of this rule, calculated as follows:

The lesser of: $80,000 × 12 = $960,000 $960,000 divided by 6 = $160,000 $160,000 × 4% = $6,400 $6,400 × 90% = $5,760 $5,760 × 75% = $4,320 or $100,000 × 12 = $1,200,000 $1,200,000 divided by 8 = $150,000 $150,000 × 4% = $6,000 $6,000 × 90% = $5,400 $5,400 × 75% = $4,050.

(10) Statutory Changes Require Amended Installment. Taxpayers required to make a declaration of estimated tax shall make a recalculation of the installment due when there is a change in statute which affects the estimated liability and installments for their taxable period. Example: Assume Z Corporation had a state income tax estimated tax for its fiscal year beginning July 1, 1983, and ending June 30, 1984, based upon a Missouri taxable income of two million dollars ($2,000,000) with a tax of one hundred thousand dollars ($100,000) at the five percent (5%) tax rate then in effect. To avoid additions to tax, the former exception provided in section 143.761.4(2), RSMo, of eighty percent (80%) was used. Effective January 1, 1984, House Bill No. 10, First Extraordinary Session, 82nd General Assembly, increased the eighty percent (80%) to ninety percent (90%) for corporations. The taxpayer had paid two (2) installments of twenty thousand dollars ($20,000) each prior to the change in statute. The calculation to determine the amount of the third and fourth installment would be as follows:

(A) Missouri taxable income $2,000,000;

(B) Missouri tax (historical 5% rate) $100,000;

(D) Amount required to be paid through 3 installments ($90,000 ÷ 4 × 3) $67,500;

(E) Amount paid first 2 installments ($20,000 × 2) $40,000;

(F) Amount of 3rd installment (line (D) minus (E)) $27,500;

(G) Amount of 4th installment (line (C) × 1/4) $22,500.

If the corporation’s estimated tax payment equals ninety percent (90%) of the amount due for the three (3) installments no additions to tax would be imposed with respect to the third installment. This same calculation method would apply to a calendar year situation when the statute was changed and applied during their taxable period.

(11) Determination of Taxable Income for Installment Periods.

In determining the applicability of the exceptions in

section 143.761.4(2) or (3), RSMo, there must be an accurate determination of the amount of income and deductions for the calendar months in the taxable year preceding the installment date as of which the determination is made. For example, if a taxpayer distributes year-end bonuses to its employees but does not determine the amount of the bonuses until the next to the last month of the taxable year, it may not deduct any portion of the year-end bonuses in determining the taxable income for any installment period other than the final installment period for the taxable year. If a taxpayer on an accrual method of accounting wishes to use either of the exceptions in section 143.761.4(2) or (3), RSMo, s/he must establish the amount of income and deductions for each applicable installment period. If income is derived from business in which the production, purchase, or sale of merchandise is an incomeproducing factor requiring the use of inventories, the taxpayer will be unable to determine accurately the amount of the taxable income for the applicable period unless there can be established, with reasonable accuracy, the cost of goods sold for the applicable installment period. Unless a more exact determination is available, the cost of goods sold for the period shall be determined based on the same proportion of the cost of goods sold during the entire taxable year as the ratio of gross receipts from the sales for the installment period to the gross receipts from the sale for the entire taxable year.

(12) Members of Partnerships. In determining a partner’s taxable income for the months in his/her taxable year which precede the month in which the installment date occurs, each partner shall take into account all items for any partnership taxable year ending with or within this taxable year to the extent that those items are attributable to months in the partnership taxable year which preceded the month in which the installment date occurs together with any guaranteed payments from the partnership to the extent that the guaranteed payments are includable in his/her taxable income for those months. The provisions of this section may be illustrated by the following examples.

(A) A, who is an individual calendar year taxpayer, is a member of a partnership whose taxable year ends on January 31. A must take into account, in the determination of his/her taxable income for the installment due on April 15, 1984, all of his/her distributive share of partnership items and the amount of any guaranteed payments made to him/her which were deductible by the partnership in the partnership taxable year beginning on February 1, 1983, and ending on January 31, 1984.

(B) Assume that the taxable year of the partnership of which A, a calendar year taxpayer, is a member ends on June 30.

A must take into account, in the determination of his/her taxable income for the installment due on April 15, 1984, his/ her distributive share of partnership items for the period July 1, 1983, through March 31, 1984; and for the installment due on June 15, 1984, s/he must take into account the amounts for the period July 1, 1983, through May 31, 1984; and for the installment due on September 15, 1984, s/he must take into account the amounts for the entire partnership taxable year of July 1, 1983, through June 30, 1984 (the date on which the partnership taxable year ends).

(13) Beneficiaries of Estates and Trusts. In determining the applicability of the exceptions in subsections (8)(B) and (C) of this rule as of any installment date, the beneficiary of an estate or trust must take into account his/her distributable share of income from the estate or trust for the applicable period (whether or not actually distributed) if the trust or estate is required to distribute income to him/her currently. If the estate or trust is not required to distribute income currently, only the amounts actually distributed to the beneficiary during the period must be taken into account. If the taxable year of the beneficiary and the taxable year of the estate or trust are different, there shall be taken into account the beneficiary’s distributable share of income, or the amount actually distributed to him/her, as the case may be, during the months in the taxable year of the estate or trust ending within the taxable year of the beneficiary which precedes the month in which the installment date occurs. This rule is similar to the

rule that applies for a member of a partnership when a partner and a partnership of which s/he is a member have different taxable years.

History

AUTHORITY: section 143.961, RSMo 2016. Original rule filed Dec. 30, 1983, effective April 12, 1984. Amended: Filed Oct. 12, 2021, effective April 30, 2022.

12 CSR 10-2.070 Interest on Overpayments {#sec-12-csr-10-2.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.070}

PURPOSE: This rule sets forth the circumstances under which a taxpayer who has paid too much tax will receive interest on the amount of the tax refund.

(1) Authority for Rule. This rule is being issued under the and the specific authority set forth in section 143.811, RSMo.

(2) Applicability and Scope of Rule. This rule shall apply to those instances in which an overpayment of the taxes imposed by sections 143.011–143.996, RSMo has occurred and shall apply only with respect to taxable periods beginning on or after January 1, 1973. It is intended to serve as an interpretive guideline in the application of section 143.811.1., 2., 4. and 5., RSMo as affected by sections 143.601 and 143.801, RSMo.

(3) The term sections 143.011–143.996, RSMo shall mean the Missouri Income Tax Law, which became effective on January 1, 1973.

(4) As used in this rule, the term director shall mean the director of revenue or his/her duly authorized agent or designee.

(5) Subject to the limitations provided in this rule, interest shall be allowed and paid upon any overpayment with respect to the taxpayer’s liability for taxes, computed on a daily basis at the rate provided by statute, from the dates of the overpayment to the date shown on the refund check that is issued by the treasurer of Missouri. If the taxpayer elects to have all or a

part of the overpayment shown on the return applied to the taxpayer’s estimated tax for a succeeding year, the portion of the overpayment that is credited to the estimated tax for the succeeding year or any installment shall be considered to be refunded to the taxpayer on the date that the original return was filed and no interest shall be allowed on the portion of the overpayment so credited or applied.

(6) Time Return Filed. For purposes of this rule, a return filed before the last day prescribed for the filing of the return shall be considered as filed on the last day (determined without regard to any extensions of time for filing the return). For returns filed after the fifteenth day of the fourth month following the close of the taxpayer’s taxable year, the time filed shall be the actual time filed.

(7) Time Tax Paid. For purposes of this rule, payment of any portion of the tax made before the fifteenth day of the fourth month following the close of the taxpayer’s taxable year shall be considered as paid on the fifteenth day of the fourth month.

For payments made after the fifteenth day of the fourth month following the close of the taxpayer’s taxable year, whether or not a valid extension of time to pay is in effect, the time paid shall be the actual time paid.

(8) Limitations. If any overpayment is refunded within four (4) months after the last date prescribed (or permitted by extension of time) for filing the original return of the tax or within four (4) months after the return was filed, whichever is later, no interest shall be allowed on the overpayment as provided by section 143.811.4., RSMo. Where the taxpayer’s return is not complete, delaying the processing by the director and requiring the director to request additional information from the taxpayer, the four (4)-month period referred to in this rule shall begin at such time as the additional requested information is submitted.

(9) Carrybacks of Net Operating Loss and Corporate Capital Loss. Any overpayment resulting from a carryback, including a net operating loss and a corporate capital loss, shall be deemed not to have been made prior to the close of the taxable year in which the loss arises, per section 143.811.5., RSMo. The carryback will be deemed to be an amended federal income tax return under section 143.601, RSMo which requires that any taxpayer filing an amended federal income tax return shall also file, within ninety (90) days after that, an amended return under sections 143.011–143.996, RSMo.

(10) Examples: The amounts used in any of the following examples for additions to tax and interest are for illustrative purposes only and do not necessarily reflect the actual additions to tax and interest that might be due in those situations. For purposes of these examples, current year returns shall mean returns filed, or required to be filed, for the immediately preceding taxable year for taxes imposed by sections 143.011– 143.996, RSMo:

(A) Taxpayer files his/her 1974 calendar year return on January 15, 1975 indicating an overpayment. If the director makes a refund of the overpayment on or before August 15, 1975, no interest shall be allowed on the overpayment. In this example, the return is considered filed on the last day prescribed for the filing (April 15, 1975) and the director has four (4) months in which to make the refund. If the refund is not made by August 15, 1975, interest shall be allowed and paid for the period April 15, 1975 (the date the tax is considered paid) until the date of the refund;

(B) Taxpayer files his/her 1974 calendar year return on June 15, 1975 with a valid sixty (60)-day extension of time to file in effect, indicating an overpayment. All tax payments were made on or before April 15, 1975. If the director makes a refund of the overpayment on or before October 15, 1975, no interest shall be allowed on the overpayment. In this example, even though the tax is considered paid on April 15, 1975, the director has four (4) months in which to make the refund from the date the return is filed. If the refund is not made by October 15, 1975, interest shall be allowed and paid for the period April 15, 1975 until the date of the refund. The result in this example would be the same whether or not a valid extension of time to file or pay the tax had been in effect;

(C) Taxpayer files his/her 1974 calendar year return on June 15, 1975 indicating a balance due of one hundred fifty dollars ($150) which is paid with the return, there being no valid extension of time to file the return or pay the tax in effect.

Upon subsequent review of the return, a mathematical error is discovered overstating the taxpayer’s 1974 tax liability by two hundred dollars ($200). If the director makes a refund of the overpayment on or before October 15, 1975, no interest shall be allowed on the overpayment. If the refund is not made on or before October 15, 1975, interest shall be allowed and paid on the overpayment in the following manner. On the fiftydollar ($50) overpayment that would have been shown on the original return, if correctly filed, from April 15, 1975 to the date of the refund; and on the one hundred and fifty dollars ($150) paid with the original return, from June 15, 1975 (the date the tax was paid) to the date of the refund. The result in this example would be the same whether or not a valid extension of time to file or pay the tax had been in effect; and (D) Taxpayer, a corporation, files its estimated tax declaration for calendar year 1975 with the director and pays the first two installment payments of five hundred dollars ($500) each on April 15, 1975 and June 15, 1975, respectively. Taxpayer incurs a net operating loss for calendar year 1975 and files his/her Missouri income tax return on April 15, 1976, requesting a refund of the resulting overpayment. The taxpayer fails to attach to its Missouri return a copy of the federal form 1120 as required. Upon timely review of the taxpayer’s Missouri return, the director requests from the taxpayer a copy of the federal return which is not submitted until December 15, 1976. If the director makes a refund of the overpayment on or before April 15, 1977, no interest shall be allowed on the overpayment. If the refund is made after April 15, 1977, interest shall be allowed and paid from April 15, 1976 to the date of the refund. In this example, the four (4)-month noninterest payment period does not begin until the required information is submitted.

(11) Change in Federal Taxable Income. Section 143.601, RSMo provides that if the amount of the taxpayer’s federal taxable income reported on his/her federal income tax return, for any taxable year, is changed or corrected by the United States Internal Revenue Service (IRS) or other competent authority, or as the result of a renegotiation of a contract or subcontract with the United States, the taxpayer shall report the change or correction in federal taxable income within ninety (90) days after the final determination of the change, correction or renegotiation. Any taxpayer filing an amended federal income tax return also shall file, within ninety (90) days after that, an amended return under sections 143.011–143.996, RSMo and shall provide information as the director may require. The examples under this section do not apply where the federal change is on account of a net operating or a corporate capital loss carryback.

(A) On January 15, 1975, taxpayer’s federal taxable income with the director on April 15, 1975 (the ninetieth day) reflecting the federal changes and indicating an overpayment of his/her 1973 income tax liability. Taxpayer filed his/her 1973 income tax return and paid the tax on or before April 15, 1974. In this situation, interest shall be allowed and paid from April 15, 1974 until the date of the refund.

(B) On January 15, 1975, taxpayer’s federal taxable income with the director on April 30, 1975 (after the ninetieth day) reflecting the federal change and indicating an overpayment of his/her 1973 income tax liability. Taxpayer filed his/her 1973 income tax return and paid the tax prior to April 15, 1974. In this situation, interest shall be allowed and paid from April 15, 1974 until April 15, 1975 (the ninetieth day). Note that in this case, failure to file an amended return within the ninety (90)day period required by section 143.601, RSMo shall cause the interest to cease to accrue after the ninetieth day.

(C) Assume the same fact as in subsection (11)(A) of this rule except taxpayer filed his/her original 1973 income tax return on June 15, 1974, with a valid extension of time to file attached, and all taxes were paid on or before April 15, 1974 until the date of the refund. Note that an extension of time to file has no bearing on the interest payment period if all taxes were paid before April 15, 1974. In this situation, interest shall be allowed and paid from April 15, 1974. If the amended return was filed with the director after the ninetieth day, the interest would cease to accrue on the ninetieth day.

(D) On January 15, 1975, taxpayer’s federal taxable income with the director on April 10, 1975 (before the ninetieth day) reflecting the federal change and indicating an overpayment of his/her 1973 income tax liability. Taxpayer filed his/her 1973 income tax return on July 1, 1974 indicating a balance due, indicating additions to tax and interest, and paid the liability on that date. In this situation, interest shall be allowed and paid from July 1, 1974, the date the tax was actually paid, until the date of the refund. If the taxpayer’s amended return was not filed on or before the ninetieth day, interest would be allowed and paid only until the ninetieth day (July 1, 1974 through April 15, 1975). Note that interest will be paid not only with respect to the taxes previously paid by the taxpayer but also with respect to the additions to tax and interest previously paid.

(E) On April 15, 1976, taxpayer’s federal taxable income for calendar year 1973 is changed by the United States IRS resulting in an overpayment of his/her 1973 tax liability. On April 16, 1977, taxpayer files an amended return with the director, reflecting the federal changes, and also indicating an overpayment.

Taxpayer filed his/her original 1973 income tax return on April 15, 1974 and all taxes were paid on that date. In this example, the taxpayer has filed his/her claim for credit or refund within one (1) year from the time the amended return was required to be filed (within one (1) year after ninety (90) days after April 15, 1976). Note that even though the three (3)-year limitation of section 143.801.1., RSMo, and the two (2)-year limitation of

section 143.801.2., RSMo have elapsed, section 143.801.4., RSMo allows the claim to be filed within one (1) year. Interest shall be allowed and paid in this situation from April 15, 1974 until the ninetieth day after April 15, 1976.

(12) Carrybacks—Example 1: In calendar year 1976, taxpayer incurs a net operating loss, or a corporate capital loss, which is allowable as a carryback to calendar year 1973. Taxpayer’s original 1973 Missouri income tax return was filed on April 15, 1974, and all tax payments were made prior to that date.

Taxpayer files an amended 1973 federal income tax return on January 1, 1977, and an amended 1973 Missouri income tax return on the same day requesting refund of the resulting overpayment for 1973. In this situation, interest shall be allowed and paid from January 1, 1977 to the date of the refund. In this example, the overpayment is deemed not to have been made prior to the close of the taxable year in which the loss arises.

(13) Carrybacks—Example 2: Assume the same facts as in

section (12) of this rule except the taxpayer does not file his/her amended Missouri income tax return until April 2, 1977, which is after the ninetieth day after January 1, 1977. In this situation, interest shall be allowed and paid for the period January 1, 1977 until the ninetieth day (March 31, 1977). Note that the failure of the taxpayer to file within the ninety (90)-day period required under section 143.601, RSMo caused the interest to cease to accrue on the ninetieth day.

(14) Amended Returns—Example 1: On January 15, 1975, taxpayer files an amended Missouri income tax return for calendar year 1973 correcting an error or omission on his/her original 1973 return. The original return for 1973 was filed on March 3, 1974 with a balance due that was paid on that date.

The amended return indicates an overpayment for 1973. In this situation, interest shall be allowed and paid for the period April 15, 1974 until the date of the refund.

(15) Amended Returns—Example 2: On January 15, 1975, taxpayer files an amended Missouri income tax return for calendar year 1973 correcting an error or omission on the 1973 return. The original return for 1973 was filed on June 15, 1974 (with no valid extension of time to file or pay the tax) indicating a balance due of two hundred dollars ($200) which was paid on that date. On November 15, 1974, taxpayer was assessed additions to tax and interest of twenty-five dollars ($25) under sections 143.731 and 143.741, RSMo which s/he remitted on that date. The amended return indicates an overpayment for 1973 of three hundred dollars ($300). Interest shall be allowed and paid in the following manner: on the one hundred dollar ($100) overpayment that would have been shown on the original return, if correctly filed, from April 15, 1974 to the date of the refund; on the two hundred dollars ($200) paid with the original return, from June 15, 1974 to the date of the refund; and on the twenty-five dollar ($25) additions to tax and interest, from November 15, 1974 to the date of the refund. The interest payments begin from the time the tax was paid or considered paid. Note that the interest payment dates would not have been affected if a valid extension of time to file the return or pay the tax had been in effect.

(16) Amended Returns—Example 3: On May 15, 1977, taxpayer files an amended Missouri income tax return for calendar year 1973 indicating an overpayment. Taxpayer filed his/her original 1973 return on April 15, 1974. In this example, no credit or refund shall be allowed or paid. A claim for credit or refund of an overpayment of any tax imposed by sections 143.011–143.996, RSMo shall be filed by the taxpayer within three (3) years from the time the return was filed, or two (2) years from the time the tax was paid, whichever of those periods expires the later; or if no return was filed by the taxpayer, within two (2) years from the time the tax was paid. Nor credit or refund shall be allowed or made after the expiration of the period of limitation prescribed for the filing of a claim for credit or refund, unless the claim for credit or refund is filed by the taxpayer within that period.

(17) Amended Returns—Example 4: On May 15, 1977, taxpayer files an amended Missouri income tax return for calendar year 1973 indicating an overpayment of one thousand dollars ($1,000). Taxpayer filed his/her original 1973 return on May 14, 1974 showing a balance due of five hundred dollars ($500) which the taxpayer did not pay until June 15, 1975.

Taxpayer was assessed and paid additions to tax and interest in the amount of fifty dollars ($50) on August 15, 1975. In this example, taxpayer has not filed a claim within three (3) years of the date the return was filed (which would expire on May 14, 1977) but has filed within two (2) years from the time some (but not all) of the tax was paid. In this situation, the refund shall not exceed the portion of the tax paid during the two (2) years immediately preceding the filing of the claim, section 143.801.2., RSMo. In this example, interest shall be allowed and paid in the following manner: on the five hundred dollar ($500) overpayment from June 15, 1975 to the date of the refund; and on the fifty dollars ($50) from August 15, 1975 until the date of the refund.

(18) Flood Loss. If the taxpayer elects under the Disaster Relief Act of 1974 to deduct a disaster loss in the taxable year immediately preceding the taxable year in which the loss occurs, the overpayment will deemed to have occurred in the taxable year for which the deduction is claimed on the federal return.

(A) Example: On January 15, 1975, taxpayer files an amended federal income tax return and an amended Missouri income tax return for calendar year 1973 as the result of a flood loss which occurred in 1974, indicating an overpayment for 1973.

Taxpayer’s original 1973 income tax return was filed before April 15, 1974, with all taxes paid by that date. In this example, interest shall be allowed and paid from April 15, 1974 until the date of the refund. The interest calculation date begins on April 15, 1974, because the overpayment on account of the 1974 flood loss is deemed to have occurred in the 1973 taxable year (the taxable year immediately preceding the taxable year in which the loss actually did occur).

(B) Example: On January 15, 1975, taxpayer files an amended federal income tax return and an amended Missouri income tax return for calendar year 1973 as the result of a flood loss which occurred in 1974. Taxpayer’s original 1973 income tax return was filed on June 1, 1974 showing a balance due of five hundred dollars ($500) which was paid on that date. On November 15, 1974, taxpayer was assessed additions to tax and interest in the amount of fifty dollars ($50) under sections 143.731 and 143.741, RSMo which was paid by the taxpayer on that date. Taxpayer’s amended 1973 income tax return indicates an overpayment of his/her 1973 income tax liability of seven hundred dollars ($700). In this situation, interest shall be allowed and paid in the following manner: on the two hundred dollar ($200) overpayment that would have been shown on the original return had the amount of the disaster loss been shown on the original return from April 15, 1974 to the date of the refund; on the five hundred dollars ($500) paid with the original return from June 1, 1974 to the date of the refund; and on the fifty dollars ($50) additions to tax and interest from November 15, 1974 to the date of the refund.

History

AUTHORITY: section 143.811, RSMo 1986. Regulation 1.811 was originally filed Dec. 22, 1975, effective Jan. 2, 1976. Original authority: 143.811, RSMo 1972, amended 1982, 1988.

12 CSR 10-2.075 Multistate Allocation and Apportionment {#sec-12-csr-10-2.075 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.075}

PURPOSE: This rule represents the methods to be used in allocating and apportioning income to Missouri under that part of Chapter 32, RSMo which is commonly known as the Multistate Tax Compact.

(1) Authority for Rule. This rule is being issued under the in section 143.961, RSMo which became effective January 1, 1973, and in accordance with subsection 3 of article VII of the Multistate Tax Compact, section 32.200, RSMo.

(2) Applicability and Scope of Rule. This rule is intended as an interpretive guideline in the application of Article VI of the Multistate Tax Compact, section 32.200, RSMo, implemented by adopting the Multistate Tax Commission’s allocation and apportionment regulations which were adopted by the commission February 21, 1973. The apportionment rules set forth in this rule are applicable to any taxpayer having business income, regardless of whether or not it has nonbusiness income, and the allocation rules set forth in this rule are applicable to any taxpayer having nonbusiness income, regardless of whether or not it has business income.

The numerical references contained in this rule are to Article IV of the Multistate Tax Compact, section 32.200, RSMo, and its subsections. The only exceptions to the allocation and apportionment rules contained in this rule are those set forth in sections (63)–(66) of this rule under the authority of Article IV.18. of the Multistate Tax Compact, section 32.200, RSMo. This

rule is not intended to modify existing regulations concerning jurisdictional standards.

(3) As used in this rule, the term director of revenue shall mean the director of revenue or his/her duly authorized agent or designee.

(4) Business and Nonbusiness Income. Section 32.200 (Article IV.1.), RSMo defines business income as income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, management and disposition of the property constitute integral parts of the taxpayer’s regular trade or business operations. In essence, all income which arises from the conduct of trade or business operations of a taxpayer is business income. For purposes of administration of section 32.200 (Article IV), RSMo, the income of the taxpayer is business income unless clearly classifiable as nonbusiness income. Nonbusiness income means all income other than business income. The classification of income by the labels occasionally used, such as manufacturing income, compensation for services, sales income, interest, dividends, rents, royalties, gains, operating income, nonoperating income, and the like, is of no aid in determining whether income is business or nonbusiness income. Income of any type or class and from any source is business income if it arises from transactions and activity occurring in the regular course of a trade or business. Accordingly, the critical element in determining whether income is business income or nonbusiness income is the identification of the transactions and activity which are the elements of a particular trade or business. In general all transactions and activities of the taxpayer which are dependent upon or contribute to the operations of the taxpayer’s economic enterprise as a whole constitute the taxpayer’s trade or business and will be transactions and activity arising in the regular course of, and will constitute integral parts of, a trade or business.

(5) Business and Nonbusiness Income—Ap plication of Definitions. The following are rules and examples for determining whether particular income is business or nonbusiness income (The examples used throughout this rule are illustrative only and do not purport to set forth all pertinent facts.):

(A) Rents From Real and Tangible Personal Property. Rental income from real and tangible property is business income if the property with respect to which the rental income was received is used in the taxpayer’s trade or business, or incidental to the trade or business and therefore is includable in the property factor under sections (21)–(24) of this rule.

Example: The taxpayer operates a multistate car rental business. The income from car rentals is business income.
Example: The taxpayer is engaged in the heavy construction business in which it uses equipment such as cranes, tractors and earth-moving vehicles. The taxpayer makes short-term leases of the equipment when particular pieces of equipment are not needed on any particular project.

The rental income is business income.

Example: The taxpayer operates a multistate chain of men’s clothing stores. The taxpayer purchases a five (5)-story office building for use in connection with its trade or business.

It uses the street floor as one (1) of its retail stores and the second and third floors for its general corporate headquarters.

The remaining two (2) floors are leased to others. The rental of the two (2) floors is incidental to the operation of the taxpayer’s trade or business. The rental income is business income.

Example: The taxpayer operates a multistate chain of grocery stores. It purchases as an investment an office building in another state with surplus funds and leases the entire building to others. The net rental income is not business income of the grocery store trade or business. Therefore, the net rental income is nonbusiness income.
Example: The taxpayer operates a multistate chain of men’s clothing stores. The taxpayer invests in a twenty (20)story office building and uses the street floor as one (1) of its retail stores and the second floor for its general corporate headquarters. The remaining eighteen (18) floors are leased to others. The rental of the eighteen (18) floors is not incidental to but rather is separate from the operation of the taxpayer’s trade or business. The net rental income is not business income of the clothing store trade or business. Therefore, the net rental income is nonbusiness income.
Example: The taxpayer constructed a plant for use in its multistate manufacturing business and twenty (20) years later the plant was closed and put up for sale. The plant was rented for a temporary period from the time it was closed by the taxpayer until it was sold eighteen (18) months later. The rental income is business income and the gain on the sale of the plant is business income.
Example: The taxpayer operates a multistate chain of grocery stores. It owned an office building which it occupied as its corporate headquarters. Because of inadequate space, taxpayer acquired a new and larger building elsewhere for its corporate headquarters. The old building was rented to an investment company under a five (5)-year lease. Upon expiration of the lease, taxpayer sold the building at a gain (or loss). The net rental income received over the lease period is nonbusiness income and the gain (or loss) on the sale of the building is nonbusiness income;

(B) Gains or Losses From Sales of Assets. Gain or loss from the sale, exchange or other disposition of real or tangible or intangible personal property constitutes business income if the property while owned by the taxpayer was used in the taxpayer’s trade or business. However, if the property was utilized for the production of nonbusiness income or otherwise was removed from the property factor before its sale, exchange or other disposition, the gain or loss will constitute nonbusiness income.

Example: In conducting its multistate manufacturing business, the taxpayer systematically replaces automobiles, machines and other equipment used in the business. The gains or losses resulting from those sales constitute business income.
Example: The taxpayer constructed a plant for use in its multistate manufacturing business and twenty (20) years later sold the property at a gain while it was in operation by the taxpayer. The gain is business income.
Example: Same as paragraph (5)(B)2. of this rule except that the plant was closed and put up for sale but was not in fact sold until a buyer was found eighteen (18) months later. The gain is business income.
Example: Same as paragraph (5)(B)2. of this rule except that the plant was rented while being held for sale. The rental income is business income and the gain on the sale of the plant is business income.
Example: The taxpayer operates a multistate chain of grocery stores. It owned an office building which it occupied as its corporate headquarters. Because of inadequate space, taxpayer acquired a new and larger building elsewhere for its corporate headquarters. The old building was rented to an unrelated investment company under a five (5)-year lease.

Upon expiration of the lease, taxpayer sold the building at a gain (or loss). The gain (or loss) on the sale is nonbusiness income and the rental income received over the lease period is nonbusiness income;

(C) Interest. Interest income is business income where the intangible with respect to which the interest was received arises out of, or was created in, the regular course of the taxpayer’s trade or business operations or where the purpose for acquiring and holding the intangible is related to or incidental to the trade or business operations.

Example: The taxpayer operates a multistate chain of department stores, selling for cash and on credit. Service charges, interest or time-price differentials and the like are received with respect to installment sales and revolving charge accounts. These amounts are business income.
Example: The taxpayer conducts a multistate manufacturing business. During the year the taxpayer receives a federal income tax refund and collects a judgment against a debtor of the business. Both the tax refund and the judgment bore interest. The interest income is business income.
Example: The taxpayer is engaged in a multistate manufacturing and wholesaling business. In connection with that business, the taxpayer maintains special accounts to cover these items as Workers’ Compensation claims, rain and storm damage, machinery replacement, and the like. The moneys in those accounts are invested at interest. Similarly, the taxpayer temporarily invests funds intended for payment of federal, state and local tax obligations. The interest income is business 4. Example: The taxpayer is engaged in a multistate money order and traveler’s checks business. In addition to the fees received in connection with the sale of the money orders and traveler’s checks, the taxpayer earns interest income by the investment of the funds pending their redemption. The interest income is business income.
Example: The taxpayer is engaged in a multistate manufacturing and selling business. The taxpayer usually has working capital and extra cash totaling two hundred thousand dollars ($200,000) which it regularly invests in short-term interest bearing securities. The interest income is business 6. Example: In January, the taxpayer sold all the stock of subsidiary for twenty (20) million dollars. The funds are placed in an interest-bearing account pending a decision by management as to how the funds are to be utilized. The interest income is nonbusiness income;

(D) Dividends. Dividends are business income where the stock with respect to which the dividends are received arises out of or was acquired in the regular course of the taxpayer’s trade or business operations or where the purpose for acquiring and holding the stock is related to or incidental to the trade or business operations.

Example: The taxpayer operates a multistate chain of stock brokerage houses. During the year the taxpayer receives dividends on stock it owns. The dividends are business income.
Example: The taxpayer is engaged in a multistate manufacturing and wholesaling business. In connection with that business, the taxpayer maintains special accounts to cover such items as Workers’ Compensation claims, etc. A portion of the moneys in those accounts is invested in interest-bearing bonds. The remainder is invested in various common stocks listed on national stock exchanges. Both the interest income and any dividends are business income.
Example: The taxpayer and several unrelated corporations own all of the stock of a corporation whose business operations consist solely of acquiring and processing materials for delivery to the corporate owners. The taxpayer acquired the stock in order to obtain a source of supply of materials used in its manufacturing business. The dividends are business income.
Example: The taxpayer is engaged in a multistate heavy construction business. Much of its construction work is performed for agencies of the federal government and various state governments. Under state and federal laws applicable to contracts for these agencies, a contractor must have adequate bonding capacity, as measured by the ratio of its current assets (cash and marketable securities) to current liabilities. In order to maintain an adequate bonding capacity, the taxpayer holds various stocks and interest-bearing securities. Both the interest income and any dividends received are business income.
Example: The taxpayer receives dividends from the stock of its subsidiary or affiliate which acts as the marketing agency for products manufactured by the taxpayer. The dividends are business income.
Example: The taxpayer is engaged in a multistate glass manufacturing business. It also holds a portfolio of stock and interest-bearing securities, the acquisition and holding of which are unrelated to the manufacturing business.

The dividends and interest income received are nonbusiness income; and (E) Patent and Copyright Royalties. Patent and copyright royalties are business income where the patent or copyright with respect to which the royalties were received arises out of or was created in the regular course of the taxpayer’s trade or business operations or where the purpose of acquiring and holding the patent or copyright is related to or incidental to the trade or business operations.

Example: The taxpayer is engaged in the multistate business of manufacturing and selling industrial chemicals. In connection with that business the taxpayer obtained patents on certain of its products. The taxpayer licensed the production of the chemicals in foreign countries, in return for which the taxpayer receives royalties. The royalties received by the taxpayer are business income.
Example: The taxpayer is engaged in the music publishing business and holds copyrights on numerous songs.

The taxpayer acquires the assets of a smaller publishing company, including music copyrights. After these acquired copyrights are used by the taxpayer in its business, any royalties received on these copyrights are business income.

Example: Same as example in paragraph (5)(E)2. of this rule, except that the acquired company also held the patent on a type of phonograph needle. The taxpayer does not manufacture or sell phonographs or phonograph equipment.

Any royalties received on the patent would be nonbusiness (6) Proration of Deductions. In most cases, an allowable deduction of a taxpayer will be applicable only to the business income arising from a particular trade or business or to a particular item of nonbusiness income. In some cases, an allowable deduction may be applicable to the business incomes of more than one (1) trade or business or to several items of nonbusiness income. In those cases, the deduction shall be prorated among the trades or businesses and the items of nonbusiness income in a manner which fairly distributes the deduction among the classes of income to which it is applicable. In filing returns with this state, if the taxpayer departs from or modifies the manner of prorating any of the deduction used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification. If the return or reports filed by a taxpayer with all states to which the taxpayer reports under section 32.200 (Article IV), RSMo of this Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the application or proration of any deduction, the taxpayer shall disclose in its return to this state the nature and extent of the variance.

(7) Taxpayer means any corporation, partnership, firm, association, governmental unit or agency or person acting as a business entity in more than one (1) state.

(8) Apportionment refers to the division of business income between states by the use of a formula containing apportionment factors.

(9) Allocation refers to the assignment of nonbusiness income to a particular state.

(10) Business activity refers to the transactions and activity occurring in the regular course of a particular trade or business of a taxpayer.

(11) Application of Article IV—Ap portionment. If the business activity in respect to any trade or business of a taxpayer occurs both within and without this state and, if by reason of that business activity the taxpayer is taxable in another state, the portion of the net income (or net loss) arising from the trade or business which is derived from sources within this state shall be determined by apportionment in accordance with section 32.200 (Articles IV.9.–IV.17), RSMo.

(12) Application of Article IV—Allocation. Any taxpayer subject to the taxing jurisdiction of this state shall allocate all of its nonbusiness income or loss within or without this state in accordance with section 32.200 (Articles IV.4.–IV.8), RSMo.

(13) Consistency and Uniformity in Reporting. In filing returns with this state if the taxpayer departs from or modifies the manner in which income has been classified as business income or nonbusiness income in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification. If the returns or reports filed by a taxpayer for all states to which the taxpayer reports under section 32.200 (Article IV), RSMo of the Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the classification of income as business or nonbusiness income, the taxpayer shall disclose in its return to this state the nature and extent of the variance.

(14) Taxable in Another State—In General. Under section 32.200 (Article IV.2.), RSMo the taxpayer is subject to the allocation and apportionment provisions of section 32.200 (Article IV), RSMo if it has income from business activity that is taxable both within and without this state. A taxpayer’s income from business activity is taxable without this state if the taxpayer, by reason of the business activity (that is, the transaction and activity occurring in the regular course of a particular trade or business), is taxable in another state within the meaning of

section 32.200 (Article IV.3.), RSMo. A taxpayer is taxable within another state if it meets either one (1) of two (2) tests— (A) If by reason of business activity in another state, the taxpayer is subject to one (1) of the types of taxes specified in

section 32.200 (Article IV.3(1)), RSMo, namely, a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business or a corporate stock tax; or (B) If by reason of the business activity, another state has jurisdiction to subject the taxpayer to a net income tax, regardless of whether or not the state imposes this tax on the taxpayer.

(15) Taxable in Another State—Nonbusiness Income Only.

A taxpayer is not taxable in another state with respect to a particular trade or business merely because the taxpayer conducts activities in the other state pertaining to the production of nonbusiness income or business activities relating to a separate trade or business.

(16) Taxable in Another State. A taxpayer is subject to one (1) of the taxes specified in section 32.200 (Article IV.3(1)), RSMo if it carries on business activities in the state and that state imposes the tax on business activities. Any taxpayer which asserts that it is subject to one (1) of the taxes specified in section 32.200 (Article IV.3(1)), RSMo in another state shall furnish to the director of revenue of this state, upon his/her request, evidence to support the assertion. The director of revenue of this state may request that the evidence include proof that the taxpayer has filed the requisite tax return in the other state and has paid any taxes imposed under the law of the other state; the taxpayer’s failure to produce proof that may be taken into account in determining whether the taxpayer in fact is subject to one (1) of the taxes specified in section 32.200 (Article IV.3(1)), RSMo in the other state. If the taxpayer voluntarily files and pays one (1) or more of the taxes when not required to do so by the laws of that state or pays a minimal fee for qualification, organization or for the privilege of doing business in the state, but does not actually engage in business activity in that state, or does actually engage in some business activity, not sufficient for nexus, and the minimum tax bears no relation to the taxpayer’s business activity within that state, the taxpayer is not subject to one (1) of the taxes specified within the meaning of section 32.200 (Article IV.3(1)), RSMo. Example: State A has a corporation franchise tax measured by net income, for the privilege of doing business in that state. Corporation X files a return and pays the fifty-dollar ($50) minimum tax, although it carries on no business activity in State A. Corporation X is not taxable in State A.

(17) Taxability. The concept of taxability in another state is based upon the premise that every state in which the taxpayer is engaged in business activity may impose an income tax even though every state does not do so. In states which do not, other types of taxes may be imposed as a substitute for an income tax. Therefore, only those taxes enumerated in section 32.200 (Article IV.3(1)), RSMo which may be considered as basically revenue raising rather than regulatory measures shall be considered in determining whether the taxpayer is subject to one (1) of the taxes specified in section 32.200 (Article IV.3(1)), RSMo in another state.

(A) Example: State A requires all nonresident corporations which qualify or register in State A to pay to the secretary of state an annual license fee or tax for the privilege of doing business in the state regardless of whether the privilege is in fact exercised. The amount paid is determined according to the total authorized capital stock of the corporation; the rates are progressively higher by bracketed amounts. The statute set a minimum fee of fifty dollars ($50) and a maximum fee of five hundred dollars ($500). Failure to pay the tax bars a corporation from utilizing the state courts for enforcement of its rights. State A also imposes a corporation income tax.

Nonresident Corporation X is qualified in State A and pays the required fee to the secretary of state but does not carry on any business activity in State A (although it may utilize the courts of State A). Corporation X is not taxable in State A.

(B) Example: Same facts as in subsection (17)(A) of this

rule except that Corporation X is subject to and pays the corporation income tax. Payment is prima facie evidence that Corporation X is subject to the net income tax of State A and is taxable in State A.

(C) Example: State B requires all nonresident corporations qualified or registered in State B to pay to the secretary of state an annual permit fee or tax for doing business in the state. The base of the fee or tax is the sum of outstanding capital stock, surplus and undivided profits. The fee or tax base attributable to State B is determined by a three (3)-factor apportionment formula. Nonre sident Corporation X which operates a plant in State B pays the required fee or tax to the secretary of state.

Corporation X is taxable in State B.

(D) Example: State A has a Corporation franchise tax measured by net income for the privilege of doing business in that state. Corporation X files a return based upon its business activity in the state but the amount of computed liability is less than the minimum tax. Corporation X pays the minimum tax.

Corporation X is subject to State A’s corporation franchise tax.

(18) Taxable in Another State. The second test, that of section 32.200 (Article IV.3(2)), RSMo, applies if the taxpayer’s business activity is sufficient to give the state jurisdiction to impose a net income tax by reason of the business activity under the Constitution and statutes of the United States. Jurisdiction to tax is not present where the state is prohibited from imposing the tax by reason of the provisions of P.L. 86-272, 15 U.S.C.A.

Sections 381–385. In the case of any state as defined in section 32.200 (Article IV.1(8)), RSMo, other than a state of the United States or political subdivision of that state, the determination of whether that state has jurisdiction to subject the taxpayer to a net income tax shall be made as though the jurisdictional standard applicable to a state of the United States applies in that state. If jurisdiction is otherwise present, that state is not considered as without jurisdiction by reason of the provisions of a treaty between that state and the United States. Example:

Corporation X is actively engaged in manufacturing farm equipment in State A and in Foreign Country B. Both State A and Foreign Country B impose a net income tax but Foreign Country B exempts corporations engaged in manufacturing farm equipment. Corporation X is subject to the jurisdiction of State A and Foreign Country B.

(19) Apportionment Formula. All business income of each trade or business of the taxpayer shall be apportioned to this state by use of the apportionment formula set forth in 32.200 (Article IV.9), RSMo. The elements of the apportionment formula are the property factor (see sections (20)–(24) of this rule), the payroll factor (see sections (34)–(41) of this rule) and the sales factor (see sections (42)–(46) of this rule) of the trade or business of the taxpayer.

(20) Property Factor—In General. The property factor of the taxpayer shall include all real and tangible personal property owned or rented by the taxpayer and used during the tax period in the regular course of that trade or business. The term real and tangible personal property includes land, buildings, machinery, stocks of goods, equipment and other real and tangible personal property but does not include coin or currency. Property used in connection with the production of nonbusiness income shall be excluded from the property factor. Property used both in the regular course of taxpayer’s trade or business and in the production of nonbusiness income shall be included in the factor only to the extent the property is used in the regular course of taxpayer’s trade or business.

The method of determining that portion of the value to be included in the factor will depend upon the facts of each case.

The property factor shall include the average value of property includable in the factor (see sections (31)–(33) of this rule).

(21) Property Factor—Property Used for the Production of Business Income. Property shall be included in the property factor if it is actually used or is available for or capable of being used during the tax period in the regular course of the trade or business of the taxpayer. Property held as reserves or standby facilities or property held as a reserve source of materials shall be included in the factor. For example, a plant temporarily idle or raw material reserves not currently being processed are includable in the factor. Property or equipment under construction during the tax period (except inventory type goods in process) shall be excluded from the factor until that property is actually used in the regular course of the trade or business of the taxpayer. If the property is partially used in the regular course of the trade or business of the taxpayer while under construction, the value of the property to the extent used shall be included in the property factor. Property used in the regular course of the trade or business of the taxpayer shall remain in the property factor until its permanent withdrawal is established by an identifiable event such as its conversion to the production of nonbusiness income, its sale or the lapse of an extended period of time (normally five (5) years) during which the property is held for sale.

(A) Example: Taxpayer closed its manufacturing plant in State X and held the property for sale. The property remained vacant until its sale one (1) year later. The value of the manufacturing plant is included in the property factor until the plant is sold.

(B) Example: Same as subsection (21)(A) of this rule except that the property was rented until the plant was sold. The plant is included in the property factor until the plant is sold.

(C) Example: Taxpayer closed its manufacturing plant and leased the building under a five (5)-year lease. The plant is included in the property factor until the commencement of the lease.

(D) Example: The taxpayer operates a chain of retail grocery stores. Taxpayer closed Store A, which was then remodeled into three (3) small retail stores such as a dress shop, dry cleaning and barber shop, which were leased to unrelated parties. The property is removed from the property factor on the date the remodeling of Store A commenced.

(22) Property Factor—Consistency in Reporting. In filing returns with this state, if the taxpayer departs from or modifies the manner of valuing property, or of excluding or including property in the property factor used in returns for prior years in the return for the current year, the taxpayer shall disclose the nature and extent of the modification. If the returns or reports filed by the taxpayer with all states to which the taxpayer reports under section 32.200 (Article IV), RSMo of the Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the valuation of property and in the exclusion or inclusion of property in the property factor, in its return to this state, the taxpayer shall disclose the nature and extent of the variance.

(23) Property Factor—Numerator. The numerator of the property factor shall include the average value of the real and tangible personal property owned or rented by the taxpayer and used in this state during the tax period in the regular course of the trade or business of the taxpayer. Property in transit between locations of the taxpayer to whom it belongs shall be considered to be at the destination for purposes of the property factor. Property in transit between a buyer and seller which is included by a taxpayer in the denominator of its property factor in accordance with its regular accounting practices shall be included in the numerator according to the state of destination. The value of mobile or movable property, such as construction equipment, trucks or leased electronic equipment, which are located within and without this state during the tax period shall be determined for purposes of the numerator of the factor on the basis of total time within the state during the tax period. An automobile assigned to a traveling employee shall be included in the numerator of the factor or the state to which the employee’s compensation is assigned under that payroll factor or in the numerator of the state in which the automobile is licensed.

(24) Property Factor—Valuation of Owned Property. Property owned by the taxpayer shall be valued at its original cost. As a general rule, original cost is deemed to be the basis of the property for federal income tax purposes (prior to any federal adjustments) at the time of acquisition by the taxpayer and adjusted by subsequent capital additions or improvements and partial disposition, by reason of sale, exchange, abandonment, and the like.

(A) Example: The taxpayer acquired a factory building in this state at a cost of five hundred thousand dollars ($500,000) and eighteen (18) months later expended one hundred thousand dollars ($100,000) for major remodeling of the building.

Taxpayer filed its return for the current taxable year on the calendar-year basis. Depreciation deduction in the amount of twenty-two thousand dollars ($22,000) was claimed on the building for its return for the current taxable year. The value of the building includable in the numerator and denominator of the property factor is six hundred thousand dollars ($600,000) as the depreciation deduction is not taken into account in determining the value of the building for purposes of the factor.

(B) Example: During the current taxable year, X Corporation merges into Y Corp oration in a tax-free reorganization under the Internal Revenue Code (IRC). At the time of the merger, X Corporation owns a factory which X built five (5) years earlier at a cost of one (1) million dollars. X has been depreciating the factory at the rate of two percent (2%) per year, and its basis in X’s hands at the time of the merger is nine hundred thousand dollars ($900,000). Since the property is acquired by Y in a transaction in which, under the IRC, its basis in Y’s hands is the same as its basis in X’s, Y includes the property in Y’s property factor at X’s original cost, without adjustment for depreciation, that is one (1) million dollars.

(C) Example: Corporation Y acquires the assets of Corporation X in a liquidation by which Y is entitled to use its stock cost as the basis of the X assets under Section 334(b)(2) of the 1954 IRC (that is, stock possessing eighty percent (80%) control is purchased and liquidated within two (2) years). Under these circumstances, Y’s cost of the assets is the purchase price of the X stock prorated over the X assets.

(D) If original cost of property is unascertainable, the property is included in the factor at its fair market value as of the date of the acquisition by the taxpayer.

(E) Inventory of stock of goods shall be included in the factor in accordance with the valuation method used for federal (F) Property acquired by gift or inheritance shall be included in the factor at its basis for determining depreciation for federal income tax purposes.

(25) Property Factor—Valuation of Rented Property. Property rented by the taxpayer is valued at eight (8) times its net annual rental rate. The net annual rental rate for any item of rented property is the annual rental rate paid by the taxpayer for the property, less the aggregate annual subrental rates paid by subtenants of the taxpayer (see sections (61) and (62) of this

rule for special rules where the use of the net annual rental rate produces a negative or clearly inaccurate value or where property is used by the taxpayer at no charge or rented at a nominal rental rate).

(26) Subrentals. Subrents are not deducted when the subrents constitute business income because the property which produces the subrents is used in the regular course of a trade or business of the taxpayer when it is producing that income.

Accordingly there is no reduction in its value.

(A) Example: The taxpayer receives subrents from a baker’s concession in a food market operated by the taxpayer. Since the subrents are business income, they are not deducted from rent paid by the taxpayer for the food market.

(B) Example: The taxpayer rents a five (5)-story office building primarily for use in its multistate business, uses three (3) floors for its offices and subleases two (2) floors to various other businesses and persons such as professional people, shops and the like. The rental of the two (2) floors is incidental to the operation of the taxpayer’s trade or business. Since the subrents are business income, they are not deducted from the rent paid by the taxpayer.

(C) Example: The taxpayer rents a twenty (20)-story office building and uses the lower two (2) stories for its general corporation headquarters. The remaining eighteen (18) floors are subleased to others. The rental of the eighteen (18) floors is not incidental to but rather is separate from the operation of the taxpayer’s trade or business. Since the subrents are nonbusiness income, they are to be deducted from the rent paid by the taxpayer.

(27) Annual rental rate is the amount paid as rental for property for a twelve (12)-month period (that is, the amount of the annual rent). Where property is rented for less than a twelve (12)-month period, the rent paid for the actual period of rental shall constitute the annual rental rate for the tax period.

However, where a taxpayer has rented property for a term of twelve (12) or more months and the current tax period covers a period of less than twelve (12) months (due, for example, to a reorganization or change of accounting period), the rent paid for the short tax period shall be annualized. If the rental term is for less than twelve (12) months, the rent shall not be annualized beyond its term. Rent shall not be annualized because of the uncertain duration when the rental term is on a month-to-month basis.

(A) Example: Taxpayer A which ordinarily files its returns based on a calendar year is merged into taxpayer B on April 30.

The net rent paid under a lease with five (5) years remaining is two thousand five hundred dollars ($2,500) a month. The rent for the tax period January 1 to April 30 is ten thousand dollars ($10,000). After the rent is annualized, the net rent is thirty thousand dollars ($30,000) ($2,500 × 12).

(B) Example: Same facts as in subsection (27)(A) of this rule except that the lease would have terminated on August 31. In this case, the annualized net rent is twenty thousand dollars ($20,000) ($2,500 × 8).

(28) Annual rent is the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer or for its benefit for the use of the property and includes:

(A) Any amount payable for the use of real or tangible personal property, or any part of that property, whether designated as a fixed sum or money, or as a percentage of sales, profits or otherwise. Example: A taxpayer, pursuant to the terms of a lease, pays a lessor one thousand dollars ($1,000) per month as a base rental and at the end of the year pays the lessor one percent (1%) of its gross sales of four hundred thousand dollars ($400,000). The annual rent is sixteen thousand dollars ($16,000) – (($12,000) plus one percent (1%) of four hundred thousand dollars ($400,000) or four thousand dollars ($4,000));

(B) Any amount payable as additional rent or in lieu of rents, such as interest, taxes, insurance, repairs or any other items which are require to be paid by the terms of the lease or other arrangement, not including amounts paid as service charges, such as utilities, janitor services, and the like. If a payment includes rent and other charges unsegregated, the amount of rent shall be determined by consideration of the relative values of the rent and the other items.

Example: A taxpayer, under the terms of a lease, pays the lessor twelve thousand dollars ($12,000) a year rent plus taxes in the amount of two thousand dollars ($2,000) and interest on a mortgage in the amount of one thousand dollars ($1,000).

The annual rent is fifteen thousand dollars ($15,000).

Example: A taxpayer stores part of its inventory in a public warehouse. The total charge for the year was one thousand dollars ($1,000) of which seven hundred dollars ($700) was for the use of storage space and three hundred dollars ($300) for inventory insurance, handling and shipping charges, and cash on delivery collections. The annual rent is seven hundred dollars ($700).

(29) Annual rent does not include incidental day-to-day expenses such as hotel or motel accommodations, daily rental of automobiles and the like.

(30) Leasehold improvements, for the purposes of the property factor, shall be treated as property owned by the taxpayer regardless of whether the taxpayer is entitled to remove the improvements or the improvements revert to the lessor upon expiration of the lease. Hence, the original cost of leasehold improvements shall be included in the factor.

(31) Property Factor—Averaging Property Values. As a general

rule, the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the tax period. However, the director of revenue may require or allow averaging by monthly values if that method of averaging is required to properly reflect the average value of the taxpayer’s property for the tax period.

(32) Averaging by monthly values will generally be applied if substantial fluctuations in the values of the property exist during the tax period or where property is acquired after the beginning of the tax period or disposed of before the end of the tax period. Example: The monthly value of the taxpayer’s property was as follows:

January $ 2,000 February $ 2,000 March $ 3,000 April $ 3,500 May $ 4,500 June $ 10,000 July $ 15,000 August $ 17,000 September $ 23,000 October $ 25,000 November $ 13,000 December $ 200 Total $120,000 The average value of the taxpayer’s property includable in the property factor for the income year is determined as follows: $120,000 = $10,000 (33) Averaging with respect to rented property is achieved automatically by the method of determining the net annual rental rate of that property as set forth in sections (25)–(30) of this rule.

(34) Payroll Factor—In General. The payroll factor of the taxpayer shall include the total amount paid by the taxpayer in the regular course of its trade or business for compensation during the tax period.

(35) The total amount paid to employees is determined upon the basis of the taxpayer’s accounting method. If the taxpayer has adopted the accrual method of accounting, all compensation properly accrued shall be deemed to have been paid. Notwithstanding the taxpayer’s method of accounting, at the election of the taxpayer, compensation paid to employees may be included in the payroll factor by use of the cash method if the taxpayer is required to report that compensation under the method for unemployment compensation purposes. The compensation of any employee on account of activities which are connected with the production of nonbusiness income shall be excluded from the factor.

(A) Example: The taxpayer uses some of its employees in the construction of a storage building which, upon completion, is used in the regular course of taxpayer’s trade or business.

The wages paid to those employees are treated as a capital expenditure by the taxpayer. The amount of those wages is included in the payroll factor.

(B) Example: The taxpayer owns various securities which it holds as an investment separate and apart from its trade or business. The management of the taxpayer’s investment portfolio is the only duty of Mr. X, an employee. The salary paid for Mr. X is excluded from the payroll factor.

(36) The term compensation means wages, salaries, commissions and any other form of remuneration paid to employees for personal services. Payments made to an independent contractor or any other person not properly classifiable as an employee are excluded. Only amounts paid directly to employees are included in the payroll factor. Amounts considered paid directly include the value of board, rent, housing, lodging and other benefits or services furnished to employees by the taxpayer in return for personal services; provided, that those amounts constitute income to the recipient under the federal IRC. In the case of employees not subject to the federal IRC (for example, those employed in foreign countries), the determination of whether the benefits or services would constitute income to the employees shall be made as though those employees are subject to the federal IRC.

(37) The term employee means any officer of a corporation, or any individual who, under the usual common-law rules applicable in determining the employer-employee relationship, has the status of an employee. Generally a person will be considered to be an employee if s/he is included by the taxpayer as an employee for purposes of the payroll taxes imposed by the Federal Insurance Contributions Act (FICA); except that, since certain individuals are included within the term, employees in FICA who would not be employees under the usual commonlaw rules, it may be established that a person who is included as an employee for purposes of FICA is not an employee for purposes of this rule.

(38) Return Consistency. In filing returns with this state, if the taxpayer departs from or modifies the treatment of compensation paid used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification. If the returns or reports filed by the taxpayer with all states to which the taxpayer reports under

section 32.200 (Article IV), RSMo of this the Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the treatment of compensation paid, the taxpayer shall disclose in its return to this state the nature and extent of the variance.

(39) Payroll Factor—Denominator. The denominator of the payroll factor is the total compensation paid everywhere during the tax period. Accordingly, compensation paid to employees whose services are performed entirely in a state where the taxpayer is immune from taxation, for example, by P.L. 86-272, is included in the denominator of the payroll factor. Example:

A taxpayer has employees in its state of legal domicile (State A) and is taxable in State B. In addition the taxpayer has other employees whose services are performed entirely in State C where the taxpayer is immune from taxation by P.L. 86-272. As to these latter employees, the compensation will be assigned to State C where their services are performed (that is, included in the denominator—but not the numerator—of the payroll factor) even though the taxpayer is not taxable in State C.

(40) Payroll Factor—Numerator. The numerator of the payroll factor is the total amount paid in this state during the tax period by the taxpayer for compensation. The tests in section 32.200 (Article IV.14.), RSMo to be applied in determining whether compensation is paid in this state are derived from the Model Unemployment Compensation Act. Accordingly, if compensation paid to employees is included in the payroll factor by use of the cash method of accounting or if the taxpayer is required to report the compensation under that method for unemployment compensation purposes, it shall be presumed that the total wages reported by the taxpayer to this state for unemployment compensation purposes constitute compensation paid in this state except for compensation excluded under sections (34)–(41) of this rule. The presumption may be overcome by satisfactory evidence that an employee’s compensation is not properly reportable to this state for unemployment compensation purposes.

(41) Payroll Factor—Compensation Paid in This State.

Compensation is paid in this state if any one (1) of the following tests, applied consecutively, are met:

(A) The employee’s service is performed entirely within the state;

(B) The employee’s service is performed both within and without the state, but the service performed without the state is incidental to the employee’s service within the state. The word incidental means any service which is temporary or transitory in nature or which is rendered in connection with an isolated transaction; and (C) If the employee’s services are performed both within and without this state, the employee’s compensation will be attributed to this state if— 1. The employee’s base of operations is in this state. The term base of operations is the place of more or less permanent nature from which the employee starts his/her work and to which s/he customarily returns in order to receive instructions from the taxpayer or communications from his/her customers or other persons or to replenish stock or other materials, repair equipment or perform any other functions necessary to the exercise of his/her trade or profession at some other point(s);

There is no base of operations in any state in which some

part of the service is performed, but the place from which the service is directed or controlled is in this state; or 3. The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the employee’s residence is in this state. The term place from which the service is directed or controlled refers to the place from which the power to direct or control is exercised by the taxpayer.

(42) Sales Factor—In General. Section 32.200 (Article IV.1(7)), RSMo defines the term sales to mean all gross receipts of the taxpayer not allocated under section 32.200 (Article IV.5.–8.), RSMo. Thus, for the purposes of the sales factor of the taxpayer, the term sales means all gross receipts derived by the taxpayer from transactions and activity in the regular course of that trade or business. The following are rules for determining sales in various situations:

(A) In the case of a taxpayer engaged in manufacturing and selling or purchasing and reselling goods or products, sales includes all gross receipts from the sales of those goods or products (or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the tax period) held by the taxpayer primarily for sale to customers in the ordinary course of its trade or business. Gross receipts for this purpose means gross sales less returns and allowances, and includes all interest income, service charges, carrying charges or time-price differential charges incidental to those sales. Federal and state excise taxes (including sales taxes) shall be included as part of the receipts if those taxes are passed on to the buyer or included as part of the selling price of the product;

(B) In the case of cost plus fixed fee contracts, such as the operation of a government-owned plant for a fee, sales include the entire reimbursed cost, plus the fee;

(C) In the case of a taxpayer engaged in providing services, such as the operation of an advertising agency, or the performance of equipment service contracts, research and development contracts, sales include the gross receipts from the performance of those services including fees, commission and similar items;

(D) In the case of a taxpayer engaged in renting real or tangible property, sales include the gross receipts from the rental, lease or licensing the use of the property;

(E) In the case of a taxpayer engaged in the sale, assignment or licensing of intangible personal property, such as patents and copyrights, sales include the gross receipts from them; and (F) If a taxpayer derives receipts from the sale of equipment use in its business, these receipts constitute sales. For example, a truck express company owns a fleet of trucks and sells its trucks under a regular replacement program. The gross receipts from the sales of the trucks are included in the sales factor.

(43) Exceptions. In some cases certain gross receipts should be disregarded in determining the sales factor in order that the apportionment formula will operate fairly to apportion to this state the income of the taxpayer’s trade or business.

(44) Return Consistency. In filing returns with this state, if the taxpayer departs from or modifies the basis for excluding or including gross receipts in the sales factor used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification. If the returns or reports filed by the taxpayer with all states to which the taxpayer reports under section 32.200 (Article IV), RSMo of this Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the inclusion of exclusion of gross receipts, the taxpayer shall disclose in its return to this state the nature and extent of the variance.

(45) Sales Factor—Denominator. The denominator of the sales factor shall include the total gross receipts derived by the taxpayer from transactions and activity in the regular course of its trade or business except receipts excluded under section (64) of this rule.

(46) Sale Factor—Numerator. The numerator of the sales factor shall include gross receipts attributable to this state and derived by the taxpayer from transactions and activity in the regular course of its trade of business. All interest income, service, charges, carrying charges or time-price differential charges incidental to the gross receipts shall be included regardless of the place where the accounting records are maintained or the location of the contract or other evidence of indebtedness.

(47) Sales of Tangible Personal Property in This State. Gross receipts from sales of tangible personal property (except sales to the United States government; see section (54) of this rule) are in this state if the property is— (A) Delivered or shipped to a purchaser within this state regardless of the free on board (f.o.b.) point or other conditions of sale; or (B) Shipped from an office, store, warehouse, factory or other place of storage in this state and the taxpayer is not taxable in the state of the purchaser.

(48) Property shall be deemed to be delivered or shipped to a purchaser within this state if the recipient is located in this state, even though the property is ordered from outside this state. Example: The taxpayer, with inventory in State A, sold one hundred thousand dollars ($100,000) of its products to a purchaser having branch stores in several states including this state. The order for the purchase was placed by the purchaser’s central purchasing department located in State B. Twentyfive thousand dollars ($25,000) of the purchaser’s order was shipped directly to purchaser’s branch store in this state. The branch store in this state is the purchaser within this state with respect to twenty-five thousand dollars ($25,000) of the taxpayer’s sales.

(49) Property is delivered or shipped to a purchaser within this state if the shipment terminates in this state, even though the property is subsequently transferred by the purchaser to another state. Example: The taxpayer makes a sale to a purchaser who maintains a central warehouse in this state at which all merchandise purchases are received. The purchaser reships the goods to its branch stores in another state for sale. All of taxpayer’s products shipped to the purchaser’s warehouse in this state is property delivered or shipped to a purchaser within this state.

(50) The term purchaser within this state shall include the ultimate recipient of the property if the taxpayer in this state, at the designation of the purchaser, delivers to or has the property shipped to the ultimate recipient within this state. Example: A taxpayer in this state sold merchandise to a purchaser in State A. Taxpayer directed the manufacturer or supplier of the merchandise in State B to ship the merchandise to the purchaser’s customer in this state pursuant to purchaser’s instructions. The sale by the taxpayer is in this state.

(51) When property being shipped by a seller from the state of origin to a consignee in another state is diverted while enroute to a purchaser in this state, the sales are in this state. Example:

The taxpayer, a produce grower in State A, begins shipment of perishable produce to the purchaser’s place of business in State B. While enroute, the produce is diverted to the purchaser’s place of business in this state in which state the taxpayer is subject to tax. The sale by the taxpayer is attributed to this state.

(52) If the taxpayer is not taxable in the state of the purchaser, the sale is attributed to this state if the property is shipped from an office, store, warehouse, factory or other place of storage in this state. Example: The taxpayer has its head office and factory in State A. It maintains a branch office and inventory in this state. Taxpayer’s only activity in State B is the solicitation of orders by a resident salesman. All orders by the State B salesman are sent to the branch office in this state for approval and are filled by shipment from the inventory in this state. Since taxpayer is immune under P.L. 86-272 from tax in State B, all sales of merchandise to purchasers in State B are attributed to this state, the state from which the merchandise was shipped.

(53) If a taxpayer whose salesman operates from an office located in this state makes a sale to a purchaser in another state in which the taxpayer is not taxable and the property is shipped directly by a third party to the purchaser, the following rules apply: if the taxpayer is taxable in the state from which the third party ships the property, then the sale is in that state; and if the taxpayer is not taxable in the state from which the property is shipped, then the sale is in this state. Example:

The taxpayer in this state sold merchandise to a purchaser in State A. Taxpayer is not taxable in State A. Upon direction of the taxpayer, the merchandise was shipped directly to the purchaser by the manufacturer in State B. If the taxpayer is taxable in State B, the sale is in State B. If the taxpayer is not taxable in State B, the sale is in this state.

(54) Sales Factor—Sales of Tangible Personal Property to United States Government in This State. Gross receipts from sales of tangible personal property to the United States government are in this state if the property is shipped from an office, store, warehouse, factory or other place of storage in this state. For purposes of this rule, only sales for which the United States government makes direct payment to the seller under the terms of a contract constitute sales to the United States government. Thus, as a general rule, sales by a subcontractor to the prime contractor, the party to the contract with the United States government, do not constitute sales to the United States government.

(A) Example: A taxpayer contracts with General Services Administration to deliver X number of trucks which were paid for by the United States government. The sale is a sale to the United States government.

(B) Example: The taxpayer as a subcontractor to a prime contractor with the National Aeronautics and Space Administration contracts to build a component of a rocket for one (1) million dollars. The sale by the subcontractor to the prime contractor is not a sale to the United States government.

(55) Sales Factor—Sales Other Than Sales of Tangible Personal Property in This State. Section 32.200 (Article IV.17.), RSMo provides for the inclusion in the numerator of the sales factor of gross receipts from transactions other than sales of tangible personal property (including transactions with the United States government); under that section, gross receipts are attributed to this state if the income-producing activity which gave rise to the receipts is performed wholly within this state.

Also, gross receipts are attributed to this state if, with respect to a particular item of income, the income-producing activity is performed within and without this state but the greater proportion of the income-producing activity is performed in this state, based on costs of performance.

(56) Income-Producing Activity. The term income-producing activity applies to each separate item of income and means the transactions and activity directly engaged in by the taxpayer in the regular course of its trade or business for the ultimate purpose of obtaining gains or profit. This activity does not include transactions and activities performed on behalf of a taxpayer, such as those conducted on its behalf by an independent contractor. Accordingly, income-producing activity includes, but is not limited to, the following:

(A) The rendering of personal services by employees or the utilization of tangible and intangible property by the taxpayer in performing a service;

(B) The sale, rental, leasing, licensing or other use of real property;

(C) The rental, leasing, licensing or other use of tangible personal property; and (D) The sale, licensing or other use of intangible personal property.

(57) The mere holding of intangible personal property is not, of itself, an income-producing activity.

(58) Costs of Performance. The term costs of performance means direct costs determined in a manner consistent with generally accepted accounting principles and in accordance with accepted conditions or practices in the trade or business of the taxpayer.

(59) Receipts (other than from sales of tangible personal property), in respect to a particular income-producing activity, are in this state if the income-producing activity is performed— (A) Wholly within this state; or (B) Both inside and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.

(60) Special Rules. The following are special rules for determining when receipts from the income-producing activities described in the following are in this state:

(A) Gross receipts from the sale, lease, rental or licensing of real property are in this state if the real property is located in this state;

(B) Gross receipts from the rental, lease or licensing of tangible personal property are in this state if the property is located in this state. The rental, lease, licensing or other use of tangible personal property in this state is a separate income-producing activity from the rental, lease, licensing or other use of the same property while located in another state; consequently, if property is within and without this state during the rental, lease or licensing period, gross receipts attributable to this state shall be measured by the ratio which the time the property was physically present or was used in this state bears to the total time or use of the property everywhere during that period. Example: Taxpayer is the owner of ten (10) railroad cars. During the year, the total of the days each railroad car was present in this state was fifty (50)

days. The receipts attributable to the use of each of the railroad cars in this state are a separate item of income and shall be determined as follows:

(10 X 50) = 500

X Total Receipts = Receipts Attributable to this State; and (C) Gross receipts for the performance of personal services are attributable to this state to the extent those services are performed in this state. If services relating to a single item of income are performed partly within and partly without this state, the gross receipts for the performance of those services shall be attributable to this state only if a greater proportion of the services was performed in the state, based on costs of performance. Usually, where services are performed partly within and partly without this state, the services performed in each state will constitute a separate income-producing activity; in that case, the gross receipts for the performance of services attributable to this state shall be measured by the ratio which the time spent in performing the services in this state bears to the total time spent in performing the services everywhere. Time spent in performing services includes the amount of time expended in the performance of a contract or other obligation which gives rise to the gross receipts. Personal service not directly connected with the performance of the contract, or other obligation, as for example, time expended in negotiating the contract, is excluded from the computations.

Example: Taxpayer, a road show, gave theatrical performances at various locations in State X and in this state during the tax period. All gross receipts from performances given in this state are attributed to this state.
Example: Taxpayer, a public opinion survey corporation, conducted a poll by its employees in State X and in this state for the sum of nine thousand dollars ($9,000). The project required six hundred (600) man-hours to obtain the basic data and prepare the survey report. Two hundred (200) of the six hundred (600) man-hours were expended in this state. The receipt attributable to this state is: $3,000 ( 200 × $9,000 = $3,000)

(61) Section 32.200 (Article IV.18.), RSMo provides that, if the allocation and apportionment provisions of section 32.200 (Article IV), RSMo do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for or the director of revenue may require, in respect to any part of the taxpayer’s business activity, if reasonable— (A) Separate accounting;

(B) The exclusion of any one (1) or more of the additional factors;

(C) The inclusion of one (1) or more additional factors which will fairly represent the taxpayer’s business activity in this state; or (D) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s (62) Section 32.200 (Article IV.18.), RSMo permits a department from the allocation and apportionment provisions of section 32.200 (Article IV), RSMo only in limited and specific cases.

Section 32.200 (Article IV.18.), RSMo may be invoked only in specific cases where unusual fact situations (which ordinarily will be unique and nonrecurring) produce incongruous results under the apportionment and allocation provisions contained in section 32.200 (Article IV), RSMo. In the case of certain industries such as air transportation, rail transportation, ship transportation, trucking, television, radio, motion pictures, various types of professional athletics etc., the sections of this

rule in respect to the apportionment formula do not set forth appropriate procedures for determining the apportionment factors. Nothing in section 32.200 (Article IV.18.), RSMo or in sections (61)–(64) of this rule shall preclude the director of revenue from establishing appropriate procedures under

section 32.200 (Article IV.10.–17.), RSMo for determining the apportionment factors for these industries, but those procedures shall be applied uniformly.

(63) Special Rules—Property Factor. The following special rules are established in respect to the property factor of the apportionment formula:

(A) If the subrents taken into account in determining the net annual rental rate under sections (25)–(30) of this rule produce a negative or clearly inaccurate value for any item of property, another method which will properly reflect the value of rented property may be required by the director of revenue or requested by the taxpayer. In no case, however, shall that value be less than an amount which bears the same ratio to the annual rental rate paid by the taxpayer for the property as the fair market value of that portion of the property used by the taxpayer bears to the total fair market value of the rented property. Example: The taxpayer rents a ten (10)-story building at an annual rental rate of one (1) million dollars.

Taxpayer occupies two (2) stories and sublets eight (8) stories for one (1) million dollars a year. The net annual rental rate of the taxpayer must not be less than two-tenths (2/10) of the taxpayer’s annual rental rate for the entire year or two hundred thousand ($200,000); and (B) If property owned by others is used by the taxpayer at no charge or rented by the taxpayer for a nominal rate, the net annual rental rate for that property shall be determined on the

basis of a reasonable market rental rate for the property.

(64) Special Rules—Sales Factor. The following special rules are established in respect to the sales factor of the apportionment formula:

(A) Where substantial amounts of gross receipts arise from an incidental or occasional sale of a fixed asset used in the regular course of the taxpayer’s trade or business, those gross receipts shall be excluded from the sales factor. For example, gross receipts from the sale of a factory or plant will be excluded;

(B) Insubstantial amounts of gross receipts arising from incidental or occasional transactions or activities may be excluded from the sales factor unless the exclusion would materially affect the amount of income apportioned to this state. For example, the taxpayer ordinarily may include or exclude from the sales factor gross receipts from transactions such as the sale of office furniture, business automobiles, and the like; and (C) Where the income-producing activity in respect to business income from intangible personal property can be readily identified, that income included in the denominator of the sales factor and, if the income-producing activity occurs in this state, in the numerator of the sales factor as well. For example, usually the income-producing activity can be readily identified in respect to interest income received on deterred payments on sales of tangible property (subsection (42)(A) of this rule) and income from the sale, licensing or other use of intangible personal property (subsection (56)(D) of this rule).

Where business income from intangible property cannot readily be attributed to any particular income-producing activity of the taxpayer, that income cannot be assigned to the numerator of the sales factor for any state and shall be excluded from the denominator of the sales factor. For example, where business income in the form of dividends received on stock, royalties received on patents or copyrights, or interest received on bonds, debentures or government securities results from the mere holding of the intangible personal property by the taxpayer, the dividends and interest shall be excluded from the denominator of the sales factor.

(65) Single Trade or Business. The determination of whether the activities of the taxpayer constitute a single trade or business or more than one (1) trade or business will be established by the facts in each case. In general, the activities of the taxpayer will be considered a single business if there is evidence to indicate that the segments under consideration are integrated with, dependent upon or contribute to each other and the operations of the taxpayer as a whole. The following factors are considered to be good indicia of a single trade or business and the presence of any of these factors creates a strong presumption that the activities of the taxpayer constitute a single trade or business:

(A) Same Type of Business. A taxpayer is generally engaged in a single trade or business when all of its activities are in the same general line. For example, a taxpayer which operates a chain of retail grocery stores will almost always be engaged in a single trade or business;

(B) Steps in a Vertical Process. A taxpayer is almost always engaged in a single trade or business when its various divisions or segments are engaged in different steps in a large, vertically structured enterprise. For example, a taxpayer which explores for and mines copper ores; concentrates, smelts and refines the copper ores; and fabricates the refined copper into consumer products in engaged in a single trade or business, regardless of the fact that the various steps in the process are operated substantially independently of each other with only general supervision from the taxpayer’s executive offices; and (C) Strong Centralized Management. A taxpayer which might otherwise be considered as engaged in more than one (1) trade or business is properly considered as engaged in one (1) trade or business when there is a strong central management, coupled with the existence of centralized departments for functions, such as financing, advertising, research or purchasing. Thus, some conglomerates may properly be considered as engaged in only one (1) trade or business when the central executive officers are normally involved in the operations of the various divisions and there are centralized offices which perform for the divisions the normal matters which a truly independent business would perform for itself, such as accounting, personnel, insurance, legal, purchasing, advertising or financing.

(66) Combined Reports Prohibited. Returns which combine and apportion the taxable income of more than one (1) corporation are prohibited, except to the extent that they satisfy the requirements of section 143.431.3., RSMo.

In re Kansas City Star Co., 142 SW2d 1029 (1940). Trial court did not err by rejection offered finding that state auditor had promulgated a rule during the years 1934, 1935 and 1936 declaring the total net income of manufacturing and business companies subject to income tax unless they had a branch house or capital investment outside the state. This rule had been promulgated under former Missouri St. Ann, section 10115, but subsequently overturned by Supreme Court.

History

AUTHORITY: section 143.961, RSMo 1986. Regulation 1.32.200-IV was first filed Dec. 30, 1975, effective Jan. 9, 1976. Amended: Filed Feb. 24, 1984, effective June 11, 1984. Amended: Filed July 2, 1985, effective Oct. 11, 1985. Amended: Filed Oct. 8, 1986, effective Jan. 30, 1987.

12 CSR 10-2.076 Allocation and Apportionment (Beginning on or After January 1, 2020) {#sec-12-csr-10-2.076 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.076}

PURPOSE: This rule interprets sections 143.431 and 143.455, RSMo for purposes of the apportionment and allocation of a corporate taxpayer’s income where that taxpayer is taxable in another state.

(1) Income Derived from Sources Within this State. On or after January 1, 2020, a corporation’s income derived from sources within Missouri is its federal taxable income allocated to Missouri or apportioned to Missouri pursuant to section 143.455, RSMo. Section 143.455, RSMo replaces all methods and tests previously used in Missouri to apportion and allocate corporate income, including the ‘source of income test’ and the Multistate Tax Compact three-factor method.

(2) Definitions.

(A) “Allocation” refers to the assignment of a portion of net income to a particular state. Any taxpayer subject to the taxing jurisdiction of this state shall assign all of its nonapportionable income within or without this state in accordance with sections 143.455.5.-143.455.9., RSMo.

(B) “Apportionment” refers to the division of apportionable income between states by the use of a formula containing one (1) or more apportionment factors.

(C) “Director” or “Director of Revenue” shall mean the Missouri Director of Revenue or his/her duly authorized agent or designee.

(D) “Franchise tax,” as that term is used in section 143.455.4., RSMo and in this regulation, means a tax, or a portion of a tax, charged for the privilege of doing business in a state.

(E) “Gross receipts” are the gross amounts realized (the sum of money and the fair market value of other property or services received) on the sale or exchange of property, the performance of services, or the use of property or capital in a transaction which produces apportionable income in which the income or loss is recognized under the Internal Revenue Code, and, where the income of foreign entities is included in apportionable income, amounts which would have been recognized under the Internal Revenue Code if the relevant transactions or entities were in the United States. Amounts realized on the sale or exchange of property are not reduced for the cost of goods sold or the basis of property sold.

(F) “Net Income,” for purposes of section 143.455, RSMo, means the taxpayer’s federal taxable income, net of Missouri additions, subtractions and deductions; except, that in section 143.455.10., RSMo the phrase “net income” refers to that portion of the taxpayer’s federal taxable income, net of Missouri additions, subtractions, and deductions which also constitutes apportionable income.

(G) “Petition” or “Petitioning,” as those terms are used in

section 143.455.13.(2)-(3), RSMo, means the filing of written or electronic document(s) with the director at least sixty (60) days before the end of the tax year to which alternative apportionment is sought to apply, in the manner prescribed, and containing the following information:

The name and tax identification number of the taxpayer seeking alternative apportionment;
The name, telephone number, email address, and mailing address of each individual filing the petition on behalf of the taxpayer;
A power of attorney form (Form 2827) signed by an officer of the corporation authorizing the person(s) named in paragraph (2)(G)2. above to serve as an authorized agent with respect to any of the tax years to which the alternative apportionment may apply and all previous tax years that may be discussed in connection with the petition;
A statement describing with particularity the alternative apportionment method sought;
A statement setting forth the facts and arguments from the facts to the conclusion that the ordinary allocation and apportionment provisions of section 143.455, RSMo do not fairly represent the extent of the corporation’s income applicable to this state;
A statement setting forth the facts and arguments from the facts to the conclusion that the alternative apportionment method sought by the taxpayer is reasonable;
A Missouri tax return for the first tax year the alternative apportionment method is to be applied, completed using the ordinary apportionment and allocation provisions of section 143.455, RSMo, and prepared using reasonably estimated figures; and 8. A Missouri tax return for the first tax year the alternative apportionment method is to be applied, completed using the alternative apportionment method sought, and prepared using reasonably estimated figures.

(H) “Receipts” has the meaning given in section 143.455.3.(6), RSMo, with the following clarifications:

Receipts from the maturity of a bond or other debt instrument are excluded from the definition of “receipts” used in section 143.455.3.(6), RSMo;
Receipts from the sale or exchange of a security are excluded from the definition of “receipts” used in section 143.455.3.(6), RSMo, even if the sale or exchange was made as

part of a corporation’s regular business; and 3. Receipts from the sale or exchange of currency, including foreign currencies or cryptocurrencies, are excluded from the definition of “receipts” used in section 143.455.3.(6), RSMo.

(I) “Receipts Factor” means the fraction stated in section 143.455.10., RSMo, the numerator of which is the total receipts of the corporation in Missouri during the tax period and the denominator of which is the total receipts of the corporation everywhere during the tax period.

(J) “Securities,” means any interest or instrument commonly treated as a security as well as other instruments which are customarily sold in the open market or on a recognized exchange, including, but not limited to, transferable shares of a beneficial interest in any corporation or other entity, bonds, debentures, notes, and other evidences of indebtedness, accounts receivable and notes receivable, cash and cash equivalents including foreign currencies, and repurchase and futures contracts.

(K) “Taxpayer” or “Entity” means any individual, corporation, partnership, firm, association, or governmental unit.

(L) “Ultimate beneficiary of the service,” as that term is used in section 143.455.12.(1)(c), RSMo and except for bartering or similar in-kind transactions, means the entity that receives benefit or value from, but does not also receive monetary or credit-based payment (other than refunds, cashback, or discount-equivalents) in direct connection with, the service at issue. Examples of the ultimate beneficiary of the service include:

For entertainment services, the individual(s) viewing, interacting with, experiencing, or otherwise deriving entertainment value from such services;
For education services, the individual(s) receiving instruction, teaching, coaching, or lectures from the education provider, regardless of the medium used to transmit such educational content (e.g. telephonically or by internet or mail);
For investment advising or investment management services, the location of the ultimate investor, determined by ignoring investment intermediaries such as investment funds;
For advertising services, the entities which have their products, services, or messages advertised through the provider of advertising services.

(3) Apportionable Income. All income is presumed to be apportionable unless it is clearly nonapportionable under the U.S. Constitution or the laws of this state. Sections 143.455.5. through 143.455.9., RSMo provide for the allocation of certain categories of income only if that income is nonapportionable.

In general all transactions and activities of the taxpayer which are dependent upon, or contribute to, the operations of the taxpayer’s economic enterprise as a whole constitute the taxpayer’s trade or business and will be transactions and activity arising in the regular course of, or will constitute integral parts of, a trade or business. Income from such transactions and activities is apportionable income, although the concept of apportionable income extends to all income of the taxpayer unless nonapportionable.

(4) Accounting Terms and Classification Conventions. The categories and terms to describe income items used in financial or other forms of accounting, or as conventions by any taxpayer or industry, are not conclusive in determining whether any item of income constitutes apportionable or nonapportionable income. The classification of income by the labels occasionally used, such as manufacturing income, compensation for services, sales income, interest, dividends, rents, royalties, gains, operating income, nonoperating income, and the like, is not conclusive in determining whether income is apportionable or nonapportionable income.

(5) Taxable in Another State. For purposes of section 143.455.4.(2), RSMo, another state has jurisdiction to subject the taxpayer to a net income tax in the following circumstances. The circumstances provided are non-exclusive and a taxpayer may be subject to a net income tax in another state even if it fails to meet any of the following:

(A) The taxpayer has its commercial domicile in another state; or (B) The taxpayer derives income from a part of its unitary business in another state, and that taxpayer is not entitled to the protections of the Interstate Income Act of 1959 with respect to that state.

Even if a state cannot impose a tax on a taxpayer’s net income by operation of the Interstate Income Act of 1959, a taxpayer is still taxable in that state if the taxpayer is subject to a franchise measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax in that state. A taxpayer is not taxable in another state with respect to a particular trade or business merely because the taxpayer conducts activities in the other state pertaining to the production of nonapportionable income or business activities relating to a separate trade or business not taxable by that state under the U.S. Constitution.

(6) Consistency in Reporting. In filing returns with this state, if the taxpayer departs from or modifies the manner in which the same item of income has been classified as apportionable income or nonapportionable income in returns for prior years, the taxpayer shall disclose in an attachment to the return for the current year the nature and extent of the modification.

(7) Taxable In Another State—Reporting. Any taxpayer which asserts that it is subject to one (1) of the taxes generally described in section 143.455.4., RSMo in another state shall furnish to the director, upon his/her request, evidence to support the assertion. The director may request proof the taxpayer has filed the requisite tax return in the other state and has paid any taxes imposed under the law of the other state. The taxpayer’s failure to produce proof may be taken into account in determining whether the taxpayer in fact is subject to tax in another state. If the taxpayer pays a minimal fee for qualification, organization, or for the privilege of doing business in the state, but does not actually engage in business activity in that state, or does actually engage in some business activity, not sufficient for income tax, franchise tax, or stock tax nexus, and the minimum tax bears no relation to the taxpayer’s business activity within that state, the taxpayer is not subject to tax in another state for purposes of section 143.455.4., RSMo.

(A) Example: State A has a corporation franchise tax measured by net income for the privilege of doing business in that state.

Corporation X files a return and pays the fifty-dollar ($50) minimum tax, although it carries on no business activity in State A. Corporation X is not taxable in State A.

(8) Taxability. The concept of taxability in another state is based upon the premise that every state in which the taxpayer is engaged in business activity may impose an income, franchise, or stock tax even though every state does not do so. In states which do not impose such taxes, other types of taxes, fees, or even penalties may be imposed as a substitute for an income, franchise, or stock tax. Therefore, only those taxes generally described in section 143.455.4., RSMo, which are essentially revenue raising, rather than penalties or occupational/business licenses that are not essentially revenue raising, shall be considered in determining whether the taxpayer is subject to one of the taxes generally described in section 143.455.4., RSMo, in another state. Jurisdiction to tax is not present where the state is prohibited from imposing the tax by reason of the provisions of P.L. 86-272, 15 USCA Sections 381-385, and is further prohibited by federal law from imposing a franchise tax measured by net income or for the privilege of doing business, or a corporate stock tax.

(A) Example: State A requires all nonresident corporations which qualify or register in State A to pay to the secretary of state an annual license fee or tax for the privilege of doing business in the state regardless of whether the privilege is in fact exercised. The amount paid is determined according to the total authorized capital stock of the corporation, and the rates are progressively higher by bracketed amounts. The statute sets a minimum fee of fifty dollars ($50) and a maximum fee of five hundred dollars ($500). Failure to pay the tax bars a corporation from utilizing the state courts for enforcement of its rights. State A also imposes a corporation income tax.

(B) Example: Same facts as in the previous subsection except that Corporation X is subject to and pays the corporation income tax. Payment is prima facie evidence that Corporation X is subject to the net income tax of State A and is taxable in State A.

(C) Example: State B requires all nonresident corporations qualified or registered in State B to pay to the secretary of state an annual permit fee or tax for doing business in the state. The base of the fee or tax is the sum of outstanding capital stock, surplus, and undivided profits. The fee or tax base attributable to State B is determined by a three-factor apportionment formula. Nonresident Corporation X which operates a plant in State B pays the required fee or tax to the secretary of state.

Corporation X is taxable in State B.

(D) Example: State A has a corporation franchise tax measured by net income for the privilege of doing business in that state.

Corporation X files a return based upon its business activity in the state but the amount of computed liability is less than the minimum tax. Corporation X pays the minimum tax.

Corporation X is subject to State A’s corporation franchise tax.

(9) Receipts Factor. Generally, all gross receipts of a taxpayer that are received from transactions and activity in the regular course of the taxpayer’s trade or business are considered receipts for purposes of the receipts factor. Where a taxpayer’s entire activity in the regular course of trade or business is composed of hedging transactions or the disposition of cash or securities, such that the denominator of the receipts factor would be zero, the total receipts factor shall be one hundred percent (100%); in such instances, taxpayers are invited to apply for alternative apportionment pursuant to section 143.455.13., RSMo. Exclusion of an item from the definition of “receipts” is not determinative of its character as apportionable or nonapportionable income. The following are additional rules for determining “receipts” in various situations:

(A) In the case of a taxpayer engaged in manufacturing and selling or purchasing and reselling goods or products, “receipts” includes all gross receipts from the sales of such goods or products (or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the tax period) held by the taxpayer primarily for sale to customers in the ordinary course of its trade or business. Gross receipts for this purpose means gross sales less returns and allowances;

(B) When property being shipped by a seller from the state of origin to a consignee in another state is diverted while en route to a purchaser in this state, the sales are in this state.

Example: The taxpayer, a produce grower in State A, begins shipment of perishable produce to the purchaser’s place of business in State B. While en route, the produce is diverted to the purchaser’s place of business in this state in which state the taxpayer is subject to tax. Receipts from this sale by the taxpayer are attributed to this state;

(C) In the case of cost plus fixed fee contracts, such as the operation of a government-owned plant for a fee, “receipts” includes the entire reimbursed cost plus the fee;

(D) In the case of a taxpayer engaged in providing services, such as the performance of equipment service contracts or research and development contracts, “receipts” includes the gross receipts from the performance of such services, including fees, commissions, and similar items;

(E) In the case of a taxpayer engaged in the sale of equipment used in the taxpayer’s trade or business, where the taxpayer disposes of the equipment under a regular replacement program, “receipts” includes the gross receipts from the sale of this equipment. For example, a truck-based delivery company that owns a fleet of trucks and sells its trucks under a regular replacement program the gross receipts from the sale of the trucks would be included in “receipts”; and (F) For purposes of determining the receipts factor, receipts are presumed not to include: 1) damages and other amounts received as the result of litigation; 2) where the taxpayer is an agent of another, property acquired by that agent on behalf of another; 3) tax refunds and other tax benefit recoveries;

contributions to capital; 5) income from forgiveness of indebtedness; 6) amounts realized from exchanges of inventory that are not recognized by the Internal Revenue Code; or 7) amounts realized as a result of factoring accounts receivable recorded on an accrual basis; and 8) repayment of loan principal.

(10) Ultimate Beneficiary Approximation. In the event that the ultimate beneficiary is a corporation or other entity that owns, or operates in, locations in multiple states, and the extent to which the ultimate beneficiary is located in Missouri is not reasonably determinable— (A) The extent to which the ultimate beneficiary is located in Missouri may be reasonably approximated as the ratio of the ultimate beneficiary’s locations in Missouri to the number of its locations throughout the United States;

(B) If the ratio in subsection (10)(A) above is not reasonably determinable, the extent to which that ultimate beneficiary is located in Missouri may be approximated as the ratio of one to the number of states in which the ultimate beneficiary operates; and (C) If the ratio in subsection (10)(B) is not reasonably determinable, the extent to which the ultimate beneficiary is located in Missouri may be approximated as fifty percent (50%). A taxpayer shall not be subject to an addition to tax for negligence in relying upon this approximation.

(11) Alternative Apportionment by the Director. Consistent with

section 143.455.13., RSMo, the director may adjust a taxpayer’s return to utilize, or if no return was filed the director may utilize in estimating Missouri taxable income, an alternative apportionment method in order to equitably allocate and apportion the corporation’s income. In this event, a taxpayer adversely affected by this determination challenges such a determination by raising it as an issue in the taxpayer’s protest of a notice of deficiency under section 143.631, RSMo, or refund denial under section 143.841, RSMo. Whether the director has proven the requirements of section 143.455.13.(3)(a)-(b), RSMo, by a preponderance of the evidence is a determination within the director’s discretion.

(12) Petition for Alternative Apportionment by the Taxpayer. A taxpayer may seek alternative apportionment under section 143.455.13.(2), RSMo by filing a petition in the manner prescribed on the director’s website or latest corporate income tax return instructions. A petition is subject to denial if it fails to comport with the definition of petition set forth in this regulation. A denial by the director may be appealed to the Administrative Hearing Commission consistent with section 621.050, RSMo.

(13) Transactions and Activity in the Regular Course of the Taxpayer’s Trade or Business. For a transaction or activity to be in the regular course of the taxpayer’s trade or business, the transaction or activity need not be one that frequently occurs in the trade or business. Most, but not all, frequently occurring transactions or activities will be in the regular course of that trade or business. It is sufficient to classify a transaction or activity as being in the regular course of a trade or business, if it is reasonable to conclude transactions of that type are customary in the kind of trade or business being conducted or are within the scope of what that kind of trade or business does. However, even if a taxpayer frequently or customarily engages in investment activities, if those activities are for the taxpayer’s mere financial betterment rather than for the operations of the trade or business, such activities are not in the regular course of the taxpayer’s trade or business. Examples of income from activity in the regular course of the taxpayer’s trade or business include, but are not limited to:

(A) Income from sales of inventory, property held for sale to customers, and services which are commonly sold by the trade or business; and (B) Income from the sale of property used in the production of apportionable income of a kind that is sold and replaced with some regularity, even if replaced less frequently than once a year.

(14) Unitary Business of the Taxpayer.

(A) A unitary business is a single economic enterprise that is made up either of separate parts of a single entity or of a commonly controlled group of entities that are sufficiently interdependent, integrated, or interrelated through their activities so as to provide synergy, mutual benefit, the sharing or exchange of value among them, or a significant flow of value to the separate parts of the economic enterprise. This sharing, exchange, or flow of value may also be described as requiring that the operation of one (1) part of the business be dependent upon, or contribute to, the operation of another part of the business. If the activities of one (1) business either contributes to the activities of another business or are dependent upon the activities of another business, those businesses are part of a unitary business. A single taxpayer may have more than one (1) unitary business.

(B) A unitary business may exist within a single taxpayer or among a commonly controlled group of taxpayers. A taxpayer’s formal business organization structure is not determinative of a taxpayer’s unitary business.

(C) The purpose of this subsection is to clarify the concept of “unitary business” to aid in determining a taxpayer’s apportionable income. A taxpayer’s apportionable income includes, but is not necessarily limited to, the income from one (1) or more unitary business(es) of the taxpayer, any part of which is conducted within Missouri. An item of income is from a unitary business if it is described by either sections 143.455.3.(1)(a)a. or 143.455.3.(1)(a)b., RSMo, but the concept of unitary business income is not necessarily limited to income described in those statutory provisions.

(D) The factors of functional integration, centralization of management, and economies of scale, alone or in combination, provide evidence of whether a set of business activities constitutes a unitary business. Further indicators providing evidence of a unitary business include business activities in the same line of business or business activities which are steps in a vertical business process.

(E) Nothing in this section should be construed to create a “combined reporting” requirement under which a taxpayer is obligated to include in its consolidated group on its consolidated Missouri tax return all entities with which the taxpayer has a unitary business relationship.

(F) A taxpayer’s unitary business is presumed to include, but is not presumptively limited to, the industry description within the North American Industry Classification System corresponding to the Principal Business Activity Code(s) reported on the taxpayer’s federal income tax return or related filings.

History

AUTHORITY: section 143.961, RSMo 2016, and section 143.455, RSMo Supp. 2020. Original rule filed Sept. 8, 2020, effective March 30, 2021. Original authority: 143.455, RSMo 2018 and 143.961, RSMo 1972.

12 CSR 10-2.080 Domestic International Sales Corporations {#sec-12-csr-10-2.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.080}

PURPOSE: The director of revenue has the responsibility of administering the Missouri income tax laws and, in that capacity, is required to interpret the taxing statute. This rule sets forth the interpretation of Chapter 143, RSMo by the Missouri Department of Revenue regarding income taxation of domestic international sales corporations.

(1) Any corporation which satisfies the requirements of Section 992 of the Internal Revenue Code of 1986 for a taxable year and is excepted from the imposition of federal income taxes as a domestic international sales corporation (DISC) shall not be subject to the Missouri income tax on corporations for that same taxable year.

History

AUTHORITY: section 143.961, RSMo 2016. Original rule filed July 13, 1976, effective Oct. 11, 1976. Amended: Filed July 13, 2023, effective Feb. 29, 2024.

12 CSR 10-2.085 Credit for New or Expanded Business Facility {#sec-12-csr-10-2.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.085}

(Rescinded April 30, 2022)

History

AUTHORITY: section 135.150, RSMo 1986. Original rule filed Jan. 15, 1985, effective June 13, 1985. Rescinded: Filed Oct. 12, 2021, effective April 30, 2022.

12 CSR 10-2.090 Computation of Federal Income Tax Deduction for Consolidated Groups {#sec-12-csr-10-2.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.090}

PURPOSE: This rule sets out the formula that will be used to determine the federal income tax deduction of a member of the affiliated group for each taxable year an affiliated group of corporations filed a federal consolidated income tax return and did not file a Missouri consolidated income tax return.

(1) For each taxable year an affiliated group of corporations filing a federal consolidated income tax return does not file a Missouri consolidated income tax return, the federal income tax deduction of a member of the affiliated group shall be determined by applying the formula set forth as follows:

(A) The group’s consolidated federal income tax liability under Chapter 1 of the Internal Revenue Code (IRC) for the same taxable year for which the Missouri return is being filed after reduction for all credits on the return, except for the credit for the overpayment of any federal tax and the credits allowed by the IRC of 1986 by Section 31 (tax withheld on wages), Section 27 (taxes of foreign countries and possessions of the United States) and Section 34 (certain uses of gasoline and special fuels) shall be multiplied by a fraction, the numerator of which shall be the federal taxable income of the member in question and the denominator of which shall be the sum of the federal taxable incomes of each member of the consolidated group with a positive federal taxable income; and (B) The product computed in subsection (1)(A) shall be multiplied by the apportionment factor of the member in question calculated under section 143.455, RSMo, or such other apportionment factor as is computed under the apportionment method applicable to the member in question.

rule filed Feb. 24, 1984, effective June 11, 1984. Amended: Filed Aug. 17, 1984, effective Dec. 13, 1984. Amended: Filed Nov. 9, 2023, effective May 30, 2024. *Original authority: 143.431, RSMo 1972, amended 2004, 2007, 2018, and 143.961, RSMo 1972.

History

AUTHORITY: sections 143.431 and 143.961, RSMo 2016. Original

12 CSR 10-2.105 Report of Changes in Federal Income Tax Return {#sec-12-csr-10-2.105 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.105}

PURPOSE: Under the State Income Tax Law (section 143.011, RSMo), this rule establishes the proper procedures for reporting any change in the taxpayer’s federal taxable income or federal income tax liability for the purpose of the determination of the correct state income tax liability.

(1) In General. If the taxpayer’s federal taxable income or federal tax reported on their federal income tax return is changed, the taxpayer shall file an amended return with the Department of Revenue reflecting the final determination.

(2) Time of Notice. The taxpayer must report any change within ninety (90) days after the final determination of the change and pay any tax due. Interest is due pursuant to section 143.731, RSMo. Failure to pay the tax due within ninety (90) days will result in additions to tax of five percent (5%).

(3) Final Determination. For the purposes of this rule, the following shall be deemed a final determination:

(A) Payment of any additional federal income tax, not the subject of any other final determination described in subsections (3)(B)–(F) of this rule;

(B) The signing of a Federal Form 870 Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overassessment or other IRS form consenting to the deficiencies, accepting any over-assessment shown on the form, or both. However, where the signature of an authorized representative of the IRS is also required, the final determination shall occur when the taxpayer receives notice of the signing by the IRS;

(C) The expiration of the ninety (90)-day time period (one hundred fifty (150)-day period in the case of notice addressed to a person outside the United States and the District of Columbia) within which a petition for redetermination may be filed with the United States Tax Court with respect to a statutory notice of deficiency issued by the IRS, if a petition is not filed with that court within that time;

(D) A closing agreement entered into with the IRS under

Section 7121 of the Internal Revenue Code (IRC). The final determination shall occur when the taxpayer receives notice of the signing by the commissioner of internal revenue;

(E) A decision by the United States Tax Court, United States District Court, United States Court of Appeals, United States Court of Claims or the United States Supreme Court which has become final, or the date the court approves a voluntary agreement stipulating disposition of the case; and (F) The allowance of a tentative carryback adjustment in accordance with Section 6411 of the IRC based on a net operating loss carryback.

(4) Requirements for Reporting Federal Change. An amended return shall be filed as specified in section (5) reflecting and explaining all changes affecting the original return filed.

In addition, a copy of the Summary of the Federal Revenue Agent’s Report (commonly referred to as an RAR) using Form 886-A or Form 4549, a copy of a closing agreement entered into with the IRS under Section 7121 of the IRC or a copy of a final court decision, as appropriate, shall be submitted in support of the Report of Change.

(5) Amended Returns. If a taxpayer files an amended federal income tax return, an amended state income tax return reflecting the same changes shall be filed with the Department of Revenue. The amended tax return and any additional tax due shall be filed and paid within ninety (90) days after the amended return is filed with the IRS or within ninety (90) days of the final determination.

(6) Assessment. If a taxpayer fails to comply with the requirements of reporting a federal change as outlined in this

rule, a notice of deficiency may be issued at any time within one (1) year after the director of revenue becomes aware of any change. The amount of any proposed assessment, set forth in the notice of deficiency, shall be limited to the changes outlined in the federal determination and how they affect Missouri taxable income. However, the limitations contained in this section shall not be construed to reduce the statute of limitations that would otherwise be applicable.

(7) Claim for Refund Period. A taxpayer may file a claim for refund not later than one (1) year and ninety (90) days after the date of final determination as specified in section (3) except as provided in subsections 143.801.5. and 6., RSMo. The claim shall be limited to the changes set forth in the federal determination. The limitations contained in this section shall not be construed to reduce the statute of limitations that would otherwise be applicable. Interest on a claim for refund filed after the ninety (90)-day period specified in section (2), will cease to accrue after the ninetieth day.

(8) The Federal Forms 886-A, Form 4549, and Form 870 Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overassessment dated May 2, 2023, are incorporated by reference and made a part of this rule as published by the Internal Revenue Service, and available at www. irs.gov or Harry S Truman State Office Building, 301 West High Street, Jefferson City, MO 65101. This rule does not incorporate any subsequent amendments or additions.

History

AUTHORITY: section 143.961, RSMo 2016. Original rule filed July 31, 1984, effective Jan. 12, 1985. Amended: Filed Sept. 1, 1993, effective Jan. 31, 1994. Amended: Filed Oct. 24, 1997, effective April 30, 1998. Amended: Filed May 15, 2023, effective Dec. 30, 2023.

12 CSR 10-2.110 Penalty for Filing Incomplete or Misleading Income Tax Returns {#sec-12-csr-10-2.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.110}

(Rescinded December 26, 1985)

History

AUTHORITY: section 143.961, RSMo 1978. Original rule filed Aug. 13, 1984, effective Dec. 13, 1984. Rescinded: Filed July 23, 1985, effective Dec. 26, 1985.

12 CSR 10-2.115 Enterprise Zone Credit and Exemption {#sec-12-csr-10-2.115 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.115}

(Rescinded July 30, 1994)

History

AUTHORITY: section 135.250, RSMo 1986. Original rule filed Jan. 15, 1985, effective June 13, 1985. Rescinded: Filed Feb. 4, 1994, effective July 30, 1994.

12 CSR 10-2.120 Information at Source Reporting Requirements {#sec-12-csr-10-2.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.120}

History

AUTHORITY: section 143.591, RSMo 1994. Original rule filed Jan. 15, 1985, effective June 13, 1985. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

12 CSR 10-2.125 Cultural Contributions PURPOSES: {#sec-12-csr-10-2.125 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.125}

This rule establishes the requirements and procedures for claiming the deduction provided in section 143.141, RSMo for contributions of literary, musical, scholarly and artistic compositions.

(1) The itemized deduction authorized by section 143.141(3), RSMo for cultural contributions will be allowed if the following requirements are met:

(A) The taxpayer must itemize deductions on both the federal and Missouri returns for the tax year in which the cultural contribution is made;

(B) The not-for-profit agency or institution to which the contribution is made must be exempt from taxation as specified in section 501 of the Internal Revenue Code (IRC);

(C) The taxpayer must be the original creator of the literary, musical, scholarly or artistic composition which constitutes the cultural contribution;

(D) The cultural contribution must be appraised within one (1) year of donation by a qualified appraiser who is not a relative of the donor or donee as defined in Title 26, IRC

section 168(e)(4)(D). The appraisal must contain a detailed description of the composition, the appraiser’s name, address, phone number and be signed and dated by the appraiser under penalties of perjury;

(E) The appraisal must be attached to the income tax return and be accompanied by a sworn statement from the donor and donee which indicates acceptance, by both, of the fair market value fixed by the appraiser. The statement shall also show the actual date of the donation of the cultural contribution, the donor’s address and telephone number and the address where the composition may be viewed, if applicable; and (F) The cultural contribution and the appraisal are subject to review and approval by the Department of Revenue. The amount of the deduction for the cultural contribution shall not exceed the appraised value established in subsection (1)(E) reduced by any amount deducted from federal adjusted gross income attributable to the contribution. Those parts of the federal income tax return pertaining to that deduction shall be attached to the Missouri return.

History

AUTHORITY: section 143.591, RSMo 1994. Original rule filed Jan. 15, 1985, effective June 13, 1985. Original authority: 143.591, RSMo 1972.

(Rescinded March 30, 2024)

Original rule filed Jan. 15, 1985, effective June 13, 1985. Rescinded:

Filed Aug. 15, 2023, effective March 30, 2024.

History

AUTHORITY sections 143.031, 143.111, and 143.181, RSMo 1994.

12 CSR 10-2.135 Frivolous Returns {#sec-12-csr-10-2.135 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.135}

PURPOSE: This rule provides examples of misleading or incomplete returns and when the penalty for filing that return will be imposed.

(1) A penalty of up to five hundred dollars ($500) will be imposed for filing an incomplete or misleading income tax return. Any taxpayer(s) who files a misleading or incomplete return will be mailed a notice stating that fact. The notice will be sent, by regular mail, to the address on the return or the best address available. The taxpayer(s) will have ninety (90) days (one hundred fifty (150) days if the taxpayer(s) is outside the United States) from the date the notice is mailed to file a proper tax return. The date the notice is mailed will be the date of the letter unless shown to be otherwise by the taxpayer(s).

(2) The filing of a legitimate return will not abate the assessment after the expiration of the time period for filing a legitimate return. Some examples of misleading or incomplete returns which will incur the penalty are listed in this rule, but are not limited to these examples only:

(A) A return is filed on which the format has been changed without consent of the Missouri Department of Revenue;

(B) A return is filed which the taxpayer claims s/he cannot legally pay because the United States Constitution requires gold or silver standard and not federal reserve notes as legal tender;

(C) A return is filed on which the taxpayer claims to be a wage earner and refuses to pay or file a return because wages are not income;

(D) Any instance where the taxpayer fails to file or complete a return citing violation of his/her constitutional rights;

(E) A return is filed where the taxpayer lowers his/her income by discounting his/her income because of inflation or other factors; and (F) Any return filed which does not meet the previous criteria but is determined by the Department of Revenue to be misleading or incomplete for any other reason.

History

AUTHORITY: section 143.773, RSMo 1994. Original rule filed Jan. 15, 1985, effective June 13, 1985. Amended: Filed Aug. 14, 1986, effective Nov. 28, 1986. Original authority: 143.773, RSMo 1984.

12 CSR 10-2.140 Partnership Filing Requirements {#sec-12-csr-10-2.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.140}

PURPOSE: This rule explains the circumstances under which a partnership return shall be filed and the general contents of that return.

(1) Any entity that is a partnership, as determined under Internal Revenue Code (IRC) section 761, which has a resident partner or any income derived from sources in this state shall file a properly completed return.

(2) The return shall be made using Missouri Department of Revenue Form MO-1065 Partnership Return of Income for the relevant tax year and shall be completed according to the instructions published by the Missouri Department of Revenue for such form. Each return shall have attached to it a copy of any federal Form 1065 U.S. Return of Partnership Income and all its schedules, including K-1, which have been or are being filed with the Internal Revenue Service for the same tax year.

(3) The return shall be filed on or before the fifteenth day of the fourth month following the close of each tax year. Tax year means a year or period which would be a tax year if the partnership were subject to tax under sections 143.011–143.996, (4) Notwithstanding any provision of this rule to the contrary,

Filed May 15, 2023, effective Dec. 30, 2023. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 143.091, RSMo 1972, amended 1989; 143.401, RSMo 1972; and 143.581, RSMo 1972.

History

AUTHORITY: sections 143.091, 143.401, and 143.581, RSMo 2016. Original rule filed July 11, 1985, effective Dec. 26, 1985. Amended:

12 CSR 10-2.145 Regulation for Computation of Interest on Investment Tax Credit Carryback {#sec-12-csr-10-2.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.145}

Rescinded: Filed April 4, 2002, effective Oct. 30, 2002.

History

AUTHORITY: sections 143.601, 143.711 and 143.731, RSMo 1994. Original rule filed Oct. 1, 1985, effective Dec. 26, 1985.

PURPOSE: This rule notifies the public of the exempt or nonexempt status of United States government obligations pursuant to section 143.121, RSMo.

(1) Obligations of the United States Government made exempt from income taxation by Missouri pursuant to 31 U.S.C. section 3124 are tax exempt.

(2) Obligations issued by the following United States government-related agencies are not tax-exempt: Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, Export-Import Bank of United States, Farmers Home Administration, and the Washington Metropolitan Area Transit Authority. Additionally, Repurchase Agreements and New Communities Debentures are not tax-exempt.

(3) The identification of obligations by this regulation is not necessarily all-inclusive.

Amended: Filed June 2, 2025, effective Nov. 30, 2025. 31 U.S.C. 3124, Farmers & Traders State Bank v. Johnson, 458 N.E. 2d 1365 (Ill. App. 4th Dist. 1984).

History

AUTHORITY: section 143.961, RSMo 2016. Original rule filed Dec. 23, 1985, effective May 29, 1986. Emergency amendment filed Dec. 2, 1992, effective Jan. 1, 1993, expired April 30, 1993. Emergency amendment filed April 14, 1993, effective May 1, 1993, expired Aug. 28, 1993. Amended: Filed Dec. 2, 1992, effective July 7, 1993.

12 CSR 10-2.155 Regulated Investment Companies {#sec-12-csr-10-2.155 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.155}

PURPOSE: This rule explains when a corporate or individual taxpayer may subtract or must add back income from a regulated investment company on its Missouri return.

(1) The term regulated investment company (RIC or mutual fund), as used in this rule, shall mean an organization which meets the qualifications of, and has made the proper election required by, Internal Revenue Code (IRC) section 851.

(2) Pass Through of Exempt-Interest on United States Obligations. As used in this section, the term United States Obligations means those obligations described in section 143.121.3(1), RSMo. An RIC having income from United States Obligations may pass the exempt character of that income through to its shareholders as state income tax exempt-interest dividends.

To the extent provided in this section, this exempt-interest is allowable as a modification on the shareholder’s income tax return. The modification allowed will be the amount received by the shareholder as a state income tax exempt-interest dividend, less the amounts described in subsections (2)(A) and (B). A state income tax exempt-interest dividend means any dividend or part of a dividend paid by an RIC, attributable to United States Obligations (not including exempt-interest dividends as defined in Internal Revenue Code (section 852(b)(5))), and designated by the RIC as a state income tax exempt-interest dividend in a written notice mailed or otherwise sent (e.g., through electronic communication) to its shareholders not later than sixty (60) days after the close of its taxable year. The notice also must state the amount of interest paid or expense incurred by an RIC in the production of the state income tax exempt-interest dividends. The taxpayer’s state income tax exempt-interest dividends shall be reduced by the amount of— (A) The federal corporate dividend received deduction attributable to the state tax exempt-interest dividends; and (B) Interest paid or expense incurred to produce the state tax exempt-interest dividends, to the extent that the interest paid or expense incurred equals or exceeds five hundred dollars ($500) and to the extent that such expenses would trigger a reduction in the subtraction modification under section 143.121.3(1), RSMo.

(3) A taxpayer claiming state income tax exempt-interest dividends for a tax year shall attach to that tax year’s Missouri income tax return a copy of the year-end statement received from the RIC identifying all United States Obligations by issuer or a summary document indicating the percentage of dividends attributable to interest on United States Obligations.

The percentage referred to in the preceding sentence shall be identical for every person who was a shareholder at any time during a calendar year, irrespective of whether that shareholder acquired or disposed of their interest during that year.

(4) Amounts excluded from a taxpayer’s federal adjusted gross income or, in the case of a corporation, federal taxable income as exempt-interest dividends, as defined in IRC section 852(b)

(5), must be included in determining Missouri taxable income pursuant to section 143.121.2(2), RSMo, subject to any reduction required by section 143.121.2(2), RSMo. The previous sentence shall not apply to the extent such exempt-interest dividends are derived from interest on obligations of the state of Missouri or any of its political subdivisions or authorities or interest described in section 143.121.3(1), RSMo.

(A) Example: An RIC with only individual shareholders declares and pays a federal exempt-interest dividend pursuant to IRC section 852(b)(5) of ten thousand dollars ($10,000) to all of its shareholders. The dividend is therefore exempt from federal income taxation. Two thousand dollars ($2,000) of the federal exempt-interest paid is attributable to the net interest earned by the RIC on obligations issued by Missouri and its political subdivisions. One thousand dollars ($1,000) of the federal exempt-interest dividend is attributable to the net interest earned on obligations of the territory of Puerto Rico, the interest on which, pursuant to federal law and section 143.121.3(1), RSMo, is exempt from Missouri income taxation.

The remaining seven thousand dollars ($7,000) of the federal exempt-interest dividend is attributable to the net interest earned on obligations from other states, the interest on which is not excludable from Missouri taxable income. Assume that IRC section 265 did not prohibit any deduction related to the aforementioned interest amounts. An RIC may designate three thousand dollars ($3,000) of the federal exempt-interest dividend as a dividend which need not be included in Missouri taxable income. Each shareholder of the RIC may exclude thirty percent (30%) of their federal exempt-interest dividend (two thousand dollars ($2,000) plus one thousand dollars ($1,000) divided by ten thousand dollars ($10,000)) from Missouri taxable income by excluding such amount from federal adjusted gross income. The remaining seventy percent (70%) of the federal exempt-interest dividend is includable in Missouri taxable income as a Missouri addition modification by the shareholders of the RIC pursuant to section 143.121.2(2), RSMo.

Amended: Filed June 2, 2025, effective Nov. 30, 2025.

History

AUTHORITY: section 143.961, RSMo 2016. Original rule filed Jan. 7, 1986, effective May 11, 1986. Emergency amendment filed Dec. 2, 1992, effective Jan. 1, 1993, expired April 30, 1993. Emergency amendment filed April 14, 1993, effective May 1, 1993, expired Aug. 28, 1993. Amended: Filed Dec. 2, 1992, effective July 8, 1993.

12 CSR 10-2.160 State Income Tax Deduction Add-Back {#sec-12-csr-10-2.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.160}

PURPOSE: This rule lends guidance to taxpayers in determining the proportion of their state income taxes which must be added to Missouri adjusted gross income pursuant to section 143.141(1) and (2), RSMo.

(1) Background. Included in the Revenue Reconciliation Act of 1990 was a provision which required individuals with federal adjusted gross income over certain income thresholds to reduce the amount allowable for federal itemized deductions by three percent (3%) of the excess over that threshold (26 U.S.C. 68). Certain deductions such as medical expenses, investment interest and casualty, theft or wagering losses are not subject to this reduction. The threshold amounts are adjusted annually for inflation.

(2) Section 143.141, RSMo defines Missouri itemized deductions.

This section allows a taxpayer who itemized at the federal level to elect to itemize at the state level. The state itemized deductions are those allowable by the federal government subject to certain modifications. One modification is that state income taxes included in federal itemized deductions must be subtracted to arrive at Missouri itemized deductions.

Missouri does not allow state income taxes as an itemized deduction, where the IRS does allow state income taxes as an itemized deduction. Therefore, any state income tax included in federal itemized deductions must be eliminated to arrive at Missouri itemized deductions. For the remainder of this

rule, this subtraction from federal itemized deductions will be referred to as an add-back. This term is used because when itemized deductions are decreased Missouri taxable income is increased. Hence, taxpayer is actually adding state income taxes to federal adjusted gross income to arrive at Missouri taxable income.

(3) House Bill 1155, passed during the 86th General Assembly, changed the language in section 143.141(1) and (2), RSMo.

Previously, taxpayers were required to add-back all state income taxes regardless of any reductions at the federal level.

This law changed the language regarding the state income tax add-back to read that Missouri itemized deductions, which begin with federal itemized deductions, must be reduced by the proportional amount of those deductions representing any income taxes imposed by this state, another state of the United States or a political subdivision of the United States or the District of Columbia. This law is effective for all tax years beginning on or after January 1, 1993. Under this new law, the amount of state income taxes added to Missouri adjusted gross income will be the ratio of state income taxes (numerator) over total reducible itemized deductions (denominator) multiplied by the total reduction in federal itemized deductions; this product is then subtracted from the pre-reduction total of state income taxes shown on the federal return.

(A) Example 1: Assume the federal threshold amounts are $100,000 for married filing joint and $50,000 for married filing separate. Taxpayer’s filing status is married filing joint. federal adjusted gross income (AGI) $250,000 Federal AGI in excess of $100,000 limit $250,000 – $100,000 = $150,000 Three percent (3%) of amount in excess of $100,000 $150,000 × 3% = $4,500 Total itemized deductions $20,000 $10,000 of state income taxes (reducible) $10,000 in charitable contributions (reducible)

Allowable federal itemized deductions $20,000 – $4,500 = $15,500 Ratio of state income taxes to total reducible federal itemized deductions $10,000 ÷ $20,000 = 50% Portion of reduction of federal itemized deductions attributable to state income taxes $4,500 × 50% = $2,250 State income tax added back (amount of allowable federal itemized deductions attributable to state income taxes) $10,000 – $2,250 = $7,750 Missouri itemized deductions $15,500 – $7,750 = $7,750 (B) Example 2: Assume the federal threshold amounts are $100,000 for married filing joint and $50,000 for married filing separate. Taxpayer’s filing status is married filing joint.

Taxpayer’s federal adjusted gross income (AGI) is $80,000.

Taxpayer has $30,000 in itemized deductions ($10,000 from each; state income taxes, charitable contributions and medical expenses). Because taxpayer’s federal AGI is below $100,000, his/her federal itemized deductions will not be reduced.

Therefore, in calculating Missouri itemized deductions, the full amount of state income taxes ($10,000) which were included in federal itemized deductions, must be added-back to arrive at Missouri itemized deductions ($30,000 – $10,000 = $20,000).

(C) Example 3. Assume the federal threshold amounts are $100,000 for married filing joint and $50,000 for married filing separate. Taxpayer’s filing status is married filing joint.

Federal AGI $250,000 Federal AGI in excess of $100,000 limit $250,000 – $100,000 = $150,000 Three percent (3%) of amount in excess of $100,000 $150,000 × 3% = $4,500 Total itemized deductions $30,000 $10,000 of state income taxes (reducible) $10,000 in charitable contributions (reducible) $10,000 in medical expenses (not subject to reduction per 26 U.S.C. 68)

Allowable federal itemized deductions $30,000 – $4,500 = $25,500 Ratio of state income taxes to total reducible federal itemized deductions (medical expenses cannot be reduced) $10,000 ÷ $20,000 = 50% Portion of reduction of federal itemized deductions attributable to state income taxes $4,500 × 50% = $2,250 State income tax added back (amount of allowable federal itemized deductions attributable to state income taxes) $10,000 – $2,250 = $7,750 Missouri itemized deductions $25,500 – $7,750 = $17,750 (4) The proportional language in section 143.141, RSMo only applies while the Internal Revenue Code provides for a reduction in itemized deductions. Otherwise, all state income taxes must be added back.

Filed June 2, 1993, effective Nov. 8, 1993.

History

AUTHORITY: section 143.961, RSMo 1986. Original rule filed March 14, 1986, effective June 28, 1986. Rescinded and readopted:

12 CSR 10-2.165 Net Operating Losses on Corporate Income Tax Returns {#sec-12-csr-10-2.165 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.165}

PURPOSE: This rule explains the proper Missouri income tax treatment of net operating losses by corporations.

(1) Federal Taxable Income Less Than Zero (0). Federal taxable income is the starting point for computing a corporation’s Missouri taxable income. Federal taxable income, as it is used to compute a corporation’s Missouri taxable income, may be a positive figure, a negative figure, or zero.

(2) Net Operating Loss (NOL).

(A) Taxpayers who file a consolidated Missouri return must treat NOLs identically on the federal and Missouri returns.

(B) Taxpayers who file separate federal and Missouri returns must treat NOLs identically on the federal and Missouri returns.

Taxpayers who file consolidated federal and separate Missouri returns shall compute separate federal taxable income as if each member filed a separate federal return with the limitation that the taxpayer shall be bound by the election to carry losses forward or backward made on the consolidated return. If there is a consolidated gain, then the Missouri taxpayer may elect to carry loss backward or forward to the extent allowed under Internal Revenue Code section 172.

(D) Notwithstanding the foregoing subsections of section (2) of this rule, to the extent an NOL is carried backward for more than two (2) years or carried forward for more than twenty (20) years on the federal income tax return, that amount of the NOL generally must be added to federal taxable income in arriving at Missouri taxable income pursuant to section 143.121.2(4), RSMo. Any amount of NOL taken against federal taxable income but disallowed for Missouri income tax purposes under section 143.121.2(4), RSMo, may be carried forward and taken against any income on the Missouri corporate income tax return for a period of not more than twenty (20) years following the year of initial loss.

(3) Recomputation of the Federal Income Tax Deduction for Separate Missouri Return Filers to Reflect Consolidated Return NOL. Taxpayer’s federal income tax deduction shall be determined as follows. First, a fraction shall be created, the numerator of which is the taxpayer’s original federal taxable income reduced by its pro rata share of the consolidated loss and the denominator of which is the original consolidated federal taxable income reduced by total consolidated loss.

Next, total federal income tax of the consolidated group after deduction of the net operating loss is multiplied by the fraction, and then multiplied by fifty percent (50%), to arrive at the adjusted federal income tax deduction.

(A) Example: 2014 consolidated loss of $75,000 carried back to 2012.

First, allocate the loss to the loss companies.

Company Federal Taxable Income (Loss)

To Total Percent Allocated Consolidated Loss A ($50,000) 45.455% $34,091 B C ($50,000) 45.455% $34,091 D E ($10,000) 9.090% $6,818 ($110,000) 100% $75,000 Second, reduce original taxable income by the allocated loss.

Company 2012 Original Federal Taxable Income Allocated Loss New Federal Taxable Income To Total Percent Adjusted 2012 Federal Income Tax Liability A $100,000 ($34,091) $65,909 26.460% $19,845 B $50,000 $50,000 20.073% $15,055 C $25,000 ($34,091)

D $100,000 $100,000 40.146% $30,110

E $40,000 ($6,818) $33,182 13.321% $9,990 $315,000 ($75,000) $249,091 100% $75,000

Third, multiply the resulting adjusted federal income tax liability of the taxpayer by fifty percent (50%).

(B) Actual separate return loss will be used to compute separate return federal taxable income.

(4) Leaving a Consolidated Group. A former member of a consolidated group who filed a separate Missouri return must recompute its federal income tax deduction to reflect any decrease in consolidated federal income tax liability attributable to an NOL carry back by the group and to reflect any change in its relative share of federal income tax liability attributable to the net operating loss carry back by the group.

(5) Taxpayers who elect a proper method of computing the federal income tax deduction for a particular year shall continue to use that method to compute the effect of NOL on the federal income tax deduction for that year, regardless of the method used in the year of the loss.

(6) When the filing status or combination for the Missouri return for any taxable year is different from the federal filing status or combination for that taxable year, the taxpayer must follow the federal Internal Revenue Code (IRC) as it would apply to the facts and circumstances for the Missouri return. Under no circumstances may the same loss or deduction be used more than once for Missouri purposes. A taxpayer claiming an NOL deduction shall provide a schedule identifying the source of each loss or deduction. If a corporate member of an affiliated group incurs an NOL arising from a loss year for which such member files a separate Missouri return or no Missouri return, then that NOL cannot be carried to a consolidated Missouri income tax return for a different tax year (the carryover tax year), except insofar as that particular NOL is carried forward or backward and actually deducted on the affiliated group’s consolidated federal income tax return for that carryover tax year, as reflected in the affiliated group’s federal taxable income for that carryover tax year.

(7) If a corporation derives only part of its income from sources within Missouri, its Missouri taxable income shall only reflect an apportioned amount of the NOL deduction, consistent with

section 143.455.19, RSMo.

(8) The loss year referred to in section 143.431.4, RSMo, may include the loss year of another taxpayer if the NOL occurred in a loss year of another taxpayer. For example, in the situation of a corporate merger where the taxpayer whose loss year gave rise to the NOL did not survive the merger, the net operating loss addition modification must still be computed by reference to the addition and subtraction modifications for the loss year of the corporation that did not survive the merger. For purposes of section 143.431.4, RSMo, if more than one (1) net operating loss addition modification must be computed for a given tax year, the net operating loss addition modifications are computed in the same order that the net operating losses are used as net operating loss deductions for federal income tax purposes.

(9) Notwithstanding any provision of this rule to the contrary,

Amended: Filed Jan. 10, 2002, effective July 30, 2002. Amended:

Filed Jan. 24, 2024, effective Sept. 30, 2024. *Original authority: 143.431, RSMo 1972, amended 2004, 2007, 2018, and 143.961, RSMo 1972.

History

AUTHORITY: section 143.961, RSMo 2016, and section 143.431, RSMo Supp. 2023. Original rule filed Oct. 22, 1986, effective March 26, 1987. Amended: Filed Feb. 23, 1989, effective Aug. 11, 1989.

12 CSR 10-2.170 Wood Energy Credit {#sec-12-csr-10-2.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.170}

(Rescinded September 6, 1992)

History

AUTHORITY: section 135.311 and 136.120, RSMo 1986. Original rule filed Nov. 12, 1986, effective March 12, 1987. Rescinded: Filed April 1, 1992, effective Sept. 6, 1992.

12 CSR 10-2.175 Agricultural Unemployed Person {#sec-12-csr-10-2.175 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.175}

rule filed Nov. 18, 1986, effective March 12, 1987. Rescinded: Filed April 4, 2002, effective Oct. 30, 2002.

History

AUTHORITY: section 135.285, RSMo 1994. Emergency rule filed Nov. 18, 1986, effective Nov. 28, 1986, expired March 28, 1987. Original

12 CSR 10-2.180 Public Law 86-272 Immunity {#sec-12-csr-10-2.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.180}

PURPOSE: This rule explains the department’s position with respect to the type and amount of activity which is immune or not immune from taxation by reason of P.L. 86-272. This constitutes the changes made by the Multistate Tax Commission at the 1993 annual meeting.

(1) Nature of Property Being Sold. Only the sale of tangible personal property is afforded immunity under P.L. 86-272; therefore, the leasing, renting, licensing or other disposition of tangible personal property, intangibles or any other type of property is not immune from taxation by reason of P.L. 86-272.

The definition of tangible personal property for this purpose is that to be found under each state’s respective laws.

(2) Solicitation of Orders.

(A) For the instate activity to be immune, it must be limited solely to solicitation (except for de minimis activities conducted by independent contractors described in section (3)). Solicitation means—1) speech or conduct that explicitly or implicitly invites an order; and 2) activities that neither explicitly or implicitly invite an order, but are entirely ancillary to requests for an order.

(B) Ancillary activities are those activities that serve no independent business function for the seller apart from their connection to the solicitation of orders. Activities that a seller would engage in apart from soliciting orders shall not be considered as ancillary to the solicitation of orders. The mere assignment of activities to sales personnel does not, merely by this assignment, make the activities ancillary to solicitation of orders. Additionally, activities that seek to promote sales are not ancillary, because P.L. 86-272 does not protect activity that facilitates sales, it only protects ancillary activities that facilitate the request for an order. The conduct of activities not falling within the foregoing definition of solicitation will cause the company to lose the exemption from a net income tax afforded by P.L. 86-272, unless the disqualifying activities, taken together, are de minimis.

(C) De minimis activities are those that, when taken together, establish only a trivial additional connection with the taxing state. An activity regularly conducted within a taxing state pursuant to a company policy or on a continuous basis shall normally not be considered trivial. Whether or not an activity consists of a trivial or non-trivial additional connection with the state is to be measured on both a qualitative and quantitative basis. If this activity either qualitatively or quantitatively creates a non-trivial connection with the taxing state, then the activity exceeds the protection of P.L. 86-272.

Establishing that the disqualifying activities only account for a relatively small part of the business conducted within the taxing state is not determinative of whether a de minimis level of activity exits. The relative economic importance of the disqualifying instate activities, as compared to the protected activities, does not determine whether the conduct of the disqualifying activities within the taxing state is inconsistent with the limited protection afforded by P.L. 86-272.

(D) Examples of activities presently treated by the signatory states (unless otherwise stated as an exception or addition) as either non-immune or immune are as follows:

(E) Non-Immune Activities. The following instate activities conducted (assuming they are not of a de minimis level) will cause otherwise immune sales to lose their immunity:

Making repairs or providing maintenance;
Collecting current or delinquent accounts;
Investigating credit worthiness;
Installing or supervising installation;
Conducting training courses, seminars or lectures for personnel other than personnel involved only in solicitation;
Providing any kind of technical assistance or services, including, but not limited to, engineering assistance or services, when one of the purposes thereof is other than the facilitation of the solicitation of orders;
Investigating, handling, or otherwise assisting in resolving customer complaints, other than mediating direct customer complaints when the sole purpose of the mediation is to ingratiate the sales personnel with the customer;
Approving or accepting orders;
Repossessing property;
Securing deposits on sales;
Picking up or replacing damaged or returned property;
Hiring, training or supervising personnel, other than personnel involved only in solicitation;
Providing shipping information and coordinating deliveries;
Maintaining a sample or display room in excess of two (2) weeks (fourteen (14) days) at any one (1) location during the tax year;
Carrying samples for sale, exchange or distribution in any manner for consideration or other value;
Owning, leasing, or maintaining any of the following facilities or property instate:

A. Repair shop;

B. Parts department;

C. Purchasing office;

D. Employment or recruiting office;

E. Warehouse;

F. Meeting place for directors, officers or employees;

G. Stock of goods other than samples for sales personnel or that are used entirely ancillary to solicitation;

H. Telephone answering service that is formally attributed to the company or to the agent(s) of the company in their agency status;

I. Mobile stores, that is, vehicles with drivers who are sales personnel making sales from the vehicles; and J. Real property or fixtures to real property of any kind;

Consigning tangible personal property to any person, including an independent contractor;
Maintaining, by any employee, an office or place of business (in-home or otherwise) that is paid for directly or indirectly by the company and that is formally attributed to the company or to the agent(s) of the company in their agency status, even if the office is for the exclusive use of soliciting orders. (For example, a telephone listing for the company or for the agents of the company in their capacity as agents or other indications through advertising or business literature that the company or its agents can be contacted at a specific place shall normally be determined as the company maintaining within the state an office or place of business attributable to the company or to its agents in their agency status.);
Using agency stock checks or any other instrument or process by which sales are made within this state by sales personnel; and 20. Conducting any activity not listed in subsection (2)(F) of this rule which is not entirely ancillary to requests for orders, even if the activity helps to increase purchases; and (F) Immune Activities. The following instate activities will not cause the loss of immunity for otherwise immune sales:
Soliciting orders for sales by any type of advertising;
Carrying samples only for display or for distribution without charge or other consideration;
Owning or furnishing autos to sales personnel;
Passing inquiries and complaints on to the home office;
Missionary sales activities;
Checking of customers’ inventories without a charge therefor (for reorder, but not for other purposes such as quality control);
Maintaining sample or display room for two (2) weeks (fourteen (14) days) or less at any one (1) location during the tax year;
Soliciting of orders for sales by an instate resident employee of the company; provided the employee maintains no instate sales office or place of business (in-home or otherwise) that is attributable to the company’s agent(s) in their agency capacity;
Recruiting, training or evaluating sales personnel, including occasional use of homes, hotels or similar places for meetings with sales personnel;
Maintaining, by any sales employee, an in-home office that is not paid for directly or indirectly by the company and which is not attributable to the company or to the company’s agent(s) in their agency capacity; and 11. Mediating direct customer complaints when the

purpose of this is solely for ingratiating the sales personnel with the customer and facilitating requests for orders.

(3) Independent Contractors. P.L. 86-272 provides immunity to certain in-state activities if conducted by an independent contractor that would not be afforded if performed by the company or its agents or other representatives. Independent contractors may engage in the following limited activities in the state without the company’s loss of immunity:

(A) Soliciting sales;

(B) Making sales; and (C) Maintaining an office.

(4) Sales representatives who represent a single principal are not considered to be independent contractors and are subject to the same limitations as those provided under sections (2) and (3) of this statement.

(5) Maintenance of a stock of goods in the state by the independent contractor under consignment or any other type of arrangement with the company, except for purposes of display and solicitation, shall remove the immunity.

History

AUTHORITY: section 143.961, RSMo 1994. Original rule filed April 6, 1987, effective July 23, 1987. Amended: Filed Jan. 4, 1994, effective July 30, 1994.

12 CSR 10-2.190 Partnership and S Corporation Annual Return Filing Requirements, Composite Returns, and Nonresident Partner/Shareholder Income Tax Withholding {#sec-12-csr-10-2.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.190}

PURPOSE: This rule clarifies the circumstances under which a composite individual income tax return for nonresident partners or nonresident S corporation shareholders may be filed and the general contents of the return as well as the withholding requirements for nonresident partners and shareholders and the related withholding exemption. This rule also clarifies the annual partnership and S corporation return filing requirement. Limited liability companies which are treated as partnerships for income tax purposes, and limited liability partnerships, will be considered partnerships.

(1) For purposes of this rule— (A) The term “partnership” includes a general partnership, a limited partnership, a limited liability partnership, a limited liability limited partnership, and a limited liability company treated as a partnership for federal income tax purposes.

However, the term “partnership” does not include a publicly traded partnership treated as a corporation for federal income tax purposes; and (B) The term “S corporation” includes an S corporation and a limited liability company treated as an S corporation for federal (2) Annual partnership and S corporation returns.

(A) A partnership return shall be filed using Form MO-1065 by the fifteenth day of the fourth month following the close of each taxable year and shall be based upon the provisions of the law and the Form MO-1065 instructions effective for the taxable year. This filing requirement applies to every partnership having any income derived from sources in this state in accordance with section 143.581, RSMo.

(B) Consistent with the last sentence of section 143.471.7, RSMo, an S corporation shall file an annual return for its taxable year at the time required by section 143.511, RSMo. An S corporation return shall be filed using Form MO-1120S by the fifteenth day of the fourth month following the close of each taxable year and shall be based upon the provisions of law and the Form MO-1120S instructions effective for the taxable year.

(C) The partnership return or S corporation return shall reflect, among other things, the partnership or S corporation’s Missouri allocated income and Missouri apportioned income consistent with 12 CSR 10-2.255. The partnership or S corporation’s Missouri allocated income and Missouri apportioned income shall be the basis on which a nonresident partner or shareholder, consistent with 12 CSR 10-2.255, determines the items of partnership or S corporation income, gain, loss, or deduction entering into nonresident federal adjusted gross income from sources within this state.

(D) On or before the due date (including extensions of time) of its Form MO-1065 or Form MO-1120S, the partnership or S corporation with income from Missouri sources shall furnish to each nonresident partner or shareholder a completed Form MO-NRP or Form MO-NRS, and shall furnish to each partner or shareholder an extract of all information from the Form MO-1065 or Form MO-1120S that is relevant to that partner or shareholder, or else a copy of the Form MO-1065 or Form MO- 1120S, but in either event with information about other partners or shareholders, such as their social security numbers or share percentages, removed or redacted.

(3) Composite returns.

(A) In lieu of each nonresident partner or S corporation shareholder filing a separate individual income tax return (provided that their filing requirement results solely from one (1) or more interests in a partnership or S corporation), a partnership or S corporation may file an individual income tax return under the name of the partnership or S corporation on or before the fifteenth day of the fourth month following the close of the partnership or S corporation’s taxable year. This shall be the composite return filed on behalf of such nonresident partners or shareholders. This return shall show on an appended schedule the name, address, Social Security number, of each nonresident partner or nonresident S corporation shareholder, and, for each such partner or shareholder, the amount of federal distributive share of partnership or S corporation income and the amount of income from Missouri sources as determined in accordance with subsection (2)(C).

(B) For a composite payment of tax, the tax rate to be applied to the income from Missouri sources of each nonresident partner or S corporation shareholder determined in accordance with subsection (2)(C), in lieu of demonstrating the exact amount of Missouri income tax, is the tax rate imposed on the highest tax bracket under section 143.011, RSMo, in effect for the partnership’s or S corporation’s tax year with respect to which the composite return is filed.

(C) The sum of the amount determined in subsection (3)(B) will be paid by the partnership or S corporation as a payment against the individual income tax liability of all its nonresident partners or nonresident S corporation shareholders properly included on the composite return.

(D) Timely filing of the composite return by the partnership or S corporation and timely composite payment of the tax will discharge each nonresident partner’s or S corporation shareholder’s responsibility to Missouri for filing a Missouri individual income tax return for the individual income tax year of a nonresident who is included on the composite return, if the composite return is for a tax year ending within or with that individual income tax year of the nonresident.

(E) Only nonresident individual partners or nonresident individual S corporation shareholders, not otherwise required to file a Missouri individual income tax return, are eligible to be included on a partnership’s or S corporation’s composite return and included in the composite payment of tax.

However, a partnership or S corporation may choose to make a payment of Missouri income tax on behalf of any partner or shareholder, including but not limited to resident partners, resident shareholders, or corporate partners. If a partnership or S corporation attempts to make a composite payment that includes an amount for a taxpayer other than an eligible nonresident partner or shareholder, that amount shall be deemed a payment of Missouri income tax made on behalf of such taxpayer.

(F) To help avoid the imposition of an addition to tax for failure to pay estimated income tax on the nonresident partners or shareholders that will be included on a composite return, a partnership or S corporation that expects to file a composite return and make a composite tax payment must make estimated income tax payments on behalf of such nonresident partners or shareholders in four (4) equal installments, if the Missouri estimated tax of the nonresident(s) to be included on the composite return is reasonably expected to be at least one hundred dollars ($100). The first installment is paid when the declaration is filed; the second and third installments on June 15 and September 15, respectively, of the taxable year; and the fourth installment on January 15 of the succeeding taxable year.

If the taxable year of the partnership or S corporation begins on any date other than January 1, there shall be substituted, for the months specified in this subsection, the months which correspond thereto in a manner consistent with section 143.541.5, RSMo.

(4) Withholding Requirements for a Partnership or S Corporation.

(A) Partnerships and S corporations are required to withhold Missouri income tax from any nonresident individual partner(s) or nonresident S corporation shareholder(s) to which the partnership or S corporation pays or credits amounts on account of their distributive share of the partnership income for the taxable year, or as dividends or as their share of the S corporation’s undistributed taxable income for the taxable year.

(B) The partnership or S corporation is not required to withhold if— 1. The nonresident partner or S corporation shareholder not otherwise required to file a return agrees to have the Missouri income tax due paid as part of a composite return;

The nonresident partner or S corporation shareholder, not otherwise required to file a return has Missouri assignable federal adjusted gross income from the partnership or S corporation of less than twelve hundred dollars ($1,200);
The partnership or S corporation is liquidated or terminated;
The income from which the nonresident partner’s distributive share of partnership income, or the nonresident shareholder’s dividend and share of undistributed taxable income, was derived was generated by a transaction related to the partnership’s or S corporation’s termination or liquidation;
No cash or other property was distributed in both the current and prior taxable year; or 6. The partnership or S corporation files a Form MO- 3NR Partnership or S Corporation Withholding Exemption or Revocation Agreement, that was signed by the nonresident partner or S corporation shareholder who has agreed to— A. File a return in accordance with the provisions of

section 143.481, RSMo, and to make timely payment of all taxes imposed on the partner or S corporation shareholder by this state with respect to income of the partnership or S corporation;

B. Be subject to personal jurisdiction in this state for purposes of the collection of income taxes, together with related interest and penalties, imposed on the partner or S corporation shareholder by this state with respect to the income of the partnership or S corporation;

C. Form MO-3NR will be considered timely filed for a taxable year, and for all subsequent taxable years, if it is filed at or before the time the annual return of the partnership or S corporation for such taxable year is required to be filed pursuant to section 143.511, RSMo. A partnership or S corporation that does not timely file such an agreement for a taxable year shall not be precluded from timely filing such an agreement for subsequent taxable years;

D. Note: Exceptions to this withholding requirement are not exceptions from Missouri income tax or the Missouri employer withholding tax requirement. For example, income generated by termination or liquidation, although not subject to this withholding requirement, may still be subject to Missouri income tax;

E. The partnership or S corporation may determine the tax to be withheld in one (1) of two (2) ways— (I) If the partner or shareholder submits a Form MO W-4, Missouri Withholding Allowance Certificate, the tax to be withheld on behalf of that partner or shareholder shall be determined based on the employer withholding tables published by the Department of Revenue for the year for which the withholding is to be performed. The S corporation or partnership shall use the employer withholding tables as though the dividends and undistributed income allocable to Missouri that is paid or credited to the nonresident S corporation shareholder, or the distributive share of partnership income allocable to Missouri that is paid or credited to the nonresident partner, were wages paid to the shareholder or partner; or (II) If no Form MO W-4 is submitted, the highest rate used to determine a Missouri income tax liability for an individual under section 143.011, RSMo, for the year for which the withholding is to be performed, will be applied to the dividends and undistributed income allocable to Missouri that is paid or credited to the nonresident S corporation shareholder, or the distributive share of partnership income allocable to Missouri that is paid or credited to the nonresident partner;

F. If withholding is remitted to the Department of Revenue on behalf of a nonresident partner or S corporation shareholder who has no tax liability, the partnership or S corporation may file a claim for refund on behalf of such partner or shareholder with the Department of Revenue to recover the amount remitted;

G. Withholding should be remitted on Form MO-1NR, Income Tax Withheld for Nonresident Individual Partners or S Corporation Shareholders. The Form MO-1NR, all applicable Forms MO-2NR, and payment must be filed and paid by the due date or extended due date for filing the partnership or S corporation income tax return. The Form MO-1NR and the Form MO-2NR filings shall be considered a part of the annual S corporation or partnership Missouri income tax return. An extension of time for filing the partnership or S corporation return automatically extends the time for filing the Form MO- 1NR and all applicable Forms MO-2NR and the time for making the withholding payment. Form MO-1NR and a copy of the Form MO-2NR must be filed with the Department of Revenue either before or at the same time the partnership or S corporation provides a copy of the Form MO-2NR to the nonresident partner or S corporation shareholder. Failure to do so may result in the department disallowing the withholding claimed by the nonresident partner of S corporation shareholder; and H. A Form MO-2NR, Statement of Income Tax Payments for Nonresident Individual Partners or S Corporation Shareholders, must be completed and filed by the partnership or S corporation for each nonresident partner or shareholder for whom withholding was performed. A copy of the Form MO- 2NR must be furnished by the partnership or S corporation to each nonresident partner or shareholder for whom withholding was performed.

(5) Notwithstanding any provision of this rule to the contrary,

Amended: Filed Dec. 31, 1997, effective June 30, 1998. Amended:

Filed Jan. 24, 2024, effective Sept. 30, 2024. *Original authority: 143.411, RSMo 1972, amended 1993, 1997; 143.471, RSMo 1972, amended 1983, 1989, 1993, 1997, 1999, 2006, 2018; and 143.961, RSMo 1972.

History

AUTHORITY: sections 143.411 and 143.961, RSMo 2016, and section 143.471, RSMo Supp. 2023. Original rule filed March 15, 1989, effective Sept. 11, 1989. Emergency amendment filed Sept. 14, 1994, effective Sept. 24, 1994, expired Jan. 21, 1995. Emergency amendment filed Dec. 20, 1994, effective Jan. 22, 1995, expired May 21, 1995. Amended: Filed Sept. 14, 1994, effective April 30, 1995. Amended: Filed March 1, 1996, effective Aug. 30, 1996.

12 CSR 10-2.195 Special Needs Adoption Tax Credit {#sec-12-csr-10-2.195 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.195}

(Rescinded May 30, 2006)

History

AUTHORITY: section 135.339, RSMo 1994. Original rule filed Aug. 2, 1988, effective Dec. 11, 1988. Rescinded: Filed Nov. 1, 2005, effective May 30, 2006.

12 CSR 10-2.200 Trucking Companies {#sec-12-csr-10-2.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.200}

12 CSR 10-2.205 Railroads {#sec-12-csr-10-2.205 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.205}

12 CSR 10-2.210 Airlines {#sec-12-csr-10-2.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.210}

12 CSR 10-2.220 Taxation of Nonresident Members of Professional Athletic Teams {#sec-12-csr-10-2.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.220}

PURPOSE: This rule clarifies the taxation of income of nonresident members of professional athletic teams under existing Missouri statutes.

(1) Teams and Nonresident Members Defined.

(A) The term professional athletic team includes, but is not limited to, any professional baseball, basketball, football, soccer and hockey team.

(B) Nonresident members of professional athletic teams shall include players on the disabled list (if they are in uniform on the day of the game at the site of the game) and any others travelling with and performing services on behalf of a professional athletic team.

(2) Personal Service Income of Nonresident Members of Professional Athletic Teams Defined.

(A) All nonresident members of professional athletic teams shall be taxed on that portion of their personal service income (B) Personal service income shall include exhibition and regular playing season salaries and wages, guaranteed payments, strike benefits, deferred payments, severance pay, bonuses paid for playing in championship, playoff or bowltype games and any other type of compensation paid to the nonresident member of a professional athletic team in that capacity.

(3) Method of Allocation of Personal Service Income Earned by Nonresident Members of Professional Athletic Teams.

(A) The personal service income earned by nonresident members of professional athletic teams allocable to Missouri shall be determined by a fraction, the denominator of which shall be the total number of duty days in the tax year of the athlete (including the sum of days spent at training camps, all postseason games and travel days) and the numerator of which shall be the number of duty days in the tax year which the nonresident member of the professional athletic team spent in Missouri.

(B) Duty days shall be defined to include the days a nonresident member of a professional athletic team serves in that capacity after the commencement of team activities and begins with the first day s/he reports to the professional athletic team.

(C) The allocation fraction in subsection (3)(A) shall be multiplied by the amount of personal service income to arrive at the amount of personal service income allocable to Missouri.

(4) Other Income Defined. All other income earned in Missouri by nonresident members of professional athletic teams in any other capacity shall be included in Missouri adjusted gross income as provided in Chapter 143, RSMo.

(5) Reporting Requirements.

(A) An income tax return shall be filed and the tax paid to the director of revenue as prescribed in sections 143.481–143.511, (B) Nonresident members of professional athletic teams may also be required to make declaration of estimated tax payments on a quarterly basis as set forth in sections 143.521– 143.541, RSMo.

History

AUTHORITY: section 143.961, RSMo 1994. Original rule filed Oct. 30, 1989, effective Jan. 26, 1990.

12 CSR 10-2.225 Withholding of Tax by Nonresident Professional Athletic Teams {#sec-12-csr-10-2.225 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.225}

PURPOSE: This rule establishes guidelines for the employer withholding of income tax as specified in sections 143.191–143.265 and 285.230, RSMo.

(1) All nonresident professional athletic teams shall be considered transient employers as defined in section 285.230, RSMo and shall be required to file a financial assurance instrument pursuant to section 285.230, RSMo.

(2) Teams and Members Defined.

(A) The term professional athletic team includes, but is not limited to, any professional baseball, basketball, football, soccer and hockey team.

(B) Members of professional athletic teams shall include players, managers, coaches, trainers, travelling secretaries, players on the disabled list (if they are in uniform on the day of the game at the site of the game) and any others travelling with and performing services on behalf of a professional athletic team.

(3) Personal Service Income of Members of Professional Athletic Teams Defined.

(4) Method of Allocation of Personal Service Income Earned by Members of Professional Athletic Teams.

(A) The personal service income earned by members of professional athletic teams allocable to Missouri shall be determined by a fraction, the denominator of which shall be the total number of duty days in the tax year of the athlete (including the sum of days spent at training camps, all postseason games and travel days) and the numerator of which shall be the number of duty days in the tax year which the member of the professional athletic team spent in Missouri.

(B) Duty days shall be defined to include the days a member of a professional athletic team serves in that capacity after the commencement of team activities and begins with the first day s/he reports to the professional athletic team.

(C) The allocation fraction in subsection (4)(A) shall be multiplied by the amount of personal service income to arrive at the amount of personal service income allocable to Missouri.

(5) Withholding and Reporting Obligations.

(A) Any out-of-state professional athletic team which qualifies as a transient employer as specified in section 285.230, RSMo shall be required to withhold Missouri income taxes from wages and salaries paid to its team members as set forth in sections 143.191–143.265, RSMo.

(B) Every out-of-state professional athletic team required to deduct and withhold tax shall file an employer’s withholding tax return and pay the taxes withheld to the director of revenue as set forth in sections 143.191–143.265, RSMo.

rule filed Oct. 30, 1989, effective Jan. 26, 1990. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995. *Original authority: 143.961, RSMo 1972 and 285.230, RSMo 1988, amended 1994.

History

AUTHORITY: sections 143.961 and 285.230, RSMo 1994. Original

12 CSR 10-2.226 Withholding of Tax by Nonresident Professional Entertainers {#sec-12-csr-10-2.226 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.226}

PURPOSE: This rule establishes guidelines for withholding of income tax as specified in sections 143.191–143.265 and 285.230, (1) Nonresident Professional Entertainers Defined.

(A) Nonresident professional entertainer means a corporation registered outside this state, or a person who is not a resident of Missouri as defined by section 143.101, RSMo, who, for compensation paid to an individual or other entity, performs any vocal, instrumental, musical, comedy, dramatic, dance, or other performance in Missouri before a live audience. Nonresident professional entertainer also includes any person traveling with the entertainer and performing services on behalf of the nonresident entertainer. For purposes of this definition, a “performance” does not include a presentation for educational purposes for which no admission fee, cover charge, purchase minimum, or other fee for admission is charged.

(2) Personal Service Income of Nonresident Professional Entertainers Defined.

(A) All nonresident professional entertainers shall be subject to withholding on that portion of their personal service income (B) Personal service income shall include the total compensation received during the calendar year for entertainment performed in Missouri.

(3) Any nonresident entertainer outside of Missouri that does not comply with section 143.183.2., RSMo, shall be considered transient employers as defined in section 285.230, RSMo, and shall be required to file a financial assurance instrument pursuant to section 285.230, RSMo, and 12 CSR 10-2.017.

(4) Withholding and Reporting Obligations.

(A) Any individual or entity who pays annual compensation in excess of three hundred dollars ($300) to a nonresident professional entertainer(s) is required to withhold Missouri income taxes, as a prepayment of tax, an amount equal to two percent (2%) of the total compensation paid to the nonresident entertainer for entertainment performed in Missouri, as set forth in sections 143.183 and 285.230, RSMo. This requirement does not apply if the person making the payment is exempt from taxation under 26 U.S.C. Section 501(c)(3), as amended, and that pays an amount to the nonresident entertainer for the entertainer’s appearance but receives no benefit from the entertainer’s appearance other than the entertainer’s performance.

(B) Every individual or entity required to deduct and withhold tax from a nonresident entertainer, shall, for each calendar quarter, on or before the last day of the month following the close of such calendar quarter, file Form MO-1ENT, Income Tax Payments for Nonresident Entertainers, with copies of Form MO-2ENT, Statement of Income Tax Payments for Nonresident Entertainers attached and pay the taxes withheld to the Director of Revenue as set forth in sections 143.183 and 285.230, (5) The Department of Revenue forms mentioned in this rule can be found at www.dor.mo.gov or at the Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65105.

History

AUTHORITY: section 143.183, RSMo Supp. 2023, and section 285.230, RSMo 2016. Emergency rule filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency rule filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Original rule filed Aug. 18, 1994, effective Feb. 26, 1995. Amended: Filed Dec. 30, 1998, effective July 30, 1999. Amended: Filed Aug. 7, 2023, effective March 30, 2024. Original authority: 143.183, RSMo 1994, amended 1998, 2003, 2006, 2009, 2011, 2014, 2018, and 285.230, RSMo 1988, amended 1994, 1997, 1998, 2008, 2014.

12 CSR 10-2.230 Construction Contractors {#sec-12-csr-10-2.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.230}

(Rescinded April 30, 2022)

Original rule filed Dec. 17, 1990, effective April 29, 1991. Rescinded:

Filed Oct. 12, 2021, effective April 30, 2022.

12 CSR 10-2.235 Government Pension Exemption {#sec-12-csr-10-2.235 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.235}

History

AUTHORITY: section 143.961, RSMo 1994. Original rule filed Sept. 11, 1992, effective April 8, 1993. Rescinded: Filed Nov. 7, 2003,

12 CSR 10-2.240 Determination of Timeliness {#sec-12-csr-10-2.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.240}

PURPOSE: This rule interprets the income tax law as it applies to the determination of timeliness.

(1) In general, it is the taxpayer’s responsibility to see that a return, payment, or other document required to be filed with or mailed to the Department of Revenue is actually delivered to the department. Unless otherwise provided by law or

regulation, the date of a payment or the filing or any return or other document occurs on the date when the payment, return, or other document is actually delivered to the Department of Revenue.

(2) If the postmark on the envelope or wrapper of any return, payment, or document required to be filed before a prescribed date is made by the United States Postal Service, the date of the United States postmark stamped on the envelope or wrapper is treated as the date of delivery. If the envelope or wrapper has both a postal meter date and a postmark date applied by the United States Postal Service, the department will use the postmark date to determine the date of delivery.

(3) If any return, document, or payment is sent by United States registered mail, the date of registration of the return, document, or payment is treated as the postmark date.

(4) If any return, document, or payment is sent by United States certified mail and the sender’s receipt is postmarked by the postal employee to whom the return, document, or payment is presented, the date of the United States postmark on the receipt is treated as the postmark date. For purposes of section 143.851, RSMo, certified mail may be used instead of registered mail.

(5) As used in section 136.360, RSMo, the word “notice” does not include tax returns, requests for tax clearances, or any request under section 143.241 or 144.150, RSMo.

(6) The postmark of a private delivery service (PDS), as defined in sections (7) and (8) below, shall be treated in the same manner as a postmark by the United States Postal Service, pursuant to section 143.851, RSMo, and this rule, for purposes of meeting the ‘timely mailing as timely filing/paying’ rule.

PDSs cannot deliver items to PO boxes. The United States Postal Service must be used when mailing any return, document, or payment to a Missouri Department of Revenue PO box address.

The postmark of the PDS must be readable by the human eye without mechanical assistance.

(7) A private delivery service is a delivery service that meets the following criteria:

(A) The service is provided by a trade or business;

(B) The service is available to the general public;

basis as the United States first-class mail;

(D) The service must mark the date on which an item was given to the PDS for delivery (the received date);

(E) The service has established security procedures that prevent unauthorized access to the contents of an item by any person (e.g., employees, contractors/agents, and third parties);

(F) The name of the PDS and the type of delivery service being used must always be clearly identified on each item delivered by the PDS to the Department of Revenue; and (G) The service complies with all applicable requirements of the Private Express Statutes within Title 18 and Title 39 of the United States Code. Notwithstanding any part of this subsection to the contrary, this subsection is not intended to, and shall not be read to, incorporate any federal regulation by reference.

(8) Notwithstanding the foregoing section, a PDS shall include, but is not necessarily limited to, the specific services identified in each paragraph below:

(A) Services provided by DHL Express:

DHL Express 9:00;
DHL Express 10:30;
DHL Express 12:00;
DHL Express Worldwide;
DHL Express Envelope;
DHL Import Express 10:30;
DHL Import Express 12:00; and 8. DHL Import Express Worldwide;

(B) Services provided by FedEx:

FedEx First Overnight;
FedEx Priority Overnight;
FedEx Standard Overnight;
FedEx 2 Day;
FedEx International Next Flight Out;
FedEx International Priority;
FedEx International First; and 8. FedEx International Economy;

UPS Next Day Air Early A.M.;
UPS Next Day Air;
UPS Next Day Air Saver;
UPS 2nd Day Air;
UPS 2nd Day Air A.M.;
UPS Worldwide Express Plus; and 7. UPS Worldwide Express.

(9) Examples.

(A) Example: Joe Jones, a Missouri taxpayer, has a document that must be filed with the Department of Revenue on or before August 1, 2023. For that document to be considered timely, he may do one (1) of the following:

Deposit the document with the United States Postal Service early enough that the United States postmark stamped on the envelope will be August 1, 2023, or earlier;
Take the document to the United States Postal Office and have it registered by a postal employee on or before August 1, 2023; or 3. Present the document in a certified envelope with return receipt requested to a United States postal employee and ask the postal employee to postmark the item on or before August 1, 2023.

(B) Example: Dora Truman’s individual income tax return for tax year 2023 is due on April 15, 2024. Dora Truman attempts to send an email to the Department of Revenue on March 29, 2024, attaching her individual income tax return in PDF file format to that email. As far as Dora Truman is aware, the individual income tax return was successfully emailed to the Department of Revenue. However, due to a technical error occurring during the transmission of the email, the PDF file containing Dora Truman’s return was never actually delivered to the Department of Revenue. She does not learn about this until she receives a notice from the Department of Revenue on June 1, 2025, on which date she attempts to send her tax year 2023 return by email again, which is then successfully received by the department. Because the date of filing the return occurs when it is actually delivered to the department, Dora Truman did not file her original tax year 2023 income tax return until June 1, 2025.

(C) Example: On April 19, 2024, a tax preparer, Jane Smith, initiates an electronic submission of her client’s tax year 2023 Missouri income tax return to the Department of Revenue in conjunction with the Internal Revenue Service’s electronic filing system. The electronic transmission of this 2023 income tax return is actually delivered to the department on April 20, 2024. The taxpayer’s return deadline is April 15, 2024, and no federal or state return filing extensions were sought or granted.

Because the date of filing the return occurs when it is actually delivered to the department, the 2023 income tax return of Jane Smith’s client was filed late, on April 20, 2024.

Filed Sept. 29, 1999, effective March 30, 2000. Amended: Filed Dec. 28, 2023, effective July 30, 2024. *Original authority: 136.120, RSMo 1945; 143.851, RSMo 1972; and 143.961, RSMo 1972.

History

AUTHORITY: sections 136.120, 143.851, and 143.961, RSMo 2016. Original rule filed March 1, 1993, effective Oct. 10, 1993. Amended:

12 CSR 10-2.250 Reciprocal Agreements with Other States for Tax Refund Offsets {#sec-12-csr-10-2.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.250}

PURPOSE: This rule allows the department to enter into reciprocal agreements to offset income tax refunds for state debts and establishes the requirements for such agreements.

(1) In general, the department may enter into reciprocal agreements with other states to set off any income tax refund due any individual taxpayer of Missouri for debts of any other state that agrees to do the same for Missouri.

(2) Definition of Terms.

(A) Certified debt—A debt, as that term is defined in section 143.782(2), RSMo, certified by one (1) state to another state to be eligible for a refund offset under the laws of the state referring the debt.

(B) Debtor—See section 143.782(3), RSMo.

(C) Reciprocal agreement—An agreement between Missouri and another state for each state to offset tax refunds due to a taxpayer of the state against debts owed by the taxpayer to the other state.

(D) Refund—See section 143.782(5), RSMo.

(3) Basic Application.

(A) All reciprocal agreements will provide— 1. Each state will offset individual income tax refunds due taxpayers of the state for certified debts of the other state;

The state referring a debt (referring state) will certify that the debt is eligible for offset under the laws of the referring state;
The offsetting state will give notice of the offset to the taxpayer as required by the law of the offsetting state;
Each state will bear its own costs and neither state will charge the other state;
If a taxpayer is entitled to a return of any portion of a tax refund that has been offset, the referring state will return the amount due to the taxpayer;
Debts owed to the offsetting state will be offset before debts owed to the referring state;
Each state will comply with all applicable state and federal confidentiality laws, regulations, and policies, including

section 32.057, RSMo;

Either party may immediately terminate the agreement if the other party breaches the confidentiality provisions of the agreement;
The method of exchange of information and the method of offsetting the tax refund;
Neither state will certify a debt of less than twenty-five dollars ($25) for a tax refund offset; and 11. The offsetting state will provide notice to a nonobligated spouse of the non-obligated spouse’s right to challenge the offset when a tax refund offsets against a joint or combined return. The notice will comply with the offsetting state’s requirements for due process.

(B) A reciprocal agreement may contain any other terms that do not conflict with any required terms.

History

AUTHORITY: section 143.784.5, RSMo 2000. Original rule filed June 10, 2010, effective Dec. 30, 2010. Original authority: 143.784, RSMo 1982, amended 1984, 1993, 1994.

12 CSR 10-2.255 Allocation and Apportionment for Nonresident Shareholders of S Corporations and Nonresident Partners of Partnerships (Beginning on or After January 1, 2020) {#sec-12-csr-10-2.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.255}

PURPOSE: This rule interprets and applies sections 143.421 and 143.471, RSMo, for purposes of determining the adjusted gross income from a shareholder’s pro rata share of items of S corporation income, gain, loss, or deduction and the adjusted gross income of a nonresident partner from the partnership’s items of income, gain, loss, or deduction.

(1) Definitions.

(A) Missouri allocated income. That portion of an entity’s nonapportionable income, as that term is used in section 143.455, RSMo, that is allocated to Missouri under any of the provisions of section 143.455, RSMo or any other applicable provision of Missouri law.

(B) Missouri apportioned income. The income figure arrived at by multiplying an entity’s net income, less nonapportionable income, as that term is used in section 143.455, RSMo, by the receipts factor provided in section 143.455.10., RSMo.

(2) S Corporation Income Derived from Sources Within this State. For all tax years beginning on or after January 1, 2020, items of S corporation income, gain, loss, or deduction entering into a nonresident shareholder’s federal adjusted gross income are from sources within this state to the extent that— (A) The S corporation would include that item in its Missouri Apportioned Income by applying the provisions of section 143.455, RSMo, and the regulations issued in connection with

section 143.455, RSMo, (including any applicable regulations applying to unique industries); or (B) The S corporation would include that item in its Missouri Allocated Income by applying the provisions of section 143.455, RSMo, and the regulations issued in connection with section 143.455, RSMo, (including any applicable regulations applying to unique industries).

(3) Partnership Income Derived from Sources within this State.

For all tax years beginning on or after January 1, 2020, items of partnership income, gain, loss, or deduction entering into a nonresident partner’s federal adjusted gross income are from sources within this state to the extent that— (A) The partnership would include that item in its Missouri Apportioned Income by applying the provisions of section 143.455, RSMo, and the regulations issued in connection with

section 143.455, RSMo, (including any applicable regulations applying to unique industries); or (B) The partnership would include that item in its Missouri Allocated Income by applying the provisions of section 143.455, RSMo, and the regulations issued in connection with section 143.455, RSMo, (including any applicable regulations applying to unique industries).

(4) For purposes of applying this regulation, any references in section 143.455, RSMo to the term “corporation” shall be deemed to refer instead to the type of entity to which this

regulation is applied.

History

AUTHORITY: sections 143.421 and 143.961, RSMo 2016, and section 143.471.4, RSMo Supp. 2020. Original rule filed Sept. 8, 2020, effective March 30, 2021. Original authority: 143.421, RSMo 1972; 143.471, RSMo 1972, amended 1983, 1989, 1993, 1997, 1999, 2006, 2018; and 143.961, RSMo 1972.

12 CSR 10-2.260 Apportionment Method for Broadcasters (Beginning on or After January 1, 2020) {#sec-12-csr-10-2.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.260}

PURPOSE: This rule applies section 143.455.13.(1), RSMo to implement an alternative corporation income tax apportionment method for broadcasters.

(1) For any taxpayer that is a broadcaster as defined in subsection (2)(A) of this rule and files its original income tax return on or after January 1, 2020, shall use the apportionment method set forth in section (5) of this rule to compute its Missouri taxable income from sources in this state.

(2) Definitions.

(A) “Broadcaster” is a taxpayer that is a television broadcast network, a cable program network, or a television distribution company. The term “broadcaster” does not include a platform distribution company or a television broadcast station.

(B) “Broadcast customer” is a person, corporation, partnership, limited liability company, or other entity, such as an advertiser or a platform distribution company, that has a direct connection or contractual relationship with the broadcaster under which revenue is derived by the broadcaster.

(C) “Business customer” is a customer that is a business operating in any form, including an individual who operates a business through the form of a sole proprietorship. Sales to a non-profit organization, to a trust, to the U.S. government, to any foreign, state, or local government, or to any agent or instrumentality of such government shall be treated as sales to a business customer and shall be apportioned consistent with the rules that apply to such sales.

(D) “Commercial domicile” is the principal place from which the trade or business of the business entity is directed or managed.

(E) “Corporation” is an entity defined in section 143.441.1.(1), (F) “Film programming” is one (1) or more performance, event, or production, or segments of performances, events, or productions, intended to be distributed for visual and/ or auditory perception, including, but not limited to, news, entertainment, sporting events, plays, stories, or other literary, commercial, educational, or artistic works.

(G) “Income tax return” is the Missouri Corporation Income Tax Return for the taxable year.

(H) “Individual customer” is any customer who is not a business customer as defined in subsection (2)(C) of this rule.

(I) “Original return” is the initial income tax return filed for the taxable year, and does not mean an amended income tax return filed for a taxable year for which a corporation has previously filed any income tax return.

(J) “Platform distribution company” is a cable service provider, a direct broadcast satellite system, an internet content distributor, or any other distributor that directly charges viewers for access to any film programming.

(K) “Taxable year” is the same period the corporation uses for reporting its federal income tax liability under the Internal Revenue Code of 1986, as amended.

(3) Sourcing of Receipts from Broadcast Advertising Services.

Notwithstanding anything herein to the contrary, receipts from a broadcaster’s sale of advertising services to a broadcast customer are sourced to Missouri if the commercial domicile of the broadcast customer is in Missouri. For purposes of this provision, “advertising services” means an agreement to include the broadcast customer’s advertising content in the broadcaster’s film programming.

(4) Sourcing of Receipts from Licenses of Broadcasting Intangibles. Where a broadcaster grants a license to a broadcast customer for the right to use film programming, the licensing fees paid by the licensee for such right are sourced to Missouri to the extent that the broadcast customer is located in Missouri.

In the case of business customers, the broadcast customer’s location shall be determined using the broadcast customer’s commercial domicile. In the case of individual customers, the broadcast customer’s location shall be determined using the address of the broadcast customer listed in the broadcaster’s records.

(5) Alternative Apportionment Method for Broadcasters. A taxpayer who is a broadcaster shall apportion its apportionable income to this state by multiplying the net income by a fraction, the numerator of which is the sum of the taxpayer’s receipts from broadcast advertising services sourced to Missouri under

section (3) of this rule plus the taxpayer’s receipts from licenses of broadcast intangibles sourced to Missouri under section (4) of this rule and the denominator of which is the sum of the taxpayer’s total receipts from broadcast advertising services from all sources plus the sum of the taxpayer’s total receipts from licenses of broadcast intangibles from all sources.

History

AUTHORITY: section 143.961, RSMo 2016, and section 143.455.13, RSMo Supp. 2020. Original rule filed Sept. 8, 2020, effective March 30, 2021. Original authority: 143.455, RSMo 2018 and 143.961, RSMo 1972.

12 CSR 10-2.436 SALT Parity Act Implementation {#sec-12-csr-10-2.436 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.436}

PURPOSE: This rule explains how a partnership or an S corporation may elect to become an affected business entity under section 143.436, RSMo, the timing of affected business entity tax return filing, how to designate an affected business entity representative for a tax year, the estimated tax obligations and withholding obligations of an affected business entity, and an aspect of the tax credit under the SALT Parity Act.

(1) For tax years ending on or after December 31, 2022, a partnership or S corporation electing to become an affected business entity for a tax year shall make such election on its affected business entity tax return (Form MO-PTE). A separate election must be made for each tax year.

(2) An election to become an affected business entity for a tax year shall not be effective if the partnership or S corporation has not successfully designated a person as an affected business entity representative for that tax year at or before the time the partnership or S corporation attempts to make such election. For an election to be effective, the affected business entity tax return (Form MO-PTE) on which the election is made must include the signatures of either— (A) Each member of the electing entity who is a member at the time the affected business entity tax return is filed;

(B) An officer, manager, or member of the electing entity who is authorized to make the election and who attests to having such authorization under penalty of perjury; or (C) The designated affected business entity representative of the partnership or S corporation, including but not limited to an affected business entity representative who is re-designated as such on the same Form MO-PTE in the manner described in subsection (5)(D) of this rule.

(3) The deadline for making an election to become an affected business entity for a tax year is the filing deadline for the affected business entity tax return (Form MO-PTE). No election can be made after the deadline, including any approved extension.

(4) If an election to become an affected business entity has been made for a tax year, the election cannot be revoked for that tax year.

(5) At or before the time that a partnership or S corporation files its affected business entity tax return (Form MO-PTE) on which the election is made, the partnership or S corporation shall designate an affected business entity representative for that tax year. Only one (1) natural person may serve as an affected business entity representative for a tax year.

(A) To designate a person as an affected business entity representative, the partnership or S corporation must file with the department a Power of Attorney (Form 2827) or Pass- Through Entity Power of Attorney (Form 2827 PTE) designating that person as an appointed representative and giving that person the title of “Affected Business Entity Representative.”

The designation must be signed by someone with authority to make such a designation on behalf of the partnership or S corporation.

(B) As necessary qualifications to be designated as an affected business entity representative for a tax year, a person must have a working email address, telephone number, and physical address at which to receive mail, all of which must be provided to the department.

(C) If a Power of Attorney (Form 2827) or Pass-Through Entity Power of Attorney (Form 2827 PTE) is filed as required above, and is executed by someone with authority to do so on behalf of the partnership or S corporation, but the filing lacks one (1) or more necessary items of information or the person who would otherwise serve as affected business entity representative lacks one (1) of the qualifications required above, that person shall nevertheless be considered an authorized representative of the partnership or S corporation for purposes of receiving and discussing the partnership or S corporation’s confidential tax information otherwise protected by section 32.057, RSMo. By way of example, the department may communicate with that person to share what items or qualifications were lacking in the attempt to make that person an affected business entity representative.

(D) If a person has already been designated as an affected business entity representative for an affected business entity’s prior tax year, in lieu of the other requirements of this section, that person may be re-designated as an affected business entity representative for a later tax year by the filing of that tax year’s affected business entity tax return (Form MO-PTE) and the checking of a box on that return indicating the affected business entity’s intent to re-designate that representative.

The affected business entity representative for the prior tax year may check this box, re-designating himself or herself as an affected business entity representative, only if the affected business entity representative has been given authority, by the partnership or S corporation, to do so for the tax year for which the box is checked.

(6) An affected business entity representative may be removed from the role of affected business entity representative for a tax year if the partnership or S corporation designates a new affected business entity representative for that tax year. The removal of an affected business entity representative does not change the binding effect of any prior actions taken by that affected business entity representative.

(7) An affected business entity is not subject to an estimated income tax declaration filing requirement, or an estimated income tax payment requirement, with respect to the tax under section 143.436, RSMo. An affected business entity may choose to make an early payment of its anticipated tax liability for a tax year, even if the tax year is not yet complete.

(8) The election to become an affected business entity does not relieve a partnership or S corporation of its withholding obligations under section 143.411.5, RSMo, or section 143.471.6, RSMo, respectively.

(9) The affected business entity’s tax under section 143.436, RSMo, is due by the fifteenth day of the fourth month following the end of the partnership or S corporation’s tax year. By this same date, the affected business entity shall file an affected business entity tax return (Form MO-PTE) unless a filing extension is approved by the department. If an affected business entity is approved for a filing extension of the affected business entity tax return (Form MO-PTE), the affected business entity is likewise granted an equal extension of time for the payment of the tax due under section 143.436, RSMo. Pursuant to section 143.731.2, RSMo, interest on this tax will continue to accrue regardless of any extension of time for payment.

(10) If a partnership or S corporation has received a federal extension for filing its annual partnership or S corporation federal return, that partnership or S corporation is hereby granted an equal extension of time for filing its affected business entity tax return (Form MO-PTE) for the same tax year, except that this extension will be no longer than six (6) months.

The partnership or S corporation must attach a copy of the approved federal extension to its affected business entity tax return (Form MO-PTE).

(11) The tax credits granted to a member of an affected business entity by sections 143.436.8 and 143.436.10, RSMo, shall be computed based on the member’s direct and indirect pro rata share of the tax actually paid pursuant to section 143.436, RSMo, by any affected business entity of which such member is directly or indirectly a member. If an affected business entity reduces its tax liability under section 143.436, RSMo, by use of tax credits, other than a credit for payment or overpayment of this tax, the affected business entity’s tax actually paid will generally be reduced.

(12) Any member of an affected business entity may elect not to have tax imposed on the affected business entity under section 143.436, RSMo, with respect to the affected business entity’s separately and nonseparately computed items, otherwise subject to tax under section 143.436, RSMo, to the extent such items are allocable to that member. This election is referred to as an “opt-out election,” and a member who has timely made this election is referred to as an “opt-out member.”

(A) If a member wishes to make an opt-out election for a tax year, the opt-out election shall be filed with the department by the earlier of the original (unextended) due date of the Form MO-PTE for that tax year, or the actual filing date of the Form MO-PTE for that tax year. The opt-out member shall also furnish the opt-out election to the partnership or S corporation. The opt-out election must specify the partnership or S corporation to which the opt-out election applies.

(B) Once an opt-out election is filed, it applies to the tax year for which it was first timely filed and for all subsequent tax years. However, an opt-out member may revoke that member’s opt-out election. To be effective for a tax year, the revocation must be filed with the department by the filing due date of an opt-out election for that tax year. The member shall also furnish the opt-out election revocation to the partnership or S corporation. The revocation of an opt-out election applies to the tax year for which the revocation was first timely filed, and for all subsequent tax years, until a new opt-out election is filed.

(C) For any tax year to which the opt-out election applies, with respect to the partnership or S corporation to which the opt-out election applies, the opt-out member is ineligible for the tax credits that would otherwise be granted by sections 143.436.8 and 143.436.10, RSMo. In determining the pro rata shares of tax paid under section 143.436, RSMo, for purposes of computing the tax credits allowed by sections 143.436.8 and 143.436.10, RSMo, the pro rata share percentage that would otherwise be attributed to an opt-out member shall be redistributed proportionally among the members who are not opt-out members. For example, if an S corporation has opt-out members with a share percentage of thirty percent (30%), and a non-opt-out member of an S corporation has a share percentage of ten percent (10%), then that non-opt-out member’s new credit percentage is ten percent (10%) divided by seventy percent (70%), that is, fourteen percent (14%). This subsection shall not be construed to affect an opt-out member’s authorization to carry forward and redeem outstanding tax credits that were initially allowed for a tax year to which the opt-out election did not apply.

(D) For any tax year to which the opt-out election applies, with respect to the partnership or S corporation to which the opt-out election applies, such partnership or S corporation shall, when computing the tax under section 143.436, RSMo, remove all opt-out members’ allocable items such as income, deductions, or any other relevant items. Addition and subtraction modifications must be determined as though the income, deductions, and other relevant items allocable to the opt-out members did not exist.

History

AUTHORITY: sections 32.057.2, 136.120, and 143.961, RSMo 2016, and section 143.436, RSMo Supp. 2024. Emergency rule filed Dec. 27, 2022, effective Jan. 11, 2023, expired July 9, 2023. Original rule filed Dec. 27, 2022, effective June 30, 2023. Amended: Filed March 31, 2025, effective Sept. 30, 2025. Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014; 136.120, RSMo 1945; 143.436, RSMo 2022, amended 2024; and 143.961, RSMo 1972.

12 CSR 10-2.705 Filing Corporation Tax Returns {#sec-12-csr-10-2.705 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.705}

PURPOSE: This rule sets certain instructions relating to the time and place for filing corporate tax returns and the requirement of submitting copies of federal consolidated income tax returns are assigned a rule number in order to comply with the uniform procedures adopted by the secretary of state under section 536.023, RSMo. No changes in the substantive effect of the instructions have been made.

(1) Place for Filing Returns and Payment of Taxes. The place for filing the Missouri corporation income tax return and the payment of Missouri corporation income taxes, however transmitted (e.g., by mail), shall be the Missouri Department of Revenue’s office at 301 West High Street, Jefferson City, MO 65101-1517.

(2) Consolidated Federal Income Tax Returns Required—When.

A corporation which participates in the filing of a consolidated federal income tax return, but not a Missouri consolidated income tax return, shall attach to its separate Missouri Corporation Income Tax Return Form MO-1120, U.S. Corporation Income Tax Return Form 1120 for the corresponding tax year, one (1) complete copy of the actual consolidated federal income tax return filed with the Internal Revenue Service for the corresponding tax year, if any, together with all pertinent schedules so filed, if any. A subsidiary member filing a separate Missouri return may satisfy this requirement by instead attaching to its Missouri return the first five (5) pages of the consolidated federal income tax return filed with the Internal Revenue Service for the corresponding tax year, if any, as well as an income statement or a summary of profit companies within the affiliated group for the tax year.

History

AUTHORITY: sections 143.511, 143.571, and 143.961, RSMo 2016. This rule was contained in the general instructions of the corporation income tax booklet filed Feb. 10, 1975, effective Feb. 20, 1975. Emergency amendment filed Jan. 20, 1995, effective Jan. 30, 1995, expired May 29, 1995. Amended: Filed Jan. 20, 1995, effective July 30, 1995. Amended: Filed Nov. 9, 2023, effective May 30, 2024. Original authority: 143.511, RSMo 1972, amended 1994; 143.571, RSMo 1972; and 143.961, RSMo 1972.

12 CSR 10-2.710 Net Operating Losses on Individual Income Tax Returns {#sec-12-csr-10-2.710 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.710}

PURPOSE: This rule explains the proper treatment of net operating losses for purposes of Missouri individual income tax, as well as the handling of negative federal adjusted gross income by individuals.

(1) An individual taxpayer cannot have a negative federal adjusted gross income for purposes of computing Missouri adjusted gross income or Missouri nonresident adjusted gross income. An individual who, for federal income tax purposes, has a negative federal adjusted gross income for a given tax year must compute Missouri adjusted gross income or Missouri nonresident adjusted gross income for that tax year as though such individual’s federal adjusted gross income was zero dollars ($0).

(A) Example: For federal income tax purposes, Taxpayer A’s federal adjusted gross income is negative fifty thousand dollars (-$50,000). Taxpayer A has Missouri addition modifications of sixty thousand dollars ($60,000), and is entitled to a Missouri standard deduction of thirteen thousand dollars ($13,000).

Taxpayer A is a Missouri resident, and has no other deductions, credits, or modifications. In completing the Form MO-1040, Taxpayer A must enter zero dollars ($0) on the line requesting the taxpayer’s federal adjusted gross income. Taxpayer A adds the Missouri addition modifications of sixty thousand dollars ($60,000), resulting in a Missouri adjusted gross income of sixty thousand dollars ($60,000). Taxpayer A then deducts the Missouri standard deduction of thirteen thousand dollars ($13,000), resulting in a Missouri taxable income of forty-seven thousand dollars ($47,000).

(2) A resident individual taxpayer must include, as an addition modification in computing Missouri income tax liability, the following net operating loss deduction amounts, to the extent used in determining federal taxable income for the tax year and allowed by Internal Revenue Code section 172:

(A) A net operating loss deduction carried backward for more than two (2) years;

(B) A net operating loss deduction carried forward for more than twenty (20) years; and (C) A net operating loss deduction claimed for the tax year in which the loss occurred. Internal Revenue Code section 172 generally does not allow a net operating loss deduction to be claimed for the same tax year in which the loss occurred.

(3) Any amount of net operating loss deduction used in determining federal taxable income but disallowed by section 143.121.2(4), RSMo, for Missouri income tax purposes may be carried forward and taken against any income on the Missouri income tax return for no more than twenty (20) years after the year of the initial loss.

(4) A nonresident individual taxpayer shall use, in determining Missouri nonresident adjusted gross income, the portion of the modification amount prescribed by section 143.121.2(4), RSMo, which relates to income derived from sources in Missouri.

(5) The addition modification in section 143.121.2(4), RSMo, and as explained in section (2) of this rule, does not apply to a net operating loss deduction allowed, pursuant to Internal Revenue Code section 172(b)(1)(B), for the carryback of a farming loss.

History

AUTHORITY: section 143.961, RSMo 2016. Original rule filed Nov. 29, 1995, effective May 30, 1996. Amended: Filed Dec. 20, 2023, effective July 30, 2024.

12 CSR 10-2.720 Reporting Requirements for Individual Medical Accounts {#sec-12-csr-10-2.720 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.720}

History

AUTHORITY: section 143.961, RSMo 1994. Original rule filed Jan. 3, 1996, effective July 30, 1996. Rescinded: Filed July 11, 2023, effective Feb. 29, 2024.

12 CSR 10-2.725 Foster Parent Tax Deduction {#sec-12-csr-10-2.725 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.725}

PURPOSE: This rule interprets and implements the foster parent tax deduction provided in section 143.1170, RSMo.

(1) The maximum deduction allowed by section 143.1170, RSMo, is five thousand dollars ($5,000) per tax return, regardless of filing status, except that individuals with a filing status of married filing separately are allowed a maximum of only two thousand five hundred dollars ($2,500) per individual taxpayer.

(A) Example: For the entire year of 2023 (365 days), John and Jane Smith both provided care to a child as foster parents as defined under section 210.566, RSMo. John and Jane Smith file a Missouri income tax return using the filing status of married filing combined. John has expenses incurred directly in providing care as a foster parent in the amount of $6,000, and Jane has incurred such expenses in the amount of $5,500.

On their combined Missouri income tax return for 2023, John and Jane may only take a deduction under section 143.1170, RSMo, of $5,000.

(B) Example: Same as the above, except that John and Jane Smith use the filing status of married filing separately. On his 2023 Missouri income tax return, John may take a deduction under section 143.1170, RSMo, of only $2,500, and Jane may take a deduction under section 143.1170, RSMo, of only $2,500.

(C) Example: Same as the above, with John and Jane Smith using the filing status of married filing separately, except that in 2023 John has expenses incurred directly in providing care as a foster parent in the amount of $4,000 and Jane has only $1,500 in such expenses. On his 2023 Missouri income tax return, John may only take a deduction under section 143.1170, RSMo, of $2,500. On her 2023 Missouri income tax return, Jane may only take a deduction under section 143.1170, RSMo, of $1,500.

(2) The maximum deduction limit to be allowed on a tax return is calculated as follows. The cumulative number of full days during which foster care was provided shall be totaled, and this total shall be divided by one hundred eighty-three (183) days.

If the result equals or exceeds one (1), the maximum deduction can be allowed. If the result is less than one (1), round the result to the nearest two decimal places and multiply it by five thousand dollars ($5,000) (or two thousand five hundred dollars ($2,500) if married filing separately) to arrive at the maximum deduction that can be allowed on the return.

(A) Example: During the year 2023, Jane Smith, whose filing status is single, provides care as a foster parent, as defined under section 210.566, RSMo, to a child for 20 days in August, 20 days in September, and 20 days in December. Jane Smith totals these days to arrive at the sum of 60 days during which she provided foster care. Jane Smith then divides these 60 days by 183 days, to arrive at a result rounded to 0.33. This result is then multiplied by $5,000 to arrive at $1,650, the maximum deduction under section 143.1170, RSMo, that can be allowed on her tax return. Jane Smith directly incurred $700 in providing care as a foster parent during 2023. Therefore, Jane Smith may deduct that $700 on her 2023 tax return under section 143.1170, (B) Example: Same as the above, except that Jane Smith directly incurred $8,000 in providing care as a foster parent during 2023. Because the maximum deduction that can be allowed on her return is $1,650, she may only deduct $1,650 on her 2023 tax return for these expenses under section 143.1170, (3) A taxpayer desiring to claim the foster care deduction shall file an affidavit with the taxpayer’s income tax return affirming that the taxpayer is a foster parent and is entitled to the deduction in the amount claimed on the return. This affidavit may be in a form provided by the Department of Revenue. In addition, if a taxpayer receives a letter from the Department of Social Services stating the number of days during the year in which the taxpayer has provided care as a foster parent, the taxpayer shall attach a copy of that letter to the income tax return for the corresponding year in which this deduction is claimed.

(4) Expenses incurred directly by the taxpayer in providing care as a foster parent include but are not limited to the following examples, to the extent the below expenses were incurred directly by the taxpayer:

(A) Food purchased directly for the foster child; and (B) Clothing purchased directly for the foster child.

(5) The following are examples of expenses that are not incurred directly by the taxpayer in providing care as a foster parent:

(A) The increase in household utility expenses (e.g., electricity expense) attributable to the provision of foster care;

(B) The purchase of a television or computer used by multiple members of the household in addition to the foster child;

(D) Expenses paid for directly through a public assistance program or charitable program.

History

AUTHORITY: section 143.1170.5, RSMo Supp. 2022. Original rule filed Jan. 31, 2023, effective Aug. 30, 2023. Original authority: 143.1170, RSMo 2021.

PURPOSE: This rule clarifies, for individual income taxpayers and corporate income taxpayers, the subtraction reduction related to the production of exempt income pursuant to sections 143.431.2 and 143.121.3(1), RSMo.

(1) For purposes of this rule, “exempt income” means interest received on deposits held at a Federal Reserve bank or interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent exempt from Missouri income taxes under the laws of the United States.

“Related expenses” are defined as any expenses allocable to the production of exempt income.

(2) Any expenses incurred in the production of exempt income shall reduce the exempt income that would otherwise be subtracted pursuant to section 143.121.3(1), RSMo. This reduction shall only apply to the extent that such expenses, including amortizable bond premiums, are included in a taxpayer’s Missouri itemized deduction or are deducted in determining an individual’s federal adjusted gross income or a corporation’s federal taxable income. Section 143.121.3(1), RSMo, should be read in light of 26 U.S.C. section 265 (Internal Revenue Code), which generally disallows the deduction for federal income tax purposes of expenses incurred to purchase or carry tax-exempt obligations.

(3) In arriving at the amount of related expenses, the taxpayer may use actual expenses or, if actual related expenses are not reasonably determinable, a reasonable estimate. When arriving at a reasonable estimate, in general, the taxpayer should use the same or similar method to that which the taxpayer used to compute related expenses for federal income tax purposes, provided that the method reasonably approximates related expenses.

(4) If a taxpayer fails to compute reasonable related expenses, the director will make an adjustment based on the best information made available. If sufficient information is not made available and if the taxpayer’s records do not provide sufficient information, the director will use the following formula to compute related expenses:

Exempt income X Expense items = Reduction to exempt income Total income The principal expense item in this formula is interest expense, however, the director may include other expense items because of their direct relationship to the production of exempt income.

“Total income” in this formula refers to the figure reported on the “total income” line on the individual’s federal Form 1040 or the corporation’s federal Form 1120. The taxpayer may propose, or the director may use, an alternative method provided that it better reflects the amount of related expenses.

(5) The reduction to exempt income shall be made only if related expenses total at least five hundred dollars ($500).

(6) Notwithstanding any provision of this rule to the contrary, nothing in this rule shall be interpreted or construed as incorporating by reference any rule, regulation, standard, or guideline of a federal agency.

rule filed July 19, 1996, effective March 30, 1997. Amended: Filed Feb. 6, 2024, effective Sept. 30, 2024. *Original authority: 136.120, RSMo 1945, and 143.961, RSMo 1972.

History

AUTHORITY: sections 136.120 and 143.961, RSMo 2016. Original

12 CSR 10-2.740 Adoption Tax Credit {#sec-12-csr-10-2.740 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.740}

PURPOSE: Section 135.327, RSMo, provides a tax credit for nonrecurring adoption expenses incurred in the adoption of a child. This rule, among other things, interprets section 135.327, RSMo, and other sections related to this credit; specifies how the credit shall be applied for or assigned, sold, or transferred; sets forth some aspects of the handling of Pre-2024 Credits and Post- 2024 Credits; and establishes the order under which a reduction in the credit shall occur pursuant to section 135.335, RSMo.

(1) As used in this rule, the following terms shall have the following meanings:

(A) “Adoption Tax Credit Limit” means ten thousand dollars ($10,000) or, for each tax year beginning on or after January 1, 2024, ten thousand dollars ($10,000) adjusted annually for the increase in cost-of-living, if any, as of the preceding July over the level of July of the immediately preceding year of the Consumer Price Index for All Urban Consumers;

(B) “Pre-2024 Credit” means an Adoption Tax Credit issued for a tax year beginning on or before December 31, 2023; and (C) “Post-2024 Credit” means an Adoption Tax Credit issued for a tax year beginning on or after January 1, 2024.

(2) An individual residing in this state who proceeds in good faith to adopt a child may be eligible for an Adoption Tax Credit.

A business entity providing funds to an employee to enable that employee to proceed in good faith with the adoption of a child may be eligible for an Adoption Tax Credit. The tax credit is limited to the lesser of the Adoption Tax Credit Limit or the actual amount of nonrecurring adoption expenses incurred in the adoption of the child.

(A) Example—Taxpayer Moving to Another State: A taxpayer residing in Missouri proceeds in good faith to adopt a child, and the child is placed in the taxpayer’s home in 2023. The taxpayer incurred $8,000 of nonrecurring adoption expenses in 2023, and the taxpayer has Missouri income tax of $6,000 for the 2023 tax year. The taxpayer may apply for an Adoption Tax Credit in the amount of $4,000 for the 2023 tax year. In 2025, the taxpayer is not a resident of Missouri because the taxpayer moves to and becomes a resident of Oklahoma. The adoption is also finalized in 2025. The taxpayer has Missouri income tax of $3,000 for the 2025 tax year. The taxpayer is ineligible to apply for an Adoption Tax Credit for the 2025 tax year.

(3) The lesser of one-half (1/2) of the actual amount of nonrecurring adoption expenses, or one-half (1/2) of the Adoption Tax Credit Limit for the tax year in which the child is placed in the adoptive parent’s home, may be used to reduce the income tax on the adoptive parent’s individual income tax return, or to reduce the state tax liability of the business entity, for the tax year in which the child is placed in the adoptive parent’s home. The remaining one-half (1/2) of the tax credit, up to one-half (1/2) of the Adoption Tax Credit Limit for the tax year in which the adoption is finalized, may be used to reduce the income tax of the adoptive parent, or reduce the state tax liability of the business entity, for the tax year the adoption is finalized. The combined total of the portion of the tax credit for the tax year in which the child is placed in the adoptive parent’s home and the portion of the tax credit for the tax year in which the adoption is finalized must not exceed the Adoption Tax Credit Limit for the tax year in which the adoption is finalized.

(A) Example—Same Year for Adoption Placement and Finalization: A child is placed in the home and the adoption is finalized in 2024. The taxpayer incurred $15,000 in nonrecurring adoption expenses. Assume for purposes of this example that the Adoption Tax Credit Limit for 2024 is $10,050. The taxpayer has applied for, and the department has approved, an Adoption Tax Credit for $10,050. The taxpayer has income tax of $6,000 for the 2024 tax year. The taxpayer may use $6,000 against income tax for the 2024 tax year and may request a refund for the remaining $4,050.

(B) Example—Different Adjacent Years for Adoption Placement and Finalization: A child is placed in the home in 2023. The adoption is finalized in 2024. The individual incurred $15,000 in nonrecurring adoption expenses in 2023, but none in 2024. Assume for purposes of this example that the Adoption Tax Credit Limit for 2024 is $10,050. The individual has income tax of $4,000 for 2023. Because this portion of the credit is limited to 50% of the Adoption Tax Credit Limit for the year that the child is placed in the home, the individual can apply for $5,000 in 2023. This is a Pre-2024 Credit, so the individual can redeem $4,000 of this portion of the credit against the 2023 income tax and may carry forward the remaining $1,000 of the credit for up to four (4) subsequent tax years. The individual may apply for a $5,025 credit for 2024.

(C) Example—Different Non-Adjacent Years for Adoption Placement and Finalization: A child is placed in the home in 2023. The adoption is finalized in 2025. Assume for purposes of this example that the Adoption Tax Credit Limit for 2025 is $10,100. The individual incurred $15,000 in nonrecurring adoption expenses in 2022 and 2023. The individual has income tax of $6,000 for 2023 and should apply for $5,000 of the Adoption Tax Credit for that year (50% of the Adoption Tax Credit Limit for that year). Because the adoption was not finalized until 2025, the individual has no credit available for 2024. For 2025, the individual may apply for $5,050 of the Adoption Tax Credit.

(D) Example—Carryforward from First Year: A child is placed in the home in 2023. The adoption is finalized in 2025. Assume for purposes of this example that the Adoption Tax Credit Limit for 2025 is $10,100. The individual incurred $15,000 in nonrecurring adoption expenses in 2022 and 2023.

The individual has income tax of $3,000 for each of the tax years 2023 and for 2024. The individual may apply for $5,000 of the Adoption Tax Credit for tax year 2023. If the application is approved, the individual may use $3,000 of the $5,000 available credit against income tax for 2023 and, because this is a Pre-2024 Credit, may carry forward and use $2,000 of that credit against 2024 income tax. The individual may then apply for $5,050 of the Adoption Tax Credit for tax year 2025.

(E) Example—Less Than Maximum Nonrecurring Adoption Expenses Incurred: A child is placed in the home in 2023.

The adoption is finalized in 2025. Assume for purposes of this example that the Adoption Tax Credit Limit for 2025 is $10,100.

The individual incurred a total of $8,000 in nonrecurring adoption expenses in 2022 and 2023. The individual has income tax of $3,000 for each of the tax years 2023 and for 2024. The individual should apply for $4,000 of the Adoption Tax Credit ($8,000 nonrecurring adoption expenses x 50%) for tax year 2023. If the application is approved, the individual may use $3,000 of the $4,000 available credit for 2023 and, because this is a Pre-2024 Credit, may carry forward and use $1,000 of the credit against 2024 income tax. The individual should then apply for the remaining $4,000 of the Adoption Tax Credit for tax year 2025.

(F) Example—Foster Care Placement Leading to Adoption: A child is placed in the home under a foster care arrangement in 2023. In 2024, the taxpayer begins to proceed in good faith with the adoption of the child. In 2025, the adoption is finalized. In 2024, the individual incurred $8,000 in nonrecurring adoption expenses. In this circumstance, the taxpayer may apply for $4,000 of the Adoption Tax Credit for tax year 2024, which is treated as the year in which the child is placed in the home for purposes of adoption and this credit. The taxpayer may apply for the remaining $4,000 of the Adoption Tax Credit for the tax year 2025.

(4) The Pre-2024 Credit used by an adoptive parent may not exceed the income tax for the tax year, and the Pre-2024 Credit used by a business entity may not exceed the business entity’s state tax liability on the return for which the credit is claimed for the tax year. The portion of a Pre-2024 Credit which may otherwise be used for the tax year in which the child is placed in the home, but which exceeds the tax due for that tax year, shall not be refunded but may be carried forward and used against the taxpayer’s tax due for the subsequent four (4) tax years from the tax year the child is placed in the home. The portion of a Pre-2024 Credit which may otherwise be used for the tax year in which the adoption is finalized, but which exceeds the tax due, shall not be refunded but may be carried forward and used against the taxpayer’s tax due for the subsequent four (4) tax years from the tax year the adoption is finalized. If a taxpayer has carried Pre-2024 Credits forward to a tax year for which the taxpayer also has Post-2024 Credits, the taxpayer may designate on the tax return whether the Pre- 2024 Credits or Post-2024 Credits shall first be applied to the tax liability for that tax year. If no designation is made, the department will apply Pre-2024 Credits to a tax liability before applying Post-2024 Credits to that liability.

(A) Example—Pre-2024 Credit and Post-2024 Credit Redeemed in Same Year: A child is placed in the home in 2023. The adoption is finalized in 2024. Assume for purposes of this example that the Adoption Tax Credit Limit for 2024 is $10,050.

The individual incurred $15,000 in nonrecurring adoption expenses in 2022 and 2023. The individual has income tax of $3,000 for tax year 2023 and income tax of $1,000 for 2024. The individual may apply for $5,000 of the Adoption Tax Credit for tax year 2023. If the application is approved, the individual may use $3,000 of the $5,000 available credit for 2023. Because this is a Pre-2024 Credit, the individual has $2,000 remaining to carry forward. The individual applies for and is approved for a credit of $5,025 for tax year 2024. The individual claims all of the credits with the individual’s tax year 2024 return but does not designate on the tax return whether the Pre-2024 Credit or the Post-2024 Credit shall first be applied against the tax year 2024 liability. Therefore, the department first applies the Pre- 2024 Credit to the $1,000 liability, leaving the taxpayer with $1,000 of a Pre-2024 Credit to carry forward. The department then issues an income tax refund for the Post-2024 Credit in the amount of $5,025.

(5) Only one (1) credit of up to the Adoption Tax Credit Limit is available for each child that is adopted. In the event that an individual and a business entity both apply to claim a credit for the same child under section 135.327, RSMo, the earlier-filed application will take precedence over the laterfiled application. If there are simultaneous application filings, then, in the event that an individual and a business entity both apply to claim a credit for the same child under section 135.327, RSMo, the individual’s application to claim the credit will take precedence over the business entity’s application to claim the credit. In no event may the combined total of credit allowed to an individual and a business exceed the Adoption Tax Credit Limit amount for the same child, and in no event may a business entity and an individual use the same nonrecurring adoption expenses to determine the tax credit amount for which they are eligible. The preceding sentence applies regardless of whether the nonrecurring adoption expenses were paid using funds provided by a business entity to an individual employee.

(6) To apply for the Adoption Tax Credit, the taxpayer must attach a completed form MO-ATC to the return for the tax year in which the child is placed in the adoptive parent’s home or for the tax year in which the adoption is finalized, or both.

This application must be filed between July 1 and April 15 of the fiscal year, regardless of any change to the income tax return deadline for Saturdays, Sundays, or holidays. A denied application may be refiled between July 1 and April 15 of the following fiscal year, but only if the completed form MO-ATC is attached to an original or amended return for either the tax year the child is placed in the adoptive parent’s home or the tax year the adoption is finalized, as applicable.

(A) Example—Late-Filed Form MO-ATC: An individual incurred a total of $10,000 in nonrecurring adoption expenses related to the adoption of a child. The individual incurred income tax of $3,000 in 2025 and filed a 2025 Missouri income tax return and form MO-ATC on April 16, 2026, after the filing period for the Adoption Tax Credit. The application for credit will be denied since the application was filed after the filing period. The form MO-ATC may be refiled in the next fiscal year attached to an amended Missouri income tax return for tax year 2025.

(7) After it has been approved and issued by the department, the owner of an Adoption Tax Credit may assign, transfer, or sell the credit. To claim the credit, the buyer must provide to the department a statement signed by the seller that includes the names and addresses of the buyer and seller, the date the credit was sold, the amount of tax credit sold, the price paid, and must also provide a completed and signed Form MO-TF and a copy of the Form MO-ATC completed by the adoptive parent(s) or the adoptive parent(s)’ employer. A sale of the credit shall not be effective if the amount paid in exchange for the credit is less than 75% of the amount of the credit sold.

For Pre-2024 Credits, the tax years to which a tax credit may be carried forward by the assignee, transferee, or buyer of the credit shall not exceed the tax years to which the assignor, transferor, or seller could have carried forward the tax credit.

For Post-2024 Credits, no carryforward is allowed.

(A) Example—Non-Cash Exchange for Adoption Tax Credit: A car dealer accepts a Pre-2024 Credit as payment for a car. The fair market value of the car must be at least 75% of the amount of the Adoption Tax Credit transferred to the car dealer. The car dealer may use the Pre-2024 Credit to offset the car dealer’s income tax liability, subject to the applicable restrictions and filing requirements. No portion of this credit is refundable, but the credit can be carried over to a later tax year for the remaining life of the credit.

(8) The reduction of the amount of the credit by the state’s cost of providing care, treatment, maintenance, and services under

section 135.335, RSMo, shall occur as prescribed in this section.

The amount of the credit redeemed on any tax return will be reduced, beginning with the most recently filed original or amended tax return redeeming the credit for the most recently ended tax year and continuing in reverse chronological order until the tax year of adoption. If, in connection with the same return, a Post-2024 Credit is used both to reduce income tax liability and is refunded for the same tax year, the portion of that credit used to reduce income tax liability shall be reduced before the portion of that credit which was refunded. If, after the credit has first been reduced as described in the previous two (2) sentences, an amount of Pre-2024 Credits remains eligible to be carried forward, further reduction will be made in the order in which redemptions of such carryforwards are filed with the department. The state’s cost of providing care, treatment, maintenance, and services may be updated from time to time to reflect additional costs incurred by the state over time, and the reduction of the credit in the order prescribed by this section, beginning with the order described in the second sentence of this section, may be separately performed each time the state’s cost of providing care, treatment, maintenance, and services is updated. The reduction required by section 135.335, RSMo, in the order specified in this rule, shall apply to any credit amounts issued for the same child’s adoption process, even if the credit amounts were issued to multiple taxpayers, and even if the tax credit has been assigned, transferred, or sold.

(A) Example—Order of Reduction of Pre-2024 Credit Amount:

In 2024, Jane Smith and her employer, XYZ Corp., apply for and are approved for an Adoption Tax Credit with respect to the same child in the amount of $1,000 each for tax year 2023. The child was placed in the home, and the adoption was finalized, in 2023. XYZ Corp. uses $400 of its credit against its income tax liability for tax year 2023 on a return filed March 15, 2024, and has $600 remaining eligible to be carried forward. Jane Smith uses $300 of her credit against her individual income tax liability for tax year 2023 on a return filed April 10, 2024.

Jane Smith sells $500 of her credit to ABC Corp. and keeps the remaining $200 eligible for her to carry forward. ABC Corp. uses $400 of the purchased credit on its tax year 2023 corporate income tax return filed late, on May 1, 2024, and intends to carry forward the remaining $100 of the credit to tax year 2024.

However, at the end of 2024, the adopted child of Jane Smith is placed, with no intent to return to the adoptive home, in foster care, and the state’s costs of providing care for the child are $1,800. The reduction of the credit applies in the following order. First, ABC Corp.’s $400 redemption of the credit on its May 1, 2024, tax return is reduced to $0. ABC Corp. has a resulting tax underpayment for its tax year 2023. Second, Jane Smith’s $300 redemption of the credit on her April 10, 2024, tax return is reduced to $0. Jane Smith has a resulting tax underpayment for her tax year 2023. Third, XYZ Corp.’s $400 redemption of the credit on its March 15, 2024, tax return is reduced to $0.

XYZ Corp. has a resulting tax underpayment for its tax year 2023. Subsequently, ABC Corp. files its 2024 tax return on April 2, 2025, attempting to redeem its remaining $600 credit, and XYZ Corp. files its 2024 tax return on April 3, 2025, attempting to redeem its remaining $100 credit. The department reduces these credits to $0. Afterwards, on April 9, 2025, Jane Smith files her 2024 tax return, redeeming her remaining $200 credit carryforward, which the department initially allows as the $1,800 required reduction has been satisfied. However, based upon further information provided to the department, on June 1, 2025, the state’s costs of providing care for the child have been increased by $500. The department therefore engages in another round of reductions, reducing to $0 Jane Smith’s $200 credit redeemed on her tax year 2024 return. Jane Smith has a resulting underpayment for her tax year 2024.

(B) Example—Order of Reduction of Post-2024 Credit Amount: In 2025, Jane Smith and her employer, XYZ Corp., apply for and are approved for an Adoption Tax Credit with respect to the same child in the amount of $1,000 each for tax year 2024. The child was placed in the home, and the adoption was finalized, in 2024. XYZ Corp. uses the $1,000 credit against its $600 income tax liability for tax year 2024 on a return filed March 15, 2025, and requests a refund of the remaining $400 credit. Jane Smith had no income tax for tax year 2024, so she files a return for tax year 2024 on April 10, 2025, requesting a refund of her entire $1,000 Adoption Tax Credit. On May 1, 2025, the department issues the $400 and $1,000 refunds to XYZ Corp. and Jane Smith, respectively. However, at the end of 2025, the adopted child of Jane Smith is placed, with no intent to return to the adoptive home, in foster care, and the state’s costs of providing care for the child are $1,600. The department first reduces Jane Smith’s credit to $0, and then issues her a notice of deficiency seeking repayment of the $1,000 refund.

The department next reduces to $0 XYZ Corp.’s $600 credit used against tax on the tax year 2024 return. This results in an underpayment for XYZ Corp.’s 2024 tax year.

(9) No credit shall be allowed for that portion of the nonrecurring adoption expenses paid from any funds received under any federal, state, or local government program. No credit shall be allowed for that portion of the nonrecurring adoption expenses for which a credit is allowable and taken under any provision of federal, state, or local law similar to the Adoption Tax Credit Act. If there is a deduction allowable and taken under any other provision of federal, state, or local law which is similar to the credit allowable under section 135.327, RSMo, the credit allowable for nonrecurring adoption expense shall be reduced by the amount of the decrease in the tax liability resulting from taking such deduction.

(A) Example—Payment of Nonrecurring Adoption Expenses by Local Government Program Funds Reduces Adoption Tax Credit Eligible Amount: As an employee benefit, ABC Corp. provides $5,000 in funds to be used for nonrecurring adoption expenses to its employee to enable that employee to proceed in good faith with the adoption of a child. However, after the $5,000 employee benefit was provided to the employee, the employee received funds for the employee’s full amount of nonrecurring adoption expenses from a local government program. The employee paid all nonrecurring adoption expenses from the funds received under this local government program. ABC Corp. should not apply for an Adoption Tax Credit, as the amount of the credit allowable has been reduced to zero because the nonrecurring adoption expenses were paid from funds received under a local program.

(B) Example—Funds from Religious Institutions or Foreign Governments: Jane Smith, a Missouri resident, decides to adopt a child from a foreign country. The adopted child is placed in her home and the adoption is finalized in the same year. For that year, Jane Smith pays $1,500 in nonrecurring adoption expenses, and she receives $200 in funds for nonrecurring adoption expenses from a religious institution, $800 in funds for nonrecurring adoption expenses from the government of the foreign country, and a $700 federal adoption tax credit based on her nonrecurring adoption expenses. The money received from a religious institution and from the government of a foreign country are not payments from a federal, state, or local government program, so Jane should only apply for an Adoption Tax Credit of $800 ($1,500 in nonrecurring adoption expenses - $700 federal adoption tax credit).

(10) Prior to the approval of any application to claim the credit, pursuant to section 135.815, RSMo, the department shall verify that the applicant does not owe any delinquent income, sales, or use taxes, or interest, additions, or penalties on such taxes, and verify through the Department of Commerce and Insurance that the applicant does not owe any delinquent insurance taxes.

In the event that there is any such delinquency, the amount of the credit approved shall be applied to all such delinquencies, and the remainder shall be issued to the applicant. In addition, any portion of a Post-2024 Credit that would otherwise be refunded in connection with a Missouri income tax return is subject to applicable setoff and related provisions of sections 143.781 to 143.790, RSMo.

(A) Example—Adoption Tax Credit Amount Automatically Applied to Tax Delinquencies: Jane Smith pays $7,000 in nonrecurring adoption expenses, $5,000 of which is funded by her employer, ABC Corp., through its adoption assistance program. The adopted child is placed in Jane Smith’s home and the adoption is finalized in the same year. At the same time as she files her Missouri individual income tax return, Jane Smith applies for an Adoption Tax Credit of $2,000 and, at the same time that it files its Missouri corporate income tax return, ABC Corp. applies for an Adoption Tax Credit of $5,000. ABC Corp. has an income tax and use tax delinquency from prior periods totaling $4,000. The $5,000 Adoption Tax Credit issued by the department to ABC Corp. is reduced by $4,000 to $1,000. Jane Smith has no prior tax delinquencies, and her application for the $2,000 credit is fully approved.

rule filed Jan. 25, 2024, effective Sept. 30, 2024. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. *Original authority: 135.339, RSMo 1987, amended 1993, 1995, 2014; 136.120, RSMo 1945; and 143.961, RSMo 1972.

History

AUTHORITY: sections 135.339, 136.120, and 143.961, RSMo 2016. Material in this rule originally filed as 12 CSR 10-400.200. Original

Chapter 3 State Sales Tax

12 CSR 10-3.005 Isolated or Occasional Sales by Businesses {#sec-12-csr-10-3.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.005}

12 CSR 10-3.006 Isolated or Occasional Sales vs. Doing Business—Examples {#sec-12-csr-10-3.006 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.006}

12 CSR 10-3.007 Partial Liquidation of Trade or Business {#sec-12-csr-10-3.007 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.007}

12 CSR 10-3.027 Quarter-Monthly Period Reporting and Remitting Sales Tax {#sec-12-csr-10-3.027 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.027}

12 CSR 10-3.032 Fabrication or Processing of Tangible Personal Property {#sec-12-csr-10-3.032 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.032}

12 CSR 10-3.036 Sales Made by Employers to Employees {#sec-12-csr-10-3.036 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.036}

12 CSR 10-3.048 Clubs and Other Organizations Operating Places of Amusement {#sec-12-csr-10-3.048 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.048}

12 CSR 10-3.062 Maintenance or Service Contracts Without Parts {#sec-12-csr-10-3.062 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.062}

12 CSR 10-3.064 Maintenance or Service Contracts With Parts {#sec-12-csr-10-3.064 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.064}

12 CSR 10-3.066 Delivery, Freight and Transportation Charges—Sales Tax {#sec-12-csr-10-3.066 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.066}

12 CSR 10-3.074 Garages, Body and Automotive Shops and Service Stations {#sec-12-csr-10-3.074 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.074}

12 CSR 10-3.088 Photographers, Photofinishers and Photoengravers {#sec-12-csr-10-3.088 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.088}

12 CSR 10-3.106 Vending Machines on Premises of Owner {#sec-12-csr-10-3.106 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.106}

12 CSR 10-3.108 Vending Machines on Premises Other Than Owner {#sec-12-csr-10-3.108 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.108}

12 CSR 10-3.114 Periodicals, Magazines and Other Printed Matter {#sec-12-csr-10-3.114 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.114}

12 CSR 10-3.120 Food Stamps and W.I.C. (Women, Infants and Children) Vouchers {#sec-12-csr-10-3.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.120}

12 CSR 10-3.122 Consideration Other Than Money, Except for Trade-Ins {#sec-12-csr-10-3.122 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.122}

12 CSR 10-3.138 Consideration Less Than Fair Market Value {#sec-12-csr-10-3.138 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.138}

12 CSR 10-3.146 Core Deposits {#sec-12-csr-10-3.146 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.146}

(Rescinded January 30, 2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

12 CSR 10-3.154 Optometrists, Ophthalmologists and Opticians {#sec-12-csr-10-3.154 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.154}

12 CSR 10-3.167 Sales of Food and Beverages to and by Public Carriers {#sec-12-csr-10-3.167 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.167}

12 CSR 10-3.176 Fees Paid in or to Places of Amusement, Entertainment or Recreation {#sec-12-csr-10-3.176 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.176}

12 CSR 10-3.179 Separate Taxable Transactions Involving the Same Tangible Personal {#sec-12-csr-10-3.179 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.179}

12 CSR 10-3.214 Complimentary Rooms, Meals and Drinks {#sec-12-csr-10-3.214 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.214}

12 CSR 10-3.220 Sales of Accommodations to Exempt Organizations {#sec-12-csr-10-3.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.220}

12 CSR 10-3.230 Repair Parts for Leased or Rented Equipment {#sec-12-csr-10-3.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.230}

12 CSR 10-3.232 Maintenance Charges for Leased or Rented Equipment {#sec-12-csr-10-3.232 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.232}

12 CSR 10-3.245 Exempt Federal, State Agency or Missouri Political {#sec-12-csr-10-3.245 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.245}

12 CSR 10-3.247 Information Required to be Filed by a Federal, State Agency or Missouri Political Subdivision Claiming Exemption {#sec-12-csr-10-3.247 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.247}

12 CSR 10-3.248 Sales to the United States Government {#sec-12-csr-10-3.248 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.248}

12 CSR 10-3.256 Sales Other Than Missouri or its Political Subdivisions {#sec-12-csr-10-3.256 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.256}

12 CSR 10-3.260 Nonappropriated Activities of Military Services {#sec-12-csr-10-3.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.260}

12 CSR 10-3.262 Government Suppliers and Contractors {#sec-12-csr-10-3.262 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.262}

12 CSR 10-3.266 Sales to National Banks and Other Financial Institutions {#sec-12-csr-10-3.266 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.266}

12 CSR 10-3.276 Sales of Baling Wire, Baling Twine and Binder Twine {#sec-12-csr-10-3.276 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.276}

12 CSR 10-3.280 Sale of Agricultural Products by the Producer {#sec-12-csr-10-3.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.280}

12 CSR 10-3.282 Sales of Seed, Pesticides and Fertilizers {#sec-12-csr-10-3.282 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.282}

12 CSR 10-3.312 Local Delivery and Terminal Equipment {#sec-12-csr-10-3.312 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.312}

12 CSR 10-3.316 Replacement Machinery and Equipment {#sec-12-csr-10-3.316 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.316}

12 CSR 10-3.333 Cities or Counties May Impose Sales Tax on Domestic Utilities {#sec-12-csr-10-3.333 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.333}

12 CSR 10-3.336 Animals Purchased for Feeding or Breeding Purposes {#sec-12-csr-10-3.336 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.336}

12 CSR 10-3.344 Newspaper Sales {#sec-12-csr-10-3.344 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.344}

(Rescinded December 11, 1980) . . . . . . . . . . . . . . . . . . . . . . . .54

12 CSR 10-3.360 Electrical Energy Used in Manufacturing {#sec-12-csr-10-3.360 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.360}

12 CSR 10-3.372 Water or Air Pollution Installation Contractor {#sec-12-csr-10-3.372 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.372}

12 CSR 10-3.382 Sales Made to and by Exempt Organizations {#sec-12-csr-10-3.382 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.382}

12 CSR 10-3.390 Sales Made by and to Elementary and Secondary Schools {#sec-12-csr-10-3.390 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.390}

12 CSR 10-3.428 Cigarette and Other Tobacco Products Sales {#sec-12-csr-10-3.428 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.428}

12 CSR 10-3.431 Handicraft Items Made by Senior Citizens {#sec-12-csr-10-3.431 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.431}

12 CSR 10-3.438 Tangible Personal Property Mounted on Motor Vehicles {#sec-12-csr-10-3.438 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.438}

12 CSR 10-3.454 No Return, No Excuse—Return Required Even if No Sales Made {#sec-12-csr-10-3.454 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.454}

12 CSR 10-3.458 Aggregate Amount Defined {#sec-12-csr-10-3.458 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.458}

(Rescinded December 11, 1980) . . . . . . . . . . . . . .59

12 CSR 10-3.476 Replacing or Applying for Return of Bond {#sec-12-csr-10-3.476 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.476}

12 CSR 10-3.479 Replacement of Bonds Issued by Suspended Surety Companies {#sec-12-csr-10-3.479 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.479}

12 CSR 10-3.494 Allowance for Defective Merchandise {#sec-12-csr-10-3.494 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.494}

12 CSR 10-3.498 Seller Retains Collection From Purchaser {#sec-12-csr-10-3.498 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.498}

12 CSR 10-3.508 Effect of Saturday, Sunday or Holiday on Payment Due {#sec-12-csr-10-3.508 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.508}

12 CSR 10-3.516 Application for Refund/Credit—Amended Returns {#sec-12-csr-10-3.516 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.516}

12 CSR 10-3.534 Delivery of the Sale for Resale Exemption Certificate {#sec-12-csr-10-3.534 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.534}

12 CSR 10-3.536 Seller’s Responsibility for Collection and Remittance of Tax {#sec-12-csr-10-3.536 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.536}

12 CSR 10-3.538 Possession and Delivery of Exemption Certificates {#sec-12-csr-10-3.538 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.538}

12 CSR 10-3.544 Acknowledgement of Informal Hearing {#sec-12-csr-10-3.544 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.544}

12 CSR 10-3.546 Fifteen Days Defined—Personal Service {#sec-12-csr-10-3.546 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.546}

12 CSR 10-3.552 Protest Payments, Protest Overpayments, and Protest Payment Returns {#sec-12-csr-10-3.552 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.552}

12 CSR 10-3.574 Recordkeeping Requirements for Microfilm and Data Processing {#sec-12-csr-10-3.574 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.574}

12 CSR 10-3.620 Review of Assessments by the Administrative Hearing Commission {#sec-12-csr-10-3.620 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.620}

12 CSR 10-3.622 Special Event Liquor License—Temporary Sales Tax License {#sec-12-csr-10-3.622 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.622}

12 CSR 10-3.626 Quarter-Monthly Period Reporting and Remitting Sales Tax {#sec-12-csr-10-3.626 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.626}

12 CSR 10-3.830 Diplomatic Exemptions—Records to be Kept by Sellers as Evidence {#sec-12-csr-10-3.830 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.830}

12 CSR 10-3.832 Diplomatic Exemptions—Acknowledgement and Procedure for {#sec-12-csr-10-3.832 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.832}

12 CSR 10-3.834 Titling and Sales Tax Treatment of Boats {#sec-12-csr-10-3.834 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.834}

12 CSR 10-3.836 Payment of Filing Fees for Lien Releases {#sec-12-csr-10-3.836 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.836}

12 CSR 10-3.842 Surety Companies—Remittance Requirements {#sec-12-csr-10-3.842 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.842}

12 CSR 10-3.846 Taxability of Sales Made at Fund-Raising Events Conducted by Clubs and Organizations Not Otherwise Exempt From Sales Taxation {#sec-12-csr-10-3.846 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.846}

12 CSR 10-3.852 Orthopedic and Prosthetic Devices, Insulin and Hearing Aids {#sec-12-csr-10-3.852 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.852}

12 CSR 10-3.854 Applicability of Sales Tax to the Sale of Special Fuel {#sec-12-csr-10-3.854 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.854}

12 CSR 10-3.858 Purchases by State Senators or Representatives {#sec-12-csr-10-3.858 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.858}

12 CSR 10-3.860 Marketing Organizations Soliciting Sales Through Exempt Entity {#sec-12-csr-10-3.860 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.860}

12 CSR 10-3.870 Information Required to be Filed by Not-for-Profit Organizations Applying for a Sales Tax Exemption Letter {#sec-12-csr-10-3.870 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.870}

12 CSR 10-3.874 Questions and Answers on Taxation of Newspapers {#sec-12-csr-10-3.874 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.874}

12 CSR 10-3.886 Exemption For Construction Materials Sold To Exempt Entities {#sec-12-csr-10-3.886 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.886}

12 CSR 10-3.888 Sales “In Commerce” Between Missouri And Other States {#sec-12-csr-10-3.888 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.888}

12 CSR 10-3.890 Area Betterment, Tourism or Marketing Program Fees To Be Included {#sec-12-csr-10-3.890 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.890}

12 CSR 10-3.002 Rules {#sec-12-csr-10-3.002 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.002}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 270-2 30, 1976. Amended: Filed Aug. 6, 1980, effective Jan. 1, 1981.

12 CSR 10-3.003 Rulings {#sec-12-csr-10-3.003 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.003}

Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed July 14, 1999, effective Jan. 30, 2000.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 270-3 was 1976. This rule was previously filed as 12 CSR 10-3.560. Amended:

12 CSR 10-3.004 Isolated or Occasional Sales filed as rule no. 88 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.004 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.004}

regulation 010-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Refiled March 30, 1976. Amended: Filed Aug. 6, 1980, effective Jan. 1, 1981. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985.

(Mo. banc 1981), a partnership contracted to sell all furnishings occasional sale” are distinct terms, no tax is due on isolated or

12 CSR 10-3.005 Isolated or Occasional Sales by Businesses Aug. 6, 1980, effective Jan. 1, 1981. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000. {#sec-12-csr-10-3.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.005}

(Mo. banc 1981), a partnership contracted to sell all furnishings or occasional sale” are distinct terms, no tax is due on isolated or Loethen Amusement, Inc. v. Director of Revenue, Case No. RS- 86-0130 (A.H.C. 10/2/87). The Administrative Hearing Commission held this transaction is subject to Missouri sales tax in that there is no exemption for partial liquidation of a business. The exemption provisions contained in 144.011(2), RSMo and 12 CSR 10-3.005 relate only to complete liquidation of a business.

12 CSR 10-3.006 Isolated or Occasional Sales vs. Doing Business—Examples {#sec-12-csr-10-3.006 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.006}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000.

(Mo. banc 1981), a partnership contracted to sell all furnishings or occasional sale” are distinct terms, no tax is due on isolated or

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-2 was 1976. Amended: Filed Aug. 6, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.007 Partial Liquidation of Trade or Business {#sec-12-csr-10-3.007 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.007}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed May 24, 2000,

12 CSR 10-3.008 Manufacturers and Wholesalers filed as rule no. 27 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.008 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.008}

regulation 010-3 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Jan. 1, 1981. Rescinded: Filed April 1, 2002, effective Oct. 30, 2002.

12 CSR 10-3.010 Fireworks and Other Seasonal Businesses filed as rule no. 94 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.010}

regulation 010-4 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Jan. 1, 1981. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003.

12 CSR 10-3.012 Sellers Subject To Sales Tax {#sec-12-csr-10-3.012 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.012}

(Rescinded August 9, 1993)

regulation 010-5 was filed Dec. 31, 1975, effective Jan. 10, 1976.

Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

Filed April 29, 1983, effective Sept. 11, 1983. Emergency rescission filed Feb. 19, 1993, effective March 1, 1993, expired June 28, 1993.

Rescinded: Filed Feb. 19, 1993, effective Aug. 9, 1993.

v. Administrative Hearing Commission, 654 SW2d 873 (Mo.

a) the purchase of coins from the supplier and b) the sale of coins Chase Resorts, Inc. v. Director of Revenue, Case No. RS-85-0780 (A.H.C.7/30/87). Petitioner stores and rents boats. In conjunction with this business, Petitioner arranges 10–15 sales each year of boats stored in its slips.

The Department of Revenue assessed petitioner sales tax on the sales of these boats on the theory that petitioner was the “seller” of the boats, as defined in 144.010.1(9), RSMo.

Petitioner entered into written agreements with boat owners to arrange sale of these boats for a commission. Petitioner’s responsibilities regarding these sales included publishing lists of boats for sale and showing the boats. In nearly every case, payment was made directly from the buyer to the boat owner.

Petitioner never held title to the boat.

The Administrative Hearing Commission held petitioner did not act as a seller of the boats, as it did not direct who was to receive title and took physical control of the boats only when directed and then only as an agent of the owner.

Barter Systems International v. Director of Revenue, Case No.

RS-84-2357 (A.H.C. 11/9/88). The taxpayer operated as one part of its business an exchange for its member clients to barter goods and services with one another. The member-to-member trades did not involve cash, only goods and services. The taxpayer acted as a conduit between members. It notified one member when another member had some item to trade and kept records of the transactions. The selling member set the price and was responsible for remitting sales tax to the department. Taxpayer did not police the price of the goods exchanged.

The Administrative Hearing Commission concluded that the taxpayer operated a business which regularly bought and sold goods in the showroom. The taxpayer purchased goods using the clients’ assets’ accounts. The buying of goods using its own funds consisting of clients’ assets’ accounts and selling them to the customer on its own terms constituted two separate transactions, one between petitioner and the original supplier and one between petitioner and its customers. The Administrative Hearing Commission concluded that the two separate transactions could not be collapsed into one by describing petitioner as merely a conduit between its buyer and a customer (see Martin Coin Co. of St. Louis v. King, 665 SW2d 939 (Mo. banc 1984)).

H. Matt Dillon, d/b/a Midwest Home Satellite Systems v.

Director of Revenue, Case No. RS-85-1741 (A.H.C. 12/9/88).

The Administrative Hearing Commission found that sellers must obtain signatures on each individual invoice or written acknowledgement that a purchase is being made under an exemption certificate or letter if the certificate is not presented anew for each transaction; auctioneers acting for undisclosed principals are subject to sales tax as the seller of tangible personal property; and that auctioneers acting for disclosed principals must maintain satisfactory evidence of that fact.

History

AUTHORITY: section 144.270, RSMo 1986. This rule was previously filed as rule no. 28, Jan. 22, 1973, effective Feb. 1, 1973. S. T.

12 CSR 10-3.014 Auctions Disclosed Principal {#sec-12-csr-10-3.014 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.014}

(Rescinded September 11, 1983)

no. 28 Jan. 22, 1973, effective Feb. 1, 1973, S.T. regulation 010-6 Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed April 29, 1983, effective Sept. 11, 1983.

12 CSR 10-3.016 Consignment Sales {#sec-12-csr-10-3.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.016}

History

AUTHORITY: section 144.270, RSMo 1986, S.T. regulation 010-6A Aug. 6, 1980, effective Dec. 11, 1980.

12 CSR 10-3.017 Ticket Sales {#sec-12-csr-10-3.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.017}

(Moved to 12 CSR 10-103.017)

12 CSR 10-3.018 Truckers Engaged in Retail Business filed as rule no. 48 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.018 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.018}

regulation 010-7 was last filed Dec. 31, 1975, effective Jan. 10, 1976. 1, 1981. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

12 CSR 10-3.020 Finance Charges {#sec-12-csr-10-3.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.020}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-8 pass notwithstanding that seller is to make delivery if that is the

12 CSR 10-3.022 Cash and Trade Discounts {#sec-12-csr-10-3.022 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.022}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-8A

12 CSR 10-3.023 Rebates Jan. 10, 1986, effective April 25, 1986. Emergency amendment filed Aug. 18, 1994, effective Aug. 21, 1994, expired Dec. 25, 1994. 26, 1995. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001. {#sec-12-csr-10-3.023 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.023}

12 CSR 10-3.024 Returned Goods {#sec-12-csr-10-3.024 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.024}

History

AUTHORITY: section 144.270, RSMo. 1994. S.T. regulation 010-9

12 CSR 10-3.026 Leases or Rentals Outside Missouri {#sec-12-csr-10-3.026 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.026}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 010-9A Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.027 Quarter-Monthly Period Reporting and Remitting Sales Tax {#sec-12-csr-10-3.027 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.027}

(Moved to 12 CSR 10-3.626)

12 CSR 10-3.028 Construction Contractors filed as rule nos. 18 and 25 Jan. 22, 1973, effective Feb. 1, 1973. {#sec-12-csr-10-3.028 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.028}

S.T. regulation 010-10 was last filed Dec. 31, 1975, effective Jan. effective Jan. 1, 1981. Rescinded: Filed Sept. 27, 2000, effective March 30, 2001. 4/25/84) and Marsh v. Spradling, 402 SW2d 537 (Mo. banc 1976)).

In Marsh v. Spradling, 537 SW2d 402 (Mo. banc 1976), where the installation of the cabinets was an integral part of the contract for sale, the cabinets installed by contractor became part of the real estate under the doctrine of fixtures. The time of transfer of title was upon transfer of the real estate and no transfer of tangible personal property subject to the sales tax law occurred.

Bath Antiques v. Director of Revenue, Case No. RS-80-0161 (A.H.C.8/17/82). Sales between parent corporations and subsidiary corporations are not exempt “interdepartmental transfers” as defined in 12 CSR 10-3.140(1). They are taxable sales.

(Mo. banc 1983). There were two issues in this case. The first was whether a taxpayer could claim a sales tax exemption for certain steel if sold, on the grounds that the purchasers were to use it in pollution control or plant expansion projects. The second was whether or not the transfer of steel to certain customers in Kansas was a sale subject to sales tax under the Commerce Clause of the United States Constitution. With respect to the first issue, burden. With respect to the second issue, the court found that when property is purchased subject to a resale certificate, the purchaser becomes liable for sales tax if the property is not resold.

In this case the court found that because the taxpayer used the steel in question in its capacity as a contractor there was no resale. Therefore, the taxable event was the taxpayer’s original purchase of the steel in Missouri. It was wholly irrelevant that the construction contract pursuant to which the steel was used was performed in Kansas. There was no violation of the Commerce Clause, and therefore, taxpayer was liable for tax.

Air Comfort Service, Inc. v. Department of Revenue, Case No.

RS-83-1982 (A.H.C. 4/25/84). The issue in this case as whether the mark-up which a heating and air conditioning contractor collected on replacement parts it installed was subject to sales tax. None of the parts were of such a nature that removal of the defective parts would cause substantial damage to the freehold. At issue were belts, switches, freon and certain motors. The taxpayer’s position was that the parts in question became a fixture upon installation.

This would result in the sales falling under the rule for contractor’s materials under which the contractor is the final purchaser and consumer of the personal property (and therefore the mark-up would not be taxable).

The commission found the determinative factor to be the point at which title passes. The court looked to the three-part test set out in Marsh v. Spradling, 537 SW2d 403 (Mo. banc 1976).

Those elements are: 1) physical annexation to the freehold, 2) the adaption of the article to the location and 3) the intent of the annexor at the time of the annexation. The commission first found that parts (1) and (2) of the Marsh test were met because the parts were physically annexed to and adapted to the freehold.

The commission then looked to State ex rel. Otis Elevator Co.

v. Smith, 212 SW2d 580 (Mo. banc 1948) and concluded that the third test (the intent of the annexor at the time of annexation) had been met. In that case, because the elevator company had not retained title to the materials in question, it was found that the annexor intended the article to be adapted to and annexed to the freehold at the time of installation. The property in question was therefore part of the contract and the mark-up thereon was not taxable. In the case at hand, the heating and air conditioning company had not kept title to the property, and therefore the contractor’s mark-up was not subject to sales tax.

Planned Systems Interiors, Ltd. v. Director of Revenue, Case No.

RS-85-0065 (A.H.C. 7/1/86). The petitioner’s theory was that it was making a sale to an agency of the United States government and could not be required to pay sales tax.

The Administrative Hearing Commission rejected petitioner’s contentions and found that the taxpayer had a contractual relationship only as a subcontract with K & S, the primary contractor and that the taxpayer sold the workstations to K & S pursuant to their contract. Under the department’s regulations 12 CSR 10-3.028 and 12 CSR 10-3.262, this sale was subject to sales Broski Brothers, Inc. v. Director of Revenue, Case No. RS-85-0063 (A.H.C. 1/30/87). The Administrative Hearing Commission followed banc 1983) by ruling that a dual operator’s purchases of inventory materials from Missouri suppliers for delivery in Missouri but subsequently removed for use in out-of-state construction jobs are subject to Missouri sales tax. This is true even though the outof-state construction jobs may be exempt from sales tax in that out-of-state jurisdiction.

Builders Glass & Products Co. v. Director of Revenue, Case No. RS-85-0453 (A.H.C. 5/13/87). The assessments at issue dealt with transactions between Builders Glass & Products and various sales tax exempt religious and charitable organizations. The as a contractor should have paid sales tax on its purchases of supplies and materials used in completing its contracts. Therefore, the Department of Revenue did properly impulse tax upon the purchase by petitioner of materials used and consumed by it as a contractor and the tax was properly collectable directly from the taxpayer who had purchased the materials under an improper claim of exemption. because the materials were billed to the Housing Authority and the consideration was paid by the Housing Authority. If the materials are billed to the exempt organization and paid for from funds of the exempt organization, then the purchase is exempt if the materials are used in furtherance of the exempt purpose of the organization.

12 CSR 10-3.030 Construction Aggregate filed as rule no. 18 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.030}

regulation 010-11 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed Sept. 27, 2000, In Marsh v. Spradling, 537 SW2d 402 (Mo. banc 1976), where the installation of the cabinets was an integral part of the contract for sale, the cabinets installed by the contractor became part of the real estate under the doctrine of fixtures. The time of transfer of title was upon transfer of the real estate and no transfer of tangible personal property subject to the sales tax law occurred.

12 CSR 10-3.031 Dual Operators 15, 1985, effective March 24, 1986. Rescinded: Filed April 1, 2002, {#sec-12-csr-10-3.031 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.031}

12 CSR 10-3.032 Fabrication or Processing of Tangible Personal Property {#sec-12-csr-10-3.032 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.032}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-12

12 CSR 10-3.034 Modular or Sectional Homes filed as rule no. 91 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-13 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed April 1, 2002, effective Oct. 30, 2002. title retentions clause, the elevator company would not be liable Where an elevator company does repair work on existing elevators and supplies small parts which become part of the elevator, and does not retain title to the parts, the company is not subject to sales tax. The parts become part of the realty (see Air Comfort Service, Inc. v. Director of Revenue, Case No.RS-83- 1982 (A.H.C. 4/25/84) and Marsh v. Spradling, 402 SW2d 537 (Mo. banc 1976)). {#sec-12-csr-10-3.034 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.034}

Marsh v. Spradling, 537 SW2d 402 (Mo. banc 1976). Appellant cabinet maker constructed wooden kitchen cabinets at his own shop and installed them in homes under construction. The Department of Revenue sought to collect sales tax on the sales of the cabinets as tangible personal property. Since installation of the cabinets was an integral part of the contract for sale, the cabinets became part of the real estate under the doctrine of fixtures. The time of transfer of title was upon transfer of the real estate and no transfer of tangible personal property subject to the sales tax law occurred.

12 CSR 10-3.036 Sales Made by Employers to Employees filed as rule no. 43 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-14 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed June 30, 2003, effective Dec. 30, 2003. {#sec-12-csr-10-3.036 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.036}

State ex rel Denny’s, Inc. v. Goldberg, 578 SW2d 925 (Mo. banc 1979). Appellant restaurant franchise provided free meals for its employees on a per-hour-worked basis. The cost of the free meals was included as part of the restaurant’s total food cost, and that total food cost was used to set the menu prices, on which retail sales tax was charged. The Department of Revenue sought to collect sales tax on the employee’s free meals, using the FICA tax valuation of the meals as a fair value for state tax purposes. Since, under the cost scheme employed by the appellant, such a burden would constitute a double sales tax and there is no evidence that the legislature intended such a result, the Department of Revenue may not collect sales tax on the free meals.

12 CSR 10-3.038 Promotional Gifts and Premiums {#sec-12-csr-10-3.038 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.038}

purpose of inducing or enticing prospective participants to play its games was a third incident of taxation as a retail sale of tangible personal property under 144.020.1(1), RSMo because petitioner was purchasing the stuffed animals and novelty items for its use and consumption in the course of operating its amusement park.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-15 Mid-America Enterprises, Inc.,d/b/a Worlds of Fun v. Director of Revenue, Case No. RS-84-0022 (A.H.C. 12/31/86). Petitioner argued that collection of sales and use tax on its purchases of prizes constituted double or even triple taxation because it was currently collecting and remitting sales tax on its gate admissions and was also collecting sales tax on receipts received from customers playing a particular game. In response to this argument, the commission held that the charge and amount paid for admission and receipts from the individual games were separate and distinct incidents of taxation under 144.020.1(2), RSMo and were taxable as fees paid to or in places of amusement, entertainment of recreation. Petitioner’s purchases of prizes for the

12 CSR 10-3.040 Premiums and Gifts no. 24 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-16 Aug. 6, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.040}

12 CSR 10-3.042 State or Federal Concessionaires {#sec-12-csr-10-3.042 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.042}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-17 Rescinded: Filed April 1, 2002, effective Oct. 30, 2002.

12 CSR 10-3.044 Labor or Services Rendered filed as rule no. 17 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.044 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.044}

regulation 010-18 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, 1985. Rescinded: Filed April 1, 2002, effective Oct. 30, 2002. property is delivered to buyer or reaches the agreed place, but title will pass notwithstanding that seller is to make delivery if such is the intention of the parties, the intention of the parties to control.

Signs by Sherri v. Director of Revenue, Case No. RS-84-2142 (A.H.C. 3/5/87). In this sales tax case, the taxpayer was a sign painter, and argued that it provided a nontaxable service. The Administrative Hearing Commission found that the taxpayer was selling tangible personal property and was therefore subject to sales tax. In making this decision, the Administrative Hearing Commission utilized the true object test. This test examines the real object sought by the buyer, that is, whether it was the buyer’s object to obtain an act personally done by an individual as an economic service involving either intellectual or manual effort of an individual, or if it was the buyer’s object to obtain only the salable end product of some individual skill. Here, the Administrative Hearing Commission determined that the taxpayer’s customers sought to obtain the finished end product, that is, signs, and therefore the transactions were subject to sales Capital Automated Ticket Services, Inc. v. Director of Revenue, Case No. RS-84-1813 and RS-85-1778 (A.H.C. 9/12/88). The issue in this case considered whether sales tax could be imposed on service charges levied by the petitioner as a fee on the purchase of tickets to various events. The Administrative Hearing Commission determined that the service charges were a nontaxable service and not a fee charged for admission to a place of amusement.

12 CSR 10-3.046 Caterers and Mandatory Gratuities {#sec-12-csr-10-3.046 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.046}

Penn Corp. v. Director of Revenue, Cole County Circuit Court No. 2994 (March 1980). The court held the taxpayer must include mandatory gratuities in the gross receipts for purposes of payment of sales tax.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-19 Filed June 30, 2003, effective Dec. 30, 2003.

12 CSR 10-3.048 Clubs and Other Organizations Operating Places of Amusement published as rule no. 46 in Rules and Regulations relating to the Missouri Sales Tax Act, 1949. Republished as rule no. 44 in the Missouri Sales Tax Act and Compensating Use Tax Law with Rules and Regulations, 1963. S.T. regulation 010-20 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: {#sec-12-csr-10-3.048 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.048}

Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Feb. 4, 1986, effective June 28, 1986. Emergency amendment filed Nov. 15, 1990, effective Nov. 25, 1990, expired March 24, 1991. Emergency rescission and rule filed Jan. 3, 1991, effective Jan. 13, 1991, expired May 13, 1991. Emergency rescission and rule filed May 3, 1991, effective May 13, 1991, expired Sept. 9, 1991. Rescinded and readopted: Filed Jan. 3, 1991, effective June 10, 1991. Rescinded:

12 CSR 10-3.050 Drinks and Beverages {#sec-12-csr-10-3.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.050}

(Moved to 12 CSR 10-103.050)

12 CSR 10-3.052 Sale of Ice filed as rule no. 45 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.052 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.052}

regulation 010-22 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed Aug. 30, 2010, 1983) held that the good faith acceptance of an exemption

12 CSR 10-3.054 Warehousemen filed as rule no. 31 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-23 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001. banc 1980). Appellant charcoal company purchased pallets upon {#sec-12-csr-10-3.054 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.054}

12 CSR 10-3.056 Retreading Tires filed as rule no. 42 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.056 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.056}

regulation 010-24 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Oct. 15, 1985, effective Jan. 26, 1986. Rescinded: Filed July 14, 1999, effective Jan. 30, 2000.

State ex rel. AMF Inc. v. Spradling, 518 SW2d 58 (Mo. banc 1974).

AMF claimed exemptions from sales tax on rental received under leases of the machines in that they were used in manufacturing pursuant to section 144.020.1(8), RSMo (1969). The claimed exemption was denied, as the machinery and the retreading process did not manufacture a raw product from raw materials as contemplated by the statute, but rather served to repair an already existing tire.

12 CSR 10-3.058 Automotive Refinishers and Painters filed as rule no. 40 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.058 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.058}

regulation 010-25 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, 1985. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001.

12 CSR 10-3.060 Memorial Stones {#sec-12-csr-10-3.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.060}

(Rescinded: September 30, 2001) filed as rule no. 83 Jan. 22, 1973, effective Feb. 1, 1973. S.T.

regulation 010-26 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Refiled March 30, 1976. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-3.062 Maintenance or Service Contracts Without Parts filed as rule no. 92 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.062 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.062}

regulation 010-27 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Refiled March 30, 1976. Rescinded: Filed Oct. 6, 2000, effective

12 CSR 10-3.064 Maintenance or Service Contracts With Parts filed as rule no. 92 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.064 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.064}

regulation 010-28 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Jan. 1, 1981. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985.

12 CSR 10-3.066 Delivery, Freight and Transportation Charges—Sales Tax {#sec-12-csr-10-3.066 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.066}

Kurtz Concrete, Inc. v. James R. Spradling, 560 SW2d 858 (Mo. banc 1978). The court held while title ordinarily will not pass until

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-29 Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded and readopted: Filed Oct. 1, 1993, effective May 9, 1994. Rescinded:

12 CSR 10-3.068 Freight and Transportation Charges no. 15 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-30 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.068 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.068}

12 CSR 10-3.070 Service-Oriented Industries filed as rule no. 78 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.070}

regulation 010-31 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13. 1980, 12, 1985. Amended: Filed Oct. 15, 1985, effective Jan. 26, 1986.

K & A Litho Process, Inc. v. Department of Revenue, 653 SW2d 195 (Mo. banc 1983). The issue in this case was whether the decision of the Administrative Hearing Commission upholding sales tax on lithographic work performed by the appellant was correct. The court, following its recent decision in James v. TRES Computer Systems, Inc., 642 SW2d 347 (Mo. banc 1982), found that the lithographic process was the nontaxable sale of a technical professional service and that the transfer of ownership to tangible personal property was only incidental. K & A Litho Process received a color transparency from an outside source such as a printer, advertising agency or publishing house and then created a film separation and a color key that the printer, advertising agency or publishing house could use to print the transparency on paper for distribution. Because the color separation and the color key were merely the means of conveying a nontaxable technical service from K & A Litho to its customers, the gross amount paid to K & A Litho was not taxable.

12 CSR 10-3.072 Repair Industries filed as rule no. 78 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-32 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001. {#sec-12-csr-10-3.072 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.072}

12 CSR 10-3.074 Garages, Body and Automotive Shops and Service Stations filed as rule nos. 39 and 41 Jan. 22, 1973, effective Feb. 1, 1973. {#sec-12-csr-10-3.074 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.074}

S.T. regulation 010-33 was last filed Dec. 31, 1975, effective Jan.

12 CSR 10-3.076 Used Car Dealers {#sec-12-csr-10-3.076 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.076}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-33A

12 CSR 10-3.078 Laundries and Dry Cleaners filed as rule no. 76 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.078 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.078}

regulation 010-34 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001. purchased because the purchaser already has the information on the original, the Administrative Hearing Commission held the Tri-State Service Co. v. Director of Revenue, Case No. RI-85-1602 (A.H.C. 7/9/87). The Administrative Hearing Commission ruled that Tri-State was liable for compensating use tax on those linens and uniforms that are purchased from out-of-state suppliers, delivered to Missouri, placed in inventory in Missouri and then rented to out-of-state users. At the time of placement into inventory, Tri- State did not know which customer would use the items and Tri- State commingled the linens and uniforms with the general mass of property of this state when they were placed in inventory. The linens and uniforms were therefore sold to Tri-State for storage and use in Missouri.

12 CSR 10-3.080 Ceramic Shops {#sec-12-csr-10-3.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.080}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-35 30, 1976. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001.

12 CSR 10-3.082 Furniture Repairers and Upholsterers filed as rule no. 79 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.082 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.082}

regulation 010-36 was last filed Dec. 5, 1975, effective Dec. 15, 1975. 1, 1981. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001.

12 CSR 10-3.084 Fur and Garment Repairers filed as rule no. 80 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.084 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.084}

regulation 010-37 was last filed Dec. 5, 1975, effective Dec. 15, 1975. 1, 1981. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001.

12 CSR 10-3.086 Bookbinders, Papercutters, Etc. filed as rule no. 73 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.086 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.086}

regulation 010-37A was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Rescinded: Filed March 28, 2001, purchased because the purchaser already has the information on the original, the Administrative Hearing Com-mission held the

12 CSR 10-3.088 Photographers, Photofinishers and Photoengravers filed as rule no. 70 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.088 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.088}

regulation 010-37B was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, 12, 1985. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003.

In The Flash Cube, Inc. v. Director of Revenue, Case No. RS- 80-0083, (A.H.C. 3/16/83), the issue was whether the sale of photographic prints, slides and negatives was a taxable sale of tangible personal property or the sale of a nontaxable service.

The Administrative Hearing Commission held that sales tax was due on prints and slides because in preparing these items for the end user the taxpayer added photographic paper and cardboard frames to the finished product. Processing of negatives was held to be nontaxable service since the taxpayer did not add any of his own tangible personal property to the end user’s product.

held that the good faith acceptance of an exemption purchased because the purchaser already has the information on the original, the Administrative Hearing Com-mission held the Douglas J. Rousseau, d/b/a Rousseau Photography v. Director of Revenue, Case No. RS-87-0011 (A.H.C. 10/8/87). The Administrative Hearing Commission found that the photographer was making sales of class pictures directly to the students and the sales were subject to sales tax. The agreements with the schools were for the exclusive right to take the pictures at the schools and were not agreements to make sales to the schools or to act as the schools’ agent. Separate contracts were entered into by the photographer and the students for the sale of pictures. The schools had no input as to which students purchased pictures or what picture packages were purchased. In addition, the payment for the pictures were made by the students and did not come from schools’ funds.

Snap Shot Photo v. Director of Revenue, Case No. RS-87-1056 (A.H.C. 8/29/88). The Administrative Hearing Commission found that photofinishing is manufacturing and that contrary to the Department of Revenue’s position, photofinishing is an integrated process and therefore, both stages of the taxpayer’s operation were manufacturing under 144.030.2(2), (4) and (5), RSMo.

The Administrative Hearing Commission also found that all chemicals used in the photofinishing process as part of a closed vat system, and not washed away during the process, were exempt from taxation because “all such chemicals do become ingredients and component parts of all the products over time.”

12 CSR 10-3.090 Watch and Jewelry Repairers filed as rule no. 81 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-38 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001. {#sec-12-csr-10-3.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.090}

12 CSR 10-3.092 Painters filed as rule no. 53 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.092 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.092}

regulation 010-39 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed March 28, 2001,

12 CSR 10-3.094 Interior or Exterior Decorators filed as rule no. 53 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.094 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.094}

regulation 010-40 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed March 28, 2001,

12 CSR 10-3.096 Janitorial Services {#sec-12-csr-10-3.096 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.096}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-41

12 CSR 10-3.098 Drugs and Medicines filed as rule no. 69 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.098 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.098}

regulation 010-42 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Jan. 1, 1981. Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

W. H. Hopmeier, Inc. v. Director of Revenue, Case No. RS-79- 0295 (A.H.C. 7/19/82). The Department of Revenue is not required to give taxpayers notice of change in law and is not estopped from collection of tax by an unauthorized pronouncement of a department agent that assessments would not be made.

Assessment for first five days in May 1979 are void because effective date of the statute was May 5, 1979.

12 CSR 10-3.100 Barber and Beauty Shops filed as rule no. 75 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-43 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001. {#sec-12-csr-10-3.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.100}

12 CSR 10-3.102 Sheet Metal, Iron and Cabinet Works filed as rule no. 52 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.102 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.102}

regulation 010-44 was last filed Oct. 28, 1975, effective Nov. 7, 1975. 4/25/84) and Marsh v. Spradling, 402 SW2d 537 (Mo. banc 1976)).

Roger W. Marsh, d/b/a Bestmade Wood Products v. Spradling, 537 SW2d 402 (Mo. banc 1976). Marsh made kitchen cabinets to order and installed them in new homes. Marsh paid sales tax on the materials and lumber used to make the cabinets. The court held that the cabinets became a part of the realty upon attachment and were not subject to any further sales tax. The case also states that pre-made cabinets from a shop, sold to a purchaser who takes them home and installs them are subject to sales tax.

12 CSR 10-3.104 Vending Machines De-fined {#sec-12-csr-10-3.104 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.104}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 010-45 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.106 Vending Machines on Premises of Owner filed as rule no. 67 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-46 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed July 14, 1999, effective Jan. 30, 2000. {#sec-12-csr-10-3.106 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.106}

Canteen Corporation v. Goldberg, 592 SW2d 754 (Mo. banc 1980). This company derived income from selling candy bars through coin-operated vending machines. Appellant contended that a candy bar which cost 25¢ should be taxed on that amount.

Respondent stated the candy bar really cost 24¢ and the extra penny was sales tax. The court agreed with Canteen Corporation.

L & R Distributing, Inc. v. Department of Revenue, 529 SW2d 375 (Mo. banc 1975). L & R owned several pinball machines and other coin-operated devices. Appellant sought to subject the proceeds from these devices to taxation based on section 144.010.1(2), RSMo 1978. The court held that the mere placement of a pinball or other coin-operated amusement device in a public location was not sufficient to turn the location into a place of amusement for taxing purposes. coin-operated copiers are subject to Missouri sales tax.

12 CSR 10-3.108 Vending Machines on Premises Other Than Owner filed as rule no. 67 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.108 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.108}

regulation 010-47 was last filed Dec. 31, 1975, effective Jan.

Respondent stated the candy bar really cost 24¢ and the extra penny was sales tax. The court agreed with Canteen Corporation.

L & R Distributing Co., Inc. v. Department of Revenue, 648 SW2d 91 (Mo. banc 1983). The court held that the proceeds of coinoperated amusement devices located in places of amusement are taxable.

12 CSR 10-3.110 Publishers of Newspapers no 72 Jan. 22, 1973, effective Jan. 22, 1973, effective Feb. 1, 1973. {#sec-12-csr-10-3.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.110}

S.T. regulation 010-48 was last filed Dec. 31, 1975, effective Jan.

Rescinded: Filed Feb. 27, 1990, effective June 11, 1990.

Ray James, 629 SW2d 348 (Mo. banc 1982). This opinion by Judge Seiler defines the term “newspaper.” It cites without comment Department of Revenue’s definition of “newspaper” which is contained in 12 CSR 10-3.112. It held that an advertising supplement which is printed solely to be inserted into and distributed by a newspaper is an integral part of that newspaper and is entitled to same exemption from sales tax as is the remainder of newspaper. distributed as part of a newspaper, were not sales of tangible tax; newsprint used to print the supplements was “newsprint used in newspaper” and was exempt from taxation.

Blake D. Thomas, d/b/a The Thomas Report v. Director of Revenue, Case Nos. RS-84-2144 and RZ-86-1162 (A.H.C. 5/11/87). 12 CSR 10-3.112(1) provides the minimum requirements for a publication to qualify as an exempt newspaper. The test is whether the contents of the publication are of the nature required by the regulation. Petitioner’s publication did not disseminate news to the public but was instead intended to serve as a vehicle for petitioner’s investment advice and commentary. It did not qualify, therefore, for the newspaper exemption.

12 CSR 10-3.112 Newspaper Defined {#sec-12-csr-10-3.112 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.112}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-49 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled: March Ray James, 629 SW2d 348 (Mo. banc 1982). This opinion by Judge Seiler defines the term “newspaper.” It cites without comment Department of Revenue’s definition of “newspaper” which is contained in 12 CSR 10-3.112. It held that an advertising supplement which is printed solely to be inserted into and distributed by a newspaper is an integral part of that newspaper and is entitled to the same exemption from sales tax as is the remainder of newspaper. to be distributed as part of a newspaper and which were, in fact, distributed as part of newspaper, were not sales of tangible tax; newsprint used to print the supplements was “newsprint used in newspaper” and was exempt from taxation.

12 CSR 10-3.114 Periodicals, Magazines and Other Printed Matter No. 72 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-50 Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Jan. 28, 1983, effective May 12, 1983. Rescinded: Filed Feb. 27, 1990, effective June 11, 1990. {#sec-12-csr-10-3.114 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.114}

Ray James, 629 SW2d 348 (Mo. banc 1982). This opinion by Judge Seiler defines the term “newspaper”. It cites without comment Department of Revenue’s definition of “newspaper” which is contained in 12 CSR 10-3.112. It held that an advertising supplement which is printed solely to be inserted into and distributed by a newspaper is an integral part of that newspaper and is entitled to the same exemption from sales tax as is the remainder of newspaper. distributed as part of newspaper, were not sales of tangible tax; newsprint used to print such supplements was “newsprint used in newspaper” and was exempt from taxation.

Dolgin’s Incorporated v. Director of Revenue, A.H.C. No. RS-79- 0322 (1982). Dolgin’s advertised its products by using professionally printed advertising supplements in newspapers within this state.

They also distributed the same advertising supplement direct to Missouri consumers by mail. These direct mail advertising supplements were held taxable under section 144.610.1, RSMo 1978 because Dolgin’s “used” them within this state. The interruption of transportation of supplements at distribution points in Missouri, prior to their being placed in the U.S. mail, constitutes a taxable moment. The newsprint exemption from sales tax does not apply since these supplements did not become “integral parts of newspapers.”

12 CSR 10-3.116 Service Station Owner-ship filed as rule no. 90 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.116 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.116}

regulation 010-51 was last filed Oct. 28, 1975, effective Nov. 7, 1975. 1, 1981. Rescinded: Filed April 1, 2002, effective Oct. 30, 2002.

12 CSR 10-3.118 Leased Departments or Space filed as rule no. 21 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-52 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011. {#sec-12-csr-10-3.118 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.118}

12 CSR 10-3.120 Food Stamps and W.I.C. (Women, Infants and Children) Vouchers {#sec-12-csr-10-3.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.120}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-53 Emergency amendment filed Sept. 24, 1987, effective Oct. 4, 1987, expired Feb. 1, 1988. Amended: Filed Sept. 24, 1987, effective Jan. 29, 1988. Rescinded: Filed June 30, 2003, effective Dec. 30, 2003.

12 CSR 10-3.122 Consideration Other Than Money, Except for Trade-Ins filed as rule no. 16 Jan. 22, 1973, effective Feb. 1, 1973. S. T. {#sec-12-csr-10-3.122 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.122}

regulation 010-54 was last filed Oct. 28, 1975, effective Nov. 7, 1975. 1, 1981. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-3.124 Coins and Bullion {#sec-12-csr-10-3.124 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.124}

(Rescinded April 30, 2003)

Scotchman’s Coin Shop, Inc. v. Administrative Hearing Commission, 654 SW2d 873 (Mo. banc 1983). The sole issue in this case was whether sales tax was applicable to the purchase price of silver coins, Krugerrands and silver bars. The taxpayer claimed that the property was money and thus intangible personal property not subject to sales tax under section 144.020, RSMo 1978.

Also at issue was whether the imposition of sales tax interfered with the exclusive power of the federal government to regulate the value of U.S. and foreign coins and to regulate commerce with foreign nations.

The court found against the petitioner and for the department on the grounds that the coins and metal at issue constituted tangible personal property rather than intangible property or money. The court looked beyond legal fictions and academic jurisprudence to the essence of the transaction and found that money has value both as tangible and intangible personal property. In the case at hand the court believed that the sales had been made for the tangible value of the metal rather than for the intangible value of the items as a medium of exchange. The court found that the items in question were sold for their value as precious metal and were therefore personal property subject to sales tax. The court also found that because the department’s

regulation 12 CSR 10-3.124, which outlined the basis for taxing certain types of coin or currency, was in compliance with the intent of section 144.020.1, RSMo 1978 that it did not create an irrational, artificial classification.

Finally, the court found that because the tax in question was imposed on the value of the precious metal and not on the intangible values assigned the coins by the federal government that the sales tax in no way infringed upon the exclusive right of the federal government to regulate the value of money or coin or to determine the character of legal tender.

v. Administrative Hearing Commission, 654 SW2d 873 (Mo.

a) the purchase of coins from the supplier and b) the sale of coins

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-55 Rescinded: Filed Oct. 15, 2002, effective April 30, 2003.

12 CSR 10-3.126 Federal Manufacturer’s Excise Tax filed as rule no. 84 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.126 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.126}

regulation 010-56 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, 1985. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011.

12 CSR 10-3.128 Salvage Companies {#sec-12-csr-10-3.128 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.128}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-57

12 CSR 10-3.130 Assignments and Bankruptcies filed as rule no. 14 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.130}

regulation 010-58 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

12 CSR 10-3.131 Change of State Sales Tax Rate {#sec-12-csr-10-3.131 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.131}

(Rescinded February 28, 2001) 7, 1984, effective Jan. 12, 1985. Emergency amendment filed Sept. 29, 1989, effective Oct. 9, 1989, expired Feb. 5, 1990. Amended:

Filed Sept. 29, 1989, effective Feb. 25, 1990. Rescinded: Filed Aug. 24, 2000, effective Feb. 28, 2001.

12 CSR 10-3.132 Purchaser Includes {#sec-12-csr-10-3.132 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.132}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 010-59 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.134 Purchaser’s Responsibilities filed as rule no. 22, Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.134 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.134}

regulation 010-60 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011. sale was only incidental to the primary transaction. Therefore, the purchasing restaurant was the “user” and the sale to that restaurant was a taxable retail sale.

held that the good faith acceptance of an exemption

12 CSR 10-3.136 Consideration Other Than Money filed as rule no. 16 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.136 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.136}

regulation 010-61 was last filed Oct. 28, 1975, effective Nov. 7, 1975. 1, 1981. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-3.138 Consideration Less Than Fair Market Value {#sec-12-csr-10-3.138 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.138}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-62

12 CSR 10-3.140 Interdepartmental Transfers filed as rule no. 20 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.140}

regulation 010-63 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Central Cooling & Supply Co. v. Director of Revenue, 648 SW2d 546 (Mo. banc 1982). Transfers of property between two corporations are subject to sales tax even though the transferor was a subsidiary of the transferee, created for the limited purpose of purchasing goods for the parent corporation. The court held that, “Central and Johnson were organized as separate corporate entities for a proper business purpose. There is no basis for ignoring this separate corporate existence to permit Central to avoid tax liability and gain an unfair advantage over other separately owned corporations.”

Bath Antiques v. Director of Revenue, Case No. RS-80-0161 (A.H.C. 8/17/82). Sales between parent corporations and subsidiary corporations are not exempt “interdepartmental transfers” as defined in 12 CSR 10-3.140(1). They are taxable sales.

12 CSR 10-3.142 Trading Stamps filed as rule no. 23 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-64 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018. {#sec-12-csr-10-3.142 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.142}

12 CSR 10-3.144 Redemption of Coupons filed as rule no. 95 Jan. 22, 1975, effective Feb. 1, 1975. S.T. {#sec-12-csr-10-3.144 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.144}

regulation 010-65 was last filed Dec. 5, 1975, effective Dec. 15, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, 12, 1985. Amended: Filed Nov. 4, 1992, effective May 6, 1993.

Rescinded: Filed April 1, 2002, effective Oct. 30, 2002.

12 CSR 10-3.146 Core Deposits {#sec-12-csr-10-3.146 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.146}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-66

12 CSR 10-3.148 When a Sale Consummates filed as rule no. 13 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-67 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003. {#sec-12-csr-10-3.148 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.148}

the court held while title ordinarily will not pass until Patton Tully Transportation Company v. Director of Revenue, Case No. RS-85-1594 (A.H.C. 11/25/87). The parties intended that title to the rock would not pass to petitioner unless and until the stone was approved by the Army Corps of Engineers. It is the intent of the parties, by whatever means shown, that determines passage of title. The Administrative Hearing Commission determined no Missouri sales tax due on these transactions as title passed outside Missouri.

Tower Rock Stone Co. v. Director of Revenue, Case No. RS-86- 1011 (A.H.C. 4/7/88). The taxpayer contested the final decision of the director of revenue that its sales of stone were subject to The Administrative Hearing Commission held that it was industry practice for the sale of the stone to be subject to approval by the Army Corps of Engineers. Citing 400.2–400.327, RSMo (1986) (UCC), the Administrative Hearing Commission stated that the sale of the stone was a sale on approval and therefore, title did not pass to the purchaser until the stone was inspected and accepted at the out-of-state job site.

12 CSR 10-3.150 Guidelines on When Title Passes filed as rule no. 13 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-68 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003. {#sec-12-csr-10-3.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.150}

Kaiser Aluminum & Chemical Sales v. Director of Revenue, Case No. RS-82-0303 (A.H.C. 10/28/83). The issue in this case was whether or not certain bricks shipped from a Missouri plant were subject to Missouri sales tax. It was necessary for the commission to determine where the sale took place. When no specific provision for the passage of title is contained in the agreement between the parties, the commission must look to other evidence such as industry practice, passage of risk of loss, party paying transportation costs and method and time of payment. The commission cited Kurtz Concrete, Inc. v. Spradling, 3560 SW2d 858 (Mo. banc 1978) and Frontier Bag, Inc. v. Director of Revenue, Case No. R-80-0073 (A.H.C. 11/12/81). Finding that the goods were shipped FOB from Mexico, Missouri, the commission held that petitioner manifested an intent to have title pass to the buyer at the time and place of shipment. The commissioner looked to section 400.2-401(2)(a), RSMo 1978 Uniform Commercial Code (UCC) in reaching this conclusion. Therefore, the sale did take place in Missouri and tax was applicable.

the court held while title ordinarily will not pass until Centrifugal and Mechanical Industries, Inc. v. Director of Revenue, Case No. RS-85-1810 (A.H.C. 9/21/87). The taxable moment in Missouri is generally the moment of passage of title from seller to buyer. The parties may control this occurrence by their clearly expressed intent. This is best shown by a written agreement. Failing this, the taxpayer may show compelling evidence of industry practice. Taxpayer admitted no written agreement existed other than the invoice which said FOB-St. Louis.

There was also no industry-wide practice shown.

Patton Tully Transportation Company v. Director of Revenue, Case No. RS-85-1594 (A.H.C. 11/25/87). The parties intended that title to the rock would not pass to petitioner unless and until the stone was approved by the Army Corps of Engineers. It is the intent of the parties, by whatever means shown, that determines passage of title. The Administrative Hearing Commission determined no Missouri sales tax due on these transactions as title passed outside Missouri.

Tower Rock Stone Co. v. Director of Revenue, Case No. RS-86- 1011 (A.H.C. 4/7/88). The taxpayer contested the final decision of the director of revenue that its sales of stone were subject to The Administrative Hearing Commission held that it was “industry practice” for the sale of the stone to be subject to approval by the Army Corps of Engineers. Citing 400.2–400.327, RSMo (1986) (UCC), the Administrative Hearing Commission stated that the sale of the stone was a “sale on approval” and therefore, title did not pass to the purchaser until the stone was inspected and accepted at the out-of-state job site.

12 CSR 10-3.152 Physicians and Dentists filed as rule no. 68 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.152 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.152}

regulation 010-69 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Dec. 9, 1981, effective April 11, 1982. Amended: Filed Feb. 13, 1985, effective June 13, 1985.

Amended: Filed Dec. 22, 1988, effective June 11, 1989. Rescinded:

Filed Oct. 6, 2000, effective April 30, 2001.

In Kilbane v. Director of Department of Revenue, 544 SW2d 9 (Mo. banc 1976) the court held purchases by dental laboratories are for use and consumption of the professional and are subject to sales tax at time of purchase.

Larimore, Baker, Pettigrew & Associates, Inc. v. Director of Revenue, Case No. R-80-0112 (A.H.C. 4/29/83). The issue in this case was the need for an optometrist to collect and remit the sales tax on the sale of lenses to its clients. The taxpayer argued that the lenses were part of the service and that petitioner was exempt. In support of its position taxpayer argued that the exemption provided by section 144.010.1(8), RSMo for purchases of tangible personal property made by duly licensed physicians, dentists and veterinarians used in the practice of their professions was applicable to optometrists and this was proved by the fact that the department previously had a regulation, Rule No. 68, in effect which until January 10, 1976 granted optometrists this exemption. The commission found that the express mention of physicians, dentists and veterinarians implied the exclusion of optometrists. Optometrists were not entitled to this exemption, and the department’s regulation (which was repealed) was void, because it went beyond the authority granted by the statute.

Petitioner’s second argument was that it sold these lenses at cost and that any assessment should be limited in amount to its original purchase price for these lenses. The commission found that the sales price should not include overhead costs and overhead costs attributable to contact lenses such as the sales of lenses and overhead fairly attributable to these professional services and profit.

W.H. Hopmeier, Inc. v. Director of Revenue, Case No. RS-79- 0295 (A.H.C. 7/19/82). The Department of Revenue is not required to give taxpayers notice of change in law and is not estopped from collection of tax by an unauthorized pronouncement of a department agent that assessments would not be made.

Assessment for first five days in May 1979 are void because effective date of the statute was May 5, 1979.

12 CSR 10-3.154 Optometrists, Ophthalmologists and Opticians filed as rule no. 68 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.154 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.154}

regulation 010-70 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Emergency amendment filed Oct. 1, 1979, effective Oct. 11, 1979, expired Feb. 5, 1980. Amended: Filed Oct. 1, 1979, effective April 11, 1980. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001.

Larimore, Baker, Pettigrew & Associates, Inc. v. Director of Revenue, Case No. R-80-0112 (A.H.C. 4/29/83). The issue in this case was the need for an optometrist to collect and remit the sales tax on the sale of lenses to its clients. The taxpayer argued that the lenses were part of the service and that petitioner was exempt. In support of its position taxpayer argued that the exemption provided by section 144.010.1(8), RSMo for purchases of tangible personal property made by duly licensed physicians, dentists and veterinarians used in the practice of their professions was applicable to optometrists and this was proved by the fact that the department previously had a regulation, Rule No. 68, in effect until January 10, 1976 granted optometrists this exemption. The commission found that the express mention of physicians, dentists and veterinarians implied the exclusion of optometrists. Optometrists were not entitled to this exemption, and the department’s regulation (which was repealed) was void, because it went beyond the authority granted by the statute.

Petitioner’s second argument was that it sold these lenses at cost and that any assessment should be limited in amount to its original purchase price for these lenses. The commission found that the sales price should not include that the costs and overhead costs attributable to contact lenses such as the sales of lenses and overhead fairly attributable to these professional services and profit.

12 CSR 10-3.156 Dental Laboratories {#sec-12-csr-10-3.156 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.156}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-71 Kilbane v. Director of Dept. of Revenue, 544 SW2d 9 (Mo. banc 1976). Sales tax was assessed on gold and porcelain crown and bridgework fabricated on prescription by dental laboratory for dentists. Fact that rule promulgated by director of revenue does not include crowns or bridgework, but does list several items and then adds “etc.,” indicates that other things are included. It does not purport to list each and every kind of purchase which will be taxable. The fact that the item so used by the dentist retains its form does not mean that the doctor has not used it “in the practice of his profession.” The court held purchases by dental laboratories are for use and consumption of the professional and are subject to sales tax at time of purchase.

12 CSR 10-3.158 Sale on Installed Basis filed as rule no. 17 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.158 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.158}

regulation 010-74 was last filed Oct. 28, 1975, effective Nov. 7, 1975. 1, 1981. Rescinded: Filed April 1, 2002, effective Oct. 30, 2002.

the court held while title ordinarily will not pass until

12 CSR 10-3.160 Funeral Receipts filed as rule no. 82 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-75 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001. {#sec-12-csr-10-3.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.160}

12 CSR 10-3.162 Pawnbrokers filed as rule no. 29 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.162 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.162}

regulation 010-76 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Refiled March 30, 1976. Rescinded: Filed Oct. 6, 2000, effective v. Administrative Hearing Commission, 654 SW2d 873 (Mo.

(a) the purchase of coins from the supplier and (b) the sale of coins

12 CSR 10-3.164 Installment Sales and Repossessions filed as rule no. 37 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.164 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.164}

regulation 010-77 was last filed Oct. 28, 1975, effective Nov. 7, 1975. 1, 1981. Amended: Filed March 12, 1986, effective Aug. 25, 1986.

12 CSR 10-3.166 Seller of Boats {#sec-12-csr-10-3.166 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.166}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-77A

12 CSR 10-3.167 Sales of Food and Beverages to and by Public Carriers 14, 1976, effective Jan. 1, 1977. Amended: Filed Aug. 13, 1980, 12, 1985. Amended: Filed May 12, 1987, effective Aug. 27, 1987. {#sec-12-csr-10-3.167 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.167}

Rescinded: Filed Nov. 9, 2000, effective May 30, 2001.

12 CSR 10-3.168 Documentation Required {#sec-12-csr-10-3.168 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.168}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-79

12 CSR 10-3.170 Computer Printouts {#sec-12-csr-10-3.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.170}

(Rescinded November 12, 1977)

History

AUTHORITY: section 144.270, RSMo 1969. Rule last filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed May 16, 1977, effective Nov. 12, 1977.

12 CSR 10-3.172 Advertising Signs filed as rule no. 74 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.172 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.172}

regulation 010-81 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Jan. 1, 1981. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000. 4/25/84) and Marsh v. Spradling, 537 SW2d 402 (1976)).

12 CSR 10-3.174 Stolen or Destroyed Property {#sec-12-csr-10-3.174 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.174}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-81A

12 CSR 10-3.176 Fees Paid in or to Places of Amusement, Entertainment or Recreation filed as rule no. 49 April 20, 1974, effective April 30, 1974. S.T. {#sec-12-csr-10-3.176 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.176}

regulation 010-82 was last filed Dec. 31, 1975, effective Jan. 10, 1976. 1, 1981. Rescinded and readopted: Filed March 11, 1983, effective Sept. 11, 1983. Amended: Filed May 10, 1984, effective Nov. 11, 1984.

Amended: Filed Dec. 11, 1984, effective May 25, 1985. Emergency amendment filed Nov. 15, 1990, effective Nov. 25, 1990, expired March 24, 1991. Emergency rescission and rule filed Jan. 3, 1991, effective Jan. 13, 1991, expired May 13, 1991. Emergency rescission and rule filed May 3, 1991, effective May 13, 1991, expired Sept. 9, 1991. Rescinded and readopted: Filed Jan. 3, 1991, effective June 10, 1991. Rescinded: Filed June 30, 2003, effective Dec. 30, 2003.

L & R Distributing, Inc. v. Missouri Department of Revenue, 529 SW2d 375 (Mo. banc 1975). Places such as hotel lobbies, restaurants, motels, bus stations do not constitute a place of amusement or entertainment within meaning of statute imposing sales tax on fees paid to or in any place of amusement or entertainment and are not converted into such by the installation of coin-operated devices such as pinball machines.

Blue Springs Bowl v. Spradling, 551 SW2d 596 (Mo. banc 1977).

Commercial bowling establishment was place of amusement, entertainment or recreation mentioned in statute which provides for sales tax on receipts from amounts paid for admission to places of amusement, entertainment or recreation, as well as to games and athletic events, which imposes tax on receipts from fees paid to or in these places.

Chase Resorts, Inc. v. Director of Revenue, Case No. RS-79- 251 (A.H.C. 09/30/82). Taxpayer owns and operates the Lodge of the Four Seasons which provides certain activities and services including room rental, meal and bar service, convention facilities, golf, tennis, horseback riding, bowling and motion pictures.

The Administrative Hearing Com-mission held the lodge to be a place of recreation, amusement and entertainment with section 144.020.1(2), RSMo. The commission noted that “each activity, in and of itself, represents a separate amusement or recreation, but each is related to and inseparable from the overall conduct of petitioner’s resort.” The moneys paid for the rentals in question such as rental of bowling shoes, horse and riding equipment, water skis and equipment, etc. also were held to constitute “fees paid to or in, any place of amusement, entertainment or recreation” as to be subject to sales tax pursuant to section 144.020.1(2), RSMo.

L & R Distributing Co., Inc. v. Missouri Department of Revenue, 648 SW2d 91 (Mo. banc 1983). The department appealed from the judgement of the Circuit Court of the City of St.

Louis finding the director in civil contempt for violating a 1974 injunction prohibiting the taxation of gross receipts of coinoperated amusement devices. The 1974 injunction was affirmed in L & R Distributing Co., Inc. v. Missouri Department of Revenue, 529 SW2d 375 (Mo. banc 1975). Subsequent to the decision in that case, the department had enacted sales tax rule

12 CSR 10-3.176 which provided that sales tax could be charged on the gross receipts of coin-operated amusement devices so long as they were located in places of amusement. The department relied on section 144.020.1(2), RSMo which imposed a sales tax upon the gross receipts of places of amusement. The court reversed the circuit court agreeing that the decision in L & R Distributing did not prohibit the taxation of gross receipts of places of amusement. {#sec-12-csr-10-3.176 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.176}

The court found that section 144.020.1(2), RSMo placed a tax on all fees paid to or in places of amusement, including those paid for the use of coin-operated devices. Because the department was found to be correct on the merits, the court did not determine whether civil contempt was an appropriate remedy.

St. Louis Country Club v. Administrative Hearing Commission, 657 SW2d 614 (Mo. banc 1983). The issue in this case was whether private country clubs which are not open to the public must pay sales tax on fees charged to members who bring guests to enjoy certain club facilities.

The organization in question was an IRC Section 501(C)(7) notfor-profit tax-exempt corporation. Attendance at the club by nonmembers was strictly limited. Fees for golf and tennis were charged.

Before discussing the merits of the matter the court held that a) the director of revenue does not have to personally sign and issue each deficiency assessment; b) an opinion letter, which is not directed towards the taxpayer, written by an earlier director of revenue and which erroneously states the law does not stop an assessment by a later director of revenue; and c) the waiver of the statute of limitations entered into by the taxpayer was a valid contractual agreement supported by consideration and, therefore, it would be recognized.

With respect to the merits of the case, the taxpayer asserted that it should not be assessed tax because it is a private not-for-profit social organization which is not engaged in business and the guest fees are not paid to or in any place of amusement or recreation.

Therefore, they did not fall within section 144.010.1(8), RSMo nor were they a business as defined in section 144.010.1(2), RSMo.

The court found without comment that the country club was a place of entertainment. With respect to whether it was a place of business, the court said that the definition of business contained in section 144.010.1(2), RSMo is special. The definition “any activity engaged in by any person, or caused to be engaged in by him, with the object of gain, benefit or advantage either direct or indirect” was found by the court to be broad enough to include the activity of allowing guests to use facilities for a fee. Allowing guests to use the facilities benefits the club by attracting members. found first that Mo. Const. Art. III, Section 39(10), which prohibits National Land Management, Inc. v. Director of Revenue, Case No. RS-81-0639 (A.H.C. 6/6/84). The issue in this case was whether time sharing arrangements at resorts are subject to sales tax. The commission initially found that the receipts in question were not taxable pursuant to section 144.020.1.(2), which provides for imposition of tax on a) sums paid for admission to places of amusement, b) sums paid for seating accommodations therein and c) all fees paid to or in place of amusement.

Regarding the first provision, the commission found that the sums in question were not paid for “admission” as that term is commonly understood. The commission also found that accommodations were not the subject for which the sums were paid. With respect to the third provision, the commission found that the assessments did not apply to any separate “fees” charged for the use of petitioner’s amenities but were based on charges for the time share occupancies.

Next, the commission found that section 144.020.1(6) was inapplicable, because the payments in question did not constitute charges for rooms furnished in any hotel, motel, inn, tourist camp or tourist cabin. Arriving at this conclusion the commission held, “If the relationship is that of innkeeper and guest, then petitioner is providing a taxable service; if not, then petitioner’s time share activities are not taxable under section 144.020.1.”

Looking at the law from various states, the commission held that the agreements in question constituted vacation leases creating an assignable interest in real property. Because of the thirty-year lease, the occupants are not transitory in the sense that travelers or tourists are. Rooms in petitioner’s resort are not regularly rented because they are only open to the general public when they are not already reserved pursuant to one of the previously mentioned agreements. Thus, the director of revenue failed to meet his burden of proof by establishing that the agreements in question constituted taxable service in the form of a room furnished at a hotel, motel, tourist camp or tourist cabin by an innkeeper.

Fostaire Harbor, Inc. v. Missouri Director of Revenue, 679 SW2d 272 (Mo. banc 1984). Taxpayer first challenged the commission’s finding that fees paid for helicopter flights around the City of St. Louis were taxable fees paid to or in a place of amusement, entertainment or recreation, rather than fees paid for a taxexempt educational service. Secondly, taxpayer asserted that even if tax liability existed, the finding of the commission that there was not neglect or refusal to file sales tax returns relieved it of any duty to pay interest on the amounts due.

With respect to the first issue, the court held that the tax applies generally to fees paid in or to a place of amusement despite the fact that some educational benefit is derived at that place of amusement. That some educational value might be derived from the expenditure of a particular fee does not make it exempt from With respect to the second issue, the court held that interest is not a penalty and therefore a finding of neglect or refusal was not required before interest could be imposed. While interest might be a penalty under some circumstances, and thus could only be imposed upon a finding of neglect or refusal, such is not the case under Missouri’s sales tax law.

Richard Lynn, d/b/a Kansas City Excursion v. Director of Revenue, 689 SW2d 45 (Mo. banc 1985). The issues in this case were whether 1) the taxpayer’s receipts from its Missouri River boat excursions were exempt from sales tax under section 144.030.1, RSMo as receipts from activities in interstate commerce;

the director was estopped from assessing sales tax and penalties because of certain prior actions and statements by the director’s agent; 3) the taxpayer was shielded from penalties by the exercise of good faith; and 4) the two-year statute of limitations applied to limit assessment prior to 1978.

The court resolved the interstate commerce issue by citing the decision in Fostaire Harbor, Inc. v. Missouri Director of Revenue, 679 SW2d 272 (Mo. banc 1984). Fostaire held that fees paid for admission to helicopter rides for sightseeing purposes are fees paid in or to a place of amusement and thus are taxable. The fees paid to the taxpayer in Kansas City Excursion were intended to provide a sightseeing tour, not transportation to a point outside the territorial waters of the state of Missouri; the interstate commerce provision of section 144.030.1, RSMo was therefore inapplicable to these local transactions.

Regarding the estoppel issue, the court noted the long-standing

rule that the director of revenue and his subordinates have no power to vary the force of statutes. Therefore, the actions of prior directors and their subordinates will not estop subsequent directors from collecting taxes due and owing the state except in situations where manifest injustice would otherwise occur.

In determining the issue of good-faith, the court found that the taxpayer had received an earlier assessment on the same issue and had been advised by counsel of a possible collection action. As the taxpayer was clearly on notice of a possible tax liability, failure to file in years subsequent to that assessment did not constitute good-faith, imposition of the penalty under section 144.250.1, RSMo for neglect to file a tax return was therefore appropriate.

In addition, neglect or refusal to file returns tolls the statute of limitations in section 144.220, RSMo thereby permitting the assessment of sales tax in this case beyond the statutory period.

Keeley’s Park Rink, Inc. et al. v. Director of Revenue, Case Nos. RS-84-2729, RS-84-2730 and RS-84-2731 (A.H.C. 02/26/87).

The Administrative Hearing Commission held that the receipts from the rental of roller skates and coin-operated machines were subject to sales tax.

Bally’s LeMan’s Family Fun Centers, Inc. v. Director of Revenue, 745 SW2d 683 (Mo. banc 1988). The court found that section 144.020.1(2), RSMo was clear and unambiguous in this case. The statute plainly provides for a sales tax to be imposed on all fees paid to or in places of amusement and the like. Since Bally’s fun centers are places of amusement, moneys paid to Bally to operate coin-operated devices are fees paid to or in places of amusement.

Robert Philip Spudich, d/b/a Columbia Billiard Center v.

Director of Revenue, 745 SW2d 677 (Mo. banc 1988). The Supreme Court found that billiard halls are commonly thought of as places of amusement. The fact that revenues from the sale of food and drink exceed revenue from the sale of billiard table playing time does not reduce the billiard center’s character as a place of amusement. The billiard table receipts were subject to sales tax.

The court found that there was no equal protection violation.

The state has a large leeway in making classifications and drawing lines which in its judgement produce reasonable systems of taxation. The taxation of coin-operated video machines in places of amusement but not in other nonamusement locations is reasonable in that the burdens and expenses of collecting sales tax from locations in which the fees collected for coin-operated amusement devices are minimal. The financial benefits to the state offset the minimal burden placed upon the coin-operated amusement devices located in places of amusement.

Capitol Automated Ticket Services, Inc. v. Director of Revenue, Case Nos. RS-84-1813 and RS-85-1778 (A.H.C. 09/12/88). The issue in this case considered whether sales tax could be imposed on “service charges” levied by the petitioner as a fee on the purchase of tickets to various events. The Administrative Hearing Commission determined that the “service charges” were a nontaxable service and not a fee charged for admission to a place of amusement.

Soccer World West, Inc. v. Director of Revenue, Case No. 90- 001797RS (A.H.C. 09/14/90). The issue in this case was whether fees paid by teams to participate in soccer league play were subject to sales tax as “fees paid to or in a place of amusement” or were exempt from the imposition of sales tax as “membership dues”?

The Administrative Hearing Commission found that soccer clubs are places of amusement, membership dues are fees paid in or to a place of amusement and that there is no statutory exemption from sales taxes for “membership dues.”

12 CSR 10-3.178 Dues Are Not Admissions {#sec-12-csr-10-3.178 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.178}

(Rescinded April 29, 1991)

Filed Nov. 15, 1990, effective April 29, 1991.

The organization in question was an IRC Section 501(C)(7) not-for-profit tax-exempt corporation. Attendance at the club by nonmembers was strictly limited. Fees for golf and tennis were charged.

Therefore, they did not fall within section 144.010.1(8), RSMo nor were they a business as defined in section 144.010.1(2), RSMo.

History

AUTHORITY: section 144.270, RSMo 1986. S.T. regulation 010-83 was filed Oct. 28, 1975, effective Nov. 7, 1975. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Emergency rescission filed Nov. 15, 1990, effective Nov. 25, 1990, expired March 24, 1991. Rescinded:

12 CSR 10-3.179 Separate Taxable Trans-actions Involving the Same Tangible Personal Property and the Same Taxpayer 7, 1984, effective Jan. 12, 1985. Rescinded: Filed April 1, 2002, {#sec-12-csr-10-3.179 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.179}

12 CSR 10-3.182 Excursions {#sec-12-csr-10-3.182 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.182}

Fostaire Harbor, Inc. v. Missouri Director of Revenue, 679 SW2d 272 (Mo. banc 1984). Taxpayer first challenged the commission’s finding that fees paid for helicopter flights around the City of St. Louis were taxable fees paid to or in a place of amusement, entertainment or recreation, rather than fees paid for a taxexempt educational service. Secondly, taxpayer asserted that even if tax liability existed, the finding of the commission that there was no neglect or refusal to file sales tax returns relieved it of any duty to pay interest on the amounts due.

Richard Lynn, d/b/a Kansas City Excursion v. Director of Revenue, No. 66130 (Mo. banc 4/30/85). The issues in this case were whether 1) the taxpayer’s receipts from its Missouri River boat excursions were exempt from sales tax under section 144.030.1. as receipts from activities in interstate commerce; 2) the director was estopped from assessing sales tax and penalties because of certain prior actions and statements by the director’s agents; 3) the taxpayer was shielded from penalties by the exercise of good-faith; and 4) the two-year statute of limitations applied to limit assessment prior to 1978.

The fees paid to the taxpayer in Kansas City Excursion were intended to provide a sightseeing tour, not transportation to a point outside the territorial waters of the state of Missouri; the interstate commerce provision of section 144.030.1. was therefore inapplicable to these local transactions.

Regarding the estoppel issue, the court noted the long-standing

In determining the issue of good-faith, the court found that the taxpayer had received an earlier assessment on the same issue and had been advised by counsel of a possible collection action. As the taxpayer was clearly on notice of a possible tax liability, failure to file in years subsequent to that assessment did not constitute good-faith, imposition of the penalty under section 144.250.1 for neglect to file a tax return was therefore appropriate. In addition, neglect or refusal to file returns tolls the statute of limitations in

section 144.220, thereby permitting the assessment of sales tax in this case beyond the statutory period.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-85 1976. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

12 CSR 10-3.184 Electricity, Water and Gas filed as rule no. 55 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.184 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.184}

regulation 010-86 was last filed Dec. 3, 1975, effective Jan. 10, 1976.

Jan. 1, 1981. Amended: Filed Dec. 30, 1983, effective April 12, 1984. effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995. Rescinded: Filed Aug. 14, 2007, effective Feb. 29, 2008.

Hyde Park Housing v. Director of Revenue, 850 SW2d 82 (Mo. banc 1993). Taxpayers appealed a decision of the Administrative Hearing Commission which upheld assessments of sales tax and interest on purchases of electricity used in occupied and vacant apartments. The Missouri Supreme Court held “The plain and ordinary meaning of the 1986 amendment to section 144.030.2(23) is clear and unambiguous: purchased metered electricity sold under a residential tariff is considered as a sale made for domestic use and is exempt from sales tax.” The court also held the exemption is not limited to natural persons and applies without regard to who made the purchase.

12 CSR 10-3.186 Water Haulers {#sec-12-csr-10-3.186 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.186}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-87

12 CSR 10-3.188 Telephone Service filed as rule no. 57 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.188 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.188}

regulation 010-87A was last filed Dec. 31, 1975, effective Jan. effective Jan. 1, 1981. Amended: Filed April 2, 1985, effective July 1, 1986. Amended: Filed Jan. 5, 1987, effective April 11, 1987.

Amended: Filed July 20, 1987, effective Oct. 25, 1987. Emergency amendment filed Feb. 11, 1991, effective Feb. 21, 1991, expired June 20, 1991. Emergency amendment filed June 11, 1991, effective June 21, 1991, expired Oct. 9, 1991. Amended: Filed Feb. 11, 1991, effective Sept. 30, 1991. Amended: Filed Dec. 2, 1992, effective Aug. 9, 1993.

Mobile Radio Communications, Inc. v. Director of Revenue, Case No. RS-79-0199 (A.H.C. 12/16/82). The commission held that mobile radio service does not constitute taxable “Service to telephone subscribers and to others through equipment of telephone subscribers” under section 144.202.1(4), RSMo. The commission interprets that language to mean that the purchaser must be receiving telephone service through telephone equipment.

Radio service is not telephone service. Furthermore, according to the commission, the telephone land lines petitioner used were private circuits used solely in connection with the petitioner’s transmission of signals and were not connected or otherwise tied into Southwestern Bell’s telephone system. Additionally, the court held that petitioner was not liable for sales tax on the receipts from the rental of pagers and mobile radios, because petitioner had purchased the pagers and mobile radios under the conditions of sales at retail and paid tax on them pursuant to section 144.020.1(8), RSMo.

12 CSR 10-3.192 Seller’s Responsibilities filed as rule no. 86 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 010-89 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled 1981. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011. of sales tax on certain sales transactions of shortening and nonreusable plastic and paper products which petitioner sells to Revenue, Case No. RS-82-4625 (A.H.C. 10/5/84), the commission 1983) held that the good faith acceptance of an exemption {#sec-12-csr-10-3.192 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.192}

12 CSR 10-3.194 Multistate Statutes {#sec-12-csr-10-3.194 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.194}

held that the good faith acceptance of an exemption

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 010-90 Revenue, Case No. RS-82-4625 (A.H.C. 10/5/84), the commission sale was only incidental to the primary transaction. Therefore, the purchasing restaurant was the “user” and the sale to that restaurant was a taxable retail sale.

12 CSR 10-3.196 Nonreturnable Containers filed as rule no. 34. S.T. regulation 011-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011. {#sec-12-csr-10-3.196 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.196}

Smith Beverage Co. of Columbia, v. Reiss, 568 SW2d 61 (Mo. banc 1978). Bottlers were not required to pay a use tax on reusable soft drink bottles purchased from outstate suppliers and transferred to retailers for sale to consumers, since these transactions fall within the purchase for resale exemption.

King v. National Super Markets, Inc., 653 SW2d 220 (Mo. banc 1983). The purchase of paper bags by a supermarket was considered to be a purchase for resale because they are transferred to the supermarket’s customers for consideration, since customers pay an increased price in exchange for the quantity of bags required to bag their purchases. Since National was including the cost of the bags as part of the gross taxable sale, the purpose of the use tax would not be achieved by allowing its imposition in this case.

12 CSR 10-3.198 Returnable Containers filed as rule no. 34. S.T. regulation 011-2 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011. {#sec-12-csr-10-3.198 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.198}

Smith Beverage Co. of Columbia, Inc. v. A. Gerald Reiss, 568 SW2d 61 (Mo. banc 1978). Bottlers were not required to pay a use tax on reusable soft drink bottles purchased from outstate suppliers and transferred to retailers for sale to consumers, since these transactions fall within the purchase for resale exemption.

12 CSR 10-3.200 Wrapping Materials filed as rule no. 34. S.T. regulation 011-3 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Oct. 15, 1985, effective Jan. 26, 1986. Amended: Filed July 14, 1986, effective Nov. 28, 1986. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001. {#sec-12-csr-10-3.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.200}

Rival Manufacturing Co. v. Director of Revenue, Case No. RS- 81-0522 (A.H.C. 6/4/83). The issue in this case was the imposition of sales and use tax on shippers (boxes to ship multiple items) which taxpayer used to send crock pots to its customers. The controlling issue in this case was whether or not the shippers were purchased by the petitioner at retail (for its own use and consumption) or purchased for resale (to be sold to its customers).

If they were purchased for resale, they were exempt from taxation.

The commission cited the three-part test of Smith Beverage Co. v.

Reiss, 568 SW2d 61 (Mo. banc 1978) for determining if purchases were for resale. The three parts of that test are: 1) a transfer, barter or exchange of title; 2) of tangible personal property; 3) for consideration.

The Department argued that the third part of the test had not been met because consideration must be bargained for. They were part of petitioner’s overhead and they were optional. The purchasers did not bargain for the shippers because it did not bargain for a particular mode of shipment. The commission found that the cost of the shippers was part of the selling price of the items purchased. They were transferred for a consideration. The court concluded that the shippers were exempt from tax because they were not purchased at retail, but were purchased for resale.

12 CSR 10-3.202 Pallets filed as rule no. 34. S.T. regulation 011-4 was last filed Oct. 28, 1975, Floyd Charcoal Co. v. Director of Revenue, 599 SW2d 173 (1980). Appellant charcoal company purchased pallets upon Kaiser Aluminum & Chemical Corp. v. Director of Revenue, Case No. RS-82-0068 (A.H.C. 10/28/83). The issues in this case were the taxability of the purchase and subsequent transfer of certain pallets which petitioner used to stack its bricks upon as they were transferred to customers. The commission based its conclusions of law upon a factual finding that the pallets were indeed sold to its customers. Because the pallets were sold to petitioner’s customers, the resale exemption certificates which the petitioner presented at the time it purchased the pallets in question were valid. In reaching this conclusion, the commission held that the statutory definition accorded the word sale was applicable to the term resale as well, reasoning by analogy from the decision in Smith Beverage Co. v. Reiss, 568 SW2d 61 (Mo. banc 1978). In making its factual finding the commission noted that while the petitioner’s customers could have returned the pallets for a deposit they were under no obligation to do so, and additionally, that for accounting purposes the transfer of pallets was treated as sales. {#sec-12-csr-10-3.202 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.202}

The other issue addressed in the case was whether or not the sale of the pallets constituted sales at retail which would be subject to sales tax. Petitioner contended that its subsequent sale of the pallets was exempt because they constituted reusable containers.

The commission upheld 12 CSR 10-3.020(2) which provides that pallets are not exempt. The commission pointed to the language in section 144.011.1, RSMo which requires that the containers be sold with “tangible personal property contained therein.” Because goods are not contained in pallets the commission held that they did not constitute containers and were nonexempt.

12 CSR 10-3.204 Paper Towels, Sales Slips {#sec-12-csr-10-3.204 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.204}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 011-5

12 CSR 10-3.206 Bottle Caps and Crowns filed as rule no. 34. S.T. regulation 011-6 was last filed Oct. 28, 1975, Smith Beverage Co. v. Reiss, 568 SW2d 61 (Mo. banc 1978). {#sec-12-csr-10-3.206 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.206}

Bottlers were not required to pay a use tax on reusable soft drink bottles purchased from outstate suppliers and transferred to retailers for sale to consumers, since these transactions fall within the purchase for resale exemption.

12 CSR 10-3.208 Crates and Cartons filed as rule no. 34. S.T. regulation 011-7 was last filed Oct. 28, 1975, banc 1980). Appellant charcoal company purchased pallets upon {#sec-12-csr-10-3.208 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.208}

12 CSR 10-3.210 Seller Must Charge Correct Rate {#sec-12-csr-10-3.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.210}

(Rescinded February 28, 2001)

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-1 Rescinded: Filed Aug. 24, 2000, effective Feb. 28, 2001.

12 CSR 10-3.212 Rooms, Meals and Drinks filed as rule no. 50 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.212 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.212}

regulation 020-2 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

12 CSR 10-3.214 Complimentary Rooms, Meals and Drinks {#sec-12-csr-10-3.214 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.214}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-3

12 CSR 10-3.216 Permanent Resident Defined {#sec-12-csr-10-3.216 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.216}

Regarding the first provision, the commission found that the sums in question were not paid for admission as that term is commonly understood. The commission also found that accommodations were not the subject for which the sums were paid. With respect to the third provision, the commission found that the assessments did not apply to any separate fees charged for the use of petitioner’s amenities but were based on charges for the time share occupancies.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-4 National Land Management, Inc., v. Director of Revenue, Case No. RS-81-0639 (A.H.C. 6/6/84). The issue in this case was whether time sharing arrangements at resorts are subject to sales tax. The commission initially found that the receipts in question were not taxable pursuant to section 144.020.1(2), which provides for imposition of tax on—a) sums paid for admission to places of amusement, b) sums paid for seating accommodations therein and c) all fees paid to or in place of amusement.

12 CSR 10-3.218 Students filed as rule nos. 5 and 50 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.218 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.218}

regulation 020-5 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

12 CSR 10-3.220 Sales of Accommodations to Exempt Organizations {#sec-12-csr-10-3.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.220}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-6 30, 1976. Rescinded: Filed Sept. 27, 2000, effective March 30, 2001.

12 CSR 10-3.222 Transportation Fares filed as rule no. 58 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.222 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.222}

regulation 020-7 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Jan. 1, 1981. Amended: Filed Dec. 30, 1983, effective April 12, 1984.

Aloha Airlines v. Director of Taxation of Hawaii, 104 S.Ct. 291 (1983). 49 U.S.C. section 1513(a) preempts state statutes and expressly prohibits states from taxing directly or indirectly gross receipts derived from interstate air transportation.

12 CSR 10-3.224 Effective Date of Option {#sec-12-csr-10-3.224 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.224}

Op. Atty. Gen. No. 71, Buechner (4-8-77). A corporation involved

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 020-8 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.226 Lease or Rental {#sec-12-csr-10-3.226 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.226}

Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

Op. Atty. Gen. No. 71, Buechner (4-8-77). A corporation involved Hal Aviation, Inc. v. Director of Revenue, Case No. RS-79-0310 (A.H.C. 1/20/83). Taxpayer purchased airplanes pursuant to a resale exemption certificate thereby escaping the payment of sales tax on the purchase. Taxpayer then used some of the planes in the operation of a flight school prior to selling them. A sales tax assessment was issued against the taxpayer based upon the theory that the use of the planes by the taxpayer should be taxed pursuant to section 144.020.1(8), RSMo as a rental to the flying students. The court held that the use of these planes by the flying students was no more a rental than the use of classrooms by other types of students. The students paid valuable consideration for a service, the flying lessons, and not for the rental of the planes.

Additionally, the court found that the department could not impose a tax on the theory that taxpayer evaded sales tax by the improper use of resale exemption certificates because this was not the basis of the audit and it went beyond the scope of the complaint and the answer. Note, that since the lease of the airplanes by students does not constitute a rental, sales or use tax would be owed to the state of Missouri on the original purchase of the plane.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-9 30, 1976. Amended: Filed Sept. 14, 1976, effective Dec. 11, 1976.

12 CSR 10-3.228 Lessors-Renters Include {#sec-12-csr-10-3.228 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.228}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-10 30, 1976. Amended: Filed Sept. 14, 1976, effective Dec. 11, 1976.

12 CSR 10-3.230 Repair Parts for Leased or Rented Equipment {#sec-12-csr-10-3.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.230}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-11

12 CSR 10-3.232 Maintenance Charges for Leased or Rented Equipment {#sec-12-csr-10-3.232 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.232}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-12

12 CSR 10-3.233 Export Sales 7, 1984, effective Jan. 12, 1985. Rescinded: Filed April 1, 2002, Kaiser Aluminum & Chemical Sales v. Director of Revenue, Case No. RS-82-0303 (A.H.C. 10/28/83). The issue in this case was whether or not certain bricks shipped from a Missouri plant were subject to Missouri sales tax. It was necessary for the commission to determine where the sale took place. When no specific provision for the passage of title is contained in the agreement between the parties, the commission must look to other evidence such as industry practice, passage of risk of loss, party paying transportation costs and method and time of payment. The commission cited Kurtz Concrete, Inc. v. Spradling, 560 SW2d 858 (Mo. banc 1978) and Frontier Bag, Inc. v. Director of Revenue, Case No. R-80-0073 (A.H.C. 11/12/81). Finding that the goods were shipped F.O.B. from Mexico, Missouri, the commission held that petitioner manifested an intent to have title pass to the buyer at the time and place of shipment. The commissioner looked to section 400.2-401(2)(a), RSMo (1978) (Uniform Commercial Code) in reaching this conclusion. Therefore, the sale did take place in Missouri and tax was applicable. {#sec-12-csr-10-3.233 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.233}

12 CSR 10-3.234 Permit Required {#sec-12-csr-10-3.234 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.234}

Op. Atty. Gen. No. 71, Buechner (4-8-77). A corporation involved

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 020-13 Aug 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.236 Domicile of Motor Vehicles {#sec-12-csr-10-3.236 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.236}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 020-14 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.238 Leasing Motor Vehicles for Release {#sec-12-csr-10-3.238 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.238}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 020-15 Aug. 13, 1980, effective Dec. 1, 1980.

12 CSR 10-3.240 Meal Tickets {#sec-12-csr-10-3.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.240}

Jan. 1, 1981. Rescinded: Filed April 4, 2002, effective Oct. 30, 2002.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 020-16 was last filed as rule no. 11 Jan. 22, 1973, effective Feb. 1, 1973.

12 CSR 10-3.242 Gross Sales Reporting Method {#sec-12-csr-10-3.242 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.242}

(Rescinded March 14, 1991)

History

AUTHORITY: section 144.270, RSMo 1986. S.T. regulation 021-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Rescinded: Filed Oct. 24, 1990, effective March 4, 1991.

12 CSR 10-3.244 Trade-Ins {#sec-12-csr-10-3.244 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.244}

History

AUTHORITY: sections 144.025 and 144.270, RSMo 1994. This rule was previously filed as rule no. 36 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 025-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Feb. 3, 1984, effective May 11, 1984. Amended: Filed Nov. 28, 1994, effective May 28, 1995.

12 CSR 10-3.245 Exempt Federal, State Agency or Missouri Political Subdivision—General Requirements 15, 1984, effective Feb. 11, 1985. Rescinded: Filed April 4, 2002, The Public School Retirement System of the City of St. Louis v. Director of Revenue, Case No. RS-80-0125 (A.H.C. 2/8/84). {#sec-12-csr-10-3.245 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.245}

The issue in this case was whether The Public School Retirement System of the City of St. Louis is exempt from sales tax as a public elementary or secondary school, a not-for-profit civic or charitable organization or a constitutionally tax-exempt political subdivision. The commission first noted that an agreement existed between the taxpayer and the Internal Revenue Service, whereby the Retirement System did not constitute a tax-exempt 501(c)(11) Teachers Retirement Fund, because it had more than an incidental number of nonteacher participants and a large amount of funding from gifts, devises, bequests and legacies, which was inconsistent with the provisions of Section 501(c)(11) of the Internal Revenue Code. The commission found that the taxpayer was not exempt under section 144.030.2(19), RSMo as a public elementary or secondary school, because it was specifically created by the general assembly as a body corporate, separate and distinct from the public schools of the City of St. Louis. The commission found that the taxpayer was not exempt under

section 144.030.2(20), RSMo as a civic or charitable organization because, like the hospital at issue in Frisco Employees’ Hospital Assn. v. State Tax Comm., 381 SW2d 772 (Mo. banc 1964), it only provided benefits to its members. Finally, the commission found that collecting sales tax on purchases made by the Retirement System did not constitute the imposition of tax on property paid for out of the funds of a county or other political subdivision in violation of Mo. Const. Art. III, section 39(10) because the taxpayer was not a county or political subdivision. The commission rejected the taxpayer’s argument that the funds which it received from the political subdivisions retained their character when they were used by the Retirement System to make purchases. Pointing out that the Retirement System is separate and independent from the St. Louis School District and that it receives funds from many sources other than the School District, the commission found that the funds in question had lost their character and ceased to be funds of a political subdivision.

12 CSR 10-3.246 General Examples No. 36 Jan. 22, 1993, effective Feb. 1, 1973. S.T. regulation 025-2 was {#sec-12-csr-10-3.246 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.246}

12 CSR 10-3.247 Information Required to be Filed by a Federal, State Agency or Missouri Political Subdivision Claiming Exemption 15, 1984, effective Feb. 11, 1985. Rescinded: Filed April 4, 2002, The Public School Retirement System of the City of St. Louis v. Director of Revenue, Case No. RS-80-0125 (A.H.C. 2/8/84). {#sec-12-csr-10-3.247 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.247}

The issue in this case was whether The Public School Retirement System of the City of St. Louis is exempt from sales tax as a public elementary or secondary school, a not-for-profit civic or charitable organization or a constitutionally tax-exempt political subdivision. The commission first noted that an agreement existed between the taxpayer and the Internal Revenue Service, whereby the Retirement System did not constitute a tax-exempt 501(c)(11) Teachers Retirement Fund, because it had more than an incidental number of nonteacher participants and a large amount of funding from gifts, devises, bequests and legacies, which was inconsistent with the provisions of section 501(c)(11) of the Internal Revenue Code. The commission found that the taxpayer was not exempt under section 144.030.2(19), RSMo as a public elementary or secondary school, because it was specifically created by the general assembly as a body corporate, separate and distinct from the public schools of the City of St. Louis. The commission found that the taxpayer was not exempt under

12 CSR 10-3.248 Sales to the United States Government filed as rule no. 2 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled 1981. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Amended: {#sec-12-csr-10-3.248 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.248}

Filed Feb. 23, 1989, effective June 11, 1989. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000.

State Tax Commission. Purchases by a contractor of materials and supplies in performance of cost-plus contracts with the United States government are subject to sales tax, although the contract provides that title to the property purchased shall vest in the United States upon its delivery to the building site.

12 CSR 10-3.249 Sales to Foreign Diplomats 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Feb. 26, 2010, {#sec-12-csr-10-3.249 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.249}

12 CSR 10-3.250 Sales to Missouri filed as rule no. 1 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-2 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled found first that Mo. Const. Art. III, section 39(10), which prohibits {#sec-12-csr-10-3.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.250}

12 CSR 10-3.252 Hunting and Fishing Licenses {#sec-12-csr-10-3.252 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.252}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-2A 30, 1976. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

12 CSR 10-3.254 Sales to Missouri Political Subdivisions filed as rule no. 3 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-3 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled found first that Mo. Const. Art. III, section 39(10), which prohibits {#sec-12-csr-10-3.254 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.254}

12 CSR 10-3.256 Sales Other Than Missouri or its Political Subdivisions {#sec-12-csr-10-3.256 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.256}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-4

12 CSR 10-3.258 Petty Cash Funds {#sec-12-csr-10-3.258 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.258}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-5

12 CSR 10-3.260 Nonappropriated Activities of Military Services {#sec-12-csr-10-3.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.260}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-6 30, 1976. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000.

12 CSR 10-3.262 Government Suppliers and Contractors filed as rule no. 1 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-7 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. {#sec-12-csr-10-3.262 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.262}

Planned Systems Interiors, Ltd. v. Director of Revenue, Case No.

RS-85-0065 (A.H.C. 7/1/86). The petitioner’s theory was that it was making a sale to an agency of the United States government and could not be required to pay sales tax.

The Administrative Hearing Commission rejected petitioner’s contentions and found that the taxpayer had a contractual relationship only as a subcontractor with K & S, the primary contractor and that the taxpayer sold the work stations to K & S pursuant to their contract. Under the department’s regulations 12 CSR 10-3.028 and 12 CSR 10-3.262, this sale was subject to sales

12 CSR 10-3.264 Repossessed Tangible Personal Property filed as rule no. 38 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.264 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.264}

regulation 030-8 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

12 CSR 10-3.266 Sales to National Banks and Other Financial Institutions filed as rule no. 12 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.266 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.266}

regulation 030-9 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Refiled March 30, 1976. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed July 30, 2010, effective Jan. 30, 2011.

In Farm and Home Savings Association v. Spradling, 538 SW2d 313 (1976) the court held sales tax is a tax upon gross receipts of the seller, not the purchaser. Consequently, exemption provisions of the “tax in lieu of other taxes” statute did not exempt the association from payment of sales tax because it was the purchaser, not the seller. Had the legislature intended to exempt savings and loan associations as purchasers from use tax, it would have declared the intent in the act itself or specifically so provided in the exemption statute applicable to savings and loan associations.

12 CSR 10-3.268 General Rule {#sec-12-csr-10-3.268 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.268}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-10 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.270 Carbon Dioxide Gas {#sec-12-csr-10-3.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.270}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-11

12 CSR 10-3.272 Motor Fuel and Other Fuels filed as rule no. 46 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.272 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.272}

regulation 030-12 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Dec. 3, 1985, effective Feb. 24, 1986. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

In Hern v. Carpenter, 312 SW2d 823 (1958), where subsection 144.030.2, RSMo exempts plaintiffs, who are farmers (purchasers) and a corporate distributor (seller) of motor fuel, from payment of sales tax on sales and purchases of such fuel, the court held all sales of gasoline are exempt from liability for sales tax, including those sales where purchaser declares his intention not to use gasoline for highway purposes and in fact obtains a refund of motor fuel tax paid.

Missouri Public Service Company v. Director of Revenue, 733 SW2d 448 (Mo. banc 1987). Since there is no statutory definition of fuel, the Supreme Court attributed to the work its plain and ordinary meaning. The court found Rolfite exempt from use tax because it is a fuel material which produces heat by burning and is consumed in the manufacture of electricity. The court stated that the fact Rolfite is used primarily for other purposes does not change its essential functional character as a fuel.

Lady Baltimore of Missouri, Inc. v. Director of Revenue, Case Nos. RS-83-2819 and RS-83-2820 (A.H.C. 9/9/87). The petitioner argued that it is exempt under 144.030.2(1), RSMo because diesel fuel is subject to the special fuel tax. The Administrative Hearing Commission held that where the special fuel tax is not paid upon purchase, the fuel is not subject to an excise or sales tax under another law of the state and the sales tax exemption does not apply. Therefore sales tax is due and payable.

The taxpayer in the alternative argued that the respondent was required to collect the tax from the vendor rather than the petitioner as a purchaser. The Administrative Hearing Commission found that under the facts of this case that the petitioner had purchased the special fuel under an improper claim of exemption and was therefore liable for sales tax.

12 CSR 10-3.274 Farm Machinery and Equipment {#sec-12-csr-10-3.274 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.274}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Amended: Filed April 7, 1986, effective June 28, 1986. Amended: Filed Feb. 26, 1987, effective May 28, 1987. Amended: Filed Sept. 28, 1995, effective May 30, 1996. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000.

Charles A. Johnson, Jr. v. Director of Revenue, Case Nos. RS-83- 3258 and RS-83-3259 (A.H.C. 5/1/86). The Administrative Hearing Commission found the petitioner was not entitled to an exemption for his seed cleaner and conveyor for two reasons. First, petitioner used the equipment for commercial processing of soybeans other than his own, a use clearly not within the requirement that the equipment be used exclusively and directly for the production of farm products as required by 144.030.2(22), RSMo and further excluded from exemption by 12 CSR 10-3.274(8) because the commercial cleaning operation was not an agricultural use of the cleaning equipment.

Henderson Implement Co., Inc. v. Director of Revenue, Case No. RS-86-0170 (A.H.C. 6/16/88). The Administrative Hearing Commission held that the taxpayer met its burden of proving that soilmovers were farm machinery within the meaning of the statute. The soilmover was found to be essential to production of farm crops on low-lying land and the farmers used the equipment exclusively for such purposes and the link between controlling drainage on the farmland and the production of the crops is a direct relationship. Therefore, the Administrative Hearing Commission concluded that the soilmovers were exempt from sales tax.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-13 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.276 Sales of Baling Wire, Baling Twine and Binder Twine {#sec-12-csr-10-3.276 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.276}

(Rescinded June 28, 1986)

no. 34 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-14 April 17, 1986, effective June 28, 1986.

12 CSR 10-3.278 Agricultural Feed and Feed Additives filed as rule no. 60 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-15 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995. Rescinded: Filed May 24, 2000, {#sec-12-csr-10-3.278 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.278}

12 CSR 10-3.280 Sale of Agricultural Products by the Producer {#sec-12-csr-10-3.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.280}

(Rescinded October 30, 2001) filed as rule no. 61 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-16 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed April 5, 2001, effective Oct. 30, 2001.

12 CSR 10-3.282 Sales of Seed, Pesticides and Fertilizers filed as rule no. 62 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-17 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled {#sec-12-csr-10-3.282 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.282}

12 CSR 10-3.284 Poultry Defined {#sec-12-csr-10-3.284 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.284}

Exotic Animal Paradise, Inc. v. Director of Revenue, Case Nos. taxpayer purchased and maintained animals for display in its wild animal park. The Administrative Hearing Commission determined that these animals were neither poultry nor livestock normally raised or grown as food for human consumption.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-18 1976. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000.

12 CSR 10-3.286 Livestock Defined {#sec-12-csr-10-3.286 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.286}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-19 Exotic Animal Paradise, Inc. v. Director of Revenue, Case Nos. taxpayer purchased and maintained animals for display in its wild animal park. The Administrative Hearing Commission determined that these animals were neither poultry nor livestock normally raised or grown as food for human consumption.

12 CSR 10-3.288 Florists filed as rule no. 63 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-20 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled {#sec-12-csr-10-3.288 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.288}

12 CSR 10-3.290 Sellers of Poultry filed as rule no. 65 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-22 was last filed Dec. 5, 1975, effective Dec. 15, 1975. Refiled ultimate consumer of the goods in question. The commission, held. Acknowledging that the Missouri Supreme Court in transaction and no tax was due from the petitioner on these items. {#sec-12-csr-10-3.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.290}

12 CSR 10-3.292 Ingredients or Com po nent Parts filed as rule no. 77 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-23 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled The Blueside Companies, Inc. v. Director of Revenue, Case No. {#sec-12-csr-10-3.292 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.292}

RS-82-4625 (A.H.C. 10/5/84). The issue in this case was whether chemicals used by the taxpayer in its hide processing operation were partially or totally exempt from sales/use taxes under

section 144.030.2(2), RSMo (Supp. 1983) as “materials. . . which when used. . . become a component part or ingredient of the new personal property resulting from such manufacturing, processing, compounding, producing or fabricating. . . .”

The Administrative Hearing Com mission ruled that section 144.030.2(2) did not just apply to manufacturers. The statute applied instead to materials used in manufacturing. It is the goods that are used, not the purchaser of the goods, which defines the extent of the exemption.

Secondly, the commission found that the taxpayer was entitled to claim the exemption even though it actually performed the work in question on a contractual basis. It is not necessary that the taxpayer be manufacturing its own goods, and even if it were, as noted previously, the exemption in question is not limited to manufacturers but to manufacturing, etc. The fact that the taxpayer worked on a contract basis was irrelevant.

The commission also found that the key to whether materials become a component part or ingredient of the new personal property was whether the taxpayer purchased them for its own use and consumption or for resale. Looking to legislative history the court found that section 144.030.2(2) was in fact simply a repetition of the exclusions already inherent in the definitional provisions of section 144.010(8) defining “sale at retail.”

The commission noted that courts in other states have consistently ruled that the component part exemption is akin to the sale-forresale philosophy and that chemicals which are not detectable in the finished product do not constitute component parts. Numerous cases from other jurisdictions were cited. Moreover, the mere presence of traces of a chemical in a final product does not make the chemical a component part. The court cited as an example microscopic particles of water vapor and other gases which are left in mined coal by explosives. These trace chemicals do not make the explosives a component part.

The court also cited the elimination of double taxation as the rationale for the component part exemption. Therefore, if the presence of a material in a finished product is merely incidental then the material was not purchased for resale and the purchase should be taxable. In the case at hand the court noted that various products that were purchased to form chrome-tan were totally retained in the product. These materials should be exempt because they were purchased with the intent that they would be resold as

part of the product.

The commission distinguished cases where part of the material was intended to become a component part. While some states have taken the position that the purchase of a material with the intention that part of it shall remain in the product at the time of resale will exempt all of the material, the commission took the position that only the part which was intended to become a component part should be exempt, noting that section 144.030.2(2) expressly provides that exemptions for various materials only apply to the extent they are incorporated into products which are intended for resale.

Hardee’s of Springfield, Inc., et al. v. Director of Revenue, Case No. RS-82-2181 (A.H.C. 6/11/85). The issue in this case was the imposition of use tax upon shortening used for deep frying foods at petitioner’s restaurants. Petitioner asserted that use tax was not due on any of the shortening because it became an ingredient or component part of new personal property and thus exempt as provided by section 144.030.3(1), RSMo (1978). The director countered that petitioner had to be a manufacturer to qualify for this exemption and that no exemption was proper unless the ingredient was totally incorporated into the new product.

The Administrative Hear ing Com mission cited Blueside Company v. Director of Revenue, Case No. RS-82-4625 (A.H.C. 10/5/84) for the proposition that the exemption also applies to processing. However, again citing Blueside, the commission held that the ingredient or component part exemption is only applicable to the extent that the article is incorporated in new property. In addition, those articles whose presence in the final product is not necessary or essential are not exempt. The commission found that 50% of the shortening in question was absorbed and therefore exempt.

The bulk of the unabsorbed shortening was sold for salvage.

Petitioner contended that this salvage sale constituted a retail sale and that its use of shortening was therefore exempt under section 144.615, RSMo (1978) as property held for resale in the regular course of business. However, the commission rejected petitioner’s argument by stating, “If the by-product is an inconsequential portion of the taxpayer’s business and the by-product is sold as salvage primarily to avoid the cost of refuse collection, the articles in the by-product would not be exempt from use tax because those articles would be held substantially for use and not for resale.” nonreusable plastic and paper products which petitioner sells to restaurants for use in the preparation and service of food products. Petitioner asserted that the sales in question were exempt as sales for resale because the purchasing restaurants were not the ultimate consumer of the goods in question. The Administrative Hearing Commission, relying on the exemption set forth in section 144.030.3(1), RSMo for materials purchased for use in “manufacturing, processing, compounding, mining, producing Revenue, Case No. RS-82-4625 (A.H.C. 10/5/84), the Administrative Hearing Commission found that the petitioner’s sale of shortening was exempt from taxation to the extent that the purchaser intended for it to be absorbed into the fried foods. The sale of the portion which the purchaser did not expect to be so absorbed was not exempt as an ingredient or component part. However, petitioner asserted that the unabsorbed portion was exempt as a purchase for resale because it was sold by the purchaser for salvage after being used. Again referring to Blueside, the commission held that the salvage sale was only incidental to the primary transaction.

Therefore, the purchasing restaurant was the user and the sale to that restaurant was a taxable retail sale.

Steel, Inc. v. Director of Revenue, 647 SW2d 535 (Mo. En Banc 1983) held that the good faith acceptance of an exemption transaction and no tax was due from the petitioner on these items.

Teepak, Inc. v. Director of Revenue, Case Nos. RS-86-0123 and RS-86-1430 (A.H.C. 5/13/88). In this case, the taxpayer argued that casings used in the manufacture of hot dogs were exempt from sales tax under the component part exemption. The Administrative Hearing Commission rejected the taxpayer’s argument, finding that there was no purposeful incorporation of the casing, or its parts, into the finished hot dog, therefore, the component part exemption did not apply.

Pea Ridge Iron Ore Co., Inc. v. Director of Revenue, Case Nos. RS- 84-1398, RS-84-1468, RS-84-1469, RS-84-1470, RS-84-1728, RS-84- 1729 and RS-86-0517 (A.H.C. 6/30/88). The primary substantive issue was whether the taxpayer’s purchases of grinding balls, grinding rods, bentonite and olivine were exempt under the steel products exemption in 144.030.2(2), RSMo which exempts “materials and manufactured goods which are ultimately consumed in the manufacturing process by becoming, in whole or in part, a component part or ingredient of steel products intended to be sold ultimately for final use or consumption.” The Administrative Hearing Commission held that the presence of the grinding media and bentonite in the final product, though a secondary purpose and not the primary intended purpose, was sufficient to qualify the materials for the steel products exemption. The materials were purchased with an intent and purpose of becoming an identifiable and detectable ingredient or component part of the iron or pellets, and therefore were exempt.

Marshall Scott Enterprises, Inc. v. Director of Revenue, Case No. RS-87-0786, Kentucky Fried Chicken of Spanish Lake, Inc., Case No. RS-87-0787 and Al-Tom Investment, Inc. d/b/a Kentucky Fried Chicken, Case No. RS-87-0788 (A.H.C. 7/8/88).

The taxpayers contended that the purchases of shortening were excluded from taxation under 144.010.1(8), RSMo (1994), because the shortening was substantially incorporated in the food products and therefore was for resale as a portion of the food products. The Admin istrative Hearing Commission rejected this argument and reaffirmed its decision in Blueside Companies, Inc. v. Director of Revenue, Case No. RS-82-4625 (10/5/84).

Golden Business Forms, Inc. v. Director of Revenue, Case No.

RS-86-2524 (A.H.C. 9/26/88). The Admin istrative Hearing Commission ruled that even though printing plates and punches are necessary to the manufacturing process, the plates and punches do not become a component part or ingredient of the final printed product. In order to be a component part or ingredient of the final product the plates and punches must be physically incorporated into the printed business forms. The evidence was that they did not.

St. Joe Minerals Corporation v. Di rec tor of Rev enue, Case Nos.

RS-85-1812 and RS-85-2289 (A.H.C. 9/13/88). The Administrative Hearing Commission reaffirmed earlier decisions that held that before materials can be exempt as component parts or ingredients they must be shown to have been purchased for the purpose of becoming part of the final product. They must also be shown to have become a part of the product and must be detectable in the final product. They must also serve a purpose in the final product and not be just an impurity. It is not enough that the materials are necessary to the manufacturing process; it must be shown that the materials are purposefully incorporated into that final product.

12 CSR 10-3.294 Component Parts filed as rule no. 77 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-24 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled The Blueside Companies, Inc. v. Director of Revenue, Case No. {#sec-12-csr-10-3.294 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.294}

RS-82-4625 (A.H.C. 10/5/84). The issue in this case was whether chemicals used by the taxpayer in its hide processing operation were partially or totally exempt from sales/use taxes under

While acknowledging that on two previous occasions courts of the state of Missouri have ruled in the taxpayer’s favor in cases similar to this one, the commission noted that such rulings were not in accordance with either the well-established rule that exemption statutes must be strictly construed against the taxpayer or the historical purpose of the statute as it was explained in Southwestern Bell Telephone v. Morris, 345 SW2d 62 (Mo. banc 1961). The commission noted that courts in other states have consistently ruled that the component part exemption is akin to the sale-for-resale philosophy and that chemicals which are not detectable in the finished product do not constitute component parts. Numerous cases from other jurisdictions were cited.

Moreover, the mere presence of traces of a chemical in a final product does not make the chemical a component part. The court cited as an example microscopic particles of water vapor and other gases which are left in mined coal by explosives. These trace chemicals do not make the explosives a component part.

part of the product.

Hardee’s of Springfield, Inc., et al. v. Director of Revenue, Case No. RS-82-2181 (A.H.C. 6/11/85). The issue in this case was the imposition of use tax upon shortening used for deep frying goods at petitioner’s restaurants. Petitioner asserted that use tax was not due on any of the shortening because it became an ingredient or component part of new personal property and thus was exempt as provided by section 144.030.3(1), RSMo (1978). The director countered that petitioner had to be a manufacturer to qualify for this exemption and that no exemption was proper unless the ingredient was totally incorporated into the new product.

The commission cited Blueside Company v. Director of Revenue, Case No. RS-82-4625 (A.H.C. 10/5/84) for the proposition that the exemption also applies to processing. However, again citing Blueside, the commission held that the ingredient of component

part exemption is only applicable to the extent that the article is incorporated in new property. In addition, those articles whose presence in the final product is not necessary or essential are not exempt. The Administrative Hearing Commission found that 50% of the shortening in question was absorbed and therefore exempt.

The bulk of the unabsorbed shortening was sold for salvage.

section 144.030.3(1), RSMo for materials purchased for use in “manufacturing, processing, compounding, mining, producing held. Acknowledging that the Missouri Supreme Court in Hardee’s of Springfield, Inc. et al. v. Director of Revenue, Case No. RS-82-wr 42181 (A.H.C. 6/11/85). The Ad min istra tive Hearing Commission held that the ingredient or component part exemption is only applicable to the extent that the article is incorporated in new property. In addition, those articles whose presence in the final product is not necessary to essential are not exempt. The commission found that 50% of the shortening in question was absorbed and therefore exempt.

Marshall Scott Enterprises, Inc. v. Director of Revenue, Case No.

RS-87-0786, Kentucky Fried Chicken of Spanish Lake, Inc., Case No. RS-87-0787 and Al-Tom Investment, Inc. d/b/a Kentucky Fried Chicken, Case No. RS-87-0788 (A.H.C. 7/8/88). The taxpayers contended that the purchases of shortening were excluded from taxation under 144.010.1(8), RSMo, because the shortening was substantially incorporated in the food products and therefore was for resale as a portion of the food products. The Administrative Hearing Commission rejected this argument and reaffirmed its decision in Blueside Companies, Inc. v. Director of Revenue, Case No. RS-82-4625 (10/5/84).

Snap Shot Photo v. Director of Revenue, Case No. RS-87-1056 (A.H.C. 8/29/88). The Administrative Hearing Commission found that all chemicals used in the photofinishing process as part of a closed vat system, and not washed away during the process, were exempt from taxation because “all such chemicals do become ingredients and component parts of all the products over time.”

St. Joe Minerals Corporation v. Director of Revenue, Case Nos.

12 CSR 10-3.296 Manufacturing Defined {#sec-12-csr-10-3.296 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.296}

Wendy’s of Mid-America, Inc. v. Department of Revenue, Case No. RS-79-0222 (A.H.C. 7/22/82). Machinery and equipment used in fast food restaurants are not entitled to section 144.0302.

(4), RSMo exemption because fast food restaurants clearly do not constitute manufacturing plants. Section 144.615(6), RSMo exemption from use tax is applicable to foil, wax paper and bags used in fast food restaurants because they are held solely to be incorporated into products which are resold in the regular course of taxpayer’s business.

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-25 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.298 Electrical Appliance Manufacturers {#sec-12-csr-10-3.298 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.298}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-26 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Aug.

12 CSR 10-3.300 Common Carriers {#sec-12-csr-10-3.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.300}

Filed Dec. 10, 1986, effective April 11, 1987. Rescinded: Filed April 4, 2002, effective Oct. 30, 2002.

Western Trailer Service, Inc. v. LePage, 575 SW2d 173 (Mo. banc 1978). Where, under contract, employees of trailer company went to Kansas, picked up trailers and brought them into state and, after repairs were made and repair parts installed, trailers were returned under contract to Kansas by trailer company employees, there was dealing between persons of different states in which importation was an essential feature or formed a component part of the transaction, with retail sales made in commerce between the two states, to which an exemption from sales tax for being in interstate commerce applied.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-27 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.302 Airline Defined {#sec-12-csr-10-3.302 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.302}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-27A Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.304 Common Carrier Exemption Certificates {#sec-12-csr-10-3.304 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.304}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-28 30, 1976. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003.

12 CSR 10-3.306 Aircraft {#sec-12-csr-10-3.306 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.306}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-29 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.308 Boat Manufacturing Equipment {#sec-12-csr-10-3.308 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.308}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-30 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.310 Truckers {#sec-12-csr-10-3.310 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.310}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-31 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.312 Local Delivery and Terminal Equipment {#sec-12-csr-10-3.312 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.312}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-32 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.314 Patterns and Dies no. 54 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-33 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.314 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.314}

12 CSR 10-3.316 Replacement Machinery and Equipment filed as rule no. 26 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-34 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Rescinded: Filed July 14, 1999, effective Jan. 30, 2000. banc 1980). To determine if new or replacement equipment is exempt from sales or use tax, an integrated plant approach is used to determine if it is used directly in manufacturing products. {#sec-12-csr-10-3.316 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.316}

St. Joseph Light & Power Co. v. Director of Revenue, Case No.

RS-79-0162 (A.H.C. 1/21/83). Taxpayer utility company purchased a new boiler to replace a boiler that was worn out. The issue is whether the boiler’s purchase should be exempt from use tax pursuant to section 144.030.3(3), RSMo which exempts the purchase of machinery and equipment used directly for manufacturing or fabricating when the purchase is caused by reason of a design or product change, or whether it is exempt under section 144.030.3(4), RSMo as machinery or equipment used to expand an existing manufacturing plant. The Administrative Hearing Commission found that because the boiler was purchased to replace a wornout boiler, it was precluded from finding that the machinery was purchased by reason of a design or product change. Therefore, taxpayer was not entitled to an exemption on this basis. However, the commission found that the new boiler did expand the plant’s capacity by five megawatts and allowed the boiler to operate an additional two days per month. Based upon this finding, the commission concluded that the new boiler was equipment purchased and used to expand an existing manufacturing plant in this state. generating facility. The Administrative Hearing Commission was faced with the task of applying the new “integrated plant” theory which the Missouri Supreme Court adopted in Floyd Charcoal Co. v. Director of Revenue, 599 SW2d 173 (Mo. banc 1980) and Noranda Aluminum v. Missouri Department of Revenue, 599 SW2d 1 (Mo. banc 1980) to determine whether these items were exempt under section 144.030.3(4), RSMo from sales and use tax as “machinery and equipment, purchased and used to establish new or to expand existing manufacturing, mining or fabricating.” The commission found that while Missouri has adopted the integrated plant theory, it is apparent from the statute limiting language that not all items used in the manufacture of a product are exempt from sales or use tax. first of all, that it did not qualify as a “device” and thus could not this machinery or equipment. banks protecting th e electrical system and manhole covers for primarily for manufacturing to qualify for exemption (see also State ex rel. Ozark Lead Co. v. Goldberg, 610 SW2d 954 (1981) and Noranda Aluminum v. Missouri Department of Revenue, 599 SW2d 1 (Mo. banc 1980)).

American Lithographers, Inc. v. Director of Revenue, Case No. RS-87-1355 (A.H.C. 10/25/88). The Administrative Hearing Commission found that the purchase of printing plates was exempt from the imposition of sales and use tax under 144.030.2(4), RSMo as “replacement parts replaced by reason of product or design change.” The Administrative Hearing Commission compared the printing plates with the dies and molds used by automobile manufacturers and then cited the Department of Revenue’s

regulation 12 CSR 10-3.316(2) which states in part that “if an automobile plant must replace machinery because the present machinery cannot do the work due to changes on the new models, the machinery is not subject to the sales tax.”

Tension Envelope Corp. v. Director of Revenue, Case No. RS-87- 0420 (A.H.C. 12/6/88). The Administrative Hearing Commission found that printing plates were exempt under 144.030.2(4), RSMo as “replacement parts replaced by reason of product or design change.” In reference to the artwork and the prep work, the Administrative Hearing Commission, citing the case of Empire District Electric v. Director of Revenue, Case No. RS-79-0249, stated that one requirement for eligibility under section 144.030 is that the item by a “device” and because the artwork and prep work are not devices their purchase was not exempt under 144.030.2(4).

12 CSR 10-3.318 Ceramic Greenware Molds {#sec-12-csr-10-3.318 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.318}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-35

12 CSR 10-3.320 New or Expanded Plant {#sec-12-csr-10-3.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.320}

Wendy’s of Mid-America, Inc. v. Department of Revenue, Case No. RS-79-0222 (A.H.C. 7/22/82). Machinery and equipment used in fast food restaurants are not entitled to section 144.030.2(4), RSMo exemption because fast food restaurants clearly do not constitute manufacturing plants. Section 144.615(6), RSMo exemption from use tax is applicable to foil, wax paper and bags used in fast food restaurants because they are held solely to be incorporated into products which are resold in the regular course of taxpayer’s business.

Jackson Excavating Co. v. Department of Revenue, 649 SW2d 48 (Mo. banc 1983). The sole issue in this case is whether machinery used to purify water for human consumption is entitled to a sales/use tax exemption under section 144.030.3.(4), RSMo as machinery used to establish a new or expand an existing manufacturing plant. In this case the Supreme Court cited West Lake Quarry & Material Co. v. Schaffner, 451 SW2d 140 (Mo. banc 1970), and Heidelberg Central, Inc. v. Director of Revenue, 476 SW2d 502 (Mo. banc 1972), as the basis for finding that the purification of water was “a transformation of raw material by the use of machinery, labor and skill into a product for sale which has an intrinsic and merchantable value in a form suitable for new uses.” In passing, the court acknowledged the decision in State ex rel. A.M.F., Inc. v. Spradling, 518 SW2d 58 (Mo. banc 1974), where it held that the retreading of worn tire carcasses was not manufacturing, but did not distinguish it from the case at hand.

St. Joseph Light & Power Co. v. Director of Revenue, Case No.

RS-79-0162 (A.H.C. 1/21/83). Taxpayer utility company purchased a new boiler to replace a boiler that was worn out. The issue is whether the boiler’s purchase should be exempt from use tax pursuant to section 144.030.3(3), RSMo which exempts the purchase of machinery and equipment used directly for manufacturing or fabricating when the purchase is caused by reason of a design or product change, or whether it is exempt under section 144.030.3(4), RSMo as machinery or equipment used to expand an existing manufacturing plant. The Administrative Hearing Commission found that because the boiler was purchased to replace a wornout boiler, it was precluded from finding that the machinery was purchased by reason of a design or product change. Therefore, taxpayer was not entitled to an exemption on this basis. However, the commission found that the new boiler did expand the plant’s capacity by five megawatts and allowed the boiler to operate an additional two days per month. Based upon this finding, the commission concluded that the new boiler was equipment purchased and used to expand an existing manufacturing plant in this state. generating facility. The Ad min istra tive Hear ing Com mission was faced with the task of applying the new “integrated plant” theory which the Missouri Supreme Court adopted in Floyd Charcoal Co. v. Director of Revenue, 599 SW2d 173 (Mo. banc 1980) and Noranda Aluminum v. Missouri Department of Revenue, 599 SW2d 1 (Mo. banc 1980) to determine whether these items were exempt under section 144.030.3(4), RSMo from sales and use tax as “machinery and equipment, purchased and used to establish new or to expand existing manufacturing, mining or fabricating.” The commission found that while Missouri has adopted the integrated plant theory, it is apparent from the statute limiting language that not all items used in the manufacture of a product are exempt from sales or use tax. first of all, that it did not qualify as a “device” and thus could not this machinery or equipment. banks protecting the electrical system and manhole covers for primarily for manufacturing to qualify for exemption.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-36 Rescinded and readopted: Filed Sept. 28, 1989, effective Jan. 12, 1990. Rescinded: Filed July 14, 1999, effective Jan. 30, 2000.

12 CSR 10-3.324 Rock Quarries {#sec-12-csr-10-3.324 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.324}

Rotary Drilling Supply, Inc. v. Director of Revenue, 662 SW2d 496 (Mo. banc 1983). Petitioner contended that its sales of drilling rigs were exempt from sales tax under section 144.030.3(4), RSMo on the grounds that they were purchased from petitioner for the

purpose of expanding or establishing mining plants in this state.

Petitioner had failed to obtain exemption certificates from its purchasers and, therefore, it would be liable for uncollected tax. The court refused to recognize water-well drilling as a form of mining.

The use of rigs to drill water wells for any purpose or exploratory holes would not constitute mining within the exemption requirement. The evidence was that this was the primary function performed by these rotary drills. The court then went on to reject the Administrative Hearing Commission’s conclusion that none of the sales were exempt because a predominant number of rigs were not put to an exempt use. The case was remanded for an evidentiary hearing at which the commission was to determine the exempt status of each rig.

American Industries Resources Corp., Missouri Mining, Inc. v.

Director of Revenue, Case Nos. RS 84-0922–0925 (A.H.C. 10/28/88)

Taxpayer is in the business of mining coal. It operated a surface coal mine or strip mine. Taxpayer purchased a bulldozer for reclamation purposes but also occasionally used it to remove the last layer of coal covering the coal field. The bulldozer was found to be exempt as “machinery . . . purchased and used to establish new or expand existing . . . mining . . . .plants in the state” under 144.030.2(5), RSMo.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-38 West Lake Quarry & Material Co. v. Schaffner, 451 SW2d 140 (Mo. banc 1970). Taxpayer’s removal of rock from the ground is included in the term mining as used in section 144.030.3(4). The court found equipment used to mine and refine rock including crushing equipment, was exempt from sales and use tax. Equipment used to load customer’s trucks is not directly used in either manufacturing or mining the product intended to be sold or required to be exempt under section 144.030.3(4), RSMo.

12 CSR 10-3.326 Direct Use filed as rule no. 26 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-39 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled Amended: Filed May 12, 1987, effective Aug. 27, 1987. Rescinded: {#sec-12-csr-10-3.326 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.326}

Filed July 14, 1999, effective Jan. 30, 2000. banc 1980). To determine if new or replacement equipment is exempt from sales or use tax, an integrated plant approach is used to determine if it is used directly in manufacturing products.

Jackson Excavating Co. v. Department of Revenue, 646 SW2d 48 (Mo. banc 1983). The sole issue in this case is whether machinery used to purify water for human consumption is entitled to a sales/ use tax exemption under section 144.030.3(4), RSMo as machinery used to establish a new or expand an existing manufacturing plant. In this case the Supreme Court cited West Lake Quarry & Material Co. v. Schaffner, 451 SW2d 140 (Mo. banc 1970), and Heidelberg Central, Inc. v. Director of Revenue, 476 SW2d 502 (Mo. banc 1972), as the basis for finding that the purification of water was “a transformation of raw material by the use of machinery, labor and skill into a product for sale which has an intrinsic and merchantable value in a form suitable for new uses.”

In passing, the court acknowledged the decision in State ex rel.

AMF, Inc. v. Spradling, 518 SW2d 58 (Mo. banc 1974), where it held that the retreading of worn tire carcasses was not manufacturing, but did not distinguish it from the case at hand. generating facility. The commission was faced with the task of applying the new integrated plant theory which the Missouri Supreme Court adopted in Floyd Charcoal Co. v. Director of Revenue, 599 SW2d 173 (Mo. banc 1980) and Noranda Aluminum v. Missouri Department of Revenue, 599 SW2d 1 (Mo. banc 1980) to determine whether these items were exempt under section 144.030.3(4), RSMo from sales and use tax as “machinery and equipment, purchased and used to establish new or to expand existing manufacturing, mining or fabricating.” The commission found that while Missouri has adopted the integrated plant theory, it is apparent from the statute limiting language that not all items used in the manufacture of a product are exempt from sales or use tax. first of all, that it did not qualify as a device and thus could not such machinery or equipment. banks protecting the electrical system and manhole covers for primarily for manufacturing to qualify for exemption.

12 CSR 10-3.327 Exempt Machinery {#sec-12-csr-10-3.327 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.327}

Wendy’s of Mid-Missouri, Inc. v. Department of Revenue, Case No. RS-79-0222 (A.H.C. 7/22/82). Machinery and equipment used in fast food restaurants are not entitled to section 144.030.2(4), RSMo exemption because fast food restaurants do not constitute manufacturing plants.

Jackson Excavating v. Administrative Hearing Commission, 646 SW2d 48 (Mo. banc 1983). Machinery used to purify water for human consumption is exempt from sales or use tax as machinery used to establish a new or to expand an existing manufacturing plant. The court stated the purifications of water is “a transformation of raw material by the use of machinery, labor and skill into a product for sale which has an intrinsic and merchantable value in a form suitable for new uses.”

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Aug. 6, 1980, effective Jan. 1, 1981. Rescinded: Filed July 14, 1999, effective Jan. 30, 2000.

12 CSR 10-3.328 Contractor Conditions {#sec-12-csr-10-3.328 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.328}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-40 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.330 Realty filed as rule no. 18 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-41 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled does not retain title to the parts, the company is not subject to sales tax. The parts become part of the realty (see Air Comfort Service, Inc. v. Director of Revenue, Case No. RS-83-1982 (A.H.C. 4/25/84) and Marsh v. Spradling, 537 SW2d 402 (Mo. banc 1976)). {#sec-12-csr-10-3.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.330}

Op. Atty. Gen. No. 85, Stapleton (1-15-58). Where contractor purchases tangible personal property from subcontractor or materialman, sales tax must be paid.

Builders Glass & Products Co. v. Director of Revenue, Case No.

RS-85-0453 (A.H.C. 5/13/87). The assessments at issue dealt with transactions between Builders Glass & Products and various sales tax exempt religious and charitable organizations. The as a contractor should have paid sales tax on its purchases of supplies and materials used in completing its contracts. Therefore, the Department of Revenue did properly impose tax upon the purchase by petitioner of materials used and consumed by it as a contractor and the tax was properly collectable directly from the taxpayer who had purchased the materials under an improper claim of exemption.

12 CSR 10-3.332 United States Government Suppliers {#sec-12-csr-10-3.332 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.332}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-42

12 CSR 10-3.333 Cities or Counties May Impose Sales Tax on Domestic Utilities 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Aug. 16, 2010, Richard A. King v. Laclede Gas Co., 648 SW2d 113 (Mo. banc 1983). The director of revenue appealed from the decision of the Administrative Hearing Commission which held that the electricity which taxpayer used to operate its storage facility for natural gas and liquid propane was exempt from sales tax on the grounds that it was being used in a noncommercial, nondomestic, nonindustrial manner. The commission relied on the decision in State ex rel. Kansas City Power and Light Co. v. Smith, 111 SW2d 513 (1938) to find that the electricity in question was being used in internal operations and was thus noncommercial. The court chose to broaden the definition of commercial as it is used in section 144.020, RSMo to include those activities which are an integral part of the commercial activities of the taxpayer. Thus, the electricity used to operate the storage facilities was taxable because it was an integral part of the taxpayer’s commercial utility operation. The court overruled the Smith case, but only insofar as it conflicts with the holding in the case at hand. {#sec-12-csr-10-3.333 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.333}

12 CSR 10-3.334 Breeding Defined {#sec-12-csr-10-3.334 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.334}

History

AUTHORITY: section 144.279, RSMo 1978. S.T. regulation 030-43 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.336 Animals Purchased for Feeding or Breeding Purposes {#sec-12-csr-10-3.336 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.336}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000.

Exotic Animal Paradise, Inc., v. Director of Revenue, Case Nos. general issues raised by petitioner were whether or not it was subject to sales and use tax on its purchases of birds and animals for display in its wild animal park; subject to sales tax on the purchase of feed for those animals; and subject to sales tax on the subsequent resale of those animals, after they had been used by petitioner. The Administrative Hearing Commission ruled for the director on all points.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-44 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.340 Newsprint no. 72 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-45 Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed Feb. 27, 1990, effective June 11, 1990. {#sec-12-csr-10-3.340 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.340}

Daily Record Co., d/b/a Mid-America Printing Company v. Ray S.

James, 629 SW2d 348 (Mo. banc 1982). This opinion by Judge Seiler defines the term newspaper. It cites without comment Department of Revenue’s definition of newspaper which is contained in 12 CSR 10-3.112. It held that an advertising supplement which is printed solely to be inserted into and distributed by a newspaper is an integral part of that newspaper and is entitled to same exemption from sales tax as is remainder of newspaper. distributed as part of newspaper, were not sales of tangible tax; newsprint used to print such supplements was “newsprint used in newspaper” and was exempt from taxation.

12 CSR 10-3.342 Books, Magazines and Periodicals no. 72 Jan. 22, 1973, effective Feb. 1, 1973, S.T. regulation 030-46 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.342 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.342}

12 CSR 10-3.344 Newspaper Sales no. 72 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-47 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.344 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.344}

12 CSR 10-3.346 Printing Equipment no. 71 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-48 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.346 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.346}

12 CSR 10-3.348 Printers filed as rule no. 71 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-49 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled K & A Litho Process, Inc. v. Depart ment of Revenue, 653 SW2d 195 (Mo. banc 1983). The issue in this case was whether the decision of the Administrative Hearing Commission upholding sales tax on lithographic work performed by the appellant was correct. The court, following its recent decision in James v. TRES Computer Systems, Inc., 642 SW2d 347 (Mo. banc 1982), found that the lithographic process was the nontaxable sale of a technical professional service and that the transfer of ownership to tangible personal property was only incidental. K & A Litho Process received a color transparency from an outside source such as a printer, advertising agency or publishing house and then created a film separation and a color key that the printer, advertising agency or publishing house could use to print the transparency on paper for distribution. Because the color separation and the color key were merely the means of conveying a nontaxable technical service from K & A Litho to its customers, the gross amount paid to K & A Litho was not taxable. {#sec-12-csr-10-3.348 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.348}

12 CSR 10-3.350 Movies, Records and Soundtracks {#sec-12-csr-10-3.350 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.350}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-50 Universal Images v. Missouri Depart ment of Revenue, 608 SW2d 417 (Mo. banc 1980). Filmed commercials shown in theaters were subject to tax imposed on privilege of storing, using or consuming any article of tangible personal property within state, where taxpayer purchased films from out-of-state vendors and they remained property of taxpayer and were stored in state during their useful life during which taxpayer charged advertisers fee for use of films; but charges for out-of-state laboratory services which were not incidental to production of film were not subject to the tax.

12 CSR 10-3.352 Recording Devices {#sec-12-csr-10-3.352 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.352}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-51

12 CSR 10-3.354 Pipeline Pumping Equipment {#sec-12-csr-10-3.354 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.354}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-52

12 CSR 10-3.356 Railroad Rolling Stock {#sec-12-csr-10-3.356 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.356}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-54

12 CSR 10-3.358 Electrical Energy filed as rule no. 85 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-55 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled Amended: Filed March 11, 1983, effective July 11, 1983. Rescinded: {#sec-12-csr-10-3.358 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.358}

Terminal Warehouses of St. Joseph, Inc. v. Department of Revenue, Case No. RV-81-0426 (A.H.C. 8/10/83). The sole issue in this case is whether petitioner was entitled to an electrical energy exemption pursuant to section 144.030.2(12), RSMo for electrical energy used in the secondary processing of a product where the cost of the electrical energy used exceeds ten percent of the total cost of production. Petitioner was in the business of freezing and storing food. The commission found that freezing causes various changes in the chemical and physical properties of food, and that the purpose of freezing was to increase the product’s longevity and preserve its nutritional value. The commission held that the taxpayer need not qualify as a manufacturer before it was entitled to claim an exemption for processing and that the freezing of food constitutes processing. Therefore, the taxpayer is entitled to the exemption.

St. Louis County Water Company v. Director of Revenue, Case Nos. RS-84-0307, RS-85-0444 and RS-84-0514 (A.H.C. 6/30/86). The qualified for the manufacturing exemption under 144.030.2(12), RSMo. In Jackson Excavating v. Administrative Hearing Commission, 646 SW2d 48 (Mo. 1983), the supreme court stated the test for manufacturing: a transformation of a raw material into a salable new product which has an intrinsic and merchantable value in a form capable of new uses. The commission noted that pressurization was necessary to maintain purification: both the Missouri Public Service Commission and the Department of Natural Resources require minimum pressure to be maintained to meet consumer needs and to prevent contamination such as backflow and seepage. Further, the commission noted that the petitioner had to produce a product capable of performing work such as activating sprinklers, toilets and showers. The commission found that pressurization was “an integral continuous and indivisible portion of the petitioner’s business” and part of the purification process constituting manufacturing.

Monsanto Company v. Director of Revenue, Case No. RS-84- 0332 (A.H.C. 11/29/86). The Administrative Hearing Commission disregarded the integrated plant argument and ruled that the formation of silicon rods was a separate and distinct manufacturing stage entitled to the exemption.

12 CSR 10-3.360 Electrical Energy Used in Manufacturing no. 85 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-56 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.360 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.360}

12 CSR 10-3.362 Primary and Secondary Defined no. 85 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-57 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.362 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.362}

12 CSR 10-3.364 Cost of Production Defined no. 85 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-58 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.364 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.364}

State ex rel. Union Electric Co. v. Goldberg, 578 SW2d 921 (Mo. banc 1979). Section 144.030.3(11) exempts from state sales tax “electrical energy used in the actual primary manufacture, processing, compounding, mining or producing of a product or electrical energy used in the actual secondary processing or fabricating of the product, if the percent of the total cost of production, either primary or secondary, exclusive of the cost of electrical energy so used.” Appellant mining company sought a refund of taxes paid on electrical energy purchased for use in its beneficiation process. Although the cost of the electrical energy used in the beneficiation did exceed ten percent of the total cost of that process, the total cost of electrical energy used in the combined operations of mining and processing did not exceed ten percent of the total cost of production. Held, the exemption may apply to individual processes and beneficiation is a “process” in contemplation of the statute. Since the cost of electrical energy used during that process exceeded ten percent of the total cost of that process, the electrical energy used during beneficiation is exempt from state sales tax.

12 CSR 10-3.366 Authorization Required no. 85 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-59 Aug. 13, 1980, effective Dec. 11, 1980. {#sec-12-csr-10-3.366 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.366}

12 CSR 10-3.368 Air Pollution Equipment {#sec-12-csr-10-3.368 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.368}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-60

12 CSR 10-3.370 Water Pollution {#sec-12-csr-10-3.370 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.370}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-61

12 CSR 10-3.372 Water or Air Pollution Installation Contractor {#sec-12-csr-10-3.372 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.372}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-62

12 CSR 10-3.374 Materials Not Exempt {#sec-12-csr-10-3.374 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.374}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 030-63 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.376 Rural Water Districts filed as rule no. 3 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 030-64 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled {#sec-12-csr-10-3.376 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.376}

12 CSR 10-3.378 Defining Charitable {#sec-12-csr-10-3.378 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.378}

Therefore, taxpayer is not a charitable organization pursuant to

section 144.030.2(19), RSMo.

History

AUTHORITY: section 144.270, RSMo 1978 S.T. regulation 040-1 was World Plan Executive Counseling v. Director of Revenue, Case No. RS-79-0055 (A.H.C. 8/23/82). Taxpayer was not entitled to sales and use tax exemption for taxes associated with the construction of two transcendental meditation academies because its activities do not relieve government of the burden of providing a service which would otherwise be a governmental responsibility.

12 CSR 10-3.380 Operating at Public Expense {#sec-12-csr-10-3.380 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.380}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 040-2 was

12 CSR 10-3.382 Sales Made to and by Exempt Organizations filed as rule no. 4 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-3 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled Filed Aug. 16, 2010, effective Feb. 28, 2011. {#sec-12-csr-10-3.382 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.382}

St. Louis Sheet Metal Joint Ap pren tice ship Fund v. Director of Revenue, Case No. RS-82-0424 (A.H.C. 11/16/83). A letter was issued to the petitioner, Apprenticeship Fund, by the director of revenue denying its request for an exemption from the payment of sales and use tax. The director of revenue asserted that the commission had no jurisdiction to rule on the denial of the exemption because the denial did not constitute an appealable final decision. It was the director’s position that until such time as an actual assessment had been issued against the petitioner, any order issued by the commission concerning petitioner’s right to an exemption would constitute a declaratory judgment, which is beyond the jurisdiction of this state’s quasi-judicial bodies according to the decision in State Tax Commission v. Admin istra tive Hear ing Commission, 641 SW2d 69 (Mo. banc 1982). The commission rejected this argument on the grounds that the issuance of the letter denying the exemption had an actual immediate impact on the petitioner. In particular, the commission looked to 12 CSR 10-3.382 which requires sellers to receive a letter of exemption before they may treat sales as exempt. Before an assessment could be issued, both petitioner and its sellers would have to violate the director’s regulation.

With respect to whether the organization was in fact exempt under section 144.030.2(19), 144.030.2(20) or 144.030.2(22), RSMo, the commission found against the taxpayer. Those paragraphs provide an exemption for elementary and secondary schools and institutions of higher education. The commission found that the apprenticeship program was none of these.

(Rescinded February 11, 1985)

History

AUTHORITY: section 144.270, RSMo 1978. Original rule filed Jan. 15, 1982, effective May 13, 1982. Amended: Filed May 20, 1983, effective Oct. 13, 1983. Rescinded: Filed Oct. 15, 1984, effective Feb. 11, 1985.

12 CSR 10-3.386 Application for Exemption {#sec-12-csr-10-3.386 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.386}

(Rescinded February 11, 1985)

St. Louis Sheet Metal Joint Ap pren ticeship Fund v. Director of Revenue, Case No. RS-82-0424 (A.H.C. 11/16/83). A letter was issued to the petitioner, Apprenticeship Fund, by the director of revenue denying its request for an exemption from the payment of sales and use tax. The director of revenue asserted that the commission had no jurisdiction to rule on the denial of the exemption because the denial did not constitute an appealable final decision. It was the director’s position that until such time as an actual assessment had been issued against the petitioner, any order issued by the commission concerning petitioner’s right to an exemption would constitute a declaratory judgment, which is beyond the jurisdiction of this state’s quasi-judicial bodies according to the decision in State Tax Commission v. Ad min is trative Hearing Commission, 641 SW2d 69 (Mo. banc 1982). The commission rejected this argument on the grounds that the issuance of the letter denying the exemption had an actual immediate impact on the petitioner. In particular, the commission looked to 12 CSR 10-3.382 which requires sellers to receive a letter of exemption before they may treat sales as exempt. Before an assessment could be issued, both petitioner and its sellers would have to violate the director’s regulation.

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 040-5 Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed Oct. 15, 1984, effective Feb. 11, 1985.

12 CSR 10-3.388 Construction Materials filed as rule no. 18 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-6 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective April 30, 1995. Rescinded: Filed Aug. 16, 2010, because the materials were billed to the Housing Authority and the consideration was paid by the Housing Authority. If the materials are billed to the exempt organization and paid for from funds of the exempt organization, then the purchase is exempt if the materials are used in furtherance of the exempt purpose of the organization. {#sec-12-csr-10-3.388 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.388}

12 CSR 10-3.390 Sales Made by and to Elementary and Secondary Schools no. 6 Jan. 22, 1973, effective Feb. 1, 1973. S. T. regulation 040-7 was {#sec-12-csr-10-3.390 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.390}

12 CSR 10-3.392 Defining Civic {#sec-12-csr-10-3.392 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.392}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 040-8 was last filed Dec. 31, 1975; effective Jan. 10, 1976. Rescinded: Filed Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.394 Nonprofit Organization no. 4 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-9 was {#sec-12-csr-10-3.394 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.394}

12 CSR 10-3.398 Auxiliary Organizations no. 4 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-11 was 1st filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed Aug. {#sec-12-csr-10-3.398 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.398}

12 CSR 10-3.400 Parent-Teacher Asso cia tions {#sec-12-csr-10-3.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.400}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 040-12 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.402 Boy Scouts and Girl Scouts no. 9 Jun. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-13 was {#sec-12-csr-10-3.402 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.402}

12 CSR 10-3.404 Cafeterias and Dining Halls {#sec-12-csr-10-3.404 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.404}

(Moved to 12 CSR 10-110.404)

12 CSR 10-3.406 Caterers or Conces sion aires filed as rule no. 10, Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-15 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Aug. 16, 2010, effective Feb. 28, 2011. {#sec-12-csr-10-3.406 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.406}

12 CSR 10-3.408 Educational Institution’s Sales no. 5 Jun. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-16 was {#sec-12-csr-10-3.408 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.408}

12 CSR 10-3.410 Junior Colleges {#sec-12-csr-10-3.410 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.410}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 040-17 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.412 Higher Education no. 5 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-10 was {#sec-12-csr-10-3.412 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.412}

12 CSR 10-3.414 Yearbook Sales filed as rule no. 6 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-19 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled {#sec-12-csr-10-3.414 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.414}

12 CSR 10-3.416 Eleemosynary Insti tu tions Defined {#sec-12-csr-10-3.416 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.416}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 040-20 was last filed Dec. 31, 1975, effective Jan. 10, 1979. Rescinded: Filed Aug. 12, 1980, effective Dec. 11, 1980.

12 CSR 10-3.418 Fraternities and Sor or ities {#sec-12-csr-10-3.418 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.418}

History

AUTHORITY: section 144.270, RSMo, 1978. Previously filed as rule no. 7 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-21 was 13, 1980, Dec. 11, 1980.

12 CSR 10-3.420 YMCA and YWCA Organizations {#sec-12-csr-10-3.420 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.420}

History

AUTHORITY: section 144.270, RSMo, 1978. Previously filed as rule no. 8 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-22 was 13, 1990, effective Dec. 11, 1980.

12 CSR 10-3.422 Canteens and Gift Shops filed as rule no. 4 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 040-23 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003. {#sec-12-csr-10-3.422 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.422}

12 CSR 10-3.424 Lease and Rental {#sec-12-csr-10-3.424 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.424}

(Rescinded December 11, 1976)

History

AUTHORITY: section 144.270 RSMo 1969. Rule filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed Sept. 14, 1976, effective Dec. 11, 1976.

12 CSR 10-3.426 Sales of Aircraft {#sec-12-csr-10-3.426 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.426}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 040-25 Rescinded: Filed Aug. 30, 2010, effective Feb. 28, 2011.

12 CSR 10-3.428 Cigarette and Other Tobacco Products Sales filed as rule no. 87 Jan. 31, 1974, effective Feb. 15, 1974. S.T. {#sec-12-csr-10-3.428 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.428}

regulation 050-1 was last filed Dec. 31, 1975, effective Jan. 10, 1976. 1, 1981. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Amended:

Filed Aug. 18, 1994, effective Feb. 26, 1995. Rescinded: Filed Aug. 30, Hewit Well Drilling v. Director of Revenue, 847 SW2d 795 (Mo. banc 1993). Penalty assessment for willful neglect to file return is appropriate unless taxpayer can show good faith belief that transaction was not subject to tax.

12 CSR 10-3.430 Purchaser to Pay the Tax {#sec-12-csr-10-3.430 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.430}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 060-1 was 13, 1980, effective Dec. 11, 1990.

12 CSR 10-3.431 Handicraft Items Made by Senior Citizens 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Aug. 30, 2010, {#sec-12-csr-10-3.431 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.431}

12 CSR 10-3.432 Sale of Prescription Drugs no. 69 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 060-2 was last filed Oct. 28, 1973, effective Nov. 7, 1975. Rescinded: Filed Aug. {#sec-12-csr-10-3.432 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.432}

12 CSR 10-3.434 Motor Vehicle and Trail-er Defined filed as rule no. 89 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 070-1 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled Rescinded: Filed Aug. 30, 2010, effective Feb. 28, 2011. {#sec-12-csr-10-3.434 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.434}

Lake & Trail Sports Center v. Director of Revenue, 631 SW2d 339 (Mo. banc 1982). “Dirt bikes” which are in all respects motorcycles, except for lack of lights, were motor vehicles primarily designed for use on highways and thus seller was not required to remit sales tax on sales of dirt bikes.

12 CSR 10-3.436 Manufactured Homes filed as rule no. 89 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 070-1A was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled Amended: Filed Jan. 25, 1984, effective May 11, 1984. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995. Rescinded: Filed Aug. 30, 2010, effective Feb. 28, 2011. {#sec-12-csr-10-3.436 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.436}

12 CSR 10-3.438 Tangible Personal Property Mounted on Motor Vehicles {#sec-12-csr-10-3.438 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.438}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Aug. 30, Rotary Drilling Supply, Inc. v. Director of Revenue, 662 SW2d 496 (Mo. banc 1983). Petitioner contended that its sales of drilling rigs were exempt from sales tax under section 144.030.2(4), RSMo on the grounds that they were purchased from petitioner for the purpose of expanding or establishing mining plants in this state. Petitioner had failed to obtain exemption certificates from its purchasers and, therefore, it would be liable for uncollected tax. The court refused to recognize water-well drilling as a form of mining. The use of rigs to drill water wells for any purpose or exploratory holes would not constitute mining within the exemption requirement. Rotary Drilling Supply, Inc. v. Director of Revenue, 662 SW2d 496 (Mo. banc 1983), the court held the use of rigs to drill water wells or exploratory holes would not constitute “mining” within the exemption requirements. The rigs and equipment used were subject to sales tax.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 070-2 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.440 Automobiles no. 36 Jan. 22, 1973, effective Feb. 1, 1973. S.T. regulation 070-3 was Op. Atty. Gen. No. 76, Reiss (10-27-76). The Missouri director of revenue is not authorized to impose penalties and/or interest in addition to sales or use tax as provided in the sales tax statutes, sections 144.010–144.510, RSMo 1969, on those individuals who fail to apply for a certificate of ownership on a newly acquired automobile within 30 days from the date of purchase, as required by section 301.190, RSMo 1969. The only penalty collectible, if the certificate of ownership is not applied for within 30 days from the date of purchase, is that provided for in section 301.190.3, RSMo, that is a penalty of five dollars for each month or fraction of a month of delinquency not to exceed twenty-five dollars. {#sec-12-csr-10-3.440 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.440}

Op. Atty. Gen. No. 221, Spradling (11-3-75). The director of revenue does not have the authority to refund the sales or use tax paid by a purchaser of an automobile at the time of titling and registration when the sale to which the tax applied is subsequently set aside because of the fact that the vehicle has been returned to the seller.

12 CSR 10-3.442 Automotive Demonstrators {#sec-12-csr-10-3.442 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.442}

History

AUTHORITY: section 144.270, RSMo 1970. S.T. regulation 070-4 was

12 CSR 10-3.443 Motor Vehicle Leasing Divisions {#sec-12-csr-10-3.443 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.443}

rule filed May 5, 1978, effective Sept. 12, 1978. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed Aug. 30, 2010,

History

AUTHORITY: sections 144.070.7. and 144.270, RSMo 1994. Original

12 CSR 10-3.444 Collection of Tax on Vehicles {#sec-12-csr-10-3.444 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.444}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 070-5 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.446 Motor Vehicle Leasing Companies {#sec-12-csr-10-3.446 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.446}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 070-6 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.448 Annual Permit Renewal {#sec-12-csr-10-3.448 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.448}

History

AUTHORITY: section 144.270 RSMo 1978. S.T. regulation 07-7 was

12 CSR 10-3.452 Mailing of Returns {#sec-12-csr-10-3.452 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.452}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 080-2 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.454 No Return, No Excuse—Return Required Even if No Sales Made {#sec-12-csr-10-3.454 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.454}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 080-2A 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.456 Calendar Quarter Defined {#sec-12-csr-10-3.456 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.456}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 080-3

12 CSR 10-3.458 Aggregate Amount Defined {#sec-12-csr-10-3.458 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.458}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 080-4 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.460 Return Required {#sec-12-csr-10-3.460 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.460}

Falley’s Food-4-Less v. Director of Revenue, Case No. RS-83-0010 (A.H.C. 8/3/87). Petitioner, a retail seller, filed his sales tax returns for October 1981 and August 1982 via the United States mail. The postmark dates on these returns were November 23, 1981 and September 22, 1982, respectively. Respondent assessed penalties for late filing on these periods.

The commission held since the amount of tax imposed on petitioner was in excess of $250 for the first or second month of a calendar quarter, the payments were due by the twentieth day of the succeeding month. Petitioner was required by statute, not by the director, to file monthly instead of quar terly re turns, there fore 144.080.2, RSMo ap plies rather than 144.090, RSMo.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 080-5 Emergency amendment filed Dec. 15, 1999, effective Jan. 1, 2000, expired June 28, 2000. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-3.462 Annual Filing {#sec-12-csr-10-3.462 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.462}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 080-6 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.464 Tax Includes {#sec-12-csr-10-3.464 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.464}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 080-7 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.466 Revocation Orders {#sec-12-csr-10-3.466 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.466}

Filed Jan. 15, 1987, effective May 11, 1987. Rescinded: Filed Aug. 14, 2007, effective Feb. 29, 2008.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 083-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.468 Retail Sales Tax License Necessary {#sec-12-csr-10-3.468 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.468}

Rescinded: Filed Aug. 14, 2007, effective Feb. 29, 2008.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 083-2 30, 1976. Amended: Filed June 22, 1987, effective Oct. 25, 1987.

12 CSR 10-3.470 Consumer Cooperatives {#sec-12-csr-10-3.470 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.470}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Nov. 1, 2005, effective May 30, 2006.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 083-3 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.471 Type of Bond 1984, effective Jan. 12, 1985. Rescinded: Filed Oct. 6, 2000, effective {#sec-12-csr-10-3.471 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.471}

12 CSR 10-3.472 General Bond Examples {#sec-12-csr-10-3.472 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.472}

Filed Feb. 9, 1983, effective May 12, 1983. Amended: Filed Oct. 15, 1984, effective Feb. 11, 1985. Rescinded: Filed Sept. 27, 2000,

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 087-1 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.474 Computing a Bond {#sec-12-csr-10-3.474 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.474}

Amended: Filed June 12, 1987, effective Oct. 25, 1987. Rescinded:

Filed Sept. 27, 2000, effective March 30, 2001.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 087-2 30, 1976. Amended: Filed Oct. 15, 1984, effective Feb. 11, 1985.

12 CSR 10-3.476 Replacing or Applying for Return of Bond {#sec-12-csr-10-3.476 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.476}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. 26, 1995. Rescinded: Filed Sept. 27, 2000, effective March 30, 2001.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 087-3 was 1976. Amended: Filed Feb. 9, 1983, effective May 12, 1983. Amended:

12 CSR 10-3.478 Bond Descriptions {#sec-12-csr-10-3.478 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.478}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Sept. 27, 2000, effective March 30, 2001.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 087-4 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.479 Replacement of Bonds Issued by Suspended Surety Companies 3, 1986, effective Feb. 12, 1987. Rescinded: Filed Sept. 27, 2000, {#sec-12-csr-10-3.479 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.479}

12 CSR 10-3.480 Applicant Defined {#sec-12-csr-10-3.480 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.480}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 087-5 was

12 CSR 10-3.482 Filing {#sec-12-csr-10-3.482 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.482}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulations 090-1 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.484 Returns Required Even if No Sales Made {#sec-12-csr-10-3.484 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.484}

(Rescinded January 12, 1985)

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 100-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded: Filed Sept. 7, 1984, effective Jan. 12, 1985.

12 CSR 10-3.486 Confidential Nature of Tax Data {#sec-12-csr-10-3.486 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.486}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 120-1 was June 30, 2003, effective Dec. 30, 2003.

12 CSR 10-3.488 Letter of Authorization {#sec-12-csr-10-3.488 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.488}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 121-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Rescinded: Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.490 Misuse of Sales Tax Data by Cities {#sec-12-csr-10-3.490 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.490}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 122-1 was Aug. 30, 2010, effective Feb. 28, 2011.

12 CSR 10-3.492 General Examples {#sec-12-csr-10-3.492 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.492}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 130-1 was

12 CSR 10-3.494 Allowance for Defective Merchandise {#sec-12-csr-10-3.494 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.494}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 130-2 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.496 Seller Timely Payment Discount {#sec-12-csr-10-3.496 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.496}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 140-1 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.498 Seller Retains Collection From Purchaser {#sec-12-csr-10-3.498 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.498}

Filed Sept. 13, 2010, effective Feb. 28, 2011.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 140-2 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.500 Successor Liability {#sec-12-csr-10-3.500 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.500}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003.

James R. Bates, d/b/a The Manor Inn, Successor v. Director of Revenue, 691 SW2d 273 (Mo. banc 1985). This is a case of first impression interpreting the successor liability sales tax statute,

section 144.150, RSMo.

The owner/operator, J. Douglas Cassity, accrued a sales tax liability to the state of Missouri. The same owner/operator defaulted on a first deed of trust to the Carney family, the prior owners. Great Southern Savings & Loan, to protect its junior deed of trust, purchased The Manor Inn at a foreclosure sale, applying the payment to satisfy the first deed of trust and using the balance to reduce its junior deed of trust. In a declaratory judgment proceeding, Cassity challenged the foreclosure sale and Great Southern Savings & Loan joined challenging the amount of the attorney’s fee. While the declaratory suit was pending, James R. Bates negotiated the purchase of the same business. Great Southern and Bates entered into a loan agreement whereby Bates executed a promissory note for $975,000, secured by a deed of trust, to Great Southern and Great Southern quitclaimed its interest in the realty to Bates and provided a bill of sale for the personal property. Simultaneously, Cassity quitclaimed his interest in the realty and provided a bill of sale for the personal property to Bates in consideration for $3000 in gemstones from Bates.

The issue is whether James R. Bates was liable as a successor for the delinquent sales tax liability of the former owner, Cassity.

The Missouri Supreme Court held that “to be a successor one must be a purchaser of the business property in question.” The derivative tax liability follows the assets purchased and is not extinguished in a foreclosure. The court distinguished cases cited by the appellant which involved either a court-appointed receiver in bankruptcy or a lessor’s reacquisition of possession. The court held that Bates was a successor regardless of from whom he purchased the property. If Bates purchased from Cassity, he was an immediate successor. If Bates purchased from Great Southern, who purchased from Cassity, Bates was still a successor because the statute was not limited to immediate successors.

The court also noted that the term “purchase money” within the context of section 144.150, RSMo is not limited to cash transactions but is merely “descriptive of ‘the action to be taken by the person or business entity on whom the duty has been imposed’”

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 150-1 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.502 Successor Determination {#sec-12-csr-10-3.502 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.502}

History

AUTHORITY: section 144.270, RSMo 1979. S.T. regulation 150-2 was

12 CSR 10-3.504 Extensions Granted {#sec-12-csr-10-3.504 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.504}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 160-1 was Sept. 13, 2010, effective Feb. 28, 2011.

12 CSR 10-3.506 Determination of Time liness {#sec-12-csr-10-3.506 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.506}

Evergreen Lawn Service v. Director of Revenue, State of Missouri and the Administrative Hearing Commission, 685 SW2d 829 (Mo. banc 1985). The issue in this case was whether the taxpayer met the thirty-day requirement contained in section 161.273, RSMo, for filing its appeal from a final decision of the director of revenue. In this case the thirtieth day was a Saturday.

The taxpayer’s agent, Airborne Freight Corporation, attempted delivery of the appeal at the offices of the Administrative Hearing Commission on that Saturday. Since no one was available to receive the appeal, it was not physically received by the commission until Monday, the thirty-second day.

The director posited and the commission held that the taxpayer’s appeal was untimely. They reasoned that the only exception to actual receipt was section 161.350, RSMo, which deems timely the receipt of appeals mailed within the prescribed period by registered mail.

The court’s analysis was not directed towards when the thirtyday period expired, but rather towards what action was sufficient to constitute filing. In the court’s opinion section 161.350, RSMo, was not relevant, since actual filing had been attempted on Saturday, the thirtieth day. The court found that the attempted delivery was adequate to constitute a constructive filing thereby making the appeal timely.

Falley’s Food-4-Less v. Director of Revenue, Case No. RS-83-0010 (A.H.C. 8/3/87). Petitioner, a retail seller, filed his sales tax returns for October 1981 and August 1982 via the United States mail. The postmark dates on these returns were November 23, 1981, and September 22, 1982, respectively. Respondent assessed penalties for late filing on these periods.

The Administrative Hearing Com mis sion held since the amount of tax imposed on petitioner was in excess of $250 for the first or second month of a calendar quarter, the payments were due by the twentieth day of the succeeding month. Petitioner was required by statute, not by the director, to file monthly instead of quarterly returns, therefore 144.080.2, RSMo, applies rather than 144.090, RSMo.

Further, 12 CSR 10-3.506 provides that timeliness of a sales tax return is to be determined by reference to the return’s postmark.

Because petitioner’s returns were postmarked November 23 and September 22, these returns were filed out of time.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 160-2 Rescinded: Filed Sept. 13, 2010, effective Feb. 28, 2011.

12 CSR 10-3.508 Effect of Saturday, Sunday or Holiday on Payment Due {#sec-12-csr-10-3.508 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.508}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 160-3 was

12 CSR 10-3.510 No Permanent Extensions {#sec-12-csr-10-3.510 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.510}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 160-4 was

12 CSR 10-3.512 Calendar Month Defined {#sec-12-csr-10-3.512 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.512}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 170-1 was

12 CSR 10-3.514 Exemption Certificate {#sec-12-csr-10-3.514 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.514}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-1 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.516 Application for Refund/Credit—Amended Returns {#sec-12-csr-10-3.516 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.516}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. 26, 1995. Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

International Business Machines, Inc. V. Department of Revenue, 765 SW2d 611 (Mo banc. 1989).

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-2 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.518 Claim Form {#sec-12-csr-10-3.518 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.518}

Filed April 19, 2000, effective Oct. 30, 2000.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-3 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.520 Who Should Request Refund {#sec-12-csr-10-3.520 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.520}

Filed April 19, 2000, effective Oct. 30, 2000.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-4 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1. 1981. Rescinded:

12 CSR 10-3.522 Purchaser’s Promise to Accrue and Pay {#sec-12-csr-10-3.522 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.522}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Sept. 13,

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-5 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.524 Bad Debts {#sec-12-csr-10-3.524 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.524}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-6 Rescinded: Filed Nov. 9, 2000, effective May 30, 2001.

12 CSR 10-3.526 Refund Rather Than Credit {#sec-12-csr-10-3.526 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.526}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-7 Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

12 CSR 10-3.528 No Interest on Refund/Credit {#sec-12-csr-10-3.528 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.528}

International Business Machines v. State Tax Commission, 362 SW2d 635 (1962). As to sales tax improperly collected, there is a provision for refund, but there is no provision that refunds bear interest.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 190-8 was 1976. Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

12 CSR 10-3.530 Unconstitutional Taxes {#sec-12-csr-10-3.530 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.530}

History

AUTHORITY: section 144.270, RSMo 1994. Based on the 1952 Supreme Court Decision Kleban v. Morris, 363 Mo. 7, 247 SW2d 832. S.T. regulation 200-1 was last filed Dec. 31, 1975, effective Jan. effective Jan. 1, 1981. Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

12 CSR 10-3.532 Resale Exemption Certificates {#sec-12-csr-10-3.532 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.532}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Amended: Filed July 20, 1987, effective Oct. 25, 1987. Amended: Filed Aug. 2, 1988, effective Jan. 13, 1989. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003.

Op. Atty. Gen. No. 13, Burke (4-11-50). Persons engaged in business who do not have resale certificates with respect to certain transactions may offer evidence that such sales were not sales at retail.

House of Lloyd, Inc. v. Department of Revenue, Case Nos. RS- 80-0053 and RS-80-0054 (A.H.C. 7/8/82). The Department of Revenue assessed the taxpayers for Missouri sales and use taxes for supplies purchased for their businesses under improper resale exemption certificates. The commission held that the waiver of the statute of limitations executed by the taxpayer’s bookkeeper was invalid because the bookkeeper-auditor lacked actual authority.

The Department of Revenue failed to meet its burden of proof on the issue of the waiver’s validity by failing to show that the department’s auditor had attempted to ascertain if petitioner’s agent was acting within the scope of his authority before the bookkeeper-auditor signed the waiver of the statute of limitations.

Churchill Truck Lines, Inc. v. Director of Revenue, Case No.

RS-85-0733 (A.H.C. 5/28/87). Taxpayer is a truck line, and objected to a sales tax assessment based upon sales of salvage freight and a use tax assessment based on the purchase of an airplane. The Administrative Hearing Commission found for the Department of Revenue on both issues. On the salvage issue, the commission found that the taxpayer failed to prove that resale exemption certificates were received on the purchase from the purchaser of the salvage.

H. Matt Dillon, d/b/a Midwest Home Satellite Systems v.

Director of Revenue, Case No. RS-85-1741 (A.H.C. 12/9/88). The Administrative Hearing Commission found that sellers must obtain signatures on each individual invoice or written acknowledgement that a purchase is being made under an exemption certificate or letter if the certificate is not presented anew for each transaction; auctioneers acting for undisclosed principals are subject to sales tax as the seller of tangible personal property; and that auctioneers acting for disclosed principals must maintain satisfactory evidence of that fact.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 210-1 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.534 Delivery of the Sale for Resale Exemption Certificate {#sec-12-csr-10-3.534 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.534}

Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

Filed Sept. 13, 2010, effective Feb. 28, 2011.

(Mo. banc 1983). There were two issues in this case. The first

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 210-2 was filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976.

12 CSR 10-3.536 Seller’s Responsibility for Collection and Remittance of Tax {#sec-12-csr-10-3.536 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.536}

Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Sept. 13, (Mo. banc 1983). There were two issues in this case. The first ultimate consumer of the goods in question. The Administrative Hearing Commission, relying on the exemption set forth in

section 144.030.3(1), RSMo for materials purchased for use in “manufacturing, processing, compounding, mining, producing Relying on its previous decision Blueside Co. v. Director of held. Acknowledging that the Missouri Supreme Court in to section 32.200, Art. V, section 2, RSMo 1978, of the Multistate Besel Roofing & Heating, Inc. v. Director of Revenue, Case No.

RS-86-0240 (A.H.C. 8/27/87). The contractor contested liability on the grounds that the seller should not have accepted the exemption certificate it offered because the certificate was missing information required by the department on a valid certificate.

The Administrative Hearing Commission rejected the argument and held that where the exemption is improperly claimed, the department can recover from the purchaser.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 210-3 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended:

12 CSR 10-3.538 Possession and Delivery of Exemption Certificates {#sec-12-csr-10-3.538 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.538}

(Mo. banc 1983). There were two issues in this case. The first

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 210-4 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:

12 CSR 10-3.540 Limitation on Assessment {#sec-12-csr-10-3.540 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.540}

State ex rel. St. Louis Die Casting Corp. v. Morris, 219 SW2d 359 (1949). The failure of the director of revenue to include with the notice of additional assessment under section 144.210, RSMo a statutory notice in writing naming the time and place for a hearing “when and where such owner may appear before said board” caused the additional assessment to be void.

State ex rel. St. Louis Shipbuilding and Steel Company v. Smith, 201 SW2d 153 (1947). Respondent (state auditor) did not have the

Under (former) section 11408 an assessment is made every time a sale is made at retail. (However) there is nothing in the Constitution or statutes that would prohibit respondent (state auditor) from compromising the interest and penalties in a disputed sales tax liability. The fact that it later may be found that no tax was due does not disturb the compromise.

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 220-1 was last filed Dec. 31, 1975, effective June 10, 1976. Rescinded: Filed Aug. 13, 1980, effective Dec. 11, 1980.
authority to compromise a tax that had been lawfully assessed.

12 CSR 10-3.542 Billing {#sec-12-csr-10-3.542 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.542}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 230-1 was Sept. 13, 2010, effective Feb. 28, 2011.

12 CSR 10-3.544 Acknowledgement of Informal Hearing {#sec-12-csr-10-3.544 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.544}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 230-2 was last filed Dec. 31, 1975, effective Jan. 10 1976. Rescinded: Filed Aug.

12 CSR 10-3.546 Fifteen Days Defined—Personal Service {#sec-12-csr-10-3.546 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.546}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation, 230-3 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.548 Form of Reassessment {#sec-12-csr-10-3.548 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.548}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 240-1 was

12 CSR 10-3.550 Reassessment Petition Filing {#sec-12-csr-10-3.550 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.550}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 240-2 was

12 CSR 10-3.552 Protest Payments, Protest Overpayments, and Protest Payment Returns {#sec-12-csr-10-3.552 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.552}

(Moved to 12 CSR 10-102.110)

12 CSR 10-3.554 Filing Protest Payment Returns {#sec-12-csr-10-3.554 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.554}

(Moved to 12 CSR 10-102.554)

12 CSR 10-3.556 Interest and Discounts are Additional {#sec-12-csr-10-3.556 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.556}

State ex rel. St. Louis Shipbuilding and Steel Company v.

Smith, 201 SW2d 153 (1947). Respondent (state auditor) did not have the authority to compromise a tax that had been lawfully assessed. Under (former) section 11408 an assessment is made every time a sale is made at retail. (However) there is nothing in the Constitution or statutes that would prohibit respondent (state auditor) from compromising the interest and penalties in a disputed sales tax liability. The fact that it later may be found that no tax was due does not disturb the compromise.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 250-1 Rescinded: Filed Sept. 13, 2010, effective Feb. 28, 2011.

12 CSR 10-3.560 Rulings {#sec-12-csr-10-3.560 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.560}

(Moved to 12 CSR 10-3.003)

12 CSR 10-3.562 No Waiver of Tax {#sec-12-csr-10-3.562 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.562}

(Rescinded January 30, 2010)

Filed July 13, 2009, effective Jan. 30, 2010.

State ex rel. St. Louis Shipbuilding and Steel Company v. Smith, 201 SW2d 153 (1947). Respondent (state auditor) did not have the

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 270-4 was 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Rescinded:
authority to compromise a tax that had been lawfully assessed.

12 CSR 10-3.564 Jeopardized Collection {#sec-12-csr-10-3.564 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.564}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 290-1 was

12 CSR 10-3.565 Jeopardy Assessment 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Sept. 13, 2010, {#sec-12-csr-10-3.565 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.565}

12 CSR 10-3.566 Itinerant or Transitory Sellers filed as rules nos. 32 and 33 Jan. 22, 1973, effective Feb. 1, 1973. S.T. {#sec-12-csr-10-3.566 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.566}

regulation 290-2 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Jan. 1, 1981. Rescinded: Filed Nov. 1, 2005, effective May 30, 2006.

12 CSR 10-3.568 Sampling {#sec-12-csr-10-3.568 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.568}

Rescinded: Filed Nov. 1, 2005, effective May 30, 2006.

Evergreen Lawn Service v. Director of Revenue, Case No. RS-80- 0187 (A.H.C. 7/13/87). The taxpayer questioned the validity of the audit method utilized by the respondent because the assessment for these periods was not based upon the examination of actual records for those periods, but was estimated and extrapolated by unknown means. The Administrative Hearing Commission held that based upon the statutes and regulations, the respondent is authorized to compute estimated assessments on the basis of accurate and thorough examination of a taxpayer’s actual records or other relevant data pertaining to the period in question. The commission concluded that the audit did not meet this standard and discarded this portion of the audit and assessments.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 320-2 30, 1976. Amended: Filed Dec. 12, 1989, effective May 11, 1990.

12 CSR 10-3.570 Audit Facilities {#sec-12-csr-10-3.570 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.570}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 320-3 1976. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

12 CSR 10-3.572 Out-of-State Companies {#sec-12-csr-10-3.572 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.572}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 320-4 1976. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

12 CSR 10-3.574 Recordkeeping Requirements for Microfilm and Data Processing Systems {#sec-12-csr-10-3.574 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.574}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 320-5 30, 1976. Amended: Filed Sept. 28, 1987, effective Jan. 14, 1988.

12 CSR 10-3.576 Records Retention {#sec-12-csr-10-3.576 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.576}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 320-6 was Cascio v. Beam, 594 SW2d 942 (Mo. banc 1980). Absent fraud or failure to file return, the Department of Revenue may not inspect taxpayer’s sales tax records more than two years old (sections 144.320 and 144.330, RSMo).

12 CSR 10-3.578 Income Tax Returns May be Used {#sec-12-csr-10-3.578 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.578}

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 330-1

12 CSR 10-3.579 Estoppel Rule 1984, effective Jan. 12, 1985. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018. {#sec-12-csr-10-3.579 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.579}

12 CSR 10-3.580 Registered Mail {#sec-12-csr-10-3.580 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.580}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. Regulation 360-1 Aug. 13, 1980, effective Dec. 11, 1980.

12 CSR 10-3.582 Hearing Location {#sec-12-csr-10-3.582 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.582}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 370-1 was State ex rel. St. Louis Die Casting Corp. v. Morris, 219 SW2d 359 (1949). The failure of the director of revenue to include with the notice of additional assessment under section 144.210, RSMo a statutory notice in writing naming the time and place for a hearing “when and where such owner may appear before said board” caused the additional assessment to be void.

12 CSR 10-3.584 Lien Filing {#sec-12-csr-10-3.584 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.584}

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 380-1 was filed Oct. 28, 1975, effective Nov. 7, 1975. Rescinded: Filed Aug. 6, 1980, effective Dec. 11, 1980.

12 CSR 10-3.585 Filing of Liens 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Sept. 15, 2010, {#sec-12-csr-10-3.585 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.585}

12 CSR 10-3.586 Partial Release of Lien {#sec-12-csr-10-3.586 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.586}

State ex rel. St. Louis Shipbuilding and Steel Company v.

History

AUTHORITY: section 144.270, RSMo 1978. S.T. regulation 280-2 was 6, 1980, effective Dec. 11, 1980.

12 CSR 10-3.588 Taxation of Computer Software Programs {#sec-12-csr-10-3.588 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.588}

rule filed Feb. 25, 1983, effective June 11, 1983. Amended: Filed Feb. 2, 1990, effective June 28, 1990. Rescinded: Filed Nov. 9, 2000, effective May 30, 2001.

Ray S. James v. TRES Computer Systems, Inc., et al. 642 SW2d 347 (Mo. banc 1982). The issue in this case concerned whether the transfer of custom-made computer software by the use of tapes containing the data and programs constituted the sale of tangible personal property subject to sales tax. The court ruled that the data and programs in this case should not be taxed as tangible personal property because: 1) the tapes themselves were not the ultimate object of sale; and 2) it was not necessary that the information be put on tape. The court, in recognizing that computer technology is rapidly developing in complexity, emphasized that it did not intend to formulate a fixed, general rule which later could lead to unpredictable results.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 1994. Original

12 CSR 10-3.590 Advertising Businesses {#sec-12-csr-10-3.590 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.590}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed June 13, 1984, effective Nov. 11, 1984. Amended: Filed Dec. 2, 1985, effective March 24, 1986. Rescinded and readopted: Filed April 18, 1990, effective June 28, 1990. Rescinded: Filed May 24, 2000,

12 CSR 10-3.614 Theaters—Criteria for Exemption 1984, effective Jan. 12, 1985. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018. {#sec-12-csr-10-3.614 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.614}

12 CSR 10-3.620 Review of Assessments by the Administrative Hearing Commission Sept. 7, 1984, effective Jan. 12, 1985. Amended: Filed Jan. 3, 1996, effective July 30, 1996. Rescinded: Filed Sept. 15, 2010, effective Feb. 28, 2011. {#sec-12-csr-10-3.620 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.620}

12 CSR 10-3.622 Special Event Liquor License—Temporary Sales Tax License {#sec-12-csr-10-3.622 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.622}

(Rescinded August 26, 1985)

History

AUTHORITY: section 144.270, RSMo 1978. Original rule filed Sept. 10, 1984, effective Jan. 12, 1985. Rescinded: Filed May 22, 1985, effective Aug. 26, 1985.

12 CSR 10-3.626 Quarter-Monthly Period Reporting and Remitting Sales Tax {#sec-12-csr-10-3.626 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.626}

Emergency amendment filed March 4, 1991, effective March 14, 1991, expired July 11, 1991. Amended: Filed March 4, 1991, effective July 8, 1991. Amended: Filed April 14, 1995, effective Sept. 30, 1995.

Rescinded: Filed Sept. 15, 2010, effective Feb. 28, 2011.

History

AUTHORITY: section 144.081, RSMo 1994. This rule was previously filed as 12 CSR 10-3.027. Emergency rule filed Dec. 30, 1983, effective Jan. 9, 1984, expired May 8, 1984. Original rule filed Dec. 30, 1983, effective April 12, 1984. Amended: Filed May 9, 1985, effective Aug. 26, 1985. Amended: Filed March 21, 1986, effective July 11, 1986.

12 CSR 10-3.830 Diplomatic Exemptions—Records to be Kept by Sellers as Evidence of Exempt Sales {#sec-12-csr-10-3.830 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.830}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Dec. 3, 1985, effective Feb. 24, 1986. Rescinded: Filed Feb. 26, 2010,

12 CSR 10-3.832 Diplomatic Exemptions—Acknowledgement and Procedure for Requesting {#sec-12-csr-10-3.832 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.832}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Dec. 3, 1985, effective Feb. 24, 1986. Rescinded: Filed Feb. 26, 2010,

12 CSR 10-3.834 Titling and Sales Tax Treatment of Boats {#sec-12-csr-10-3.834 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.834}

History

AUTHORITY: section 144.270, RSMo 1992. Original rule filed May 21, 1986, effective Aug. 25, 1986. Rescinded: Filed May 24, 2000,

12 CSR 10-3.836 Payment of Filing Fees for Lien Releases 19, 1986, effective March 12, 1987. Rescinded: Filed June 30, 2003, effective Dec. 30, 2003. {#sec-12-csr-10-3.836 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.836}

12 CSR 10-3.838 Payment of Filing Fees for Tax Liens 19, 1986, effective March 12, 1987. Rescinded: Filed June 30, 2003, effective Dec. 30, 2003. {#sec-12-csr-10-3.838 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.838}

12 CSR 10-3.840 Photographers {#sec-12-csr-10-3.840 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.840}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed April 10, 1987, effective Aug. 13, 1987. Amended: Filed Oct. 22, 1987, effective Feb. 11, 1988. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001.

12 CSR 10-3.842 Surety Companies—Remittance Requirements {#sec-12-csr-10-3.842 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.842}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed June 12, 1987, effective Oct. 25, 1987. Rescinded: Filed Sept. 27, 2000,

12 CSR 10-3.844 Letters of Credit 28, 1987, effective Jan. 14, 1988. Rescinded: Filed Sept. 27, 2000, {#sec-12-csr-10-3.844 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.844}

12 CSR 10-3.846 Taxability of Sales Made at Fund-Raising Events Conducted by Clubs and Organizations Not Otherwise Exempt From Sales Taxation {#sec-12-csr-10-3.846 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.846}

(Moved to 12 CSR 10-110.846)

12 CSR 10-3.848 Concrete Mixing Trucks {#sec-12-csr-10-3.848 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.848}

Original rule filed July 6, 1988, effective Oct. 27, 1988. Rescinded:

Filed July 14, 1999, effective Jan. 30, 2000.

History

AUTHORITY: sections 144.030.2(5) and 144.270, RSMo 1994.

12 CSR 10-3.850 Veterinary Transactions {#sec-12-csr-10-3.850 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.850}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Feb. 23, 1989, effective June 11, 1989. Emergency amendment filed Aug. 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995.

12 CSR 10-3.852 Orthopedic and Prosthetic Devices, Insulin and Hearing Aids {#sec-12-csr-10-3.852 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.852}

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Aug. 23, 1988, effective Jan. 27, 1989. Amended: Filed Dec. 12, 1989, effective May 24, 1990. Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

12 CSR 10-3.854 Applicability of Sales Tax to the Sale of Special Fuel {#sec-12-csr-10-3.854 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.854}

rule filed Aug. 23, 1988, effective Jan. 27, 1989. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

History

AUTHORITY: sections 142.621 and 144.270, RSMo 1994. Original

12 CSR 10-3.856 Direct Pay Agreement {#sec-12-csr-10-3.856 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.856}

rule filed May 2, 1989, effective Sept. 11, 1989. Rescinded: Filed Sept. 15, 2010, effective Feb. 28, 2011.

History

AUTHORITY: sections 144.190.4 and 144.270, RSMo 1994. Original

12 CSR 10-3.858 Purchases by State Senators or Representatives {#sec-12-csr-10-3.858 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.858}

(Moved to 12 CSR 10-110.858)

12 CSR 10-3.860 Marketing Organizations Soliciting Sales Through Exempt Entity Fund-Raising Activities {#sec-12-csr-10-3.860 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.860}

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Feb. 23, 1989, effective Aug. 11, 1989. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003.

12 CSR 10-3.862 Sales Tax on Vending Machine Sales 8, 1989, effective Jan. 26, 1990. Rescinded: Filed Sept. 15, 2010, {#sec-12-csr-10-3.862 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.862}

12 CSR 10-3.866 Bulldozers for Agricultural Use 16, 1990, effective May 11, 1990. Rescinded: Filed May 24, 2000, {#sec-12-csr-10-3.866 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.866}

12 CSR 10-3.870 Information Required to be Filed by Notfor-Profit Organizations Applying for a Sales Tax Exemption Letter 16, 1990, effective June 28, 1990. Rescinded: Filed Sept. 15, 2010, {#sec-12-csr-10-3.870 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.870}

12 CSR 10-3.872 Sales of Newspapers and Other Publications {#sec-12-csr-10-3.872 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.872}

Emergency rule filed Jan. 5, 1990, effective Jan. 15, 1990, expired May 15, 1990. Original rule filed Jan. 5, 1990, effective May 11, 1990. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

Hearst Publication v. Director of Revenue (Mo. banc 1989). Sales of newspapers are not exempt as a service, but are taxable as a sale of tangible personal property. The exemption of newspapers from sales tax provided in 12 CSR 10-3.110, was found by the court to be beyond the scope of the statute and the authority of the director of revenue.

History

AUTHORITY: sections 144.010, 144.021 and 144.270, RSMo 1994.

12 CSR 10-3.874 Questions and Answers on Taxation of Newspapers {#sec-12-csr-10-3.874 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.874}

Emergency rule filed Jan. 23, 1990, effective Feb. 2, 1990, expired June 1, 1990. Original rule filed Jan. 23, 1990, effective May 11, 1990. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018.

History

AUTHORITY: sections 144.010, 144.021 and 144.270, RSMo 1994.

12 CSR 10-3.876 Taxation of Sod Businesses {#sec-12-csr-10-3.876 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.876}

(Moved to 12 CSR 10-103.876)

12 CSR 10-3.878 Certificate of Deposit {#sec-12-csr-10-3.878 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.878}

rule filed Sept. 18, 1990, effective Sept. 28, 1990, expired Jan. 25, 1991. Original rule filed Sept. 18, 1990, effective Feb. 14, 1991.

Amended: Filed Feb. 4, 1991, effective June 10, 1991. Rescinded:

Filed Sept. 27, 2000, effective March 30, 2001.

History

AUTHORITY: sections 144.087 and 144.270, RSMo 1994. Emergency

12 CSR 10-3.880 Sales of Postage Stamps 16, 1990, effective March 14, 1991. Rescinded: Filed Jan. 18, 2018, effective July 30, 2018. {#sec-12-csr-10-3.880 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.880}

12 CSR 10-3.882 Accrual Basis Reporting {#sec-12-csr-10-3.882 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.882}

(Rescinded October 30, 2001) 25, 1990, effective March 14, 1991. Rescinded: Filed April 5, 2001, effective Oct. 30, 2001.

12 CSR 10-3.884 Basic Steelmaking Exemption—Sales Tax 15, 1990, effective June 10, 1991. Rescinded: Filed Oct. 7, 2010, {#sec-12-csr-10-3.884 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.884}

12 CSR 10-3.886 Exemption For Construction Materials Sold to Exempt Entities {#sec-12-csr-10-3.886 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.886}

rule filed Oct. 16, 1991, effective Oct. 26, 1991, expired Feb. 22, 1992.

Original rule filed June 18, 1991, effective Jan. 13, 1992. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective April 30, 1995. Rescinded: Filed Oct. 7, 2010, effective March 30, 2011. because the materials were billed to the Housing Authority and the consideration was paid by the Housing Authority. If the materials are billed to the exempt organization and paid for from funds of the exempt organization, then the purchase is exempt if the materials are used in furtherance of the exempt purpose of the organization.

History

AUTHORITY: sections 144.062 and 144.270, RSMo 1994. Emergency

12 CSR 10-3.888 Sales “In Commerce” Between Missouri and Other States {#sec-12-csr-10-3.888 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.888}

(Rescinded July 30, 2011) 31, 1992, effective Sept. 6, 1992. Rescinded: Filed Jan. 24, 2011, effective July 30, 2011.

Amoco Oil Company v. Director of Revenue, Case No. 89- 001011RS (A.H.C. 01/07/91). Sales of goods were exempt as in commerce where title passed to the buyer upon delivery in Missouri to a carrier, common or contract, for shipment out-ofstate. In order for a Missouri retail sale to be exempt as being “in commerce,” a component of the sales transaction must depend upon the importation or the exportation of the goods from or to another state.

Western Trailer Service, Inc. v. Lepage, 575 SW2d 173 (Mo. banc 1978). Under contract, employees of a trailer company went to Kansas, picked up trailers and brought them into the state and, after repairs were made and repair parts installed, the trailers were returned under contract to Kansas by trailer company employees. Importation of the trailers from Kansas to Missouri was a component part of the transaction. The retail sales were made in commerce between Missouri and Kansas. banc 1983). Overland Steel was both a retailer and a contractor.

Overland purchased materials which were ultimately installed for Kansas customers. These materials were not resold by Overland but were consumed by the corporation in its capacity as a contractor.

The sale of materials from the manufacturer to Overland was complete before Overland entered into the Kansas construction contracts. There was no evidence indicating transportation of the goods to Kansas was an integral part of the sale.

Bratton Corporation v. Director of Revenue, 783 SW2d 891 (Mo. banc 1990). Goods delivered to a corporation in Missouri upon purchase from Missouri vendors were not “in commerce” and could not avoid the sales tax, despite buyer’s intention of shipping the goods out-of-state shortly after delivery.

Metro Crown International, Inc. v. Di rec tor of Revenue, Case No. 89-000904RS, (A.H.C. 04/20/90). Sales were Missouri retail sales where buyer took possession of goods from seller in Missouri, despite contract provision that title would not pass until arrival out-of-state. Tax liability depends on the economic reality of the transaction, not on the legal fictions of boilerplate contract provisions.

12 CSR 10-3.890 Area Betterment, Tourism or Marketing Program Fees To Be Included As Taxable Gross Receipts 30, 1992, effective June 7, 1993. Rescinded: Filed March 28, 2001, {#sec-12-csr-10-3.890 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.890}

12 CSR 10-3.892 Light Aircraft—Light Aircraft Kits {#sec-12-csr-10-3.892 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.892}

Rescinded: Filed Nov. 1, 2005, effective May 30, 2006.

History

AUTHORITY: section 144.270, RSMo 1994. Emergency rule filed Aug. 24, 1995. Original rule filed Aug. 18, 1994, effective Feb. 26, 1995.

12 CSR 10-3.894 Animal Bedding—Exemption {#sec-12-csr-10-3.894 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.894}

(Rescinded January 30, 2012)

Rescinded: Filed July 26, 2011, effective Jan. 30, 2012.

History

AUTHORITY: section 144.270, RSMo 1994. Emergency rule filed Aug. 24, 1995. Original rule filed Aug. 18, 1994, effective Feb. 26, 1995.

12 CSR 10-3.896 Auctioneers, Brokers and Agents 28, 1995, effective May 30, 1996. Rescinded: Filed Oct. 7, 2010, {#sec-12-csr-10-3.896 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.896}

12 CSR 10-3.898 Non-Reusable and Reusable Items 26, 1997, effective May 30, 1998. Rescinded: Filed Sept. 27, 2000, {#sec-12-csr-10-3.898 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-3.898}

Chapter 4 State Use Tax

12 CSR 10-4.080 Sales to National Banks and Other Financial Institutions {#sec-12-csr-10-4.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.080}

12 CSR 10-4.085 Liability of Out-of-State Vendors {#sec-12-csr-10-4.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.085}

(Rescinded July 30, 2018). . . . . . . . . . . . . . . . . 6

12 CSR 10-4.090 Regulations Under Subdivisions (2) and (3) of Sections 144.030 and {#sec-12-csr-10-4.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.090}

12 CSR 10-4.160 Effect of Saturday, Sunday or Holiday on Payment Due {#sec-12-csr-10-4.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.160}

12 CSR 10-4.330 Application for Refund/Credit-Amended Returns {#sec-12-csr-10-4.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.330}

12 CSR 10-4.622 Marketing Organizations Soliciting Sales Through Exempt Entity {#sec-12-csr-10-4.622 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.622}

12 CSR 10-4.634 Delivery, Freight and Transportation Charges—Use Tax {#sec-12-csr-10-4.634 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.634}

12 CSR 10-4.005 Purchaser Includes {#sec-12-csr-10-4.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.005}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-1

12 CSR 10-4.010 Purchaser’s Responsibilities {#sec-12-csr-10-4.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.010}

Southwestern Bell Telephone Co. v. Morris, 345 SW2d 62 (1961).

A compensating use tax such as the one now under scrutiny has been aptly characterized as a levy on the privilege of using, within the taxing state, property purchased outside the state, if the property would have been subject to the sales tax had it been purchased at home. It seems to be universally considered that the use tax and sales tax laws are complimentary and supplementary to each other.

Pryor Executive Planes, Inc. v. Director of Revenue, Case No.

RS-82-0463, (A.H.C. 8/6/87). The Administrative Hearing Commission examined the case under 144.615(6), RSMo which limits the resale exemption to goods held by 1) retailers, 2) solely for resale, and 3) in the regular course of business. As a retailer whose regular business was the sale of aircraft, petitioner met two prongs of the test. Petitioner failed to meet the second requirement because petitioner chartered the aircraft, rented the aircraft to its shareholders and depreciated the aircraft for income tax purposes. The commission stated these uses were inconsistent with petitioner’s holding of aircraft solely for resale, and instead constituted use or consumption sufficient to subject the acquisition of the aircraft to use tax.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-2 30, 1976. Amended: Filed Nov. 8, 1988, effective Jan. 27, 1989.

12 CSR 10-4.015 Sale Consummation {#sec-12-csr-10-4.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.015}

Director of Revenue v. Superior Aircraft Leasing Co., Inc., No. 68857 (Mo. banc 7/14/87). The Missouri Supreme Court overruled the line of cases applying the old taxable moment doctrine in L & L Marine Service and Management Services and adopted the four-part test of Complete Auto Transit, 430 U.S. 274, 97 S. Ct. 1076 (1977).

The state’s right to tax interstate commerce is limited, however, and no state tax may be sustained unless the tax: 1) has a substantial nexus with the state; 2) is fairly apportioned; 3) does not discriminate against interstate commerce; and 4) is fairly related to the services provided by the state.

Here, even though the plane was hangared and repairs, if needed, were made in Dayton, Ohio, there were contacts with Missouri sufficient to create a substantial nexus. The taxpayer could use Missouri courts to enforce resolutions arising from its board meetings. The court concluded also that the use tax imposed was also fairly apportioned. Missouri statutes allow credits for taxes paid to another state; however, Superior Aircraft had not paid sales or use tax to any other state and even if it had done so Missouri has a system of tax credit for taxes paid in other states.

Finally, the court concluded that there was no discrimination since interstate and intra-state commerce are equally burdened.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-3 30, 1976. Rescinded: Filed July 27, 2023, effective March 30, 2024.

12 CSR 10-4.020 Delivery {#sec-12-csr-10-4.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.020}

Finally, the court concluded that there was no discrimination since interstate and intrastate commerce are equally burdened.

Therefore, under the test prescribed in Complete Auto Transit, the court held that the imposition of Missouri use tax was permissible under the Commerce Clause of the United States Constitution.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-4 Director of Revenue v. Superior Aircraft Leasing Co., Inc., No. 68857 (Mo. banc 7/14/87). The Missouri Supreme Court overruled the line of cases applying the old taxable moment doctrine in L & L Marine Service and Management Services and adopted the four-part test of Complete Auto Transit, 430 U.S. 274, 97 S. Ct. 1076 (1977).

12 CSR 10-4.025 Guideline for When Title Passes {#sec-12-csr-10-4.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.025}

(Rescinded January 12, 1987)

History

AUTHORITY: section 144.705, RSMo 1969, U.T. Regulation 605-5 filed Oct. 28, 1975, effective Nov. 7, 1975. Rescinded: Filed Sept. 23, 1986, effective Jan. 12, 1987.

12 CSR 10-4.030 Delivery Charges {#sec-12-csr-10-4.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.030}

(Rescinded May 9, 1994)

History

AUTHORITY: section 144.705, RSMo 1986. U.T. regulation 605-6 originally filed Oct. 28, 1975, effective Nov. 7, 1975. Amended: Filed Sept. 23, 1986, effective Jan. 12, 1987. Amended: Filed Sept. 11, 1990, effective Feb. 14, 1991. Rescinded: Filed Oct. 1, 1993, effective May 9, 1994.

12 CSR 10-4.035 Consideration Other Than Money (2/29/24) John R. Ashcroft {#sec-12-csr-10-4.035 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.035}

App. 1988). The court cited King. v. National Super Markets, Inc., 653 SW2d 220 (Mo. banc 1983), which held that when the cost of paper sacks was factored into the price for which goods were sold, that constituted a resale under section 144.615(6), RSMo. The court opined that because the customers paid sales tax on the increased cost of insulation, there was no loss of revenue, and to impose a use tax on the insulation blowing machines to the wholesaler of the insulation would amount to double taxation.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-7 Weather Guard, Inc. v. Director of Revenue, 746 SW2d 657 (Mo.

12 CSR 10-4.040 Delivery Expenses to Purchaser {#sec-12-csr-10-4.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.040}

(Rescinded April 9, 1994)

History

AUTHORITY: section 144.705, RSMo 1986. U.T. regulation 605-8 Oct. 1, 1993, effective April 9, 1994.

12 CSR 10-4.045 Cancelled Sales {#sec-12-csr-10-4.045 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.045}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-9

12 CSR 10-4.050 Cost of Doing Business {#sec-12-csr-10-4.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.050}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-10 Management Services, Inc. v. Spradling, 547 SW2d 466 (Mo. banc 1977). Changes for out-of-state laboratory services were not incidental to film production and were therefore not subject to use tax.

12 CSR 10-4.055 Regulations Under Section 144.020, RSMo {#sec-12-csr-10-4.055 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.055}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-11 King v. L & L Marine Service, Inc., 647 SW2d 524 (Mo. banc 1983). Use tax is a levy on the privilege of using within the taxing state, property purchased outside the state, if the property would have been taxable if purchased at home.

12 CSR 10-4.060 Vendor Includes {#sec-12-csr-10-4.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.060}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 605-12

12 CSR 10-4.070 Use Tax License Necessary {#sec-12-csr-10-4.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.070}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 610-1 30, 1976. Rescinded: Filed Sept. 27, 2000, effective March 30, 2001.

12 CSR 10-4.075 Sales to Contractors {#sec-12-csr-10-4.075 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.075}

Rescinded: Filed Sept. 27, 2000, effective March 20, 2001.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 610-2 filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976.

12 CSR 10-4.080 Sales to National Banks and Other Financial Institutions {#sec-12-csr-10-4.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.080}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-1

12 CSR 10-4.085 Liability of Out-of-State Vendors {#sec-12-csr-10-4.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.085}

Filed Jan. 18, 2018, effective July 30, 2018.

Primary Steel, Inc. v. Director of Revenue, Case No. RS-82-0059 (A.H.C. 9/7/83). The issue in this case was whether there was sufficient nexus between the state of Missouri and the taxpayer to justify imposing upon the taxpayer the duty of collecting vendor use tax for sales made to Missouri customers. The court looked to the decision in Miller Bros. Co. v. Maryland, 347 U.S. 340 (1954) which seemed to establish a standard of a continuous local solicitation versus no solicitation other than the incidental acts of general advertising. The commission found that there must be continuous, or at least regular local solicitation, and that the occasional trips made to the state of Missouri by taxpayer’s salesmen did not constitute regular solicitation. For that reason it was found that there was no nexus in the state of Missouri.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-2 Amended: Filed May 16, 1989, effective Sept. 11, 1989. Rescinded:

12 CSR 10-4.090 Regulations Under Subdivisions (2) and (3) of Sections 144.030 and 144.040, RSMo {#sec-12-csr-10-4.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.090}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-3

12 CSR 10-4.095 Motor Vehicle Purchased {#sec-12-csr-10-4.095 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.095}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-4

12 CSR 10-4.100 Tax Paid to Another State {#sec-12-csr-10-4.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.100}

Rescinded: Filed July 27, 2023, effective March 30, 2024.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-5 30, 1976. Amended: Filed Oct. 15, 1984, effective Feb. 11, 1985.

12 CSR 10-4.105 Resale {#sec-12-csr-10-4.105 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.105}

Paper bags transferred to customers by retail grocer were purchased by grocer for resale (see King v. National Super Markets, Inc., 653 SW2d 220 (Mo. banc 1983)). Wooden shipping pallets were not purchased for resale by shipper (see Floyd Charcoal Co., Inc. v. Director of Revenue, 599 SW2d 173 (Mo. banc 1980)); fact that soft drink bottles could be returned for deposit did not make jobbers liable for use tax on theory that they had purchased at retail (see Smith Beverage Co. of Columbia, Inc. v. Reiss, 568 SW2d 61 (Mo. En banc 1978)).

Pryor Executive Planes, Inc. v. Director of Revenue, Case No.

RS-82-0463 (A.H.C. 8/6/87). The Administrative Hearing Commission examined the case under 144.615(6), RSMo which limits the resale exemption to goods held by 1) retailers, 2) solely for resale, 3) in the regular course of business. As a retailer whose regular business was the sale of aircraft, petitioner met two prongs of the test. Petitioner failed to meet the second requirement because petitioner chartered the aircraft, rented the aircraft to its shareholders and depreciated the aircraft for income tax purposes. The commission stated these uses were inconsistent with petitioner’s holding of aircraft solely for resale, and instead constituted use or consumption sufficient to subject the acquisition of the aircraft to use tax.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-6 Wendy’s of Mid-America, Inc. v. Department of Revenue, Case No. RS-79-0222 (A.H.C. 7/22/82). Machinery and equipment used in fast food restaurants are not entitled to section 144.030(4), RSMo exemption because fast food restaurants clearly do not constitute manufacturing plants. Section 144.615(6), RSMo exemption from use tax is applicable to foil, wax paper and bags used in fast food restaurants because they are held solely to be incorporated into products which are resold in the regular course of taxpayer’s business.

12 CSR 10-4.110 Personal Effects {#sec-12-csr-10-4.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.110}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-7

12 CSR 10-4.115 Documentation Required {#sec-12-csr-10-4.115 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.115}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 615-8

12 CSR 10-4.120 Presumption {#sec-12-csr-10-4.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.120}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 620-1

12 CSR 10-4.125 Gross Sales Reporting Method {#sec-12-csr-10-4.125 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.125}

(Rescinded March 14, 1991)

History

AUTHORITY: section 144.705, RSMo 1986. U.T. regulation 635-1 Oct. 24, 1990, effective March 14, 1991.

12 CSR 10-4.127 Vendors Use Tax vs. Consumers Use Tax {#sec-12-csr-10-4.127 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.127}

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Emergency amendment filed Aug. 18, 1994, effective Aug. 28, 1994, expired Dec. 25, 1994. Emergency amendment filed Dec. 9, 1994, effective Dec. 26, 1994, expired April 24, 1995. Amended: Filed Aug. 18, 1994, effective Feb. 26, 1995.

12 CSR 10-4.130 Separately Stating {#sec-12-csr-10-4.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.130}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 635-2

12 CSR 10-4.135 Vendor to File Collection Suit {#sec-12-csr-10-4.135 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.135}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 635-3

12 CSR 10-4.140 Exemption Certificates {#sec-12-csr-10-4.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.140}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 640-1 Op. Atty. Gen. No. 149, Murray (10-6-76). The director of revenue does not have the right or duty to grant a use tax exemption in the case in which an individual transfers motor vehicles to a corporation in which s/he owns 100% of the stock and the corporation assumes the outstanding liability on said motor vehicle.

12 CSR 10-4.145 Audit, No Credit {#sec-12-csr-10-4.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.145}

(Rescinded November 30, 2000)

(2/29/24) John R. Ashcroft

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 640-2 30, 1976. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000.

12 CSR 10-4.150 Limitation on Assessment {#sec-12-csr-10-4.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.150}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 645-1 30, 1976. Amended: Filed Dec. 3, 1985, effective Feb. 24, 1986.

12 CSR 10-4.155 Vendor’s Responsibility {#sec-12-csr-10-4.155 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.155}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 650-1

12 CSR 10-4.160 Effect of Saturday, Sunday or Holiday on Payment Due {#sec-12-csr-10-4.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.160}

(Moved to 12 CSR 10-102.160)

12 CSR 10-4.165 Bad Debts Credit {#sec-12-csr-10-4.165 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.165}

(Rescinded May 30, 2001)

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 655-2 30, 1976. Rescinded: Filed Nov. 9, 2000, effective May 30, 2001.

12 CSR 10-4.170 Aggregate Amount Defined {#sec-12-csr-10-4.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.170}

(Moved to 12 CSR 10-103.170)

12 CSR 10-4.175 Amended Returns {#sec-12-csr-10-4.175 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.175}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 655-4 filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976.

12 CSR 10-4.180 Filing Final Return {#sec-12-csr-10-4.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.180}

(Moved to 12 CSR 10-103.180)

12 CSR 10-4.185 Filing Returns When No Liability Exists {#sec-12-csr-10-4.185 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.185}

(Moved to 12 CSR 10-103.185)

12 CSR 10-4.190 Payment of Tax {#sec-12-csr-10-4.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.190}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 655-7 30, 1976. Amended: Filed Dec. 3, 1985, effective Feb. 24, 1986.

12 CSR 10-4.200 Filing of Returns and Payment of Tax {#sec-12-csr-10-4.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.200}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 660-1 30, 1976. Amended: Filed Dec. 3, 1985, effective March 24, 1986.

12 CSR 10-4.205 Jeopardy Assessment {#sec-12-csr-10-4.205 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.205}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 660-2

12 CSR 10-4.210 Assignments and Bankruptcies {#sec-12-csr-10-4.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.210}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 660-3

12 CSR 10-4.215 Estimated Assessment {#sec-12-csr-10-4.215 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.215}

Filed Sept. 2, 1983, effective Jan. 1, 1984. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Jan. 26, 2018,

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended:

12 CSR 10-4.220 Calendar Month Defined {#sec-12-csr-10-4.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.220}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 655-2 30, 1976. Amended: Filed Dec. 3, 1985, effective April 25, 1986.

12 CSR 10-4.225 Fifteen Days Defined—Personal Service {#sec-12-csr-10-4.225 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.225}

(Rescinded January 12, 1985)

History

AUTHORITY: section 144.705, RSMo 1978. U.T. regulation 680-2 Sept. 7, 1984, effective Jan. 12, 1985.

12 CSR 10-4.230 Protest Payment {#sec-12-csr-10-4.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.230}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 680-2 30, 1976. Rescinded: Filed Aug. 15, 2023, effective March 30, 2024.

12 CSR 10-4.235 Acknowledgement of Informal Hearing {#sec-12-csr-10-4.235 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.235}

(Rescinded January 12, 1985)

History

AUTHORITY: section 144.705, RSMo 1978. U.T. regulation 680-3 Sept. 7, 1984, effective Jan. 12, 1985.

12 CSR 10-4.240 Administrative and Judicial Review {#sec-12-csr-10-4.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.240}

Filed Jan. 26, 2018, effective July 30, 2018.

State ex rel. Thompson-Stearns-Roger v. Schaffner, 489 SW2d 207 (1973). The legislature’s repeal of old section 144.261 and enactment of new section 144.261 abolished the need for review by the tax commission before judicial review could be sought. Act can only properly be held to have intended to restore the prior system of direct judicial review, without intervening administrative review, of the director’s (of revenue) decision in sales tax matters.

Therefore, after the director had rejected claimant’s request for refund of sales and use tax, claimant was entitled to direct judicial review by mandamus, without need to seek review of decision by State Tax Commission.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 685-1 Amended: Filed Jan. 3, 1996, effective July 30, 1996. Rescinded:

12 CSR 10-4.245 Interest Payment {#sec-12-csr-10-4.245 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.245}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 685-2 International Business Machines v. State Tax Commission, 362 SW2d 635 (Mo. 1962). As to sales tax improperly collected, there is a provision for refund, but there is no provision that refunds bear interest.

12 CSR 10-4.250 Liens {#sec-12-csr-10-4.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.250}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 690-1

12 CSR 10-4.255 Who Should Request Refund {#sec-12-csr-10-4.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.255}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 695-1

12 CSR 10-4.260 Claim Form {#sec-12-csr-10-4.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.260}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 695-2

12 CSR 10-4.265 Refund Rather Than Credit {#sec-12-csr-10-4.265 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.265}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 695-3

12 CSR 10-4.270 Allowance for Defective Merchandise {#sec-12-csr-10-4.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.270}

(Rescinded September 30, 2001)

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 695-4 30, 1976. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-4.275 Application Required {#sec-12-csr-10-4.275 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.275}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 695-5

12 CSR 10-4.280 Filing Protest Payment Returns {#sec-12-csr-10-4.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.280}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 700-1 30, 1976. Rescinded: Filed Aug. 15, 2023, effective March 30, 2024.

12 CSR 10-4.290 Intent of Rules {#sec-12-csr-10-4.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.290}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 705-2

12 CSR 10-4.295 Rulings {#sec-12-csr-10-4.295 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.295}

(Rescinded January 30, 2000)

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 705-3 30, 1976. Rescinded: Filed July 14, 1999, effective Jan. 30, 2000.

12 CSR 10-4.300 No Waiver of Tax {#sec-12-csr-10-4.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.300}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 705-4 State ex rel. St. Louis Shipbuilding & Steel Co. v. Smith, 201 SW2d 153 (Mo. 1947). The director may not extinguish a lawful indebtedness to the state.

12 CSR 10-4.305 Collection Allowance {#sec-12-csr-10-4.305 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.305}

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 710-1

12 CSR 10-4.310 Timely Filing {#sec-12-csr-10-4.310 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.310}

(Moved to 12 CSR 10-103.310)

(8/31/24) John R. Ashcroft

12 CSR 10-4.315 Fifteen Days—Defined Personal Service {#sec-12-csr-10-4.315 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.315}

(Rescinded December 11, 1976)

History

AUTHORITY: section 144.705 RSMo 1969. Rule filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed Aug. 17, 1976, effective Dec. 11, 1976.

12 CSR 10-4.320 Sales Tax Rules Apply {#sec-12-csr-10-4.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.320}

(Moved to 12 CSR 10-113.320)

12 CSR 10-4.330 Application for Refund/Credit-Amended Returns {#sec-12-csr-10-4.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.330}

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

12 CSR 10-4.340 Dual Operators {#sec-12-csr-10-4.340 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.340}

(Rescinded October 30, 2004)

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Oct. 15, 1985, effective March 24, 1986. Rescinded: Filed April 14, 2004, effective Oct. 30, 2004.

12 CSR 10-4.600 Return Required {#sec-12-csr-10-4.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.600}

(Moved to 12 CSR 10-103.630)

12 CSR 10-4.610 Annual Filing {#sec-12-csr-10-4.610 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.610}

(Moved to 12 CSR 10-103.640)

12 CSR 10-4.620 Aircraft {#sec-12-csr-10-4.620 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.620}

History

AUTHORITY: section 144.610, RSMo 1994. Original rule filed June 14, 1988, effective Oct. 27, 1988. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-4.622 Marketing Organizations Soliciting Sales Through Exempt Entity Fund-Raising Activities {#sec-12-csr-10-4.622 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.622}

(Rescinded September 30, 2024)

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Feb. 23, 1989, effective Aug. 10, 1989. Rescinded: Filed Feb. 15, 2024, effective Sept. 30, 2024.

12 CSR 10-4.624 Change of State Use Tax Rate {#sec-12-csr-10-4.624 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.624}

(Rescinded February 28, 2001)

rule filed Sept. 29, 1989, effective Jan. 26, 1990. Rescinded: Filed Aug. 24, 2000, effective Feb. 28, 2001.

History

AUTHORITY: section 144.705, RSMo 1994. Emergency rule filed Sept. 29, 1989, effective Oct. 9, 1989, expired Feb. 5, 1990. Original

12 CSR 10-4.626 Direct Pay Agreement {#sec-12-csr-10-4.626 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.626}

rule filed July 2, 1990, effective Dec. 31, 1990. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

History

AUTHORITY: sections 144.190.4 and 144.705, RSMo 1994. Original

12 CSR 10-4.628 Accrual Basis Reporting {#sec-12-csr-10-4.628 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.628}

(Rescinded January 30, 2012)

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Oct. 24, 1990, effective March 14, 1991. Rescinded: Filed July 26, 2011, effective Jan. 30, 2012.

12 CSR 10-4.630 Basic Steelmaking Exemption—Use Tax {#sec-12-csr-10-4.630 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.630}

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Nov. 15, 1990, effective June 10, 1991. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-4.632 Certificate of Deposit—Use Tax {#sec-12-csr-10-4.632 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.632}

rule filed Dec. 4, 1990, effective April 29, 1991. Amended: Filed Feb. 4, 1991, effective June 10, 1991. Rescinded: Filed Sept. 27, 2000, effective March 30, 2001.

History

AUTHORITY: sections 144.625 and 144.705, RSMo 1994. Original

12 CSR 10-4.634 Delivery, Freight and Transportation Charges—Use Tax {#sec-12-csr-10-4.634 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-4.634}

(Rescinded April 30, 2001)

History

AUTHORITY: section 144.705, RSMo 1994. Original rule filed Oct. 1, 1993, effective April 9, 1994. Rescinded: Filed Oct. 6, 2000, effective April 30, 2001.

Chapter 5 City Sales Tax, Transportation Sales Tax and Public Mass Transportation Tax

12 CSR 10-5.005 Date of Delivery Determines Applicability C.S.T. regulation 510-1 originally filed Oct. 8, 1975, effective Nov. 7, 1975. Refiled Dec. {#sec-12-csr-10-5.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.005}

Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-5.010 Layaways {#sec-12-csr-10-5.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.010}

(Rescinded April 30, 2001)

C.S.T. regulation 510-1A originally filed Dec.

Filed Oct. 6, 2000, effective April 30, 2001.

12 CSR 10-5.015 Effective Date C.S.T. regulation 510-2 originally filed Oct. {#sec-12-csr-10-5.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.015}

Op. Atty. Gen. No. 359, Phelps, 9-10-69. A city cannot, before October 13, 1969 the effective date of the city sales tax act (House Bill No. 243 of the 75th General Assembly), pass an ordinance levying a sales tax in accordance with the provisions of the act and call a special election thereon to be held subsequent to the effective date of the act.

12 CSR 10-5.020 Tax Imposed C.S.T. regulation 520-1 originally filed Oct. {#sec-12-csr-10-5.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.020}

12 CSR 10-5.025 Location of Machine Determines C.S.T. regulation 520-1A originally filed Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.025}

Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-5.030 State Sales Tax Rule Apply C.S.T. regulation 520-2 originally filed Oct. {#sec-12-csr-10-5.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.030}

12 CSR 10-5.035 Deductions C.S.T. regulation 540-1 originally filed Oct. {#sec-12-csr-10-5.035 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.035}

12 CSR 10-5.040 Seller Not Entitled {#sec-12-csr-10-5.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.040}

(Rescinded January 12, 1985)

C.S.T. regulation 540-2 originally filed Oct. 28, 1975, effective Nov. 7, 1995. Refiled Dec.

History

AUTHORITY: section 94.530, RSMo 1978.

12 CSR 10-5.045 Seller Entitled C.S.T. regulation 540-3 originally filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.045 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.045}

Feb. 28, 2006. 538 SW2d 313 (Mo. 1976). Purpose of allowing retention of two percent (2%) tax due was to compensate seller who was required, as

part of his regular course of business, to collect sales tax from buyer, keep records and make remittance to director, all of which could increase sellerís cost of doing business; it was not primary purpose of statute to give tax reduction simply because tax was paid when due, although deductions may very well encourage prompt payment.

12 CSR 10-5.050 When City Tax Applies C.S.T. regulation 540-4 originally filed Oct. {#sec-12-csr-10-5.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.050}

Filed Dec. 15, 2004, effective June 30, 2005.

(Mo. 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 ìshall be deemed to be consummated at the place of business of the retailerî 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.

12 CSR 10-5.055 Determining Which Tax Applies {#sec-12-csr-10-5.055 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.055}

C.S.T. regulation 540-4A originally filed Dec. 31, 1975, effective Jan. 10, 1976.

Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed Aug. 26, 2005, effective Feb. 28, 2006.

(Mo. 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 ìshall be deemed to be consummated at the place of business of the retailer;î 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.

History

AUTHORITY: section 94.530, RSMo 1978.

12 CSR 10-5.060 City Tax AppliesóDelivery Outside Jurisdiction {#sec-12-csr-10-5.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.060}

Chapter 5óCity Sales Tax, Transportation Sales Tax and Public Mass Transportation Tax12 CSR 10-5 C.S.T. Regulation 540-5 originally filed Oct.

Filed Dec. 15, 2004, effective June 30, 2005.

See also Mobil-Teria Catering Co., Inc. v. 1978). For purposes of public mass transportation tax and transportation sales, ìplace of businessî 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.

12 CSR 10-5.065 Items Taken from Inventory C.S.T. regulation 540-5A originally filed Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.065 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.065}

Feb. 28, 2006.

12 CSR 10-5.070 City Tax AppliesóDelivery from Outside the State C.S.T. regulation 540-6 originally filed Oct. {#sec-12-csr-10-5.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.070}

See also,Mobil-Teria Catering Co., Inc. v. 1978). For purposes of public mass transportation tax and transportation sales, ìplace of businessî of mobil 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. 94.540.5, RSMo.

12 CSR 10-5.072 Metered and Nonmetered Natural Gas Sales Original rule filed Oct. 15, 1985, effective Jan. 26, 1986. Rescinded: Filed Aug. 26, 2005, effective Feb. 28, 2006. {#sec-12-csr-10-5.072 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.072}

12 CSR 10-5.075 Application of City Sales Tax to Rental or Leasing Receipts C.S.T. regulation 540-7 originally filed Oct. {#sec-12-csr-10-5.075 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.075}

12 CSR 10-5.080 Refund Procedures {#sec-12-csr-10-5.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.080}

(Rescinded October 30, 2000)

C.S.T. regulation 550-1 originally filed Oct.

Rescinded: Filed April 19, 2000, effective Oct. 30, 2000.

12 CSR 10-5.085 Motor Vehicles C.S.T. regulation 560-1 originally filed Oct. {#sec-12-csr-10-5.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.085}

12 CSR 10-5.090 Mobile Homes C.S.T. regulation 560-2 originally filed Oct. {#sec-12-csr-10-5.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.090}

12 CSR 10-5.095 Over-the-Road Trailers C.S.T. regulation 560-3 was originally filed Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.095 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.095}

Amended: Filed Sept. 8, 1976, effective Dec. 11, 1976. Rescinded: Filed Aug. 26, 2005, effective Feb. 28, 2006.

Wiethop Truck Sales, Inc. v. James R.

Spradling,538 SW2d 585 (Mo. 1976). Held that the provision of the City Sales Tax Act imposing a duty of collecting city sales tax on the seller of new or used cars does not modify the statute requiring the Director of Revenue to collect Missouri sales tax and thus, the burden of collecting city sales tax on trailers does not shift from the Director of Revenue to the sellers of trailers.

12 CSR 10-5.100 Delinquent Tax C.S.T. regulation 570-1 originally filed Oct. {#sec-12-csr-10-5.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.100}

Aug. 26, 2005, effective Feb. 28, 2006.

4CODE OF STATE REGULATIONS 12 CSR 10-5óDEPARTMENT OF REVENUEDivision 10óDirector of Revenue

12 CSR 10-5.105 Erroneous Business Locations Transfers from City-to-City Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Amended: Filed July 2, 1986, effective Dec. 11, 1986. Rescinded: Filed Nov. 2, 1999, effective May 30, 2000. {#sec-12-csr-10-5.105 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.105}

12 CSR 10-5.500 Other Entity Defined T.T. regulation 600-1 originally filed Oct. 28, Aug. 26, 2005, effective Feb. 28, 2006. {#sec-12-csr-10-5.500 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.500}

12 CSR 10-5.505 Date of Delivery Determines Applicability T.T. regulation 605-1 originally filed Oct. 28, Filed March 28, 2001, effective Sept. 30, 2001. {#sec-12-csr-10-5.505 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.505}

12 CSR 10-5.510 Sales Tax Rules Apply T.T. regulation 615-1 originally filed Oct. 28, {#sec-12-csr-10-5.510 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.510}

12 CSR 10-5.515 Layaways T.T. regulation 605-2 filed as C.S.T. regulation 510-1A Dec. 31, 1975, effective Jan. 10, 1976. Made applicable by statute and T.T. {#sec-12-csr-10-5.515 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.515}

regulation 615-1 last filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed March 28, 2001, effective Sept. 30, 2001.

12 CSR 10-5.520 Effective Date T.T. regulation 605-3 originally filed as C.S.T. regulation 510-2 Oct. 28, 1975, effec- {#sec-12-csr-10-5.520 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.520}

12 CSR 10-5.525 Tax Imposed T.T. regulation 610-1 originally filed as C.S.T. regulation 520-1 Oct. 28, 1975, effecand T.T. regulation 615-1 last filed Dec. 31, {#sec-12-csr-10-5.525 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.525}

12 CSR 10-5.530 Seller Not Entitled T.T. regulation 615-2 originally filed as C.S.T. regulation 540-2 Dec. 31, 1975, effec- Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.530 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.530}

Feb. 28, 2006. 538 SW2d 313 (Mo. 1976). The two percent deduction is allowable only when the person required to remit the taxes does so on or before the date the taxes are due.

12 CSR 10-5.535 Seller Entitled T.T. regulation 615-3 originally filed as C.S.T. regulation 540-3 Dec. 31, 1975, effec- Dec. 31, 1975, effective Jan. 10, 1976. 538 SW2d 313 (Mo. 1976). Phrase ìperson required to remit the sameî in statute providing that from every remittance to director of revenue made on or before date when same becomes due, person required to remit same should be entitled to deduct and retain amount equal to two percent (2%) thereof, means seller, not buyer, because it is seller who is required by other provisions of sales tax law to remit taxes due director. {#sec-12-csr-10-5.535 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.535}

12 CSR 10-5.540 Deductions T.T. regulation 620-1 originally filed as C.S.T. regulation 540-1 Dec. 31, 1975, effec- Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.540 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.540}

12 CSR 10-5.545 When Transportation Tax Applies T.T. regulation 620-2 originally filed as C.S.T. regulation 540-4 Dec. 31, 1975, effec- Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.545 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.545}

12 CSR 10-5.550 Place of Business T.T. regulation 620-3 originally filed as C.S.T. regulation 540-4A Dec. 31, 1975, Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.550 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.550}

Spradling, 576 SW2d 282 (Mo. en banc 1978). For purposes of transportation sales tax, ìplace of businessî of mobile food service business referred to place where initial orders were taken and filled.

Chapter 5óCity Sales Tax, Transportation Sales Tax and Public Mass Transportation Tax12 CSR 10-5

12 CSR 10-5.555 Transportation Tax AppliesóDelivery Outside Jurisdiction T.T. regulation 620-4 originally filed as C.S.T. regulation 540-5 Oct. 28, 1975, effecand T.T. regulation 615-1 last filed Dec. 31, FIled Dec. 15, 2004, effective June 30, 2005. 1978). For purposes of transportation sales, ìplace of businessî of mobile food service business referred to place where payments were made and sales consummated. {#sec-12-csr-10-5.555 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.555}

12 CSR 10-5.560 Transportation Tax AppliesóDelivery from Outside the State T.T. regulation 620-5 originally filed as C.S.T. regulation 540-6 Dec. 31, 1975, effec- Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.560 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.560}

Spradling, 576 SW2d 282 (Mo. en banc 1978). For purposes of transportation sales tax, ìplace of businessî of mobile food service business referred to places where trucks were parked, wares displayed, initial orders filled, payments made and sales consummated.

12 CSR 10-5.565 Application of Transportation Sales Tax to Rental or Leasing Receipts T.T. regulation 620-6 originally filed as C.S.T. regulation 540-7 Dec. 31, 1975, effec- Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.565 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.565}

12 CSR 10-5.570 Location of Machine Determines T.T. regulation 620-7 originally filed as C.S.T. regulation 520-1A Dec. 31, 1975, Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.570 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.570}

12 CSR 10-5.575 Items Taken from Inventory T.T. regulation 620-8 originally filed as C.S.T. regulation 540-5A Dec. 31, 1975, Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.575 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.575}

12 CSR 10-5.585 Motor Vehicles T.T. regulation 635-1 filed as C.S.T. regulation 560-1 Dec. 31, 1975, effective Jan. 10, 1976. Made applicable by statute and T.T. {#sec-12-csr-10-5.585 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.585}

regulation 615-1 last filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed Sept. 12, 2005, effective March 30, 2006.

12 CSR 10-5.590 Over-the-Road Trailers T.T. regulation 635-2 originally filed as C.S.T. regulation 560-3 Dec. 31, 1975, effec- Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-5.590 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.590}

Wiethop Truck Sales, Inc. et al. v. James R.

Spradling,538 SW2d 585 (Mo. 1976). Provision of the City Sales Tax Act imposing on the seller the duty of collection of a city sales tax on the sale of any new or used car does not, either expressly or by plain implication, modify statute requiring the director of revenue to collect the Missouri sales tax and, thus, does not shift the burden of collecting city sales taxes on trailers from the director of revenue to sellers of trailers.

12 CSR 10-5.595 Mobile Homes T.T. regulation 635-3 originally filed as C.S.T. regulation 560-2 Oct. 28, 1975, effec- Filed Sept. 12, 2005, effective March 30, 2006. {#sec-12-csr-10-5.595 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.595}

12 CSR 10-5.605 Delinquent Tax T.T. regulation 640-1 originally filed as C.S.T. regulation 570-1 Oct. 28, 1975, effec- Filed Sept. 12, 2005, effective March 30, 2006. {#sec-12-csr-10-5.605 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-5.605}

6CODE OF STATE REGULATIONS 12 CSR 10-5óDEPARTMENT OF REVENUEDivision 10óDirector of Revenue

Chapter 6 Motor Vehicle Fuel Tax

12 CSR 10-6.100 Motor Fuel Tax Exemption for Operators of Public Mass Transportation {#sec-12-csr-10-6.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-6.100}

12 CSR 10-6.010 Revocation of Private Rulings {#sec-12-csr-10-6.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-6.010}

(Rescinded July 30, 2018)

History

AUTHORITY: section 142.300, RSMo 1986. Regulation 10-101 was filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-6.020 Bonding Requirements {#sec-12-csr-10-6.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-6.020}

PURPOSE: This rule establishes procedures whereby the director may reject surety bonds issued by an insurance company suspended by the Missouri Division of Insurance. The rule also sets forth that the director can require that a new bond shall be posted if the taxpayer has a surety bond issued by a suspended surety company.

rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

(1) When applying for a motor fuel license, a Cash Bond Form 332 or Surety Bond Form 331 must be submitted with the application.

(2) Prior to the suspension of the authority of a surety company, written notification shall be sent via certified mail to the surety company of the impending suspension. If a written response is not received within ten (10) days stating a good cause why the suspension should not be implemented, the suspension shall be implemented and the surety will remain suspended until such time the restitution is made or the surety company is reinstated at the discretion of the director.

(3) The department shall require all licensees bonded with a surety company whose license to do business in Missouri has been suspended by the Division of Insurance to obtain a new surety bond with a company whose license is in good standing with the Missouri Division of Insurance.

(4) All motor fuel accounts (licensed under Chapter 142, RSMo) with surety bonds issued by a suspended surety company are required to replace each bond within sixty (60) days for motor fuel licensees from the date of notification by the director.

(5) The forms Cash Bond Form 332 and Surety Bond Form 331 are incorporated by reference and made a part of this rule as published by Missouri Department of Revenue, and are available at www.dor.mo.gov or Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65101, dated May 2, 2023. This rule does not incorporate any subsequent amendments or additions.

History

AUTHORITY: sections 142.881, 142.884, 142.887, 142.890, and 142.896, RSMo 2016. Regulation 10-100 was filed Nov. 6, 1975, effective Nov. 16, 1975. Amended: Filed June 17, 1986, effective Sept. 26, 1986. Amended: Filed July 17, 2023, effective Feb. 29, 2024. Original authority: 142.881, RSMo 1998; 142.884, RSMo 1998; 142.887, RSMo 1998; 142.890, RSMo 1998; and 142.896, RSMo 1998, amended 1999.

12 CSR 10-6.030 Motor Fuel Bond Trust Fund {#sec-12-csr-10-6.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-6.030}

PURPOSE: Section 142.896, RSMo, creates the Motor Fuel Bond Trust Fund as an alternative to posting a surety bond, cash bond, certificate of deposit, or letter of credit for qualifying distributors.

This rule sets the rate for contributions made to the fund and the minimum/maximum amount the fund may contain.

(1) In general, all distributors must post a bond with the department. In lieu of posting a surety bond, cash bond, certificate of deposit or letter of credit, a qualifying distributor may contribute to the Motor Fuel Bond Trust Fund, at the rate prescribed by this rule.

(2) Definition of Terms.

(A) Distributor—any person required by section 142.893, RSMo, to obtain a distributor’s license.

(B) Qualifying distributor—a distributor that met all the requirements for participating in the Motor Fuel Bond Trust Fund prior to the effective date of this rule, or that completes three (3) consecutive years of satisfactory tax compliance.

(C) Satisfactory tax compliance—the act of filing all reports and making all payments in the time and manner prescribed by Chapter 142, RSMo.

(3) Basic Application of Tax.

(A) The contribution rate to the Motor Fuel Bond Trust Fund for motor fuel is as follows:

$0.0024 July 1, 2006, through September 30, 2021;
$0.0028 October 1, 2021, through June 30, 2022;
$0.0031 July 1, 2022, through June 30, 2023;
$0.0035 July 1, 2023, through June 30, 2024;
$0.0038 July 1, 2024, through June 30, 2025; and, 6. $0.0042 July 1, 2025, forward.

(B) The contribution rate to the Motor Fuel Bond Trust Fund for aviation gasoline is $0.0013 per gallon for aviation gasoline effective July 21, 2006.

(C) The contribution rate to the Motor Fuel Bond Trust Fund for compressed natural gas (CNG) and liquefied natural gas (LNG) is— 1. $0.0016 January 1, 2016, through December 31, 2024; and 2. $0.0024 January 1, 2025, forward.

(D) The contribution rate to the Motor Fuel Bond Trust Fund for propane is— 1. $0.0016 August 28, 2017, through December 31, 2024; and 2. $0.0024 January 1, 2025, forward.

(E) The rate per gallon applies to all gallons purchased from Missouri licensed suppliers and all gallons imported during the month subject to taxes and/or fees.

(F) Qualifying distributors that choose to participate in the fund must make contributions until the fund reaches a maximum of one (1) million dollars, except as noted in subsection (3)(H) below.

(G) When the fund reaches the maximum, participating distributors are not required to make additional contributions to the fund until the fund is reduced to five hundred thousand dollars ($500,000), at which time the contributions will be reinstated.

(1/30/24) John R. Ashcroft (H) A qualifying distributor must pay into the fund for a minimum of one (1) year after it elects to participate even if the fund has reached the one (1) million dollar cap.

(4) Examples.

(A) A qualifying distributor imports 500,000 gallons of gasoline into Missouri on a monthly basis in 2020. Instead of purchasing a surety bond for three times the monthly liability, the distributor chooses to contribute to the Motor Fuel Bond Trust Fund. The monthly contribution required is $1,200 (500,000 × $0.0024).

(B) A qualifying distributor purchases 100,000 gallons of aviation gasoline for sale in Missouri on a monthly basis in 2020. Instead of providing a letter of credit for three times the monthly liability, the distributor chose to contribute to the Motor Fuel Bond Trust Fund. The monthly contribution required is $130 (100,000 × $0.0013).

(C) A qualifying distributor that has previously posted a cash bond chooses to participate in the Motor Fuel Bond Trust Fund. At the time the distributor makes the election to participate in the fund, the fund contains one million dollars and participating distributors are not making contributions.

As a newly participating distributor, the distributor must make contributions for at least one year even though the fund has reached the maximum.

rule filed Oct. 31, 2005, effective May 30, 2006. Amended: Filed May 2, 2023, effective Dec. 30, 2023. *Original authority: 142.896, RSMo 1998, amended 1999, and 142.953, RSMo 1998.

History

AUTHORITY: sections 142.896.3 and 142.953, RSMo 2016. Original

12 CSR 10-6.100 Motor Fuel Tax Exemption for Operators of Public Mass Transportation Service {#sec-12-csr-10-6.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-6.100}

PURPOSE: Section 142.817, RSMo, exempts operators of public mass transportation service from motor fuel tax. This rule explains how the exemption is to be claimed.

(1) In general, fuel used to operate public mass transportation services is not subject to Missouri motor fuel tax. Fuel that is not subject to Missouri motor fuel tax is subject to Missouri state and local sales tax, unless otherwise exempted under

Chapter 144, RSMo.

(2) Basic Application.

(A) Operators of public mass transportation services who purchase fuel and paid the Missouri motor fuel tax may obtain a refund of the tax. The operator of the public mass transportation service must certify to the department, on a Form 5141 Public Mass Transportation Operator Exemption Certificate, that the motor fuel will be used exclusively in the operation of the mass transportation service.

The operator must submit the claim on a Form 4923 Non-Highway Use Motor Fuel Refund Claim within one (1) year of the date of purchase or April 15 of the year following the purchase, whichever is later.
The refund will equal the motor fuel tax, less all applicable state and local sales taxes unless the entity is otherwise exempt from Missouri sales tax.

(B) Ultimate vendors may make bulk sales of motor fuel to the exempt public mass transportation service without collecting the state motor fuel tax. The ultimate vendor that purchased the motor fuel and paid the Missouri motor fuel tax may obtain a refund if the ultimate vendor sold the motor fuel without charging the Missouri motor fuel tax.

Operators must furnish the ultimate vendor a Form 5141 Public Mass Transportation Operator Exemption Certificate in order to purchase the motor fuel without being charged the Missouri motor fuel tax.
Any ultimate vendor who is a retailer, and not licensed as a supplier or distributor, must submit the claim on a Form 4923 Non-Highway Use Motor Fuel Refund Claim within two (2) years of the date of purchase.
If the ultimate vendor is licensed as a Missouri supplier or distributor, the claim for refund must be submitted on a Form 4923 Non-Highway Use Motor Fuel Refund Claim and must be filed within three (3) years of the date of purchase.
The ultimate vendor must collect and remit to the department any applicable state and local sales taxes at the rate in effect at the vendor’s place of business.

(3) Examples.

(A) A public mass transportation service operator has vehicles that operate on gasoline or gasohol. The operator goes to the pump to fuel its vehicles. The operator will purchase the gasoline or gasohol subject to all taxes and may apply for a refund of the state motor fuel tax.

(B) A public mass transportation service operator has vehicles that operate on diesel fuel. The operator may purchase clear diesel fuel subject to the state motor fuel tax and apply for a refund or if allowed under federal law, it may purchase dyed diesel fuel, which is exempt from state and federal fuel tax. It is required to complete and provide the ultimate vendor with an exemption certificate prior to filling any vehicles or ordering any dyed diesel fuel.

(C) A public mass transportation service operator has bulk storage facilities for the motor fuel used to fuel its vehicles.

The ultimate vendor who delivers the motor fuel may sell the product without charging the motor fuel tax. The ultimate vendor would charge any applicable sales tax unless the operator is exempt from sales tax under state law. The ultimate vendor would then apply for a refund of the motor fuel tax it paid on the motor fuel but did not collect from the operator.

(D) A public mass transportation service operator has vehicles that operate on diesel fuel and meet the exemption requirements under federal law. Its routes include states other than Missouri, and the other state does not allow the use of dyed diesel fuel on public roadways. Even though Missouri and the federal government would allow the use of dyed diesel fuel, the operator must purchase and use clear fuel in the vehicles that cross into the neighboring state.

(4) The forms 5141 Public Mass Transportation Operator Exemption Certificate and 4923 Non-Highway Use Motor Fuel Refund Claim are incorporated by reference and made a part of this rule as published by Missouri Department of Revenue, and are available at www.dor.mo.gov or Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65101, dated April 25, 2023. This rule does not incorporate any subsequent amendments or additions.

Original rule filed Aug. 14, 2007, effective Feb. 29, 2008. Amended:

Filed July 17, 2023, effective Feb. 29, 2024. *Original authority: 136.035, RSMo 1951, amended 2001; 142.817, RSMo 2007; 142.824, RSMo 1998, amended 1999; and 144.030, RSMo 1939, amended 1941, 1943, 1945, 1949, 1961, 1965, 1967, 1969, 1977, 1979, 1980, 1982, 1983, 1985, 1986, 1988, 1989, 1991, 1994, 1995, 1996, 1997, 1998, 1999, 2003, 2004, 2005, 2007.

History

AUTHORITY: sections 136.035 and 142.817, RSMo 2016, and sections 142.824 and 144.030, RSMo Supp. 2023. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008.

Chapter 7 Special Motor Fuel Use Tax

12 CSR 10-7.020 Tax-Paid Purchases by Special Fuel Dealers and Users {#sec-12-csr-10-7.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.020}

12 CSR 10-7.030 Record Keeping and Filing of Reports {#sec-12-csr-10-7.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.030}

(Rescinded July 30, 2018). . . . . . . . . . . . 3

12 CSR 10-7.060 Verification of Fleet Mileage—Acceptable Source Documentation {#sec-12-csr-10-7.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.060}

12 CSR 10-7.070 Use of Motor Fuel and Special Fuel in Same Vehicle {#sec-12-csr-10-7.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.070}

12 CSR 10-7.090 Reporting Requirements for LP Gas Uses and Dealers {#sec-12-csr-10-7.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.090}

12 CSR 10-7.110 Special Fuel Used in Private Passenger Automobiles {#sec-12-csr-10-7.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.110}

12 CSR 10-7.130 Special Fuel-Powered 26,000 Lbs., 2-Axle Truck Exemption—Pickups {#sec-12-csr-10-7.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.130}

12 CSR 10-7.140 Credit or Refund of Special Fuel Tax Used in Power Takeoff Units {#sec-12-csr-10-7.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.140}

12 CSR 10-7.150 Methods for Determining Special Fuel Used in Power Takeoff Units {#sec-12-csr-10-7.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.150}

12 CSR 10-7.180 Retail Dealer Licensing/Reporting Requirements: Multiple Locations {#sec-12-csr-10-7.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.180}

12 CSR 10-7.230 Special Fuel Users Not Subject to Licensure in Their Base State {#sec-12-csr-10-7.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.230}

12 CSR 10-7.240 Exemption Certificates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 {#sec-12-csr-10-7.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.240}

12 CSR 10-7.250 Special Fuel Tax Refund Claims—Purchasers Claiming Refunds of Tax {#sec-12-csr-10-7.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.250}

12 CSR 10-7.320 Adjustments to the Distribution of Funds Allocated Pursuant to Article IV, {#sec-12-csr-10-7.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.320}

Section 30(a) of the Missouri Constitution as Referenced in Section 142.345,

12 CSR 10-7.010 Revocation of Private Rulings {#sec-12-csr-10-7.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.010}

History

AUTHORITY: section 142.621, RSMo 1986. Regulation 10-101 was filed July 17, 1972, effective July 27, 1972. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-7.020 Tax-Paid Purchases by Special Fuel Dealers and Users {#sec-12-csr-10-7.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.020}

History

AUTHORITY: sections 142.372.3 and 142.621, RSMo 1986. Regulation 1 was filed July 17, 1972, effective July 27, 1972. Rescinded: Filed Jan. 26, 1989, effective May 11, 1989.

12 CSR 10-7.030 Record Keeping and Filing of Reports {#sec-12-csr-10-7.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.030}

Consolidated Freightways Corp. of Delaware v. State, 503 SW2d 1 (Mo. banc 1972) cert. denied 412 U.S. 919. The Department of Revenue’s interpretation of the 1965 Motor Vehicle Fuel Tax Act as applying to special fuels as well as motor fuels should be given serious consideration by the courts in construing the intent of the Act, as a rule of statutory construction. However, this rule of statutory construction is applied only to statutes or constitutional provisions which are ambiguous or uncertain. We do not find the 1965 Act to be reasonably susceptible to different constructions; thus there is no ambiguity and no occasion to apply the rule of administrative interpretation.

History

AUTHORITY: section 142.621, RSMo 1986. Regulations 2–4 were filed July 17, 1972, effective July 27, 1972. Amended: Filed Nov. 9, 1983, effective March 11, 1984. Amended: Filed Sept. 8, 1989, effective Jan. 26, 1990. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-7.040 Single Trip Permits {#sec-12-csr-10-7.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.040}

History

AUTHORITY: section 142.621, RSMo 1986. Regulation 5 was filed July 17, 1972, effective July 27, 1972. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-7.050 Lessors and Lessees of Motor Vehicles {#sec-12-csr-10-7.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.050}

History

AUTHORITY: section 142.621, RSMo 1986. Regulation 6 was filed July 17, 1972, effective July 27, 1972. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-7.060 Verification of Fleet Mileage—Acceptable Source Documentation {#sec-12-csr-10-7.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.060}

rule filed July 24, 1980, effective Dec. 11, 1980. Rescinded: Filed Jan.

History

AUTHORITY: sections 142.521 and 142.621, RSMo 1986. Original

12 CSR 10-7.070 Use of Motor Fuel and Special Fuel in Same Vehicle {#sec-12-csr-10-7.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.070}

History

AUTHORITY: section 142.621, RSMo 1986. Original rule filed June 9, 1982, effective Sept. 11, 1982. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-7.080 Who Must Obtain Decals {#sec-12-csr-10-7.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.080}

(Rescinded September 11, 1989) 12, 1982, effective Feb. 11, 1983. Rescinded: Filed March 22, 1989, effective Sept. 11, 1989.

12 CSR 10-7.090 Reporting Requirements for LP Gas Users and Dealers 12, 1982, effective Feb. 11, 1983. Rescinded: Filed Jan. 26, 1989, {#sec-12-csr-10-7.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.090}

12 CSR 10-7.100 Missouri Motor Fuel/Special Fuel Tax License {#sec-12-csr-10-7.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.100}

History

AUTHORITY: section 142.621, RSMo 1986. Original rule filed Jan. 21, 1983, effective May 12, 1983. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-7.110 Special Fuel Used in Private Passenger Automobiles {#sec-12-csr-10-7.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.110}

History

AUTHORITY: section 142.621, RSMo 1986. Original rule filed March 21, 1984, effective July 12, 1984. Rescinded: Filed Jan. 26, 1989,

12 CSR 10-7.120 Charter Bus Defined {#sec-12-csr-10-7.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.120}

(Rescinded September 11, 1989) 1, 1985, effective April 11, 1986. Rescinded: Filed March 22, 1989, effective Sept. 11, 1989.

12 CSR 10-7.130 Special Fuel-Powered 26,000 Lbs., 2-Axle Truck Exemption—Pickups and Moving Vehicles {#sec-12-csr-10-7.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.130}

Amended: Filed March 22, 1989, effective Sept. 11, 1989. Rescinded:

Filed Jan. 26, 2018, effective July 30, 2018.

(4/30/24) John R. Ashcroft

History

AUTHORITY: sections 142.621, RSMo 1986 and 142.513, RSMo Supp. 1989. Original rule filed Nov. 1, 1985, effective Jan. 26, 1986.

12 CSR 10-7.140 Credit or Refund of Special Fuel Tax Used in Power Takeoff Units {#sec-12-csr-10-7.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.140}

History

AUTHORITY: section 142.581, RSMo 1986. Original rule filed Nov. 1, 1985, effective Jan. 26, 1986. Rescinded: Filed Jan. 26, 1989,

12 CSR 10-7.150 Methods for Determining Special Fuel Used in Power Takeoff Units {#sec-12-csr-10-7.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.150}

rule filed Nov. 1, 1985, effective April 11, 1986. Rescinded: Filed Jan.

History

AUTHORITY: sections 142.581 and 142.621, RSMo 1986. Original

12 CSR 10-7.160 Records {#sec-12-csr-10-7.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.160}

rule filed Nov. 1, 1985, effective Jan. 26, 1986. Rescinded: Filed Jan.

History

AUTHORITY: sections 142.581 and 142.621, RSMo 1986. Original

12 CSR 10-7.170 Sales Tax Applies When Fuel Tax Does Not {#sec-12-csr-10-7.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.170}

rule filed Nov. 1, 1985, effective Feb. 13, 1986. Rescinded: Filed Sept. 19, 2008, effective April 30, 2009.

History

AUTHORITY: sections 144.020 and 144.270, RSMo 1986. Original

12 CSR 10-7.180 Retail Dealer Licensing/Reporting Requirements: Multiple Locations {#sec-12-csr-10-7.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.180}

History

AUTHORITY: section 142.621, RSMo 1986. Original rule filed Feb. 16, 1988, effective May 12, 1988. Rescinded: Filed Nov. 7, 2003, effective May 30, 2004.

12 CSR 10-7.190 Fuel Inspection Fee {#sec-12-csr-10-7.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.190}

(Rescinded March 30, 2024)

History

AUTHORITY: section 414.142, RSMo Supp. 1989. Original rule filed May 20, 1988, effective Sept. 29, 1988. Rescinded: Filed July 26, 2023, effective March 30, 2024.

12 CSR 10-7.200 Auxiliary Equipment Exemption {#sec-12-csr-10-7.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.200}

History

AUTHORITY: section 144.621, RSMo 1986. Original rule filed March 22, 1989, effective Sept. 11, 1989. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-7.210 Waterway or Pipeline Terminal Operators {#sec-12-csr-10-7.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.210}

History

AUTHORITY: sections 142.621, RSMo 1986 and 142.573.6 and 142.573.7, RSMo Supp. 1989. Original rule filed March 22, 1989, effective Sept. 11, 1989. Rescinded: Filed Nov. 7, 2003, effective May 30, 2004.

12 CSR 10-7.220 Special Fuel Inventory Subject to Tax {#sec-12-csr-10-7.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.220}

History

AUTHORITY: sections 142.372, RSMo Supp. 1989 and 142.621, 1989. Rescinded: Filed Nov. 7, 2003, effective May 30, 2004.

12 CSR 10-7.230 Special Fuel Users Not Subject to Licensure in Their Base State {#sec-12-csr-10-7.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.230}

History

AUTHORITY: sections 142.362(4), RSMo Supp. 1989 and 142.621, 1989. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-7.240 Exemption Certificates {#sec-12-csr-10-7.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.240}

PURPOSE: This rule clarifies the special fuel tax statutes as they relate to deductions which must be supported by special fuel exemption certificates.

(1) Special fuel distributors selling special fuel to be used by the purchaser for off-road purposes listed as follows are required to retain in their files a Special Fuel Exemption Certificate, executed by the purchaser, to substantiate the tax-exempt sales. Deductions taken on the Distributor’s Monthly Tax Report Form 4757 shall be supported by the signed invoice or sales slip for the month in which the tax-exempt sale occurred.

Exemption certificates may be accepted for the following sales:

(A) Special fuel sold for use in farm tractors and other farm machinery used exclusively for agricultural purposes, used on land owned or leased for the purpose of producing farm products and used directly in producing farm products to be fed to livestock or poultry to be sold ultimately in processed form at retail, pursuant to section 144.030, RSMo;

(B) Special fuel sold for use as a home heating oil for domestic purposes. Domestic purpose is defined as that portion which the individual purchaser does not use for business, commercial, or industrial purposes. Domestic purpose includes state and federal governments, political subdivisions, public elementary and secondary schools, public institutions of higher education and churches; and (C) Special fuel sold for use exclusively in railroad rolling stock for the transportation of persons or property.

(2) Once a special fuel distributor possesses an exemption certificate from a purchaser, additional exemption certificates for individual purchases are not required as long as there is no change in the character of the purchaser’s operation and the purchases are of special fuel claimed under the original exemption certificate. Exemption certificates shall be valid for five years (5) unless revoked by the customer or denied/ disallowed by the Department of Revenue.

(3) All sales which are not supported by the exemption certificate shall be deemed taxable and the seller held liable for the special fuel tax. The distributor must keep in its files invoices or sales slips supported by the exemption certificate, which must be made available for inspection by the director of revenue or their agents during all business hours of the day.

(4) A purchaser found to have issued an incorrect or invalid exemption certificate to the seller assumes full liability for any tax, penalties and interest due on the special fuel purchased with the exemption certificate.

(5) Where the distributor deducts sales of special fuel for farm equipment, domestic use and railroad rolling stock which are supported by a valid exemption certificate, individual purchase invoices or sales slips are not required to be signed by the purchaser, if the purchaser is not able to sign. In these cases, the seller who delivers the special fuel may sign as agent for the purchaser.

History

AUTHORITY: section 142.815, RSMo 2016. Original rule filed March 22, 1989, effective Sept. 11, 1989. Amended: Filed Jan. 31, 1992, effective Aug. 6, 1992. Amended: Filed Nov. 9, 2023, effective May 30, 2024. Original authority: 142.815, RSMo 1998, amended 1999, 2005, 2010, 2015.

12 CSR 10-7.250 Special Fuel Tax Refund Claims—Purchasers Claiming Refunds of Tax Paid on Fuel Used for Nonhighway Purposes {#sec-12-csr-10-7.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.250}

History

AUTHORITY: sections 142.584, RSMo Supp. 1989 and 142.621, 1989. Rescinded: Filed Sept. 19, 2008, effective April 30, 2009.

12 CSR 10-7.260 LP Gas or Natural Gas Decals {#sec-12-csr-10-7.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.260}

History

AUTHORITY: sections 142.366, RSMo Supp. 1989 and 142.621, 1989. Rescinded: Filed Sept. 19, 2008, effective April 30, 2009.

12 CSR 10-7.270 Special Fuel Distributors {#sec-12-csr-10-7.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.270}

History

AUTHORITY: section 142.621, RSMo 1986. Original rule filed March 22, 1989, effective Sept. 11, 1989. Rescinded: Filed Jan. 26, 2018,

12 CSR 10-7.280 Sale of Special Fuel to Dual Users {#sec-12-csr-10-7.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.280}

History

AUTHORITY: section 142.621, RSMo 1986. Original rule filed Oct. 19, 1989, effective Feb. 25, 1990. Amended: Filed Jan. 31, 1992, effective June 25, 1992. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-7.290 Special Fuel Reporting Option {#sec-12-csr-10-7.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.290}

History

AUTHORITY: section 142.621, RSMo 1986. Original rule filed Dec. 12, 1989, effective May 11, 1990. Rescinded: Filed Nov. 7, 2003, effective May 30, 2004.

12 CSR 10-7.300 Motor Fuel and Special Fuel Transporters {#sec-12-csr-10-7.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.300}

(Rescinded March 30, 2024)

Rescinded: Filed July 27, 2023, effective March 30, 2024.

History

AUTHORITY: sections 142.270, RSMo 1986, and 142.575, RSMo Supp. 1989. Original rule filed July 2, 1990, effective Dec. 31, 1990.

12 CSR 10-7.310 Release of Bonding Requirements {#sec-12-csr-10-7.310 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.310}

Emergency rule filed Sept. 14, 1990, effective Sept. 24, 1990, expired Jan. 21, 1991. Original rule filed Sept. 14, 1990, effective Feb. 14, 1991. Rescinded: Filed Nov. 7, 2003, effective May 30, 2004.

History

AUTHORITY: sections 142.100, RSMo 1986 and 142.462, RSMo Supp.

12 CSR 10-7.320 Adjustments to the Distribution of Funds Allocated Pursuant to Article IV, Section 30(a) of the Missouri Constitution as Referenced in Section 142.345, RSMo {#sec-12-csr-10-7.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.320}

PURPOSE: This rule explains the information required from each city, town, or village if there is a change in its population as a result of an adjustment to its population by the United States Census Bureau or as a result of an annexation or consolidation.

(1) The population used for the distribution of motor fuel tax pursuant to Article IV, Section 30(a)1(2), shall be the latest federal decennial census.

(2) In the event that the latest census is amended by the United States Census Bureau due to a correction in the census, the Department of Revenue shall amend the population for distribution purposes under the following conditions:

(A) Notification of the correction to the last federal decennial census shall be received from the city, town, or village which is affected by the correction in the census;

(B) The notification of the population change shall be accompanied by the official written notification from the United States Census Bureau;

(C) If the adjustment redistributes the total population within the state, the population of those cities, towns, or villages affected shall be indicated; and (D) If the adjustment changes the total population of the state and the population of the city, town, or village, the notice shall indicate the adjustment to the total population and to the city, town, or village affected.

(3) Upon receipt of the official written notification, the department shall adjust the population figures prospectively.

(4) For adjustments to the population as a result of annexation or consolidation— (A) Each city, town, or village shall file with the director a certified copy of the annexation election results or a certified copy of the ordinance approving the annexation or consolidation;

(B) The city, town, or village shall also file with the director official written notification from the United States Census Bureau of the population in the annexed or consolidated area, as shown by the last federal decennial census;

(C) The official written notification shall also indicate which city, town, village or unincorporated area lost population as a result of the annexation or consolidation; and (D) If the director of revenue receives notification before the fifteenth day of the month, the tax imposed by section (4) shall be distributed and allocated using the new information beginning with the next distribution. If notification is received (4/30/24) John R. Ashcroft after the fifteenth day of the month, the tax imposed by

section (4) shall be distributed and allocated using the new information beginning with the second distribution following receipt of the notification by the director.

rule filed March 4, 1991, effective July 8, 1991. Amended: Filed July 25, 2023, effective March 30, 2024. *Original authority: 136.120, RSMo 2016, and 144.705, RSMo 1959.

History

AUTHORITY: sections 136.120 and 144.705, RSMo 2016. Original

12 CSR 10-7.330 Minimum/Maximum Bond Amounts {#sec-12-csr-10-7.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-7.330}

rule filed Jan. 31, 1992, effective June 25, 1992. Rescinded: Filed Nov. 7, 2003, effective May 30, 2004.

History

AUTHORITY: sections 142.300 and 142.621, RSMo 1986. Original

Chapter 8 Inheritance and Estate Tax

12 CSR 10-8.010 Definitions RSMo 1986. Inheritance tax rule 61-010 was 1976. Rescinded: Filed Dec. 8, 2021, effec- {#sec-12-csr-10-8.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.010}

12 CSR 10-8.020 Property Subject to Tax RSMo 1969. Inheritance tax rule 61-020 was 1976. Rescinded: Filed Dec. 8, 2021, effec- {#sec-12-csr-10-8.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.020}

12 CSR 10-8.030 Federal Death Tax Credit RSMo 1969. Inheritance tax rule 61-070 was 1976. Rescinded: Filed Dec. 8, 2021, effec- {#sec-12-csr-10-8.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.030}

12 CSR 10-8.040 Homestead Allowance RSMo 1969. Inheritance tax rule 61-090 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.040}

12 CSR 10-8.050 Interest RSMo 1969. Inheritance tax rule 61-110 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.050}

12 CSR 10-8.060 Payment of Tax— Receipt—Refund RSMo 1969. Inheritance tax rule 61-140 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.060}

12 CSR 10-8.070 Probate Court to Determine Tax—Procedure RSMo 1969. Inheritance tax rule 61-150 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.070}

12 CSR 10-8.080 Appraisers Duties and Report of Appraisement RSMo 1969. Inheritance tax rule 61-160 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.080}

12 CSR 10-8.090 Errors in Appraiser’s Reports—Exceptions to Appraiser’s Report RSMo 1969. Inheritance tax rule 61-170 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.090}

12 CSR 10-8.100 Report of Appraiser RSMo 1969. Inheritance tax rule 61-180 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.100}

12 CSR 10-8.110 Valuation of Life Estates and Remainder—Methods of Computation—Mortality Table RSMo 1969. Inheritance tax rule 61-200 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.110}

12 CSR 10-8.120 Notice of Intention to Transfer Assets RSMo 1969. Inheritance tax rule 61-210 was 1976. Rescinded: Filed Dec. 8, 2021, effec- {#sec-12-csr-10-8.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.120}

12 CSR 10-8.130 Exercise of Power of Appointment—Unlimited Power of Encroachment RSMo 1969. Inheritance tax rule 61-230 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.130}

12 CSR 10-8.140 Refund RSMo 1986. Inheritance tax rule 61-250 was 1976. Rescinded: Filed April 1, 2002, effec- {#sec-12-csr-10-8.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.140}

12 CSR 10-8.150 Mortality Table RSMo 1969. Mortality table was last filed on Dec. 31, 1975, effective Jan. 10, 1976. {#sec-12-csr-10-8.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.150}

Rescinded: Filed April 1, 2002, effective Oct. 30, 2002.

12 CSR 10-8.160 Estate Tax Interest Rate {#sec-12-csr-10-8.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.160}

Amended: Filed March 31, 1988, effective Sept. 29, 1988. Rescinded: Filed Dec. 8, 2021, effective June 30, 2022.

History

AUTHORITY: sections 32.065, 145.551, and 145.961, RSMo 1986. Original rule filed Oct. 15, 1985, effective Jan. 26, 1986.

12 CSR 10-8.170 Extension of Time to Pay Missouri Estate Tax {#sec-12-csr-10-8.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.170}

Original rule filed Feb. 25, 1986, effective June 28, 1986. Amended: Filed March 31, 1988, effective Sept. 29, 1988. Rescinded:

Filed Dec. 8, 2021, effective June 30, 2022.

(5/31/22) JOHN R. ASHCROFT

History

AUTHORITY: section 145.961, RSMo 1986.

12 CSR 10-8.180 Claims for Refund of Missouri Estate Taxes When Paid in Installments {#sec-12-csr-10-8.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.180}

Original rule filed May 12, 1987, effective Aug. 27, 1987. Rescinded: Filed Dec. 8, 2021, effective June 30, 2022.

History

AUTHORITY: section 145.961, RSMo 1986.

12 CSR 10-8.190 Missouri Estate Tax Base {#sec-12-csr-10-8.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-8.190}

Rescinded: Filed Dec. 8, 2021, effective June 30, 2022.

History

AUTHORITY: sections 145.011, 145.041, and 145.961, RSMo 1986. Original rule filed Aug. 23, 1988, effective Dec. 29, 1988.

Chapter 9 Corporation Franchise Tax

12 CSR 10-9.130 Form: Authorization for Release of Confidential Information {#sec-12-csr-10-9.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.130}

12 CSR 10-9.250 Review by the Administrative Heating Commission {#sec-12-csr-10-9.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.250}

12 CSR 10-9.280 Limitations on Collection of Tax, Refunds {#sec-12-csr-10-9.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.280}

12 CSR 10-9.290 Compliance with the American with Disabilities Act {#sec-12-csr-10-9.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.290}

12 CSR 10-9.010 Corporation Franchise Tax Form {#sec-12-csr-10-9.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.010}

(Rescinded January 13, 1983)

History

AUTHORITY: section 536.022, RSMo Supp. 1981. Original rule filed Dec. 22, 1975, effective Jan. 2, 1976. Rescinded: Filed Oct. 13, 1982, effective Jan. 13. 1983.

12 CSR 10-9.100 Forms for Franchise Tax previously filed as 15 CSR 30-150.010. Original rule filed April 13, 1989, effective July 13, 1989. Amended: Filed Nov. 2, 1989, effective March 11, 1990. Changed to 12 CSR 10-9.100, effective Jan. 1, 2000. {#sec-12-csr-10-9.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.100}

Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-9.110 Form: Request for Extension of Time to File previously filed as 15 CSR 30-150.020. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.110, {#sec-12-csr-10-9.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.110}

12 CSR 10-9.120 Form: Request for Franchise Tax Clearance previously filed as 15 CSR 30-150.030. Original rule filed Sept. 29, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.120, {#sec-12-csr-10-9.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.120}

12 CSR 10-9.130 Form: Authorization for Release of Confidential Information previously filed as 15 CSR 30-150.040. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.130, {#sec-12-csr-10-9.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.130}

12 CSR 10-9.140 General previously filed as 15 CSR 30-150.110. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.140, {#sec-12-csr-10-9.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.140}

12 CSR 10-9.150 Definitions previously filed as 15 CSR 30-150.120. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.150, {#sec-12-csr-10-9.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.150}

12 CSR 10-9.160 Exceptions previously filed as 15 CSR 30-150.130. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.160, {#sec-12-csr-10-9.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.160}

12 CSR 10-9.170 Tax Year {#sec-12-csr-10-9.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.170}

History

AUTHORITY: section 147.120.9, RSMo Supp. 1997. This rule previously filed as 15 CSR 30-150.140. Original rule filed Sept. 18, 1995, effective March 30, 1996. Amended: Filed Oct. 21, 1998, effective April 30, 1999. Changed to 12 CSR 10-9.170, effective Jan. 1, 2000. Rescinded: Filed May 17, 2023, effective Dec. 30, 2023.

12 CSR 10-9.180 Payment previously filed as 15 CSR 30-150.150. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.180, {#sec-12-csr-10-9.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.180}

12 CSR 10-9.190 Information Confidential, Exceptions previously filed as 15 CSR 30-150.160. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.190, {#sec-12-csr-10-9.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.190}

12 CSR 10-9.200 Report, Contents, Date Due {#sec-12-csr-10-9.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.200}

History

AUTHORITY: section 147.120.9, RSMo Supp. 1997. This rule previously filed as 15 CSR 30-150.170. Original rule filed Sept. 28, 1995, effective March 30, 1996. Amended: Filed Oct. 21, 1998, effective April 30, 1999. Changed to 12 CSR 10-9.200, effective Jan. 1, 2000. Rescinded: Filed May 22, 2023, effective Dec. 30, 2023.

12 CSR 10-9.210 Extension of Time to File previously filed as 15 CSR 30-150.180. Original rule filed Sept. {#sec-12-csr-10-9.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.210}

(11/30/23) John R. Ashcroft 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.210,

12 CSR 10-9.220 Audits previously filed as 15 CSR 30-150.190. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.220, {#sec-12-csr-10-9.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.220}

12 CSR 10-9.230 Assessments previously filed as 15 CSR 30-150.200. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.230, {#sec-12-csr-10-9.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.230}

12 CSR 10-9.240 Final Determinations, Hearings previously filed as 15 CSR 30-150.210. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.240, {#sec-12-csr-10-9.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.240}

12 CSR 10-9.250 Review by the Administrative Hearing Commission previously filed as 15 CSR 30-150.220. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.250, {#sec-12-csr-10-9.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.250}

12 CSR 10-9.260 Overpayments previously filed as 15 CSR 30-150.230. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.260, {#sec-12-csr-10-9.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.260}

12 CSR 10-9.270 Amended Reports previously as 15 CSR 30-150.240. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.270, effective Jan. 1, 2000. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018. {#sec-12-csr-10-9.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.270}

12 CSR 10-9.280 Limitations on Collection of Tax, Refunds previously filed as 15 CSR 30-150.250. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.280, {#sec-12-csr-10-9.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.280}

12 CSR 10-9.290 Compliance with the Americans with Disabilities Act previously filed as 15 CSR 30-150.300. Original rule filed Sept. 28, 1995, effective March 30, 1996. Changed to 12 CSR 10-9.290, {#sec-12-csr-10-9.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-9.290}

Chapter 10 Financial Institutions

12 CSR 10-10.040 Statute of Limitations for Credit Union and Savings and Loan {#sec-12-csr-10-10.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.040}

12 CSR 10-10.060 Multiple Assessments of Credit Unions and Savings and Loan {#sec-12-csr-10-10.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.060}

12 CSR 10-10.070 Extension of Time to File Credit Unions and Savings and Loan {#sec-12-csr-10-10.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.070}

12 CSR 10-10.100 Multiple Assessments of Banking Institutions for a Single Year {#sec-12-csr-10-10.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.100}

12 CSR 10-10.120 Delinquent Interest Rate for Insurance Premium and Retaliatory {#sec-12-csr-10-10.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.120}

12 CSR 10-10.135 Federal Income Tax Deduction {#sec-12-csr-10-10.135 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.135}

(Rescinded July 30, 2024). . . . . . . . . . . . . . . 7

12 CSR 10-10.140 Interest, Additions to Tax and Penalty {#sec-12-csr-10-10.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.140}

(Rescinded September 30, 2024) ..7

12 CSR 10-10.165 Method of Computing Federal Income Tax Deduction for Credit {#sec-12-csr-10-10.165 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.165}

12 CSR 10-10.170 Method of Computing Federal Income Tax Deduction for Credit {#sec-12-csr-10-10.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.170}

12 CSR 10-10.175 Personal Property Tax Credits—Definition, Calculation and Refund {#sec-12-csr-10-10.175 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.175}

12 CSR 10-10.180 Interest Earned by Banking Institutions From the Resolution Funding Corporation and the Financial Corporation {#sec-12-csr-10-10.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.180}

12 CSR 10-10.010 Sales Tax/Bank Tax Credit {#sec-12-csr-10-10.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.010}

(Rescinded July 30, 2018) 11, 1983, effective Aug. 11, 1983. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-10.020 Allocation of Bank Tax {#sec-12-csr-10-10.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.020}

PURPOSE: This rule provides a uniform manner for financial institutions to apportion their bank tax among the main bank and the branches. This uniform treatment assures consistent disbursements to the political subdivisions of Missouri.

(1) The definitions of terms used in this rule are as follows:

(A) Taxable year shall mean the calendar year in which the bank tax is required to be filed and the bank tax is payable;

(B) Income period shall mean the calendar year next preceding the taxable year;

(C) Facility shall have the meaning ascribed to it in section 362.107, RSMo; and (D) FDIC Report shall mean the summary of deposits filed with the Federal Deposit Insurance Corporation (FDIC) during the income period pursuant to the Code of Federal Regulations 12 CFR 304.3.(q).

(2) The division of the bank tax between the main banking house and facility shall be computed as follows:

(A) General Rule. If a bank maintains or operates one (1) or more facilities, then the bank tax liability of the bank for the taxable year shall be divided among the main banking house and each of the facilities by application of a fraction, the numerator of which is the amount of deposits reported for the main banking house or the facility, in the FDIC Report, and the denominator is the sum of the deposits reported for the bank’s main banking house and all of its facilities in the same FDIC Report;

(B) Exception to the General Rule. Where a main banking house or facility is chartered or authorized after the cutoff date for the FDIC Report, records shall be maintained on a calendar quarter basis that indicate the amount of deposits in the new main banking house or facility as of the last day of the calendar quarter in the income period, provided the new banking house or facility was in existence for any part of that calendar quarter. To prorate the deposits, they shall be added together and divided by four (4). The resulting figure shall be the deposits for the new main banking house or facility. The bank tax liability for the taxable year shall be divided among the new banking house or new facility by the application of a fraction, the numerator of which is the amount of deposit for the new main banking house or the new facility as determined in this subsection and the denominator shall be the sum of deposit determined for the denominator under subsection (2)

(A) plus the deposits reported for all of each bank’s new main banking houses or facilities subject to this subsection; and (C) Rule for Automated Teller Machines. Automated teller machines (ATMs) that are authorized and operate as facilities are not subject to the FDIC Report. Therefore, deposits through ATMs shall be allocated as follows:

If the ATM operates as a facility before the cutoff date for the FDIC Report, the deposit will be hidden in the FDIC Report for all bank locations. The ATM operating as a facility shall report its deposit separately as of the cutoff date for the FDIC Report. The tax liability for the taxable year shall be divided between the ATM operated as a facility and the main banking house and all other facilities by the application of a fraction, the numerator of which is the amount of deposit the bank has separately calculated for the ATM operated as a facility in the income period and the denominator is the sum of deposits determined for the denominator under subsections (2)(A) and (B). However, this exception requires that the deposit representing the main banking house be reduced by an amount equal to the deposit reported for the ATM operating as a facility;
If the ATM operates as a facility only after the cutoff date for the FDIC Report, then the deposit of the facility shall be reported in the same manner deposits are reported for new facilities under subsection (2)(B);
If a bank deposit is reported through the use of a thrift, credit union or proprietary ATM system (which the bank does not own or lease), the deposit shall be considered a part of the main banking house deposits; and 4. ATMs that operate as a part of the manned facility or the main banking house shall not be separately reported.

History

AUTHORITY: section 148.100, RSMo 2016. Original rule filed Oct. 15, 1984, effective Feb. 11, 1985. Amended: Filed July 25, 2023,

12 CSR 10-10.030 Statute of Limitations for Bank Tax {#sec-12-csr-10-10.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.030}

Original rule filed July 11, 1985, effective Oct. 11, 1985. Rescinded:

Filed July 31, 2023, effective March 30, 2024.

History

AUTHORITY: sections 148.100, 148.200, and 148.700, RSMo 1986.

12 CSR 10-10.040 Statute of Limitations for Credit Union and Savings and Loan Association Tax {#sec-12-csr-10-10.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.040}

PURPOSE: This rule establishes a statute of limitations for the assessment of Credit Union and Savings and Loan Association Tax as set out in Chapter 148, RSMo.

(1) Except as otherwise provided in this rule, an assessment shall be mailed to the taxpayer within three (3) years after the return was filed. No deficiency shall be assessed or collected with respect to the year for which the return was filed unless the notice is mailed within the three (3)-year period or the period otherwise fixed.

(2) If a taxpayer omits from its return an amount of income that is properly includable in its gross income which is in excess of twenty-five percent (25%) of the amount of gross income stated in its return, an assessment may be mailed to the taxpayer within six (6) years after the return was filed. For purposes of this rule, in determining the amount omitted, there shall not be taken into account any amount which is omitted in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the director of revenue of the nature and amount of the item.

(2/29/24) John R. Ashcroft (3) If no return is filed or a false or fraudulent return is filed with intent to evade the tax, an assessment may be mailed to the taxpayer at any time.

(4) If a taxpayer fails to report a change or correction in federal taxable income which would increase its tax liability under Chapter 148, RSMo an assessment may be mailed to the taxpayer within one (1) year after the Business Tax Bureau or Field Audit Bureau of the Department of Revenue shall become aware of the change or correction. A notice under this section shall be limited to the effects of the change or correction.

(5) Where, before the expiration of the time prescribed in this

rule for the assessment of a deficiency, both the director of revenue and the taxpayer shall have consented in writing to its assessment after that time, the deficiency may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed may be extended by subsequent agreement in writing made before the expiration of the period previously agreed upon.

(6) For purposes of this rule, a return filed before the last day prescribed by law or by a corresponding rule for the filing of that return shall be deemed to be filed on the last day. If a return for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, the return shall be deemed to be filed on April 15 of the succeeding calendar year.

History

AUTHORITY: sections 148.100, 148.200 and 148.700, RSMo 1986. Original rule filed July 11, 1985, effective Oct. 11, 1985. Original authority: 148.100, RSMo 1945; 148.200, RSMo 1945 and 148.700, RSMo 1982.

12 CSR 10-10.050 Statute of Limitations for Credit Institutions Tax {#sec-12-csr-10-10.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.050}

PURPOSE: This rule establishes a statute of limitations for the assessment of Credit Institutions Tax as set out in Chapter 148, RSMo.

(3) If no return is filed or a false or fraudulent return is filed with intent to evade the tax, an assessment may be mailed to the taxpayer at any time.

(4) If a taxpayer fails to report a change or correction in federal taxable income which would increase its tax liability under

Chapter 148, RSMo, an assessment may be mailed to the taxpayer within one (1) year after the Business Tax Bureau or Field Audit Bureau of the Department of Revenue shall become aware of the change or correction. A notice under this section shall be limited to the effects of the change or correction.

(5) Where, before the expiration of the time prescribed in this

(6) For purposes of this rule, a return filed before the last day prescribed by law or by a corresponding rule for the filing of that return, shall be deemed to be filed on the last day. If a return for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, the return shall be deemed to be filed on April 15 of the succeeding calendar year.

History

AUTHORITY: sections 148.100, 148.200 and 148.700, RSMo 1986. Original rule filed July 11, 1985, effective Oct. 11, 1985. Original authority: 148.100, RSMo 1945; 148.200, RSMo 1945 and 148.700, RSMo 1982.

12 CSR 10-10.060 Multiple Assessments of Credit Unions and Savings and Loan Associations for a Single Year {#sec-12-csr-10-10.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.060}

PURPOSE: This rule clarifies that the director of revenue may issue multiple assessments against a taxpayer for a given period on separate issues.

(1) The director of revenue may issue multiple assessments against the taxpayer for a single taxable year pursuant to

section 148.680, RSMo when the director determines, based on separate findings or evidence adduced at the hearing provided in section 148.680, RSMo that the correct amount of the tax is greater than that tax computed by the taxpayer. The director, upon making the determination, shall notify the taxpayer by certified mail. The director will state on each assessment the reason for which it is issued. The taxpayer may seek independent review of each determination of the director of revenue by the Administrative Hearing Commission.

(2) Example: The taxpayer files a return for the taxable year and remits an underpayment of the tax for the period. The director determines based on the return and payment that the correct amount of the tax is greater than that remitted by the taxpayer and issues an assessment for the underpayment. At a later date, an audit conducted by the Department of Revenue of the credit union or savings and loan reveals additional findings based on separate issues not associated with the underpayment and the director determines that the correct amount of the tax is greater than that previously computed and based on these findings issues a separate assessment for the same taxable year. The taxpayer may seek independent review of each assessment by the Administrative Hearing Commission.

The first assessment generated will be for the amount of the underpayment and will contain the language underpayment as the basis for the assessment. The second assessment for the same taxable period will be based on the audited findings and will contain the language additional audit findings as the basis for the assessment.

History

AUTHORITY: section 148.700, RSMo 1986. Original rule filed Sept. Original authority: 148.700, RSMo 1982.

12 CSR 10-10.070 Extension of Time to File Credit Unions and Savings and Loan Associations Tax Returns extensions of time to file for Credit Unions and Savings and Loan Associations tax returns. {#sec-12-csr-10-10.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.070}

(1) Reasonable extension of time to file under sections 148.610– 148.710, RSMo is defined by the director of revenue to mean File, Form 7004, filed with the federal government or the (2) Any taxes not paid before the original due date shall bear interest computed in accordance with section 148.640, RSMo.

(3) The return shall be filed and all unpaid taxes plus interest

History

AUTHORITY: section 148.700, RSMo 1986. Original rule filed Sept. Original authority: 148.700, RSMo 1982.

12 CSR 10-10.080 Multiple Assessments of Credit Institutions for a Single Year {#sec-12-csr-10-10.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.080}

PURPOSE: This rule clarifies that the director of revenue may issue multiple assessments against a taxpayer for a given period on separate issues.

(1) The director of revenue may issue multiple assessments against the taxpayer for a single taxable year pursuant to

section 148.190, RSMo when the director determines, based on separate findings, that the correct amount of the tax is greater than that tax computed by the taxpayer. The director, upon making the determination, shall notify the taxpayer by certified mail. The director will state on each assessment the reason for which it is issued. The taxpayer may seek independent review of each determination of the director of revenue by the Administrative Hearing Commission.

(2) Example: The taxpayer files a return for the taxable year and remits an underpayment of the tax for the period. The director determines, based on the return and payment, that the correct amount of the tax is greater than that remitted by the taxpayer and issues an assessment for the underpayment. At a later date, an audit conducted by the Department of Revenue of the credit institution reveals additional findings based on separate issues not associated with the underpayment and the director determines that the correct amount of the tax is greater than that previously computed and based on these findings issues a separate assessment for the same taxable year. The taxpayer may seek independent review of each assessment by the Administrative Hearing Commission. The first assessment generated will be for the amount of the underpayment and will contain the language underpayment as the basis for the assessment. The second assessment for the same taxable period will be based on the audited findings and will contain the language additional audit findings as the basis for the assessment.

History

AUTHORITY: section 148.200, RSMo 1986. Original rule filed Sept. Original authority: 148.200, RSMo 1945.

12 CSR 10-10.090 Extension of Time to File Credit Institutions Tax Returns extensions of time to file for credit institution tax returns. {#sec-12-csr-10-10.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.090}

(1) Reasonable extension of time to file under sections 148.120– 148.230, RSMo is defined by the director of revenue to mean File, Form 7004, filed with the federal government, or the (2) Any taxes not paid before the original due date shall bear interest computed in accordance with section 32.065, RSMo.

(3) The return shall be filed and all unpaid taxes plus interest

History

AUTHORITY: section 148.200, RSMo 1986. Original rule filed Sept. Original authority: 148.200, RSMo 1945.

12 CSR 10-10.100 Multiple Assessments of Banking Institutions for a Single Year {#sec-12-csr-10-10.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.100}

(Rescinded December 30, 2023)

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed Oct. 1, 1985, effective Dec. 26, 1985. Rescinded: Filed May 17, 2023, effective Dec. 30, 2023.

12 CSR 10-10.110 Extension of Time to File Bank Tax Returns extensions of time for bank tax returns. {#sec-12-csr-10-10.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.110}

(4/30/24) John R. Ashcroft (1) Reasonable extension of time to file under sections 148.010– 148.110, RSMo is defined by the director of revenue to mean File, Form 7004, filed with the federal government or the (2) Any taxes not paid before the original due date shall bear interest computed in accordance with section 32.065, RSMo.

(3) The return shall be filed and all unpaid taxes plus interest

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed Oct. 1, 1985, effective Dec. 26, 1985. Original authority: 148.100 RSMo 1945.

12 CSR 10-10.120 Delinquent Interest Rate for Insurance Premium and Retaliatory Taxes {#sec-12-csr-10-10.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.120}

PURPOSE: This rule provides guidance as to the interest rate applicable to delinquent insurance premium and retaliatory taxes.

(1) The delinquent interest computations for all quarterly payments which are due under sections 148.310–148.461, RSMo will be calculated at a rate determined by section 32.065, RSMo as provided by section 148.375, RSMo and set out in 12 CSR 10- 41.010. The delinquent rate will be computed for each month the payment is late, or fraction of a month, until the time the tax liability is paid in full.

(2) Claims for refunds must be filed within two (2) years from the date of payment in accordance with section 136.035, RSMo (refund statute) on forms prescribed by the director of revenue.

rule filed Oct. 17, 1985, effective Jan. 26, 1986. Amended: Filed Oct. 2, 2018, effective April 30, 2019. *Original authority: 136.120, RSMo 1945.

History

AUTHORITY: section 136.120, RSMo 2016. Emergency rule filed Oct. 17, 1985, effective Oct. 27, 1985, expired Feb. 24, 1986. Original

12 CSR 10-10.125 Income Period {#sec-12-csr-10-10.125 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.125}

(Rescinded December 30, 2023) 2, 1987, effective Aug. 13, 1987. Rescinded: Filed May 17, 2023, effective Dec. 30, 2023.

12 CSR 10-10.130 Bank Franchise Tax {#sec-12-csr-10-10.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.130}

PURPOSE: This rule establishes a procedure for filing the bank franchise tax return as required under section 148.050, RSMo.

(1) A taxpayer subject to the Missouri bank franchise tax or substitute bank franchise tax provided for in sections 148.030 and 148.031, RSMo, shall file the return required by section 148.050, RSMo, using the following forms published for the corresponding taxable year:

(A) Form INT-2;

(B) Form 2331; and (C) Form 4347 (if apportionment is required).

(2) A form required to be completed under section (1) of this

rule shall be completed in accordance with the instructions included on such form, including the “General Instructions” for the bank franchise tax return published for the corresponding taxable year.

(3) The Form(s) INT-2, Form(s) 2331, and Form(s) 4347, as well as the instructions included in or with such forms, as published by the Missouri Department of Revenue for bank franchise taxable years 2021 through 2023, dated as revised December 2023, are hereby incorporated by reference and made a part of this rule, and are available at www.dor.mo.gov or Harry S Truman State Office Building, 301 West High Street, Jefferson City, MO 65101. This rule does not incorporate any subsequent amendments or additions to such forms and instructions.

(4) The Form INT-2 and its instructions rely upon the federal Form(s) 1120, Form(s) 1120-S, and their instructions. For use in completing the Form INT-2 according to its instructions, the federal Form(s) 1120, Form(s) 1120-S, Instructions for Form(s) 1120, and Instructions for Form(s) 1120-S, for 2020 through 2022, dated as indicated below, as published by the Internal Revenue Service, are hereby incorporated by reference and made a part of this rule, and are available at www.irs.gov or by request at Harry S Truman State Office Building, 301 West High Street, Jefferson City, MO 65101. The forms and instructions incorporated by reference in this section are dated as follows: federal Forms 1120 and 1120-S–revision dates 2020, 2021, and 2022; 2020 Instructions for Form 1120–February 8, 2021; 2021 Instructions for Form 1120–January 24, 2022; 2022 Instructions for Form 1120–January 30, 2023; 2020 Instructions for Form 1120-S–February 3, 2021; 2021 Instructions for Form 1120–January 19, 2022; 2022 Instructions for Form 1120–January 27, 2023. This rule does not incorporate any subsequent amendments or additions to such forms and instructions.

(5) The Form INT-2 and its instructions rely upon Treasury Regulations 1.1552-1 and 1.1502-33(d). For use in completing the Form INT-2 according to its instructions, Treasury Regulation 1.1552-1 as found in Title 26, Section 1.1552-1 of the Code of Federal Regulations (last amended June 27, 1996), and Treasury

Regulation 1.1502-33(d) as found in Title 26, Section 1.1502-33(d) of the Code of Federal Regulations (last amended Oct. 20, 2008), are hereby incorporated by reference and made part of this

rule, as published by the United States Government Publishing Office, 732 N. Capitol Street NW, Washington, DC 20402-0001, phone: toll-free (866) 512-1800, DC area (202) 512-1800, website: www.bookstore.gpo.gov. This rule does not incorporate any subsequent amendments or additions to such regulations.

History

AUTHORITY: section 148.100, RSMo 2016. Original rule filed March 2, 1987, effective May 28, 1987. Amended: Filed Feb. 16, 1988, effective May 26, 1988. Amended: Filed Nov. 8, 2023, effective May 30, 2024.

12 CSR 10-10.135 Federal Income Tax Deduction {#sec-12-csr-10-10.135 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.135}

(Rescinded July 30, 2024) 2, 1987, effective Aug. 13, 1987. Rescinded: Filed Dec. 27, 2023, effective July 30, 2024.

12 CSR 10-10.140 Interest, Additions to Tax and Penalty {#sec-12-csr-10-10.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.140}

(Rescinded September 30, 2024) 2, 1987, effective Aug. 13, 1987. Rescinded: Filed Feb. 20, 2024, effective Sept. 30, 2024.

12 CSR 10-10.145 Refund of Overpayment of Bank Tax— Refund From Other County {#sec-12-csr-10-10.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.145}

PURPOSE: This rule establishes an effective date and period for which bank franchise tax refunds may be issued, as provided by sections 148.050, 148.062 and 148.076, RSMo.

(1) This rule shall only apply for the purpose of refunds of overpayments of taxes paid pursuant to section 148.030, RSMo.

(2) Credits will be allowed for credits approved by the director for taxable years prior to 1987.

(3) Interest will be allowed on any overpayments at a rate in accordance with section 143.811, RSMo if the overpayment is not refunded within one hundred twenty (120) days of the due date or date the return was filed, whichever occurs later.

(A) Interest shall be allowed on any overpayment resulting from the filing of an amendment of the tax by the taxpayer for taxable year 1987 and after that on or before the last day prescribed for filing of the return without regard for any extension of time at the rate established by section 143.811, RSMo.

(B) Interest shall be allowed on any overpayment where the overpayment resulted from filing of an amendment of tax by the taxpayer for taxable year 1987 and after that following the last date prescribed for the filing of the return at the rate of six percent (6%) per annum.

(C) No interest shall be allowed if the overpayment of tax is refunded within one hundred twenty (120) days after the last date prescribed or permitted by extension of time for filing the return.

(4) For purposes of this rule, the last day prescribed for filing shall be April 15 of the taxable year.

(5) Overpayments resulting from the calculation of tax in accordance with section 148.030.2(1), RSMo will be refunded from the General Revenue Fund, plus any applicable interest.

(6) Overpayments resulting from the calculation of tax in accordance with section 148.030.2(2), RSMo will be refunded if funds are available from the political subdivision(s) in which the institution is located. If funds are not available, the institution will be given a credit or it must apply for a refund of the overpayment from the political subdivision(s) in which the institution is located.

(7) All refunds or credits resulting from overpayments must be approved by the department before the refund or credit can be issued.

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed March 2, 1987, effective Aug. 13, 1987. Amended: Filed April 1, 1992, effective Sept. 6, 1992.

12 CSR 10-10.150 Tax Credits on Bank Tax Return {#sec-12-csr-10-10.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.150}

PURPOSE: This rule establishes guidelines concerning allowable tax credits on the bank franchise tax return pursuant to section 148.030.3., RSMo.

(1) The following criteria shall be used to establish whether or not a tax credit may be claimed against the bank franchise tax, imposed by sections 148.010–148.110, RSMo, computed pursuant to section 148.030.3., RSMo:

(A) The payment must have been made to Missouri or a Missouri political subdivision;

(B) Payment must have resulted from a tax liability imposed by a government agency, as defined in subsection (1)(A) and cannot be a regulatory fee collected solely for the purpose of paying the cost of administering the taxing jurisdiction’s laws; and (C) The following should be used as a general guideline to determine if an exaction, required by subsection (1)(A), is an allowable tax credit or a noncreditable fee:

If the proceeds, paid as defined in subsection (1)(A), are collected for deposit into the general revenue account of the taxing jurisdiction, to raise revenue for the entity, then it is a tax and is an allowable tax credit; or 2. If the proceeds, paid as defined in subsection (1)(A), are collected primarily to cover the costs of the regulation of an activity, and which are then deposited with the regulatory agency, then it is a noncreditable fee.

(2) At all times the burden of establishing whether an exaction is an allowable tax credit or a noncreditable fee shall be on the taxpayer.

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed March 2, 1987, effective May 28, 1987.

12 CSR 10-10.155 Bank Tax/Sales Tax Credit {#sec-12-csr-10-10.155 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.155}

PURPOSE: This rule establishes the taxable year when the sales tax credits may be taken, in accordance with section 148.030.3., RSMo.

(1) Beginning with taxable year 1987, all state and local sales and use taxes paid by banks as purchasers to sellers, vendors or Missouri on purchases of tangible personal property and (8/31/24) John R. Ashcroft services enumerated in Chapter 144, RSMo shall be creditable against the bank tax imposed under section 148.030, RSMo.

(2) All state and local sales and use taxes, taken as a credit, will not be allowed as a deduction in computing taxable income.

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed March 2, 1987, effective Aug. 13, 1987.

12 CSR 10-10.160 Neighborhood Assistance Credit (NAC) {#sec-12-csr-10-10.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.160}

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed March 2, 1987, effective Aug. 13, 1987. Amended: Filed Feb. 11, 1991, effective July 8, 1991. Rescinded: Filed July 31, 2023, effective March 30, 2024.

12 CSR 10-10.165 Method of Computing Federal Income Tax Deduction for Credit Institutions {#sec-12-csr-10-10.165 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.165}

PURPOSE: This rule establishes the method of computing the federal income tax deduction for credit institutions.

(1) Credit institutions using an accrual method of accounting to determine net income shall deduct their apportioned share of accrued consolidated federal income tax liability.

(2) Credit institutions using a cash basis method of accounting to determine net income shall deduct their apportioned share of consolidated federal income tax liability paid.

(3) The credit institution’s apportioned share of consolidated federal income tax liability shall be determined by use of a fraction, the numerator of which is the taxpayer’s taxable income computed as if a separate federal return were filed and the denominator of which is the total separate taxable incomes of the profit members of the consolidated group.

(4) Credit institutions which do not file a consolidated return for federal income tax purposes shall deduct accrued federal income tax liability, unless a cash basis method of accounting is used to determine net income.

History

AUTHORITY: section 148.200, RSMo 1986. Original rule filed Dec. 15, 1987, effective April 11, 1988.

12 CSR 10-10.170 Method of Computing Federal Income Tax Deduction for Credit Unions and Savings and Loan Associations {#sec-12-csr-10-10.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.170}

PURPOSE: This rule establishes the method of computing the federal income tax deduction for credit unions and savings and loan associations.

(1) Credit unions and savings and loan associations using an accrual method of accounting to determine net income shall deduct their apportioned share of accrued consolidated federal income tax liability.

(2) Credit unions and savings and loan associations using a cash basis method of accounting to determine net income shall deduct their apportioned share of consolidated federal income tax liability paid.

(3) The credit union’s or savings and loan association’s apportioned share of consolidated federal income tax liability shall be determined by use of a fraction, the numerator of which is the taxpayer’s taxable income computed as if a separate federal return were filed and the denominator of which is the total separate taxable income of the profit members of the consolidated group.

(4) Credit unions and savings and loan associations which do not file a consolidated return for federal income tax purposes shall deduct accrued federal income tax liability, unless a cash

basis method of accounting is used to determine net income.

History

AUTHORITY: section 148.200, RSMo 1986. Original rule filed Dec. 15, 1987, effective April 11, 1988.

12 CSR 10-10.175 Personal Property Tax Credits—Definition, Calculation and Refund Agreement {#sec-12-csr-10-10.175 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.175}

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed Dec. 22, 1988, effective June 11, 1989. Rescinded: Filed July 27, 2023,

12 CSR 10-10.180 Interest Earned by Banking Institutions From the Resolution Funding Corporation and the Financial Corporation {#sec-12-csr-10-10.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-10.180}

History

AUTHORITY: section 148.100, RSMo 1986. Original rule filed April 1, 1992, effective Sept. 6, 1992. Rescinded: Filed July 31, 2023,

Chapter 11 County Sales Tax

12 CSR 10-11.030 Effective Date {#sec-12-csr-10-11.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.030}

History

AUTHORITY: section 67.515 and 67.706,

12 CSR 10-11.040 Tax Imposed {#sec-12-csr-10-11.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.040}

12 CSR 10-11.050 Location of Machine Determines {#sec-12-csr-10-11.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.050}

12 CSR 10-11.060 State Sales Tax Rules Apply {#sec-12-csr-10-11.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.060}

12 CSR 10-11.080 Seller Entitled {#sec-12-csr-10-11.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.080}

12 CSR 10-11.090 When County Tax Applies RSMo (1986). Original rule filed Sept. 7, In Fabick and Company v. Schaffner,492 SW2d 737 (1973) the court held that because the taxpayer had a ìplace of businessî within the city limits all sales were subject to local tax including equipment delivered from sellerís place of business in Jefferson City to a customer outside the city; deliveries from a point outside the city to another point outside the city but within the state, and sales delivered from outside the state to a customer inside the state either within or without Jefferson City. {#sec-12-csr-10-11.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.090}

12 CSR 10-11.100 Determining Which Tax Applies {#sec-12-csr-10-11.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.100}

12 CSR 10-11.120 Items Taken from Inventory {#sec-12-csr-10-11.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.120}

12 CSR 10-11.130 County Tax Appliesó Delivery from Outside the State {#sec-12-csr-10-11.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.130}

12 CSR 10-11.140 Application of County Sales Tax to Rental or Leasing Receipts {#sec-12-csr-10-11.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.140}

12 CSR 10-11.150 Refund Procedure {#sec-12-csr-10-11.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.150}

(Rescinded October 30, 2000)

Filed April 19, 2000, effective Oct. 30, 2000.

12 CSR 10-11.160 Motor Vehicles {#sec-12-csr-10-11.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.160}

12 CSR 10-11.180 Delinquent Tax {#sec-12-csr-10-11.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.180}

12 CSR 10-11.190 Erroneous Business LocationsóTransfers from County-to- County 1984, effective Jan. 12, 1985. Amended: {#sec-12-csr-10-11.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.190}

Filed July 2, 1986, effective Dec. 11, 1986.

Rescinded: Filed Nov. 2, 1999, effective May 30, 2000.

12 CSR 10-11.200 Adjustment to Decennial Census by St. Louis County Area Jan. 30, 1987. Rescinded: Filed Nov. 2, {#sec-12-csr-10-11.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.200}

12 CSR 10-11.210 Distribution of Delinquent Sales Taxes (St. Louis County Area) {#sec-12-csr-10-11.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.210}

Jan. 30, 1987. Rescinded: Filed Nov. 2,

12 CSR 10-11.220 Requirements for Filing the Incorporation of a New Political Subdivision (St. Louis County) {#sec-12-csr-10-11.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.220}

ROBINCARNAHAN(2/28/06)

Chapter 11óCounty Sales Tax12 CSR 10-11 Jan. 30, 1987. Rescinded: Filed Nov. 2,

12 CSR 10-11.230 Adjustments Based Upon Annexation by Political Subdivisions (St. Louis County) {#sec-12-csr-10-11.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-11.230}

Jan. 30, 1987. Rescinded: Filed Nov. 2, 4CODE OF STATE REGULATIONS (2/28/06) ROBINCARNAHAN 12 CSR 10-11óDEPARTMENT OF REVENUEDivision 10óDirector of Revenue

Chapter 12 Bingo Tax

12 CSR 10-12.010 Rules Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.010}

12 CSR 10-12.020 Advertising July 11, 1982. Amended: Filed Nov. 12, 1986, effective Feb. 28, 1987. Amended: {#sec-12-csr-10-12.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.020}

Filed Feb. 16, 1988, effective May 26, 1988.

Rescinded: Filed Aug. 1, 1994, effec-

12 CSR 10-12.030 Special Bingo Game Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.030}

12 CSR 10-12.040 Occasion Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.040}

12 CSR 10-12.050 Gross Receipts Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.050}

12 CSR 10-12.060 Operator(s) {#sec-12-csr-10-12.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.060}

Aug. 1, 1994, effective Aug. 11, 1994,

12 CSR 10-12.070 Regular Bingo License Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.070}

12 CSR 10-12.080 Special Bingo License Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.080}

12 CSR 10-12.090 Additional Information July 11, 1982. Amended: Filed June 9, 1986, effective Sept. 26, 1986. Amended: Filed Nov. 18, 1986, effective Feb. 28, 1987. {#sec-12-csr-10-12.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.090}

Rescinded: Filed Aug. 1, 1994, effec-

12 CSR 10-12.095 Number of Bingo Days Original rule filed Nov. 12, 1986, effective Feb. 28, 1987. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.095 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.095}

12 CSR 10-12.100 Denial of Application or License Renewal Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.100}

12 CSR 10-12.110 License Expiration and Annual Report July 11, 1982. Amended: Filed Aug. 6, 1984, effective Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, expired Dec. 8, 1994. Rescinded: Filed Aug. 1, 1994, effective Jan. 29, 1995. {#sec-12-csr-10-12.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.110}

12 CSR 10-12.120 License Fee Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.120}

12 CSR 10-12.130 Member(s) in Charge Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.130}

12 CSR 10-12.140 Worker-Player Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.140}

12 CSR 10-12.145 Premises Required to be Open for Inspection Original rule filed May 12, 1982, effective Aug. 12, 1982. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.145}

12 CSR 10-12.150 Information to be Posted Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.150}

12 CSR 10-12.160 Equipment Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.160}

12 CSR 10-12.170 Records Required July 11, 1982. Amended: Filed Nov. 18, {#sec-12-csr-10-12.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.170}

12 CSR 10-12.180 Inventory and Ownership of Bingo Apparatus Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.180}

12 CSR 10-12.190 Rules of Play Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.190}

12 CSR 10-12.200 Merchandise Prizes Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.200}

12 CSR 10-12.210 Reports Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.210}

12 CSR 10-12.220 Bank Account Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.220}

12 CSR 10-12.225 Change of Day and/or Time of Bingo Occasion June 28, 1986. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.225 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.225}

12 CSR 10-12.230 Premises Defined Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.230}

12 CSR 10-12.235 Reasonable Market Rental for Leased Premises June 28, 1986. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.235 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.235}

12 CSR 10-12.240 Leased Premises July 11, 1982. Amended: Filed Aug 10, 1982, effective Dec. 11, 1982. Amended: Filed Aug. 6, 1984, effective Dec. 13, 1984. Amended: {#sec-12-csr-10-12.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.240}

Filed Nov. 18, 1986, effective Feb. 28, 1987.

Rescinded: Filed Aug. 1, 1994, effec-

12 CSR 10-12.245 Concessions or Concession Operators June 28, 1986. Amended Filed Nov. 18, {#sec-12-csr-10-12.245 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.245}

12 CSR 10-12.250 Subsidiary Body—Application for License July 11, 1982. Amended: Filed Nov. 13, 1984, effective May 11, 1985. Amended: {#sec-12-csr-10-12.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.250}

Filed Oct. 15, 1985, effective Jan. 26, 1986.

Rescinded: Filed Aug. 1, 1994, effec-

12 CSR 10-12.255 Bingo in Conjunction With Lottery Original rule filed March 21, 1986, effective Aug. 1, 1994, effective Aug. 11, 1994, 6CODE OF STATE REGULATIONS {#sec-12-csr-10-12.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.255}

12 CSR 10-12.260 Participation of Workers—Restricted July 11, 1982. Amended: Filed Aug. 6, 1984, effective Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, expired Dec. 8, 1994. Rescinded: Filed Aug. 1, 1994, effective Jan. 29, 1995. {#sec-12-csr-10-12.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.260}

12 CSR 10-12.270 All Gambling and Gambling Devices Prohibited March 11, 1984. Amended: Filed May 10, 1984, effective Aug. 11, 1984. Emergency {#sec-12-csr-10-12.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.270}

12 CSR 10-12.280 Net Receipts From Bingo March 11, 1984. Amended: Filed Nov. 18, {#sec-12-csr-10-12.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.280}

12 CSR 10-12.290 Co-Ownership of Bingo Equipment March 11, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.290}

12 CSR 10-12.300 Equipment Leases, Reasonable Market Rental Rate June 11, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.300}

12 CSR 10-12.310 Leases and Supplies {#sec-12-csr-10-12.310 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.310}

(Rescinded February 11, 1985)

June 11, 1984. Rescinded: Filed Oct. 15, 1984, effective Feb. 11, 1985.

History

AUTHORITY: section 313.065, RSMo 1981.

12 CSR 10-12.320 Bingo Supplies June 11, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.320}

12 CSR 10-12.330 Security Dec. 13, 1984. Amended: Filed Nov. 18, {#sec-12-csr-10-12.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.330}

12 CSR 10-12.335 Participation of Auxiliary, Post or Organization Members in Licensee’s Bingo Games Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.335 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.335}

12 CSR 10-12.340 Participation of Full- Time Employee, Full-Time Staff Member or Ordained Member of Clergy Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.340 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.340}

12 CSR 10-12.350 Pull-Tab Cards Sold in Conjunction with Licensed Bingo Game Dec. 13, 1984. Amended: Filed Nov. 18, {#sec-12-csr-10-12.350 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.350}

12 CSR 10-12.355 Sale of Pull-Tab Cards by Bingo Licensees. {#sec-12-csr-10-12.355 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.355}

Original rule filed Aug. 1, 1985, effective Jan. 12, 1986. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994,

12 CSR 10-12.360 Unit Container/Box of Pull-Tab Cards Sold, Total Gross Receipts Restricted and Gross Receipts Tax Due Jan. 12, 1985. Amended: Filed Nov. 18, {#sec-12-csr-10-12.360 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.360}

12 CSR 10-12.370 Member Defined for Purposes of Quarterly Reporting Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.370 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.370}

12 CSR 10-12.380 Bingo Licensees Restricted to Purchase/Lease from Licensed Distributor and/or Manufacturer Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.380 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.380}

12 CSR 10-12.390 Manufacturer Defined Dec. 13, 1984. Amended: Filed May 3, 1985, effective July 26, 1985. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.390 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.390}

12 CSR 10-12.400 Distributor or Manufacturer Exclusion Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.400}

12 CSR 10-12.410 Manufacturer or Distributor Required to Make Application Dec. 13, 1984. Amended: Filed May 3, 1985, effective July 26, 1985. Amended: Filed Nov. 12, 1986, effective Feb. 28, 1987. Emergency {#sec-12-csr-10-12.410 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.410}

12 CSR 10-12.420 Sales Representatives Required to Procure Distributor’s License Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.420 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.420}

12 CSR 10-12.430 Bingo Licensees—Distributors Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.430 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.430}

12 CSR 10-12.440 Distributor or Manufacturer to Purchase Pull-Tab Tax Stamp Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.440 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.440}

12 CSR 10-12.450 Records Required—Distributor and/or Manufacturer Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.450 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.450}

12 CSR 10-12.460 Description and Certified Price List of Bingo Supplies and/or Equipment Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.460 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.460}

12 CSR 10-12.470 Manufacturers or Distributors to Notify Director of Revenue of Change in Status Dec. 13, 1984. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.470 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.470}

12 CSR 10-12.480 Package Deals and Tying Arrangements Prohibited Original rule filed Oct. 15, 1984, effective Feb. 11, 1985. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.480 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.480}

12 CSR 10-12.490 Reasonable Price of Cards Original rule filed Oct. 15, 1984, effective Feb. 11, 1985. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.490 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.490}

12 CSR 10-12.500 Bingo on Military Installations Original rule filed March 21, 1986, effective Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.500 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.500}

12 CSR 10-12.510 Disclosure of Certain Bingo Records and Confidentiality of Closed Records Original rule filed March 28, 1986, effective Aug. 1, 1994, effective Aug. 11, 1994, {#sec-12-csr-10-12.510 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.510}

12 CSR 10-12.515 Organization Bona Fide Member Definition Original rule filed May 19, 1986, effective Aug. 25, 1986. Emergency rescission filed Aug. 1, 1994, effective Aug. 11, 1994, 8CODE OF STATE REGULATIONS {#sec-12-csr-10-12.515 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-12.515}

Chapter 16 Cigarette Tax

12 CSR 10-16.030 Cigarette Tax Levied {#sec-12-csr-10-16.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.030}

(Rescinded April 30, 2006). . . . . . . . . . . . . . . . . . . . . . . 3

12 CSR 10-16.170 Adjustments to the Distribution of St. Louis County Cigarette Tax {#sec-12-csr-10-16.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.170}

12 CSR 10-16.010 Prior Rulings {#sec-12-csr-10-16.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.010}

Regulation 15 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

12 CSR 10-16.020 Definitions {#sec-12-csr-10-16.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.020}

Regulation 1 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

12 CSR 10-16.030 Cigarette Tax Levied {#sec-12-csr-10-16.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.030}

Regulation 2 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Amended: Filed Feb. 18, 1983, effective June 11, 1983. Emergency amendment filed Sept. 16, 1985, effective Sept. 26, 1985, expired Jan. 24, 1986. Amended: Filed Sept. 16, 1985, effective Dec. 26, 1985. Amended: Filed Jan. 31, 1994, effective July 30, 1994.

Rescinded: Filed Sept. 30, 2005, effective April 30, 2006.

ITT Canteen Corp. v. Spradling 526 SW2d 11 (1975). Under prior Missouri law, on declaratory judgment brought for purpose of declaring void a prior rule of Department of Revenue, court held that the amount of the cigarette tax is not a part of the sales price; it is a levy on the consumer inspired at the time of the retail sale, and the seller is a mere agent (for the state) for collection, thus considered, the amount of the cigarette tax was not properly includable in the sales tax base under the 1969 statutes.

Op. Atty. Gen. No. 431, Ferris (9-15-66). Cigarettes made from a variety of lettuce, being nicotine-free for tobacco, going by the brand name “Braw’s”, were subject to the cigarette tax imposed by former section 149.020, RSMo.

12 CSR 10-16.040 Tax Evidenced by Stamps {#sec-12-csr-10-16.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.040}

PURPOSE: This rule explains the authorization and use of stamps.

(1) The director of revenue will only furnish tax stamps to licensed Missouri wholesalers that purchase all unstamped cigarettes directly from the manufacturer.

(2) Cigarette tax stamps cannot be loaned, sold, exchanged or otherwise transferred by any wholesaler to any other wholesaler or any other person without prior approval of the director of revenue.

(3) A cigarette tax stamp is considered canceled when affixed to a package of cigarettes.

Regulation 3 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Amended: Filed Feb. 9, 1996, effective Jan. 1, 1997. 1993, 1994; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939, amended 1969, 1976, 1978, 1993, 1995.

History

AUTHORITY: sections 66.380 and 210.320, RSMo Supp. 1995 and 136.030, 136.120, 149.015 and 149.021, RSMo 1994. Cigarette Tax

12 CSR 10-16.050 Use of Tax Stamps {#sec-12-csr-10-16.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.050}

Regulation 4 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Amended: Filed March 13, 1984, effective June 11, 1984. Rescinded:

12 CSR 10-16.060 Sample Cigarettes {#sec-12-csr-10-16.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.060}

PURPOSE: This rule explains the responsibilities of a manufacturer distributing nonstamped sample cigarettes.

(1) Cigarettes distributed in Missouri by manufacturers as samples must be so marked. The manufacturer must report the dates, locations and number of sample cigarettes delivered.

The report and all tax due on the sample cigarettes are due on the fifteenth day of the month following the month in which the shipments were made.

(2) The manufacturer must remit county cigarette tax to the department if the sample cigarettes were distributed in either Jackson County or St. Louis County.

(3) The manufacturer must remit city cigarette tax to any city levying a cigarette tax if cigarette samples were distributed in the city. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939,

12 CSR 10-16.070 Discount Allowed {#sec-12-csr-10-16.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.070}

PURPOSE: This rule indicates when the discount will not be allowed.

(1) A wholesaler is generally entitled to a three percent (3%) discount off the face value of stamps. The discount is not allowed if a wholesaler:

(A) Purchases stamps on the deferred payment basis and fails to pay for the stamps when due; or (12/31/25) Denny Hoskins (B) Fails to timely file the report required by section 149.041.2, RSMo, including all schedules. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939, Op. Atty Gen. No. 338, Schechter (11-14-68). The elimination of the discounts presently allowed under the sales tax act, the state income tax act and the city earnings tax authorization statutes for the collection of such taxes would not affect the constitutionality of those statutes.

12 CSR 10-16.080 Use of Meter Machines {#sec-12-csr-10-16.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.080}

(Rescinded January 1, 1997)

Regulation 7 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Filed Feb. 9, 1996, effective Jan. 1, 1997.

History

AUTHORITY: sections 66.380, 149.015, and 210.320, RSMo Supp.

12 CSR 10-16.090 Purchase on Deferred Payment Basis {#sec-12-csr-10-16.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.090}

PURPOSE: This rule clarifies the reporting requirements, surety bond requirements, and the approval necessary for purchases of tax stamps on the deferred payment basis.

(1) All wholesalers who purchase tax stamps on the deferred payment basis must file the monthly report required by section 149.041.2, RSMo, on the fifteenth day of the following month.

(2) All purchases of tax stamps on the deferred payment basis must have the prior approval of the director. The total amount of outstanding credit granted may not exceed one hundred percent (100%) of the bond furnished by the wholesaler.

(3) The surety bond required under section 149.025, RSMo, to purchase stamps on the deferred payment basis may be in cash, certificate of deposit, using Assignment of Certificate of Deposit, Form 4172, irrevocable letter of credit, using Irrevocable Letter of Credit, Form 2879, or surety bond, using Surety Bond, Form 331. Any surety on a bond furnished by a cigarette wholesaler shall be released and discharged from any and all prospective liability to the state occurring after the expiration of ninety (90) days from the date upon which the surety shall have lodged with the director a written request to be released and discharged, but this provision shall not operate to relieve, release, or discharge the surety from any liability already accrued or which shall accrue before the expiration of the ninety- (90-) day period. The director, promptly upon receiving any request, shall notify the cigarette wholesaler who furnished the bond, and unless the wholesaler shall file, on or before the expiration of the ninety- (90-) day period, with the director a new bond fully complying with the provisions of

section 149.025, RSMo, the director shall forthwith revoke all credit privileges and notify the wholesaler that all purchases must be made in cash.

(4) The payment of the St. Louis County or Jackson County cigarette tax may not be deferred.

(5) The Assignment of Certificate of Deposit, Form 4172, revised January 2024, Irrevocable Letter of Credit, Form 2879, revised January 2024, and the Surety Bond, Form 331, revised December 2024, are incorporated by reference, as published by the Missouri Department of Revenue, and can be found at www. dor.mo.gov or the Harry S Truman State Office Building, 301 West High Street, Jefferson City, MO 65105. This rule does not incorporate any subsequent amendments or additions.

Amended: Filed Aug. 7, 2023, effective March 30, 2024. Amended:

Filed July 16, 2025, effective Jan. 30, 2026. 1993, 1994, 2001, 2005; 149.025, RSMo 1974, amended 1982, 1983, 1986; and 210.320, RSMo 1939, amended 1969, 1976, 1978, 1993, 1995.

History

AUTHORITY: sections 66.380, 136.030, 136.120, 149.015, 149.025, and 210.320, RSMo 2016. Cigarette Tax Regulation 5 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Amended: Filed Feb. 18, 1983, effective June 11, 1983. Amended: Filed Jan. 31, 1994, effective July 30, 1994. Amended: Filed Sept. 30, 2005, effective April 30, 2006.

12 CSR 10-16.100 Payment on Deferred Payment Basis {#sec-12-csr-10-16.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.100}

PURPOSE: This rule prescribes the payment due dates of deferred tax liabilities and the effects of delinquent payment.

(1) All wholesalers who purchase tax stamps on the deferred payment basis must remit the total amount due on account of the purchases on or before the fifteenth day of the calendar month following the calendar month during which the purchases were made. Purchases of tax stamps are deemed to occur on the date the tax stamps are sent to the purchaser.

(2) If the date for payment of the deferred liability falls on a Saturday, Sunday or legal holiday, or other date on which the United States postal service is not in operation, the payment will be considered timely if sent on the next business day or on the next day in which postal service is resumed. The postmark date appearing on the envelope will be deemed to be the time of payment of the deferred liability. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939,

12 CSR 10-16.110 Unsaleable Packages of Cigarettes {#sec-12-csr-10-16.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.110}

PURPOSE: This rule indicates the procedures to follow whenever cigarettes on which tax has been paid are unfit for use or consumption.

(1) If a wholesaler provides proof satisfactory to the department that cigarettes on which the tax has been paid, as evidenced by tax stamps, are unsellable the department may issue new tax stamps to the wholesaler who affixed the tax stamps.

(2) The wholesaler must notify the department prior to destroying unsellable cigarettes and must keep the cigarettes available for inspection by the department.

(3) When a wholesaler intends to return cigarettes that have tax stamps affixed to a manufacturer, the wholesaler must file with the department a report signed by the wholesaler identifying the number of cigarettes and verifying that stamps have been affixed to the cigarettes. The wholesaler must hold the cigarettes for inspection by the department until notified in writing by the department that the cigarettes may be returned to the manufacturer. The department will provide the wholesaler with stamps equal to the stamps affixed to the returned cigarettes upon receipt of written confirmation from the manufacturer that the manufacturer received the cigarettes. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939,

12 CSR 10-16.120 Missouri Cigarette Wholesaler’s License {#sec-12-csr-10-16.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.120}

PURPOSE: This rule sets forth the requirements for obtaining a wholesaler’s license, the requirement for prominent display of the license and the possible effect of violation of the law.

(1) A Missouri cigarette wholesaler’s license will only be granted to nonresident wholesalers duly registered as a cigarette wholesaler in the wholesaler’s state of residence.

(2) A nonresident wholesaler who is granted a Missouri cigarette wholesaler’s license under section 149.035, RSMo, and is authorized to affix Missouri tax stamps shall agree to be bound by all cigarette tax rules issued by the director of revenue.

(3) The cigarette wholesaler’s license must be prominently displayed in the wholesaler’s principal place of business.

Any cigarette wholesaler having more than one (1) place of business is required to display a copy of the license in each place of business owned or operated by them doing business in Missouri.

(4) If a wholesaler violates any of the provisions of Chapters 66, 149, and 210, RSMo, or rules issued pursuant to the provisions, contingent upon the hearing provided for by section 149.035, RSMo, the director may revoke or suspend the cigarette wholesaler’s license issued under the provisions of section 149.035, RSMo.

History

AUTHORITY: sections 66.380, 136.030, 136.120, 149.015, 149.021, and 210.320, RSMo 2016. Cigarette Tax Regulation 11 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Amended: Filed Feb. 18, 1983, effective June 11, 1983. Amended: Filed July 17, 2023, effective Feb. 29, 2024. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939,

12 CSR 10-16.130 Record Keeping Requirements {#sec-12-csr-10-16.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.130}

PURPOSE: This rule prescribes the record keeping display, reporting and other requirements regarding cigarette sales in Missouri.

(1) A cigarette wholesaler operating a retail place of business or vending machine must keep records of the retail business and the vending machine business separate from the records of the wholesale cigarette business.

(2) In all cases where a wholesaler is selling, both as a retailer and a wholesaler at the same place of business, any cigarettes that do not bear a Missouri tax stamp must be kept in a room separated from the retail business by a wall or partition.

(3) The name and address of the owner of any cigarette vending machine in operation within Missouri must be displayed on each vending machine.

(4) Each owner and operator of cigarette vending machines must keep a record showing the business location of each vending machine currently being serviced, which must be available to the department at the principal place of business in Missouri of the owner or operator.

(5) Operators of cigarette vending machines must load packages of cigarettes in vending machines so that if any packages are visible while in the machine the tax stamp will be clearly visible. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939, Robert Williams and Co., Inc. v. State Tax Commission, 498 SW2d 527 (1973). In Missouri, or in the other states which have considered this question, tobacco and liquor cannot be sold (12/31/25) Denny Hoskins without payment of both federal and state taxes thereon. Without payment of the taxes, their sale would be illegal and they would be valueless. Payment of the taxes being essential to the creation of a salable product and the amount of the taxes paid constituting money invested in the merchandise, they (the taxes) were properly included in the valuation of appellant’s inventories (for purpose of an ad valorem tax on goods in possession of a merchant).

12 CSR 10-16.140 Common Carriers, Bonded Warehousemen and Bailees {#sec-12-csr-10-16.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.140}

PURPOSE: This rule prescribes the due dates and required reports of common carriers, bonded warehousemen and bailees; recordkeeping requirements of consignees and cigarettes being available for inspection.

(1) Common carriers transporting cigarettes to a point within Missouri other than the place of business of a licensed cigarette wholesaler and bonded warehousemen or bailees having possession of cigarettes must file all reports required by section 149.045, RSMo, on forms prescribed by the director, on or before the twentieth day of the calendar month following the month of delivery.

(2) A consignee must keep detailed records of any cigarettes either delivered to a common carrier, bonded warehouseman, bailee or wholesaler, or returned to the manufacturer. If a consignee fails to maintain adequate records, the consignee may be liable for all tax due on any cigarettes for which the consignee cannot account.

(3) Cigarettes returned to the manufacturer must be evidenced by an affidavit from the manufacturer that the manufacturer received the cigarettes.

(4) Prior to the destruction of damaged or partially damaged cigarettes by a consignee, the consignee must notify the department. The consignee must keep the cigarettes available for inspection by the department until the department approves their destruction in writing. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939,

12 CSR 10-16.150 Possession of Unstamped Cigarettes {#sec-12-csr-10-16.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.150}

PURPOSE: This rule provides by whom and under what circumstances unstamped cigarettes may be possessed.

(1) Except as provided by section 149.045, RSMo, only licensed Missouri cigarette wholesalers may possess unstamped cigarettes. Licensees must affix proper amounts of tax stamps to each individual package of cigarettes before transferring the possession of any cigarettes to a retailer, jobber, agent, or any other person who does not possess a Missouri cigarette wholesale license.

(2) A cigarette wholesaler that receives cigarettes already stamped by another cigarette wholesaler must report all receipts of such cigarettes for each month.

(3) A wholesaler must keep records of the number of cigarettes distributed for delivery or consumption outside Missouri, the date of distribution, and to whom distribution is made.

(4) Any person who fails to affix stamps to packages of cigarettes sold in St. Louis County or Jackson County within the time and manner required by Chapter 149, RSMo, must pay a penalty equal to one hundred percent (100%) of the initial tax liability.

The tax and penalty bears interest at the rate determined by

section 32.065, RSMo.

(5) Possession of an unstamped package of cigarettes in St.

Louis or Jackson County by any person other than a licensed wholesaler is prima facie evidence that the cigarettes are intended for sale in St. Louis or Jackson County. 1993, 1994, 2001, 2005; 149.021, RSMo 1974, amended 1982; and 210.320, RSMo 1939,

12 CSR 10-16.160 Release of Bonding Requirement {#sec-12-csr-10-16.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.160}

History

AUTHORITY: sections 66.380 and 210.320, RSMo Supp. 1993 and 136.030, 136.120 and 149.025, RSMo 1986. Original rule filed Nov. 18, 1986, effective March 12, 1987. Rescinded: Filed Sept. 30, 2005, effective April 30, 2006.

12 CSR 10-16.170 Adjustments to the Distribution of St. {#sec-12-csr-10-16.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-16.170}

Louis County Cigarette Tax Funds Pursuant to the Federal Decennial Census

PURPOSE: This rule explains the information required from each city and unincorporated St. Louis County if there is a change in its population as a result of an adjustment to its population by the United States Census Bureau or as a result of an annexation or consolidation.

(1) The department will base the distribution of St. Louis County cigarette tax monies, on the population determined in the latest federal decennial census that determines the total population of the county and all the political subdivisions in the county.

(2) If the United States Census Bureau amends the decennial census the department will amend the population used for distribution purposes under the following conditions:

(A) The county or political subdivision affected by the amendment to the census must notify the department of the amendment;

(B) The county or political subdivision must provide the department a copy of the official written notification of the amendment from the United States Census Bureau; and (C) If the adjustment redistributes total population within the county, the notification must include any population change for unincorporated St. Louis County.

(3) Upon receipt of proper written notification, the department will adjust population figures for future distributions, but will not change any distribution made before notification was received by the department.

(4) For adjustments to the St. Louis County population count as a result of annexations or consolidations— (A) Each political subdivision must file with the department a certified copy of the annexation or consolidation election results or a certified copy of the ordinance approving the annexation or consolidation;

(B) The political subdivision must provide the department with official written notification from the United States Census Bureau of the amount of population in the area annexed or consolidated;

(C) The official notification must also indicate which political subdivision(s) lost population through annexation or consolidation; and (D) If the department receives notification before the fifteenth day of the month, the tax will be distributed using the new information beginning with the next distribution.

If notification is received after the fifteenth day of the month, the tax will be distributed using the new information beginning with the second distribution following receipt of the notification by the department.

History

AUTHORITY: section 66.351, RSMo 2016. Original rule filed March 4, 1991, effective July 8, 1991. Amended: Filed Sept. 30, 2005, effective April 30, 2006. Amended: Filed April 5, 2023, effective Oct. 30, 2023. Original authority: 66.351, RSMo 1992.

Chapter 22 Senior Citizens Tax Relief

12 CSR 10-22.010 Senior Citizen Claim Forms {#sec-12-csr-10-22.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-22.010}

(Rescinded February 29, 2008)

Amended: Filed Feb. 10, 1975, effective Feb. 20, 1975. Amended: Filed Dec. 23, 1975, effective Feb. 2, 1976. Rescinded: Filed Aug. 14, 2007, effective Feb. 29, 2008.

History

AUTHORITY: sections 135.015 and 135.030, RSMo 1986. Form, statement and table filed Jan. 29, 1974, effective Feb. 8, 1974.

12 CSR 10-22.020 Eligibility to File Claim(s) by Married Persons {#sec-12-csr-10-22.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-22.020}

(Rescinded February 29, 2008)

Original rule filed Oct. 15, 1985, effective Jan. 26, 1986. Rescinded: Filed Aug. 14, 2007, effective Feb. 29, 2008.

ROBINCARNAHAN(1/30/08)

History

AUTHORITY: section 135.015, RSMo 1986.

Chapter 23 Motor Vehicle

12 CSR 10-23.110 Hearing Held Pursuant to Section 301.257, RSMo {#sec-12-csr-10-23.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.110}

12 CSR 10-23.120 Business Records of Manufacturers, Dealers and Boat Dealers {#sec-12-csr-10-23.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.120}

12 CSR 10-23.140 Motor Vehicle Title Services {#sec-12-csr-10-23.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.140}

(Rescinded June 30, 2018) . . . . . . . . . . . . . . . . . 8

12 CSR 10-23.150 Administrative Hearing Held Pursuant to Section 301.119, RSMo {#sec-12-csr-10-23.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.150}

12 CSR 10-23.160 Good Moral Character of Motor Vehicle Dealers, Manufacturers, Boat Dealers, Salvage Dealers, and Title Service Agents {#sec-12-csr-10-23.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.160}

12 CSR 10-23.170 Registration of Corporation Motor Vehicles/Emission System {#sec-12-csr-10-23.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.170}

12 CSR 10-23.180 Replacement Vehicle Identification Plates {#sec-12-csr-10-23.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.180}

12 CSR 10-23.190 Temporary Permits Sold by a Registered Missouri Motor Vehicle {#sec-12-csr-10-23.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.190}

12 CSR 10-23.200 Nonnegotiable Certificate of Title to a Motor Vehicle or Trailer {#sec-12-csr-10-23.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.200}

12 CSR 10-23.210 Congressional Medal of Honor License Plates {#sec-12-csr-10-23.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.210}

12 CSR 10-23.220 Motor Vehicle Fee and Tax Refund Requests {#sec-12-csr-10-23.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.220}

12 CSR 10-23.240 Recording of Mileage on an Application for Certificate of Title {#sec-12-csr-10-23.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.240}

12 CSR 10-23.250 Registration and Classification of Commercial Motor Vehicles {#sec-12-csr-10-23.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.250}

12 CSR 10-23.255 Issuance of New and Replacement Vehicle Identification Numbers {#sec-12-csr-10-23.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.255}

12 CSR 10-23.270 Watercraft and Outboard Motor Identification Numbers {#sec-12-csr-10-23.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.270}

12 CSR 10-23.275 Recognition of Nonresident Disabled Person Windshield Placards {#sec-12-csr-10-23.275 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.275}

12 CSR 10-23.285 Titling of Motor Vehicles Sold Without Safety Inspections {#sec-12-csr-10-23.285 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.285}

12 CSR 10-23.290 Use of License Plates After Name Change {#sec-12-csr-10-23.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.290}

12 CSR 10-23.295 Witnessing Proof of Federal Heavy Vehicle Use Tax Payment or {#sec-12-csr-10-23.295 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.295}

12 CSR 10-23.300 Use of Local Commercial Motor Vehicle License Plates for Farm or for {#sec-12-csr-10-23.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.300}

12 CSR 10-23.325 Transfer of Passenger Vehicle License Plates From One Horsepower Category to Another—Waiver of Additional Registration Fees and {#sec-12-csr-10-23.325 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.325}

12 CSR 10-23.330 Registration of Motorcycles or Motortricycles {#sec-12-csr-10-23.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.330}

12 CSR 10-23.335 Issuance of Title to a Surviving Spouse or Unmarried Minor Children {#sec-12-csr-10-23.335 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.335}

12 CSR 10-23.340 Imposition and Waiver of Motor Vehicle and Trailer Titling and {#sec-12-csr-10-23.340 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.340}

12 CSR 10-23.365 Issuance of Nonresident Salvage-Buyer’s Identification Card {#sec-12-csr-10-23.365 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.365}

12 CSR 10-23.370 Issuance of Certificates of Title to Recreational Vehicles Manufactured {#sec-12-csr-10-23.370 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.370}

12 CSR 10-23.385 Verification of the Vehicle Identification Number and Odometer {#sec-12-csr-10-23.385 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.385}

12 CSR 10-23.395 Regulation of Boat Dealer’s Certificate of Number and Plates {#sec-12-csr-10-23.395 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.395}

12 CSR 10-23.405 Emblem-Use Authorization Statement and Format for Collegiate {#sec-12-csr-10-23.405 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.405}

12 CSR 10-23.410 Certificate of Registration to Documented Vessels {#sec-12-csr-10-23.410 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.410}

12 CSR 10-23.422 Issuance of Purple Heart License Plates {#sec-12-csr-10-23.422 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.422}

(Rescinded February 28, 2007).. 18

12 CSR 10-23.428 All-Terrain Vehicles Modified for Highway Use {#sec-12-csr-10-23.428 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.428}

12 CSR 10-23.430 Registration of a Motor Vehicle or Trailer When the Out-Of-State {#sec-12-csr-10-23.430 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.430}

12 CSR 10-23.432 Registration of a Motor Vehicle or Trailer Subject to a Lease With a {#sec-12-csr-10-23.432 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.432}

12 CSR 10-23.434 Use of a Reassignment of Ownership by Registered Dealer Form {#sec-12-csr-10-23.434 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.434}

12 CSR 10-23.442 Outboard Motor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 {#sec-12-csr-10-23.442 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.442}

12 CSR 10-23.454 Electric Personal Assistive Mobility Device (EPAMD) {#sec-12-csr-10-23.454 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.454}

12 CSR 10-23.460 Issuance of Biennial Disabled Person Placard {#sec-12-csr-10-23.460 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.460}

12 CSR 10-23.465 Issuance of Biennial Salvage Business Licenses {#sec-12-csr-10-23.465 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.465}

12 CSR 10-23.475 Fees and Required Documentation for Designating Manufactured {#sec-12-csr-10-23.475 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.475}

12 CSR 10-23.600 Complaint, Inspection, and Disciplinary Process for Transportation {#sec-12-csr-10-23.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.600}

12 CSR 10-23.010 Dealer Plate Allocation {#sec-12-csr-10-23.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.010}

(Rescinded July 14, 1982)

History

AUTHORITY: section 301.250.4, RSMo 1978. This version of rule filed Oct. 21, 1974, effective Oct. 31, 1974. Rescinded: Filed March 12, 1982, effective July 14, 1982.

12 CSR 10-23.020 Dealer Registration 14, 1980, effective Sept. 12, 1980. Amended: Filed March 26, 1982, effective July 12, 1982. Emergency amendment filed Aug. 14, 1984, effective Aug. 24, 1984 expired Dec. 22, 1984. Amended: Filed Aug. 14, 1984, effective Dec. 13, 1984. Amended: Filed May 27, 1986, effective Aug. 25, 1986. Rescinded: Filed Nov. 15, 1990, effective April 29, 1991. {#sec-12-csr-10-23.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.020}

12 CSR 10-23.030 Bona Fide Established Place of Business 14, 1980, effective Sept. 12, 1980. Amended: Filed March 26, 1982, effective July 12, 1982. Amended: Filed April 29, 1983, effective Sept. 11, 1983. Amended: Filed Dec. 5, 1983, effective March 11, 1984. Amended: Filed Feb. 3, 1984, effective May 11, 1984. {#sec-12-csr-10-23.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.030}

Emergency amendment filed Aug. 14, 1984, effective Aug. 24, 1984, expired Dec. 22, 1984. Amended: Filed Aug. 14, 1984, effective Dec. 13, 1984. Amended: Filed May 23, 1985, effective Aug. 26, 1985.

Amended: Filed May 27, 1986, effective Aug. 25, 1986. Rescinded:

Filed Nov. 15, 1990, effective April 29, 1991.

12 CSR 10-23.040 Cancellation of Dealer Registration {#sec-12-csr-10-23.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.040}

(Rescinded June 11, 1983)

History

AUTHORITY: section 301.257, RSMo Supp. 1982. Original rule filed April 14, 1980, effective Sept. 12, 1980. Amended: Filed March 26, 1982, effective July 12, 1982. Rescinded: Filed March 4, 1983, effective June 11, 1983.

12 CSR 10-23.050 Dealers’ Monthly Reports {#sec-12-csr-10-23.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.050}

(Moved to 12 CSR 10-26.190)

12 CSR 10-23.070 Regulation of Dealer License Plates {#sec-12-csr-10-23.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.070}

(Rescinded February 29, 2012)

Original rule filed April 14, 1980, effective Sept. 12, 1980. Amended:

Filed March 26, 1982, effective July 12, 1982. Amended: Filed Sept. 16, 1985, effective Jan. 26, 1986. Rescinded: Filed Aug. 31, 2011, effective Feb. 29, 2012.

History

AUTHORITY: sections 301.140, 301.251, and 301.253, RSMo 1986.

12 CSR 10-23.090 Back the Blue Special Plate Donation Processing {#sec-12-csr-10-23.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.090}

PURPOSE: This rule codifies Back the Blue Special Plate Donation distribution procedures authorized in section 301.3175, RSMo.

(1) Distribution of donations made directly to the Department of Revenue will be disbursed to the Missouri Law Enforcement Memorial Foundation at a reasonable frequency set forth by the Director of Revenue, but no less frequently than twice each fiscal year.

History

AUTHORITY: section 301.3175, RSMo Supp. 2025. Original rule filed Aug. 28, 2019, effective March 30, 2020. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. Original authority: 301.3175, RSMo 2019, amended 2023.

12 CSR 10-23.100 Special License Plates {#sec-12-csr-10-23.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.100}

PURPOSE: This rule establishes categories of special license plates as well as the procedure for application for and issuance of the special license plates.

(1) For the purpose of this rule, “special license plates” includes all personalized, military, collegiate, helping schools, and special organizational license plates that contain letters and/ or numbers and may include one apostrophe (’), one space, or one dash (—).

(2) All special license plates are available in the following plate categories— (A) Passenger;

(B) Recreational Vehicle (RV);

(D) Local and Beyond Local 12;

(E) Motorcycle/Motortricycle;

(F) Local and Beyond Local 18;

(G) Local and Beyond Local 24;

(H) Shuttle Bus—regular personalized plates only;

(I) Van Pool—regular personalized plates only; and (J) Historic—regular personalized plates only.

(3) No special license plate will be issued which will conflict with any license number used or to be used in the regular license plate numbering system.

(4) Special license plates are not assigned to a particular vehicle until the plates are actually issued to the owner of that vehicle by the Department of Revenue.

(5) Special license plates will not be transferred from one (1) owner to another unless provided by law, except that the holder of a special plate may follow the procedures established by the director in order to display their special plate on a vehicle leased by the holder after approval by the director, and they will not be transferred from one (1) vehicle category to another. This includes any request for transfer by gift, trust, will, or judicial proceeding.

(6) The director of revenue reserves the right to approve or disapprove any request for special license plates or the transfer of license plates from one (1) vehicle to another in the same category.

(7) Special license plates issued to members of the United States Congress, Missouri State Senate, and Missouri House of Representatives; honorary consulars; and the following statewide elected officials: governor, lieutenant governor, secretary of state, state auditor, state treasurer, and attorney general, which are issued in accordance with section 301.453, RSMo, will expire in January of each year. Passenger, RV, 6,000 and 12,000 lb. Commercial Motor Vehicle (CMV), Shuttle Bus, Van Pool, and Personalized Historic special license plates will expire in July of each year. Registrations for special license plates will be issued for a minimum of six (6) months except as otherwise determined by the director. Applicants who purchase a biennial registration will extend the registration another year with the total registration not to exceed thirty (30) months.

(8) Initial applications for special license plates will be made on appropriate forms and accompanied by any special license plate fee and additional documentation as required by law.

(9) Applicants who apply for a biennial registration at the time they pick up or renew their special license plates must submit a second emblem-use authorization statement indicating the minimum donation or the original emblem-use authorization statement indicating twice the annual minimum donation, if applicable.

(10) Special license plates for which the Department of Revenue has not received a reapplication (renewal) will be held for at least sixty (60) days from the date of expiration before being issued to a new applicant.

Amended: Filed May 20, 1982, effective Sept. 13, 1982. Amended:

Filed Feb. 24, 1984, effective June 11, 1984. Amended: Filed Nov. 18, 1986, effective March 12, 1987. Amended: Filed July 17, 1989, effective Oct. 27, 1989. Amended: Filed Oct. 30, 1989, effective March 26, 1990. Emergency amendment filed Sept. 16, 1991, effective Sept. 26, 1991, expired Jan. 23, 1992. Amended: Filed Sept. 16, 1991, effective Jan. 13, 1992. Amended: Filed Sept. 1, 1995, effective Feb. 25, 1996. Amended: Filed Jan. 31, 2000, effective July 30, 2000. Amended: Filed Oct. 8, 2008, effective April 30, 2009.

Amended: Filed Oct. 25, 2018, effective May 30, 2019. Amended:

Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 301.130, RSMo 1939, amended 1947, 1949, 1951, 1969, 1977, 1981, 1983, 1986, 1987, 1993, 1995, 2001, 2003, 2004, 2005, 2007, 2008, 2013, 2015, 2016, 2018; 301.144, RSMo 1977, amended 1979, 1983, 1984, 1989, 1992, 1993, 1995, 1995, 2001, 2002, 2004, 2007, 2016; 301.449, RSMo 1989, amended 1995, 2012, 2013; and 301.453, RSMo 1993, amended 1995, 2002.

History

AUTHORITY: sections 301.144, 301.449, and 301.453, RSMo 2016, and section 301.130, RSMo Supp. 2025. Original rule filed Aug. 14, 1978, effective Nov. 13, 1978. Amended: Filed April 11, 1979, effective July 11, 1979. Emergency amendment filed Oct. 30, 1979, effective Nov. 9, 1979, expired Feb. 18, 1980. Amended: Filed Oct. 30, 1979, effective Feb. 11, 1980. Emergency amendment filed March 9, 1982, effective March 19, 1982, expired July 16, 1982.

12 CSR 10-23.110 Hearing Held Pursuant to Section 301.257, RSMo {#sec-12-csr-10-23.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.110}

Filed July 3, 1985, effective Oct. 11, 1985, Emergency amendment filed June 12, 1986, effective June 22, 1986, expired Oct. 20, 1986.

Amended: Filed June 12, 1986, effective Sept. 26, 1986. Rescinded:

Filed Nov. 15, 1990, effective April 29, 1991.

History

AUTHORITY: section 301.257, RSMo 1986. Original rule filed Nov. 5, 1982, effective Feb. 11, 1983. Emergency amendment filed July 3, 1985, effective July 13, 1985, expired Nov. 10, 1985. Amended:

12 CSR 10-23.120 Business Records of Manufacturers, Dealers and Boat Dealers {#sec-12-csr-10-23.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.120}

(Rescinded December 3, 1992) 25, 1983, effective Sept. 11, 1983. Amended: Filed May 27, 1986, effective Aug. 25, 1986. Rescinded: Filed April 23, 1992, effective Dec. 3, 1992.

William R. Newmann, d/b/a Goodfellow Auto Sales & Salvage, Inc. v. Director of Revenue, Case No. RV-86-0286 (A.H.C. 8/30/88).

The Administrative Hearing Commission found that petitioner failed to maintain complete records and files on motor vehicles and motor vehicle parts acquired for resale in the business office at the registered location during normal business hours and that suspension of its auto salvage dealer’s license was proper.

12 CSR 10-23.130 Legal Name on Title Application {#sec-12-csr-10-23.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.130}

History

AUTHORITY: section 301.190, RSMo 1986. Original rule filed Feb. 3, 1984, effective May 11, 1984. Rescinded: Filed Dec. 22, 2017,

12 CSR 10-23.140 Motor Vehicle Title Services {#sec-12-csr-10-23.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.140}

History

AUTHORITY: section 301.114, RSMo 1986. Original rule filed Sept. 10, 1984, effective Jan. 12, 1985. Rescinded: Filed Dec. 22, 2017,

12 CSR 10-23.150 Administrative Hearing Held Pursuant to {#sec-12-csr-10-23.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.150}

Section 301.119, RSMo

History

AUTHORITY: section 301.119, RSMo 1986. Original rule filed Sept. 10, 1984, effective Jan. 12, 1985. Rescinded: Filed Dec. 22, 2017,

12 CSR 10-23.160 Good Moral Character of Motor Vehicle Dealers, Manufacturers, Boat Dealers, Salvage Dealers, and Title Service Agents {#sec-12-csr-10-23.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.160}

(Moved to 12 CSR 10-26.221)

12 CSR 10-23.170 Registration of Corporation Motor Vehicles/ Emission System Inspection Areas {#sec-12-csr-10-23.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.170}

Rescinded: Filed May 23, 2007, effective Nov. 30, 2007.

History

AUTHORITY: sections 137.095, 301.025, 301.130 and 307.366, RSMo 1986. Original rule filed Jan. 8, 1985, effective June 13, 1985.

12 CSR 10-23.180 Replacement Vehicle Identification Plates {#sec-12-csr-10-23.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.180}

History

AUTHORITY: section 301.300, RSMo 1986. Original rule filed July 31, 1985, effective Nov. 28, 1985. Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

12 CSR 10-23.185 Obscene License Plates {#sec-12-csr-10-23.185 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.185}

PURPOSE: This rule supplements the guidelines for review and approval of personalized motor vehicle license plates prior to issuance.

(1) Language or symbols which are obscene or profane are not protected by the United States or Missouri Constitution. The language or symbols shall not be allowed on any personalized motor vehicle license plate issued under the provisions of

section 301.144, RSMo. In determining whether or not requests for personalized motor vehicle license plates contain language or symbols which are obscene or profane, the Department of Revenue will use the standards in section (2).

(2) The following terms, as used in this rule, shall be defined as follows:

(A) Obscene—Language or symbols which represent or describe ultimate excretory functions or sexual acts in a patently offensive manner or make lewd reference to the male or female sexual organs and appeal to the prurient interests of the average person applying contemporary community standards (see Miller v. California, 415 U.S. 15, 93 S.Ct. 2607 (1973)). Prurient interests, as used in this definition, shall mean shameful or morbid interest in nudity, sex, or excretion that goes substantially beyond customary limits or candor in description or representation of these matters (see Haldeman v.

United States, C.A. Kan., 340 F2d 59 (10th Cir., 1965)); and (B) Profane—Language or symbols which are irreverent or contemptuous of things regarded as sacred or that imply divine condemnation (see Baker v. State, 16 Ariz. App. 463, 494 P2d, 68 (1972) and Duncan v. United States, 48 F2d 128 (9th Cir., 1931)).

(3) No motor vehicle license plate will be issued by the Department of Revenue if the language or symbols on the plate are obscene, profane, patently offensive or contemptuous of a racial or ethnic group, or offensive to good taste or decency, or would present an unreasonable danger to the applicant or public. In order to make this determination, the Department of Revenue will look to the way the average person applying contemporary community standards would view the license plate. Factors which the Department of Revenue may consider in this regard include, but are not limited to— (A) An explanation by the registrant as to why they chose particular language or symbols to be on their personalized motor vehicle license plate;

(B) Complaints from the public regarding a license plate with the same letters, numbers, or symbols as that requested or held by the registrant;

(C) Complaints from the public regarding a license plate with similar letters, numbers, or symbols as that requested or held by the registrant;

(D) Dictionary definitions of the language or symbols requested by the registrant;

(E) Information from other states regarding motor vehicle plates which have not been issued by them because they found them to be obscene or profane; and (F) Review of the configuration of the plate backwards.

Filed Jan. 2, 1992, effective May 14, 1992. Amended: Filed May 30, 2023, effective Dec. 30, 2023. Amended: Filed Aug. 18, 2025, *Original authority: 301.144, RSMo 1977, amended 1979, 1983, 1984, 1989, 1992, 1993, 1995, 1995, 2001, 2002, 2004, 2007, 2016.

History

AUTHORITY: section 301.144, RSMo 2016. Original rule filed Jan. 6, 1986, effective April 11, 1986. Emergency amendment filed Jan. 2, 1992, effective Jan. 12, 1992, expired May 10, 1992. Amended:

12 CSR 10-23.190 Temporary Permits Sold by a Registered Missouri Motor Vehicle Dealer {#sec-12-csr-10-23.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.190}

(Moved to 12 CSR 10-26.180)

12 CSR 10-23.200 Nonnegotiable Certificate of Title to a Motor Vehicle or Trailer {#sec-12-csr-10-23.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.200}

(Rescinded September 9, 1993)

Original rule filed Jan. 17, 1986, effective May 29, 1986.

Amended: Filed Nov. 12, 1991, effective March 9, 1992. Rescinded:

Filed March 24, 1993, effective Sept. 9, 1993.

History

AUTHORITY: sections 301.010, 301.190 and 301.300, RSMo Supp.

12 CSR 10-23.210 Congressional Medal of Honor License Plates {#sec-12-csr-10-23.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.210}

(Rescinded February 28, 2026)

History

AUTHORITY: section 301.145, RSMo 1986. Original rule filed Jan. 22, 1986, effective May 11, 1986. Amended: Filed Nov. 13, 1986, effective Feb. 28, 1987. Rescinded: Filed Aug. 28, 2025, effective Feb. 28, 2026.

12 CSR 10-23.220 Motor Vehicle Fee and Tax Refund Requests {#sec-12-csr-10-23.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.220}

History

AUTHORITY: section 144.270, RSMo 1986. Original rule filed March 3, 1986, effective June 28, 1986. Amended: Filed Nov. 18, 1986, effective March 12, 1987. Rescinded: Filed May 23, 2007, effective Nov. 30, 2007.

12 CSR 10-23.230 Legal Sale of Motor Vehicle or Trailer {#sec-12-csr-10-23.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.230}

History

AUTHORITY: section 301.210, RSMo 1986. Original rule filed March 3, 1986, effective June 28, 1986. Emergency rescission filed Jan. 3, 1991, effective Jan. 13, 1991, expired May 13, 1991. Rescinded: Filed Jan. 3, 1991, effective June 10, 1991. Emergency rule filed Feb. 1, 1991, effective Feb. 11, 1991, expired June 10, 1991. Readopted: Filed Feb. 1, 1991, effective June 10, 1991. Rescinded: Filed Dec. 22, 2017,

12 CSR 10-23.240 Recording of Mileage on an Application for Certificate of Title {#sec-12-csr-10-23.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.240}

(Rescinded July 8, 1991)

Original rule filed March 3, 1986, effective June 28, 1986. Amended:

Filed Dec. 2, 1986, effective March 12, 1987. Rescinded: Filed Feb. 15 1991, effective July 8, 1991.

History

AUTHORITY: sections 301.190, 301.210 and 407.536, RSMo 1986.

12 CSR 10-23.250 Registration and Classification of Commercial Motor Vehicles {#sec-12-csr-10-23.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.250}

Original rule filed March 3, 1986, effective June 28, 1986. Rescinded:

History

AUTHORITY: sections 301.010, 301.020 and 301.030, RSMo 1986.

12 CSR 10-23.255 Issuance of New and Replacement Vehicle Identification Numbers {#sec-12-csr-10-23.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.255}

Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

History

AUTHORITY: sections 301.020, RSMo Supp. 2006 and 301.380, RSMo 2000. Original rule filed March 21, 1986, effective July 11, 1986. Amended: Filed Oct. 6, 2006, effective April 30, 2007.

12 CSR 10-23.260 Inspection of Non-USA Standard Vehicles Prior to Titling {#sec-12-csr-10-23.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.260}

PURPOSE: This rule sets forth the procedures for issuance of Missouri certificates of title to foreign motor vehicles not specifically manufactured for importation into this country.

(1) Some vehicles are not manufactured for importation into the United States. In order for a certificate of title to be issued, the department requires any motor vehicle imported by a registered Missouri motor vehicle dealer, or an individual, which vehicle is not manufactured for importation into the United States, to be inspected by a member of the Missouri State Highway Patrol.

At the time of the inspection, the Missouri State Highway Patrol will complete a Vehicle Examination Certificate, Form 551. This form indicates that the vehicle identification number has been verified and is correct.

(2) Some motor vehicles which are purchased by Missouri residents in another country and imported into the United States are manufactured for importation into the United States and conform to all legal standards. The ownership document for these vehicles is usually a Manufacturer’s Statement of Origin similar to the type issued for a motor vehicle constructed by an American manufacturer.

(A) Any application for title to a motor vehicle imported into the United States which is accompanied by a Manufacturer’s Statement of Origin need not be accompanied by a Vehicle Examination Certificate, Form 551. If problems are encountered at the time the application is entered into the Department of Revenue’s computer, the central office will inform the applicant to contact the Missouri State Highway Patrol to request that they inspect the vehicle and complete a Vehicle Examination Certificate.

(3) The Vehicle Examination Certificate, Form 551 is incorporated by reference and made a part of this rule as published by Missouri Department of Revenue, and available at www.dor.mo.gov or Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65101, dated May 17, 2023.

This rule does not incorporate any subsequent amendments or additions.

History

AUTHORITY: section 301.190, RSMo Supp. 2023. Original rule filed March 21, 1986, effective July 11, 1986. Amended: Filed Oct. 25, 2018, effective May 30, 2019. Amended: Filed July 17, 2023, effective Feb. 29, 2024. Original authority: 301.190, RSMo 1939, amended 1947, 1965, 1981, 1983, 1984, 1985, 1986, 1986, 1987, 1988, 1989, 1990, 1992, 1997, 1999, 2003, 2004, 2005, 2006, 2007, 2009, 2012, 2015, 2020.

12 CSR 10-23.265 Statements of Non-Interest {#sec-12-csr-10-23.265 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.265}

Original rule filed March 21, 1986, effective July 26, 1986.

Amended: Filed June 30, 1999, effective Dec. 30, 1999. Rescinded:

History

AUTHORITY: sections 301.190, and 301.210, RSMo Supp. 1998.

12 CSR 10-23.270 Watercraft and Outboard Motor Identification Numbers {#sec-12-csr-10-23.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.270}

History

AUTHORITY: sections 306.030, RSMo Supp. 2006 and 306.031, RSMo 2000. Emergency rule filed March 17, 1986, effective March 27, 1986, expired July 25, 1986. Original rule filed March 17, 1986, effective June 28, 1986. Amended: Filed Oct. 6, 2006, effective April 30, 2007. Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

12 CSR 10-23.275 Recognition of Nonresident Disabled Person Windshield Placards {#sec-12-csr-10-23.275 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.275}

Amended: Filed Nov. 12, 1991, effective March 9, 1992. Amended:

Filed Sept. 27, 2001, effective March 30, 2002. Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

History

AUTHORITY: sections 301.142, RSMo Supp. 2001 and 301.271, RSMo 2000. Original rule filed April 21, 1986, effective Aug. 11, 1986.

12 CSR 10-23.280 Replacement of Multiyear License Plates {#sec-12-csr-10-23.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.280}

PURPOSE: This rule sets forth the procedures for replacement of multiyear license plates.

(1) In January 1979 the Department of Revenue began issuing multiyear license plates. The categories of multiyear license plates are: passenger; recreational vehicle; motorcycle; motortricycle; commercial motor vehicles licensed as Local (L) 6000 and 12,000, Beyond Local (BL) 9000, BL 6000, and 12,000; shuttle bus; and van pool. These license plates were subjected to manufacturing processes, which guarantee a minimum useful life of six (6) years. Holders of multiyear license plates issued at least six (6) years previously may be issued new license plates upon the payment of the annual registration (renewal) fee subject to the procedures outlined that follow:

(A) If the owner of multiyear license plates requests new plates upon renewal and surrenders the old license plates, new license plates from the office’s current inventory stock may be issued upon the payment of only the appropriate renewal fee;

(B) If the owner of multiyear license plates requests new plates upon renewal, but refuses to surrender the old license plates in his/her possession, new license plates from the office’s current inventory stock may be issued upon the payment of the appropriate regular registration fee and the failure to renew fee;

(C) If the owner of multiyear license plates requests new license plates upon renewal, but declares that s/he cannot surrender his/her old license plates because they were lost, stolen, or destroyed, the applicant must complete an application for replacement plates and pay the appropriate replacement plate fee in addition to the regular registration fee. The applicant may be issued new license plates from the office’s current inventory stock. Upon request, applicant will be issued validation tabs from the current inventory stock and a replacement permit and receipt. The replacement plates will be manufactured with the same configuration as the original plates and will be mailed to the applicant. The applicant will affix the new validation tabs to the replacement plates when they are received by him/her;

(D) If the owner of multiyear license plates requests new plates at any time other than during the month of renewal because the license plates currently on the vehicle are at least six (6) years old, s/he may be issued replacement plates at no fee upon surrender of the damaged license plates.

The applicant may be issued new license plates from the office’s current inventory stock. Upon request, owner will be issued replacement tabs and a replacement permit and receipt. The replacement plates will be manufactured with the same configuration as the original plates and mailed to the applicant;

(E) If the owner of multiyear license plates, which are at least six (6) years old, purchases another vehicle and does not wish to transfer the license plates, the applicant may pay the appropriate transfer fee, surrender the old plates and be issued replacement plates at no fee. The applicant will be issued replacement tabs, a replacement permit and receipt. The replacement plates will be manufactured with the same configuration as the original plates and mailed to the applicant;

(F) If the owner of multiyear license plates, which are at least six (6) years old, purchases another vehicle but does not wish to transfer the old license plates and refuses to surrender them, s/he may be issued a new set of license plates from the office’s current inventory stock upon payment of the appropriate registration fee and the failure to transfer fee; and (G) If the owner of multiyear license plates, which are at least six (6) years old, has only one (1) license plate to surrender and declares the other license plate was lost, stolen, or destroyed, s/he may be issued a new set of multiyear license plates under the procedures established in subsection (1)(A) of this rule. The applicant will not be required to pay the failure to renew fee or apply for one (1) replacement plate.

(2) An owner of multiyear license plates, which are less than six (6) years old, who either refuses to renew or to transfer the plates will be issued new plates, be charged the appropriate renewal fee, and be charged either a failure to renew or failure to transfer fee, whichever is applicable.

History

AUTHORITY: section 301.130, RSMo Supp. 2018. Original rule filed April 21, 1986, effective Aug. 11, 1986. Amended: Filed Oct. 25, 2018, Original authority: 301.130, RSMo 1939, amended 1947, 1949, 1951, 1969, 1977, 1981, 1983, 1986, 1987, 1993, 1995, 2001, 2003, 2004, 2005, 2007, 2008, 2013, 2015, 2016,

12 CSR 10-23.285 Titling of Motor Vehicles Sold Without Safety Inspections {#sec-12-csr-10-23.285 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.285}

History

AUTHORITY: section 307.380, RSMo Supp. 1987. Original rule filed April 21, 1986, effective Aug. 11, 1986. Rescinded: Filed May 23, 2007, effective Nov. 30, 2007.

12 CSR 10-23.290 Use of License Plates After Name Change {#sec-12-csr-10-23.290 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.290}

Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

History

AUTHORITY: sections 301.140, RSMo Supp. 1987 and 301.442, RSMo 1986. Original rule filed April 21, 1986, effective Aug. 11, 1986.

12 CSR 10-23.295 Witnessing Proof of Federal Heavy Vehicle Use Tax Payment or Exemption {#sec-12-csr-10-23.295 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.295}

PURPOSE: Section 301.025, RSMo, prohibits the director of revenue from registering any vehicle subject to Federal Heavy Vehicle Use Tax unless the applicant submits proof of payment or exemption.

This rule clarifies what constitutes proof of payment or exemption of the Federal Heavy Vehicle Use Tax imposed by Section 4481 of the Internal Revenue Code.

(1) All applications (new or renewal) for a commercial motor vehicle registration with a licensed gross weight of fifty-five thousand pounds (55,000 lbs.) or above must be accompanied by proof that federal heavy vehicle use tax has been paid on the vehicle or that the vehicle is tax exempt. Acceptable proof includes— (A) Schedule 1 to the federal Heavy Highway Vehicle Use Tax Return, Form 2290 appropriately stamped paid or received by the Internal Revenue Service; or (B) A copy of the front and back of the applicant’s cancelled check made payable to the Internal Revenue Service for the heavy vehicle use tax and the applicant’s copy of Schedule 1 to Form 2290.

(2) Proof of tax payment or tax exemption is not required for— (A) Federal, state, city, and county owned vehicles;

(B) American Indian tribal governments;

(C) Vehicles owned by the American National Red Cross, a nonprofit volunteer fire department, ambulance association, rescue squad, or mass transportation authorities;

(D) Commercial vehicles traveling fewer than five thousand (5,000) miles annually;

(E) Agriculture vehicles traveling fewer than seven thousand five hundred (7,500) miles annually;

(F) Vehicles not considered highway motor vehicles;

(G) Qualified blood collector vehicles used by qualified blood collector organizations; or (H) Vehicles purchased no more than sixty (60) days prior to the date of application for registration.

(3) The Heavy Highway Vehicle Use Tax Return, Form 2290, and the Schedule 1 to Form 2290 are incorporated by reference and made a part of this rule as published by United States Internal Revenue Service, and available at www.irs.gov or by request at Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65101, dated April 19, 2023. This rule does not incorporate any subsequent amendments or additions.

History

AUTHORITY: section 301.025, RSMo 2016. Original rule filed May 27, 1986, effective Aug. 25, 1986. Amended: Filed June 1, 2007, effective Nov. 30, 2007. Amended: Filed July 17, 2023, effective Feb. 29, 2024. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. Original authority: 301.025, RSMo 1951, amended 1974, 1984, 1987, 1995, 1997, 1998, 1999, 2000, 2004, 2005.

12 CSR 10-23.300 Use of Local Commercial Motor Vehicle License Plates for Farm or for Farming Transportation Operations {#sec-12-csr-10-23.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.300}

History

AUTHORITY: section 301.030, RSMo 2000. Original rule filed June 9, 1986, effective Sept. 26, 1986. Amended: Filed June 24, 2003, effective Dec. 30, 2003. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-23.305 No-Fee Transactions {#sec-12-csr-10-23.305 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.305}

PURPOSE: This rule establishes when the department may issue, on a no-fee basis, any replacement certificate of title, license plate or tab.

(1) When the department’s records indicate a certificate of title, license plate or tab was mailed to any applicant and the applicant contacts the department stating s/he did not receive the item in the mail, the department will issue a duplicate certificate of title, license plate or tab at no fee provided the applicant submits an application and a notarized affidavit to the department. This rule will apply if a certificate of title, license plate or tab was not received by the applicant within one (1) calendar year after the item was issued (mailed) by the department. After the one (1) calendar year period has elapsed, the applicant must submit the required documents and fee to obtain the duplicate title, replacement plates, tabs or plates and tabs.

(2) The application must be completed in its entirety. The affidavit must state that the certificate of title, license plate or tab was not received by the applicant and, if the item is received at a later date, it will be returned to the department immediately.

History

AUTHORITY: section 136.030, RSMo 1986. Original rule filed June 10, 1986, effective Sept. 26, 1986. Original authority: 136.030, RSMo 1945, amended 1947, 1949, 1965.

12 CSR 10-23.310 Issuance of Special Fuel Decals {#sec-12-csr-10-23.310 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.310}

PURPOSE: This rule establishes the procedures for issuance of special fuel decals.

(1) The owners of the motor vehicles powered by liquefied petroleum (LP) gas, natural gas, or electricity annually shall purchase a special fuel decal prior to January 31 and pay the annual decal fee set by law. For motor vehicles obtained and converted to run on LP gas, natural gas, or electricity after January 31 of any year, the decal fee shall be reduced by onetwelfth (1/12) for each month which has elapsed since the beginning of the year. The owner of any vehicle that was titled, registered, and equipped to run on LP gas, natural gas, or electricity as of January 31 shall pay the full year’s fee.

(A) Example A: An applicant has May plates on a vehicle equipped to run on LP gas and applies for a special fuel decal during February of the following year. The full fee is due.

(B) Example B: An applicant purchases a vehicle equipped to run on LP gas in May and titles and registers his/her vehicle in the same month. The applicant will be issued a special fuel decal and the fee would be prorated over eight (8) months.

(C) Example C: An applicant owns a vehicle which has been previously titled and registered and converts it to use LP gas in May. The applicant will be issued a special fuel decal and the fee would be prorated over eight (8) months.

(2) The special fuel decal fee paid for each motor vehicle is transferable upon either a change of ownership of the motor vehicle or if the LP gas, natural gas, or electrical equipment is removed from the vehicle by the seller upon change of ownership and is subsequently installed in another vehicle acquired or owned by the seller.

(A) When the ownership of a motor vehicle is transferred to another person, the decal issued to the motor vehicle will remain with the vehicle and shall be transferred to the new owner. The new owner shall complete a new application for the special fuel decal but no fee will be charged for the decal transfer.

(B) When LP gas equipment, natural gas equipment or electrical power equipment is removed by the owner upon sale of the vehicle and later installed on another vehicle owned or purchased by the same individual, the special fuel decal may be transferred to the newly equipped vehicle. In order to receive credit, the owner will be required to remove the special fuel decal from the vehicle from which s/he removed the LP gas, natural gas, or electrical power equipment and surrender the decal. The department’s fee agent and branch office employees will verify the removal of the decal and issue a replacement decal for the balance of the registration period at no fee.

(3) If a special fuel decal is lost, stolen, mutilated, or destroyed, the owner shall make application for a replacement decal and pay the replacement fee established by law.

(4) If an owner of a commercial motor vehicle powered by LP gas, natural gas, or electricity wishes to change the licensed gross weight/zone of the commercial motor vehicle and that change puts the vehicle into an increased special fuel decal fee category, additional decal fees shall be collected. If the change of weight/zone would require a decrease in the decal fee from what was originally paid, no credit shall be allowed.

History

AUTHORITY: section 142.869, RSMo Supp. 2023. Original rule filed June 9, 1986, effective Sept. 26, 1986. Amended: Filed Sept. 16, 1991, effective Jan. 13, 1992. Amended: Filed July 17, 2023, effective Feb. 29, 2024. Original authority: 142.869, RSMo 1998, amended 2008, 2014, 2017, 2021.

12 CSR 10-23.315 Motorized Bicycles {#sec-12-csr-10-23.315 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.315}

Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: sections 301.010, 301.020, 302.020, 307.195, RSMo Supp. 1989, 301.190, RSMo Supp. 1990 and 307.190 and 307.193, RSMo 1986. Original rule filed June 10, 1986, effective Sept. 26, 1986. Amended: Filed Oct. 30, 1989, effective Feb. 25, 1990.

12 CSR 10-23.320 Assessment of Motor Vehicle and Trailer License Plate Transfer Fee {#sec-12-csr-10-23.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.320}

PURPOSE: This rule clarifies when a license plate transfer fee shall be assessed.

(1) When ownership of a registered motor vehicle or trailer is transferred, the original owner may register another motor vehicle or trailer under the same license plate number provided the owner pays the transfer fee set by law and also that the motor vehicle or trailer being newly registered is of either a horsepower, gross weight or (in the case of a passengercarrying commercial motor vehicle) a seating capacity not in excess of the originally registered vehicle. When the newly registered vehicle is of greater horsepower, gross weight or seating capacity than the previously owned and registered vehicle, the owner shall pay the transfer fee set by law and a pro rata portion for the difference in registration fees.

Occasions when the license plate transfer fee shall not be assessed are detailed as follows:

(A) When ownership of a registered motor vehicle or trailer is transferred during or immediately prior to the month of expiration of the owner’s license plates, or license plates are transferred to a previously nonused vehicle, the original owner may register another motor vehicle or trailer under the same license plate number without paying a license plate transfer fee if the motor vehicle or trailer being registered is of either a horsepower, gross weight or (in the case of a passengercarrying commercial motor vehicle) a seating capacity not in excess of the originally owned and registered vehicle. For example, an individual purchases a new vehicle— 1. During the month of expiration of his/her license plates and wants to transfer and renew his/her license plates at the time s/he titles the new vehicle. No license plate transfer fee shall be charged to the applicant but the applicant shall be charged the full year’s registration fee for the new vehicle;

Immediately prior to the month of expiration of his/ her license plates. The applicant submits an application for title to his/her new vehicle during the month his/her license plates expire and submits an affidavit of nonuse indicating the vehicle has not been operated on the streets and highways since the date of purchase. No license plate transfer fee shall be charged to the applicant, but the applicant shall be charged the full year’s registration fee for the new vehicle; and 3. After the sixteenth day of the month immediately prior to the month of expiration of his/her license plates. The applicant desires to transfer and renew his/her license plates early on the new vehicle when s/he makes application for title. No transfer fee shall be charged to the applicant but the applicant shall be charged the full year’s registration fee for the new vehicle.

History

AUTHORITY: section 301.140, RSMo Supp. 1987. Original rule filed July 25, 1986, effective Nov. 28, 1986. Original authority: 301.140, RSMo 1939, amended 1947, 1951, 1978, 1979, 1986, 1987.

12 CSR 10-23.325 Transfer of Passenger Vehicle License Plates From One Horsepower Category to Another—Waiver of Additional Registration Fees and Lack of Refund Provision {#sec-12-csr-10-23.325 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.325}

History

AUTHORITY: section 301.140, RSMo Supp. 1987. Original rule filed July 25, 1986, effective Nov. 28, 1986. Rescinded: Filed Dec. 22,

12 CSR 10-23.330 Registration of Motorcycles or Motortricycles {#sec-12-csr-10-23.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.330}

rule filed July 25, 1986, effective Nov. 28, 1986. Amended: Filed June 24, 2003, effective Dec. 30, 2003. Rescinded: Filed Dec. 22,

History

AUTHORITY: sections 301.055 and 301.080, RSMo 2000. Original

12 CSR 10-23.335 Issuance of Title to a Surviving Spouse or Unmarried Minor Children of a Decedent {#sec-12-csr-10-23.335 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.335}

History

AUTHORITY: section 474.250, RSMo 2000. Original rule filed July 25, 1986, effective Nov. 28, 1986. Amended: Filed July 17, 1989, effective Oct. 27, 1989. Amended: Filed Sept. 16, 2004, effective March 30, 2005. Rescinded: Filed Dec. 22, 2017, effective June 30,

12 CSR 10-23.340 Imposition and Waiver of Motor Vehicle and Trailer Titling and Registration Penalties {#sec-12-csr-10-23.340 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.340}

PURPOSE: This rule clarifies the reasons for imposition and waiver of all penalties assessed by the department on motor vehicles and trailers.

(1) The department assesses penalties on three (3) types of motor vehicle and trailer titling and registration transactions. These penalties are—a delinquent registration renewal penalty, a failure to title penalty, and a failure to renew or transfer a multiyear license plate penalty. All penalties may be waived by the department under certain circumstances.

(A) Delinquent Registration Renewal Penalty. If an owner of a multiyear license plate submits his/her application for renewal on the first day of the month following the month of expiration of the license plate, a delinquent registration renewal penalty will be assessed. If the last day of the month of expiration falls on a Saturday, Sunday, or legal state holiday, the following state working day is penalty free. If, for example, an owner has November license plates and the last day of November falls on Sunday, then Monday, December 1 would be considered penalty free for all November renewals.

Once a motor vehicle is registered for use on Missouri highways, it is subject to registration renewal. The motor vehicle registration is to be renewed whether or not it is actually on or off the highways for any period of time. This obligation to renew the registration continues until the owner ceases to operate the vehicle on Missouri highways, at which time s/he is required to return his/her license plates to the director of revenue within ninety (90) days. If an owner of a motor vehicle surrenders his/her license plates to an office of the Department of Revenue within the ninety- (90-) day period after ceasing to operate the motor vehicle, s/he may register that same vehicle again at a later date without being subject to a delinquent registration renewal penalty.

A. If an owner elects to renew the registration of a vehicle which s/he has ceased operating anytime during the twelve- (12-) month period following the expiration of the license plates, s/he will be issued the appropriate license plate and validation tabs and be charged the appropriate twelve- (12-) month registration fee. A delinquent registration renewal penalty will not be charged provided the owner submits the receipt documenting his/her surrender of previously issued license plates.

B. An owner’s registration will be automatically cancelled after one (1) year from the date of expiration of a Missouri license plate. If an owner elects to cease operation of his/her vehicle, and the license plates on the vehicle have been expired for at least one (1) year, the owner will not be required to pay a delinquent registration renewal penalty if s/he elects to relicense the vehicle after one (1) year from the date of expiration of the license plates.

C. The owner of a motor vehicle may not surrender his/ her license plates and request new license plates on the same day in order to avoid paying a delinquent registration renewal penalty.

(B) Failure to Title Penalty. If a purchaser of a motor vehicle or trailer fails to make application for a certificate of ownership within thirty (30) days after acquiring a motor vehicle or trailer, the department assesses the title penalty set by law for each thirty- (30-) day period of delinquency, not to exceed the maximum penalty allowed. The first penalty fee shall be assessed on the 31st day of delinquency. If the 30th, 60th, 90th, 120th, 150th, 180th, 210th, 240th or the 270th day of delinquency falls on a Saturday, Sunday, or legal state holiday, the penalty fee will not be imposed on the next state working day. If, for example, an individual purchases a motor vehicle on August 1, and the 30th day of the first period of delinquency falls on Sunday, August 31, the first penalty would not be imposed on Monday, September 1 but on Tuesday, September 2.

(C) Penalty for Failure to Renew or Transfer a Multiyear License Plate. A penalty fee will be imposed on any applicant who elects not to renew or transfer a multiyear license plate.

Multiyear license plates are issued to—passenger vehicles; recreational vehicles; motorcycles; motortricycles; commercial motor vehicles registered for Local (L) and Beyond Local (BL) 6,000 to 24,000; shuttle buses; and van pool vehicles. If an applicant does not renew the multiyear license plates currently registered to his/her vehicle, but requests that new multiyear license plates be issued, a penalty fee will not be imposed provided the applicant changes license plate categories. For example, if the applicant has regular passenger license plates and requests disabled person license plates, no failure to renew or transfer penalty will be imposed.

History

AUTHORITY: section 301.130, RSMo Supp. 2018. Original rule filed July 30, 1986, effective Nov. 28, 1986. Amended: Filed Oct. 25, 2018, effective May 30, 2019. Original authority: 301.130, RSMo 1939, amended 1947, 1949, 1951, 1969, 1977, 1981, 1983, 1986, 1987, 1993, 1995, 2001, 2003, 2004, 2005, 2007, 2008, 2013, 2015, 2016, Pursuant to Executive Order 21-09, 12 CSR 10-23.340 and section 301.050, subsection 4 of section 307.350, and subsection 1 of section 643.315, RSMo was suspended from April 7, 2020 through December 31, 2021.

12 CSR 10-23.345 Definition of Major Component Parts of a Motor Vehicle {#sec-12-csr-10-23.345 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.345}

PURPOSE: This rule clarifies, by written definitions and illustrations, the seven (7) major component parts commonly used in the reconstruction of a motor vehicle.

(1) The seven (7) major component parts which are commonly used to reconstruct a motor vehicle are defined solely for reconstruction purposes as follows:

(A) Front-end assembly—An integrated unit consisting of that portion of the body from the firewall forward, that is, hood, both fenders, inner skirt of fenders, radiator or core support, and grille;

(B) Front clip—All parts of the front-end assembly plus complete cowl. It may include instrumentation and steering column. It requires cutting of vehicle floor and windshield post;

(C) Cab—The passenger compartment of a common truck. It is a one- (1-) piece sheet metal construction which may or may not include glass, instrumentation, steering column, and seat;

(D) Rear clip—The complete rear sheet metal assembly formed by severing the vehicle across the floor and either through the windshield post or through the rear window post;

(E) Cowl—The sheet metal formed by severing the vehicle across the floor in the vicinity of the front seat and severing the windshield posts. It does not include parts forward of the firewall. If a cowl is included as an integrated part of a front clip, front-end assembly, or rear clip, it will not be considered a major component part for the purpose of determining the total number of the major component parts used in the reconstruction of a motor vehicle;

(F) Frame—The steel basic structure which runs the entire length of some vehicles and onto which the suspension parts are bolted to the lower side and the body is bolted to the top side. Unibody vehicles do not have this type of frame; and (G) Body—The shell, either of a unibody or frame-type passenger vehicle, which consists of a one- (1-) piece, integrated sheet metal construction extending from the firewall back. The body includes a cowl but not a front-end assembly. It may or may not include an interior, doors, and deck lid. It does not include a frame as defined in subsection (1)(F).

(2) The major component parts which are commonly used to reconstruct a motorcycle are defined solely for reconstruction purposes as follows:

(A) Frame; and (B) Transmission.

History

AUTHORITY: section 301.010, RSMo Supp. 2018. Original rule filed Sept. 1, 1986, effective Nov. 28, 1986. Amended: Filed Oct. 25, 2018, Original authority: 301.010, RSMo 1939, amended 1945, 1949, 1951, 1969, 1974, 1979, 1980, 1983, 1983, 1985, 1986, 1986, 1987, 1988, 1989.

12 CSR 10-23.350 Honorary Consular License Plates {#sec-12-csr-10-23.350 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.350}

(Rescinded May 30, 2026)

Original rule filed Oct. 3, 1986, effective Dec. 26, 1986. Emergency amendment filed Oct. 30, 1989, effective Nov. 9, 1989, expired March 8, 1990. Amended: Filed Oct. 30, 1989, effective Feb. 25, 1990. Amended: Filed Oct. 25, 2018, effective May 30, 2019.

Rescinded: Filed Nov. 24, 2025, effective May 30, 2026.

History

AUTHORITY: sections 26.140, 301.135, and 301.144, RSMo 2016.

12 CSR 10-23.355 Junking Certificates for Motor Vehicles {#sec-12-csr-10-23.355 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.355}

History

AUTHORITY: section 301.227, RSMo Supp. 1990. Original rule filed Nov. 18, 1986, effective March 12, 1987. Rescinded: Filed Dec. 22,

12 CSR 10-23.365 Issuance of Nonresident Salvage-Buyer’s Identification Card {#sec-12-csr-10-23.365 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.365}

(Rescinded February 29, 2008)

Filed Aug. 8, 2007, effective Feb. 29, 2008.

History

AUTHORITY: section 301.218, RSMo 1986. Original rule filed Nov. 18, 1986, effective March 12, 1987. Emergency rescission filed Aug. 8, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Rescinded:

12 CSR 10-23.370 Issuance of Certificates of Title to Recreational Vehicles Manufactured by Two Separate Manufacturers {#sec-12-csr-10-23.370 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.370}

PURPOSE: This rule establishes uniform procedures to be followed in the titling of multistage, manufactured recreational vehicles, or motor homes often referred to as multistage vehicles.

(1) When recreational vehicles or recreational motor vehicle are manufactured by separate manufacturers and have separate and distinct Manufacturers’ Statements of Origin (MSO) issued for the unit, the following titling procedures apply:

(A) When an application for a Missouri certificate of title to a new recreational vehicle or motor home is submitted, both the MSO issued by the vehicle’s chassis or first-stage manufacturer and the MSO issued by the vehicle’s final-stage manufacturer must accompany the application;

(B) The year model assigned to the recreational vehicle shall be obtained from the MSO issued by the recreational vehicle’s final-stage manufacturer;

(C) The vehicle make assigned to a vehicle shall be obtained from the MSO issued by the vehicle’s final-stage manufacturer.

For example, first-stage manufacturer, Chrysler Corporation builds a Dodge chassis which is subsequently made into a recreational vehicle or motor home by the final-stage manufacturer, Winnebago. The make of the vehicle will be Winnebago. Note, however, that the make of a Ford van converted by a custom converter to a recreational vehicle which does not meet the requirements of a motor home detailed in section (2) must remain a Ford; and (D) The vehicle identification number (VIN) assigned to the recreational vehicle or motor home shall be the chassis identification number shown on the first-stage MSO. For example, the VIN for a completed Winnebago recreational vehicle or motor home manufactured on a Dodge chassis will be the identification number assigned by Chrysler Corporation to the Dodge chassis.

(2) For the purpose of this rule, a recreational motor vehicle shall be defined as any motor vehicle designed, constructed, or substantially modified so that it may be used and is used for the purposes of temporary housing quarters, including therein sleeping and eating facilities which are either permanently attached to the motor vehicle or attached to a unit which is securely attached to the motor vehicle. The vehicle must contain permanently installed independent life support systems which meet the American National Standards Institute/National Fire Protection Association (ANSI/NFPA) 501C Standard and provide at least four (4) of the following facilities: cooking, refrigeration or ice box, self-contained toilet, heating or air conditioning, or both, a portable water supply system including a faucet and sink, separate one hundred ten to one hundred twenty-five (110–125)-volt electrical power supply or a liquefied petroleum (LP) gas supply or both. The basic types are specified as follows:

(A) Type A. A raw chassis upon which is built a driver’s compartment and an entire body which provides temporary living quarters as previously defined;

(B) Type B. A completed van-type vehicle which has been altered to provide temporary living quarters as defined previously; and (C) Type C. An incomplete vehicle upon which is permanently attached a body designed to provide temporary living quarters as previously defined.

section 301.010, RSMo Supp. 2018.* Original rule filed Dec. 2, 1986, effective March 12, 1987. Amended: Filed June 24, 2003, effective Dec. 30, 2003. Amended: Filed Oct. 25, 2018, effective May 30, 2019. *Original authority: 301.010, RSMo 1939, amended 1945, 1949, 1951, 1969, 1974, 1979, 1980, 1983, 1983, 1985, 1986, 1986, 1987, 1988, 1989, 1992, 1993, 1995, 1996, 1997, 1998, 2000, 2004, 2005, 2007, 2008, 2009, 2012, 2014, 2015, 2016, 2017, 2018; 301.190, RSMo 1939, amended 1947, 1965, 1981, 1983, 1984, 1985, 1986, 1987, 1988, 1989, 1990, 1992, 1993, 1999; and 301.200, RSMo 1939, amended 1947, 1984, 1986.

History

AUTHORITY: sections 301.190 and 301.200, RSMo 2016, and

12 CSR 10-23.375 Fire Department License Plates {#sec-12-csr-10-23.375 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.375}

(Rescinded March 30, 2005)

rule filed Jan. 5, 1987, effective April 11, 1987. Rescinded: Filed Sept. 16, 2004, effective March 30, 2005.

History

AUTHORITY: sections 301.144.2 and 301.444, RSMo 1986. Original

12 CSR 10-23.380 Motor Vehicle Shows or Tent Sales {#sec-12-csr-10-23.380 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.380}

History

AUTHORITY: section 301.254, RSMo 1986. Original rule filed March 5, 1987, effective Aug. 27, 1987. Rescinded: Filed Nov. 15, 1990, effective April 29, 1991.

12 CSR 10-23.385 Verification of the Vehicle Identification Number and Odometer Reading of Motor Vehicles Previously Titled in Another State {#sec-12-csr-10-23.385 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.385}

PURPOSE: This rule provides alternatives to the requirement for Missouri residents who are serving on active duty in the military and stationed outside Missouri; or residents who are located outside Missouri for an extended period of time; or residents who purchase nonoperable vehicles titled in another state to submit a Missouri motor vehicle inspection approval certificate with an application for Missouri title.

(1) A Missouri motor vehicle inspection approval certificate (see 11 CSR 50-2.120) from an official inspection station authorized by the Missouri State Highway Patrol which verifies the manufacturer’s vehicle identification number and the vehicle’s odometer reading shall accompany every application for a Missouri certificate of title to a motor vehicle which was previously titled in a state other than Missouri. The following alternatives to this requirement shall be available:

(A) A Missouri resident, on active duty in the military and stationed out-of-state, who purchases a vehicle previously titled in another state and is unable to transport it to Missouri for an inspection may submit a document signed by a commissioned officer of one of the United States Armed Forces verifying the manufacturer’s identification number and odometer reading of the vehicle at the time application for title is made.

Example: John Doe (a Missouri resident who is a sergeant in the Army) purchases a motor vehicle in South Carolina. The South Carolina title is assigned to John Doe. Although Sgt. Doe will be stationed in South Carolina for two (2) years, he wants to title and register his motor vehicle in Missouri, his official domicile. Sgt. Doe cannot readily transport the vehicle to an official Missouri inspection station for an inspection because the vehicle is located outside Missouri; therefore, Sgt. Doe may submit a signed document in the form described in subsection (1)(A) of this rule with his application for title;

(B) A Missouri resident, located outside Missouri for an extended period of time due to employment, schooling, or others who purchases a vehicle previously titled in another state and is unable to transport it to Missouri for an inspection may present a notarized affidavit stating why the vehicle cannot be inspected in Missouri along with a notice of an inspection performed by an authorized inspection station or law enforcement officer in the state where the resident is located. The inspection shall verify the manufacturer’s identification number and odometer reading of the vehicle.

Example: John Doe (a Missouri resident who is employed in Washington for two (2) years) purchases a motor vehicle in Washington. The Washington title is assigned to John Doe.

Although Mr. Doe is employed in Washington for two (2) years, he wants to title and register his motor vehicle in Missouri, his official domicile. Mr. Doe cannot readily transport the vehicle to an official Missouri inspection station for an inspection because the vehicle is outside Missouri; therefore with his title application, Mr. Doe may submit a notarized affidavit stating why the vehicle cannot be inspected in Missouri and a notice of inspection which verifies the manufacturer’s identification number of the vehicle and its odometer reading. The inspection shall be performed by either an authorized inspection station or law enforcement officer in Washington; or (C) A Missouri resident purchases a vehicle previously titled in another state. The motor vehicle is not operational and is towed to the owner’s legal address in Missouri. The resident may submit a document signed by an authorized Missouri law enforcement officer who has verified the manufacturer’s identification number and odometer reading of the vehicle.

Example: John Doe purchases a motor vehicle in Oklahoma. The Oklahoma title is assigned to John Doe. Since the motor vehicle is not operational, Mr. Doe has the vehicle towed to his legal address in Missouri. He wants to title his vehicle but cannot readily transport it to an official inspection station for an inspection. Mr. Doe may submit with his application for title a document signed by an authorized Missouri law enforcement officer who has verified the manufacturer’s identification number and odometer reading of the nonoperable vehicle. The inspecting officer’s report must clearly state that the vehicle is not operational.

History

AUTHORITY: section 301.190, RSMo 1986. Original rule filed May 11, 1987, effective Aug. 27, 1987. Original authority: 301.190, RSMo 1939, amended 1947, 1965, 1981, 1983, 1984, 1985, 1986, 1986, 1987, 1988, 1989, 1990.

12 CSR 10-23.390 License Plates for Disabled Veterans {#sec-12-csr-10-23.390 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.390}

(Rescinded May 30, 2006)

History

AUTHORITY: sections 301.071–301.075, RSMo 1986. Original rule filed June 16, 1988, effective Nov. 24, 1988. Rescinded: Filed Nov. 8, 2005, effective May 30, 2006.

12 CSR 10-23.395 Regulation of Boat Dealer’s Certificate of Number and Plates {#sec-12-csr-10-23.395 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.395}

(Rescinded June 30, 2008)

History

AUTHORITY: section 301.560, RSMo Supp. 1990. Original rule filed July 17, 1989, effective Oct. 27, 1989. Rescinded: Filed Dec. 28, 2007, effective June 30, 2008.

12 CSR 10-23.400 Transfer of License Plates {#sec-12-csr-10-23.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.400}

(Rescinded February 28, 2026)

History

AUTHORITY: section 301.140, RSMo Supp. 1990. Original rule filed Feb. 2, 1990, effective May 11, 1990. Rescinded: Filed Aug. 28, 2025,

12 CSR 10-23.405 Emblem-Use Authorization Statement and Format for Collegiate License Plates {#sec-12-csr-10-23.405 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.405}

PURPOSE: This rule clarifies the process to be used by colleges and universities in order to have personalized collegiate license plates available.

(1) Any community college or four- (4-) year public or private institution of higher education, or a foundation or organization representing the college or institution, located in Missouri authorizing the use of its official emblem to be affixed to a license plate annually will issue an emblem-use authorization statement. The statement will be in a format agreed upon by the director of the Department of Revenue and which includes the name of the community college or four- (4-) year public or private institution, the applicant’s name and address, the amount of contribution paid, and the date of payment.

(2) One (1) emblem-use authorization statement needs to be issued for each collegiate license plate application.

(3) Any community college or four- (4-) year public or private institution of higher education which desires to have license plates issued which display its emblem, logo, or seal must submit two-hundred (200) applications before the Department of Revenue will authorize the manufacture of license plates displaying its emblem, logo, or seal.

(4) Any community college or four- (4-) year public or private institution of higher education desiring to have collegiate license plates issued should submit a preliminary design of the emblem, logo, or seal which it desires to be displayed upon the license plates as well as school colors that need to be included. This design will be formatted in accordance with the design of the plate as prescribed in section (5) of this rule.

The department will submit the design to the vendor for the material to manufacture the plates. The vendor will prepare the finished artwork for the emblem, logo or seal and submit it to the Department of Revenue and the appropriate institution for approval. Upon approval, the department will authorize the manufacture of the plates.

(5) The left-hand portion of the plate will bear a reproduction of the college emblem, seal, or logo in an area not to exceed two and one-half inches by three inches (2 1/2" × 3"). Immediately to the right of the emblem, seal, or logo, will appear one to five (1–5) characters. The bottom of the license plate will bear the name of the community college or public or private institution of higher education, in lieu of SHOW ME STATE, in an area not to exceed eleven inches by one inch (11" × 1").

History

AUTHORITY: section 301.449, RSMo 2016. Original rule filed Nov. 1, 1989, effective Feb. 25, 1990. Amended: Filed Oct. 25, 2018, Original authority: 301.449, RSMo 1989.

12 CSR 10-23.410 Certificate of Registration to Documented Vessels {#sec-12-csr-10-23.410 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.410}

(Rescinded February 25, 1996)

Original rule filed Nov. 2, 1990, effective March 14, 1996. Amended:

Filed June 18, 1991, effective Oct. 31, 1996. Rescinded: Filed Sept. 1, 1995, effective Feb. 25, 1996.

History

AUTHORITY: section 306.851, RSMo Supp. 1990. Emergency rule filed Nov. 2, 1990, effective Nov. 12, 1990, expired March 11, 1991.

12 CSR 10-23.415 Sample License Plates {#sec-12-csr-10-23.415 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.415}

Original rule filed Nov. 8, 1990, effective April 29, 1991. Rescinded:

Filed May 23, 2007, effective Nov. 30, 2007.

History

AUTHORITY: sections 301.130 and 301.449, RSMo Supp. 1990.

12 CSR 10-23.420 Secure Power of Attorney Requirements {#sec-12-csr-10-23.420 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.420}

PURPOSE: This rule establishes the procedures for using a secure power of attorney in conjunction with a certificate of title as provided for in federal and state law.

(1) Section 407.536(8), RSMo, and the Motor Vehicle Information and Cost Savings Act allow the transferor of a motor vehicle to execute a Secure Power of Attorney Form 5086 (SPOA) when the certificate of ownership is held by a lienholder or for the

purpose of assigning a duplicate title in order to comply with federal and state odometer disclosure requirements.

(2) If the dealer sells the vehicle before the title is received as provided in section 301.894, RSMo, the dealer and purchaser may complete the SPOA to authorize the dealer to sign on behalf of the purchaser and make the odometer disclosure on the second title assignment, so the purchaser is not required to return to the dealership once the title issues to acknowledge the disclosure. In this case, upon receipt of the title, the dealer must— (A) Inspect the title to ensure the mileage on the title is consistent with what was recorded on the SPOA;

(B) Complete the first and second title assignments; and (C) Complete the SPOA certifying that the mileage the dealer disclosed on the title document is consistent with the mileage provided to the dealer in the SPOA.

(3) The SPOA and corresponding certificate of ownership shall accompany the purchaser’s application for title.

(4) SPOA and copies of corresponding titles received by a dealer in a particular month shall be submitted with the sales report completed for the month. If the dealer sales report is filed electronically, the SPOA forms and the title copies must be filed with the Department of Revenue by the fifteenth day of the month following the month in which the sale occurred. The dealer shall ensure that the original and all other copies of the SPOA and certificate of title are completed in full and are legible. The dealer shall retain a photocopy of the SPOA and the front and back of the corresponding certificate of ownership as a part of the dealership’s records for a period of five (5) years.

(5) A Missouri motor vehicle dealer may buy and sell a motor vehicle out-of-state when a secure power of attorney form accompanies the title. When an out-of-state secure power of attorney form is involved, the Missouri dealer shall obtain the appropriate copy of the secure power of attorney form and the certificate of title, but shall not be required to submit copies of those documents with the dealer’s sales report.

(6) A motor vehicle dealer listed as the purchaser on the secure power of attorney form may elect to title the vehicle in the dealership’s name by submitting the original secure power of attorney form and the original ownership document with the dealer’s application for title.

(7) The Secure Power of Attorney Form 5085 (SPOA), revised September 2021, is incorporated by reference and is published by and can be obtained from the Missouri Department of Revenue at the Harry S Truman State Office Building, 301 W.

High St., Jefferson City, MO 65109 or any local license office of the Missouri Department of Revenue. These forms do not include any amendments or additions since the revision dates noted.

Amended: Filed Nov. 8, 2023, effective June 30, 2024. *Original authority: 301.280, RSMo 1939, amended 1974, 1983, 1984, 1986, 1988, 1990, 1993, 1997, 2004, 2007, 2009, 2012, 2015, 2020, 2021, and 407.536, RSMo 1977, amended 1983, 1988, 1989, 1990, 1992, 2014, 2021.

History

AUTHORITY: sections 301.280 and 407.536, RSMo Supp. 2023. Emergency rule filed March 11, 1991, effective March 21, 1991, expired July 17, 1991. Emergency rule filed July 9, 1991, effective July 19, 1991, expired Nov. 15, 1991. Original rule filed March 11, 1991, effective Aug. 30, 1991. Amended: Filed July 2, 1992, effective Feb. 26, 1993. Amended: Filed June 24, 2003, effective Dec. 30, 2003. Amended: Filed Dec. 19, 2005, effective June 30, 2006.

12 CSR 10-23.422 Issuance of Purple Heart License Plates {#sec-12-csr-10-23.422 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.422}

(Rescinded February 28, 2007)

History

AUTHORITY: sections 301.144, RSMo Supp. 1990 and 301.451, RSMo Supp. 1991. Emergency rule filed Sept. 16, 1991, effective Sept. 26, 1991, expired Jan. 23, 1992. Original rule filed Sept. 16, 1991, effective Jan. 13, 1992. Rescinded: Filed Aug. 23, 2006, effective Feb. 28, 2007.

12 CSR 10-23.424 Leasing Company Registration {#sec-12-csr-10-23.424 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.424}

PURPOSE: This rule sets forth the requirements for obtaining a permit to operate as a motor vehicle, trailer, boat, or outboard motor leasing company.

(1) Any person, company, or corporation engaged in the business of renting or leasing motor vehicles, trailers, boats, or outboard motors either may elect to pay sales tax on the purchase price or elect to collect and remit sales tax on the gross receipts from the rental or lease of the motor vehicles, trailers, boats, or outboard motors. Any person, company, or corporation electing to collect and remit sales tax on the gross receipts from rental or lease shall apply to the director of revenue for a permit to operate as a leasing company.

(2) To apply for registration as a leasing company, the applicant shall submit a completed application on a biennial basis as prescribed by the director. A copy of the applicant’s Missouri sales tax license shall accompany the initial application. The applicant also shall be properly registered with the Office of the Missouri Secretary of State and shall furnish proof of that registration upon request.

(3) The director may stagger expiration dates to equalize workload. Leasing companies with expired registrations will not be entitled to the sales tax option provided by section 144.070, RSMo, and will pay all state and local sales tax on the purchase price of any units acquired while the registration is expired.

(4) Motor vehicles, trailers, boats, and outboard motors purchased by a registered leasing company shall be titled in the name of the leasing company as registered with the director. The leasing company shall record its leasing permit number assigned by the director on all applications for title in order to be exempt from sales tax at the time of titling.

(5) Any transfer of a motor vehicle, trailer, boat, or outboard motor to another division from one (1) division of a corporation which authorizes a division to register as a motor vehicle leasing company is a sale at retail as defined in section 144.010, RSMo.

(6) The director will deny application for, or recall any permit to operate as a leasing company, if the applicant— (A) Has fraudulently completed the application for registration;

(B) No longer holds a valid Missouri sales tax license; or (C) Is no longer properly registered with the Office of the Missouri Secretary of State.

(7) A leasing company registered with the director pursuant to section 144.070, RSMo, which ceases to operate as a leasing company in accordance with the law, the rules established by the director, or both, shall notify the director accordingly and, within ten (10) days of cessation of operation, return the permit to operate as a leasing company to the director.

section 144.010, RSMo Supp. 2018.* Emergency rule filed Oct. 28, 1991, effective Nov. 7, 1991, expired March 6, 1992. Emergency rule filed Feb. 26, 1992, effective March 7, 1992, expired July 5, 1992.

Original rule filed Oct. 28, 1991, effective May 14, 1992. Amended:

Filed Oct. 10, 2003, effective April 30, 2004. Amended: Filed Oct. 25, 2018, effective May 30, 2019. *Original authority: 144.010, RSMo 1939, amended 1941, 1943, 1945, 1947, 1974, 1975, 1977, 1978, 1979, 1981, 1985, 1988, 1993, 1996, 1998, 1999, 2001, 2005, 2011, 2013, 2016, 2017, 2018; 144.070, RSMo 1939, amended 1941, 1943, 1945, 1947, 1951, 1961, 1974, 1975, 1977, 1985, 1997, 2009, 2011; and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

History

AUTHORITY: sections 144.070 and 144.270, RSMo 2016, and

12 CSR 10-23.426 Special Identification Numbers {#sec-12-csr-10-23.426 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.426}

History

AUTHORITY: section 301.390, RSMo 1986. Original rule filed April 23, 1992, effective Dec. 3, 1992. Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

12 CSR 10-23.428 All-Terrain Vehicles Modified for Highway Use {#sec-12-csr-10-23.428 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.428}

(Rescinded December 30, 2005)

Filed June 9, 2005, effective Dec. 30, 2005.

History

AUTHORITY: section 301.010, RSMo Supp. 1989, 301.190, RSMo Supp. 1990 and 301.700, Supp. 1988. Original rule filed April 23, 1992, effective Dec. 3, 1992. Emergency rescission filed June 9, 2005, effective June 19, 2005, expired Dec. 16, 2005. Rescinded:

12 CSR 10-23.430 Registration of a Motor Vehicle or Trailer When the Out-Of-State Lienholder Refuses to Release the Title {#sec-12-csr-10-23.430 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.430}

PURPOSE: This rule clarifies the requirements for and the issuance of registration by the Department of Revenue in certain situations for motor vehicles or trailers when an individual has established residency in Missouri and the out-of-state lienholder refuses to release the title.

(1) An individual establishing residency in Missouri is required to title and register all motor vehicles and trailers they own within thirty (30) days of establishing residency. On occasion, the lienholder named on the out-of-state title may refuse to release the title to either the owner or the Department of Revenue in order for the owner to title the vehicle in Missouri.

Since the owner is obligated to obtain Missouri license plates for their vehicle, they shall apply for registration by submitting the following:

(A) APPLICATION FOR MISSOURI TITLE AND LICENSE, Form 108, completed and signed;

(B) A copy of the front and back of the out-of-state title issued in the owner’s name or proof that the title is being held electronically; see section (2);

(C) A written statement from the lienholder refusing to release the title or an Owner Out-of-State Title Request Form 5834;

(D) All documents and fees required to obtain Missouri license plates; and (E) A fee equal to the title fee required pursuant to section 301.190, RSMo.

(2) If the title is being held by a state that issues electronic titles, one (1) of the following can be accepted in lieu of the copy of the front and back of the title:

(A) A title receipt indicating the applicant(s) name as the owner and the lienholder’s name as the lienholder; or (B) A statement from the lienholder, on letterhead, declaring the out-of-state title is held by an electronic titling state.

(3) If the original title or out-of-state ownership document is not surrendered at the time of application, applicant will be issued a one- (1-) year registration. A letter will be printed and mailed, emailed, or faxed to the lienholder requesting the title be submitted to the department. Applicant will not receive a Missouri Certificate of Title, and the one- (1-) year registration will not be eligible for renewal until the out-of-state title has been received.

Filed Nov. 8, 2023, effective May 30, 2024. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. *Original authority: 301.010, RSMo 1939, amended 1945, 1949, 1951, 1969, 1974, 1979, 1980, 1983, 1985, 1986, 1987, 1988, 1989, 1992, 1993, 1995, 1996, 1997, 1998, 2000, 2004, 2005, 2007, 2008, 2009, 2012, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2025, and 301.190, RSMo 1939, amended 1947, 1965, 1981, 1983, 1984, 1985, 1986, 1987, 1988, 1989, 1990, 1992, 1997, 1999, 2003, 2004, 2005, 2006, 2007, 2009, 2012, 2015, 2020.

History

AUTHORITY: sections 301.010 and 301.190, RSMo Supp. 2025. Original rule filed April 16, 1993, effective Oct. 10, 1993. Amended:

12 CSR 10-23.432 Registration of a Motor Vehicle or Trailer Subject to a Lease With a Right to Purchase Clause {#sec-12-csr-10-23.432 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.432}

Original rule filed April 16, 1993, effective Oct. 10, 1993. Rescinded:

History

AUTHORITY: sections 301.010 and 301.190, RSMo Supp. 1992.

12 CSR 10-23.434 Use of a Reassignment of Ownership by Registered Dealer Form {#sec-12-csr-10-23.434 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.434}

rule filed July 30, 1993, effective Jan. 31, 1994. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: section 301.200, RSMo 1986. Emergency rule filed July 30, 1993, effective Aug. 9, 1993, expired Dec. 6, 1993. Original

12 CSR 10-23.436 Application For Title {#sec-12-csr-10-23.436 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.436}

(Rescinded December 30, 2003)

Original rule filed Nov. 28, 1994, effective May 28, 1995. Rescinded:

Filed June 24, 2003, effective Dec. 30, 2003.

History

AUTHORITY: sections 301.190, 301.700 and 700.320, RSMo 1994.

12 CSR 10-23.440 Replacement License Tabs {#sec-12-csr-10-23.440 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.440}

(Rescinded May 30, 2006)

History

AUTHORITY: section 301.301, RSMo Supp. 1995. Original rule filed Sept. 1, 1995, effective Feb. 25, 1996. Rescinded: Filed Nov. 1, 2005, effective May 30, 2006.

12 CSR 10-23.442 Outboard Motor {#sec-12-csr-10-23.442 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.442}

PURPOSE: This rule defines the type of outboard motor required to be titled and registered.

(1) An outboard motor is defined as an internal combustion engine with an integrally attached propeller or waterjet propulsion unit that is designed to be temporarily secured to the stern of a boat.

(2) Only outboard motors, as defined above, are subject to the titling and registration requirements of Chapter 306, RSMo.

Original rule filed March 12, 1999, effective Aug. 30, 1999. *Original authority: 306.530, RSMo 1945, amended 1949, 1985.

History

AUTHORITY: section 306.530, RSMo 1994. Emergency rule filed March 12, 1999, effective March 22, 1999, expired Sept. 17, 1999.

12 CSR 10-23.444 Historic Vehicle License {#sec-12-csr-10-23.444 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.444}

(Rescinded December 30, 2003)

History

AUTHORITY: section 301.131, RSMo Supp. 1998. Original rule filed March 12, 1999, effective Sept. 30, 1999. Rescinded: Filed June 24, 2003, effective Dec. 30, 2003.

12 CSR 10-23.446 Notice of Lien {#sec-12-csr-10-23.446 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.446}

PURPOSE: This rule outlines the requirements for the perfection of a lien on a motor vehicle, trailer, manufactured home, all terrain vehicle, boat, or outboard motor by physical delivery or electronic filing of the notice of lien.

(1) A lien on a motor vehicle, trailer, manufactured home, all terrain vehicle, boat, or outboard motor is perfected when a notice of lien meeting the requirements in section (2) is delivered to the director of revenue, whether or not the ownership thereof is being transferred. A processing fee is collected when the notice of lien is delivered to the director.

Delivery to the director of revenue may be physical delivery of the notice of lien to the director by mail, or to the director or agent of the director in a Department of Revenue office, or by electronic filing of the notice of lien. A received date stamp placed on the notice of lien application receipt or an electronic confirmation receipt issued by the director or his/her agent will be prima facie proof of the date of delivery.

(2) A notice of lien for a motor vehicle, trailer, manufactured home, all terrain vehicle, boat, or outboard motor shall be in a form or electronic format provided or approved by the director of revenue. The notice of lien shall contain, but not be limited to, the following information:

(A) Name and address of owner(s);

(B) Unit description, by make, and identification number;

(D) Name and address of first and second lienholder(s), if applicable; and (E) Subject to future advances if applicable.

(3) As used in this rule, the term “boat” includes all motorboats, vessels, or watercraft as the terms are defined in section 306.010, RSMo.

(4) Any lienholder who elects to file a lien electronically must apply to use this option and be approved by the director.

Amended: Filed Jan. 17, 2012, effective July 30, 2012. *Original authority: 301.600, RSMo 1965, amended 1989, 1999, 2000, 2001, 2002, 2008, 2011; 301.610, RSMo 1965, amended 1990, 1992, 1999, 2002, 2008; 301.620, RSMo 1965, amended 1990, 1992, 1999, 2002, 2008; 301.660, RSMo 1965, amended 1990, 2002, 2008; 306.400, RSMo 1985, amended 1999, 2000, 2002, 2008, 2011; 306.405, RSMo 1985, amended 1999, 2002, 2008; 306.410, RSMo 1985, amended 1999, 2000, 2002, 2003, 2008, 2009; 306.430, RSMo 1985, amended 2002, 2008; 700.350, RSMo 1985, amended 1989, 2002, 2008, 2010, 2011; 700.355, RSMo 1985, amended 2002, 2008; 700.360, RSMo 1985, amended 2002, 2008, 2010; and 700.380, RSMo 1985, amended 2002, 2008.

History

AUTHORITY: sections 301.600, 301.610, 301.620, 301.660, 306.400, 306.405, 306.410, 306.430, 700.350, 700.355, 700.360, and 700.380, RSMo Supp. 2011. Emergency rule filed Aug. 18, 1999, effective Aug. 28, 1999, expired Feb. 23, 2000. Original rule filed Aug. 18, 1999, effective Feb. 29, 2000. Amended: Filed June 13, 2000, effective Dec. 30, 2000. Amended: Filed April 9, 2003, effective Oct. 30, 2003. Amended: Filed Oct. 6, 2006, effective April 30, 2007.

12 CSR 10-23.450 Guidelines for Use of Handicapped Parking Cones {#sec-12-csr-10-23.450 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.450}

PURPOSE: This rule establishes guidelines for the use of handicapped parking cones.

(1) Any person who is issued disabled person license plates or a removable windshield placard and who uses a wheelchair or transports a person who uses a wheelchair, may utilize a parking cone bearing the international symbol of accessibility and the words “wheelchair parking space.”

(2) Parking cones shall be predominantly orange, fluorescent red-orange or fluorescent yellow-orange, not less than eighteen inches (18") in height and shall be made of a material that can be struck without damaging vehicles on impact.

(3) Any cone that conforms to the requirements of this provision will be sufficient for use by such person without further authorization from the director.

History

AUTHORITY: section 301.139, RSMo Supp. 1999. Original rule filed Oct. 27, 1999, effective May 30, 2000. Original authority: 301.139, RSMo 1999.

12 CSR 10-23.452 Internet Renewal of License Plates {#sec-12-csr-10-23.452 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.452}

History

AUTHORITY: section 32.300, RSMo 2000. Original rule filed June 7, 2001, effective Dec. 30, 2001. Rescinded: Filed Dec. 22, 2017,

12 CSR 10-23.454 Electric Personal Assistive Mobility Device (EPAMD) {#sec-12-csr-10-23.454 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.454}

History

AUTHORITY: sections 301.010 and 301.190, RSMo 2000 and 307.205, RSMo Supp. 2002. Original rule filed Aug. 23, 2002, effective Feb. 28, 2003. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-23.456 Marine Application for Title {#sec-12-csr-10-23.456 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.456}

Original rule filed May 22, 2003, effective Dec. 30, 2003. Rescinded:

History

AUTHORITY: sections 306.400 and 306.410, RSMo Supp. 2003.

12 CSR 10-23.458 Documents Accepted as a Release of Lien {#sec-12-csr-10-23.458 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.458}

History

AUTHORITY: sections 301.640, 306.410, 306.420 and 700.370, RSMo Supp. 2003. Original rule filed June 24, 2003, effective Dec. 30, 2003. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-23.460 Issuance of Biennial Disabled Person Placard {#sec-12-csr-10-23.460 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.460}

Rescinded: Filed May 23, 2007, effective Nov. 30, 2007.

History

AUTHORITY: sections 301.003, RSMo 2000 and 301.142, RSMo Supp. 2004. Original rule filed Nov. 13, 2003, effective May 30, 2004. Amended: Filed Dec. 14, 2004, effective July 30, 2005.

12 CSR 10-23.465 Issuance of Biennial Salvage Business Licenses {#sec-12-csr-10-23.465 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.465}

(Moved to 12 CSR 10-26.021)

12 CSR 10-23.470 Notice of Sale {#sec-12-csr-10-23.470 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.470}

PURPOSE: Section 301.196, RSMo, requires the seller of a motor vehicle, trailer, or all-terrain vehicle to report the sale to the Department of Revenue. This rule establishes the forms motor vehicle sellers must complete for reporting the sale to the department.

(1) Motor vehicle sellers, other than Missouri licensed dealers, must complete one (1) of the following forms and submit it to the Department of Revenue within thirty (30) days of the sale:

(A) Notice of Sale (Form 5049), required when title does not include the perforated notice of sale;

(B) The Notice of Sale (Form 5049A), this is the perforated portion at the bottom of the Missouri Certificate of Title; or (C) Bill of Sale (Form 1957), used when applying for a tax credit under section 144.025, RSMo.

Filed Nov. 8, 2023, effective May 30, 2024. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. *Original authority: 301.196, RSMo 2004, amended 2007, 2015; 301.197, RSMo 2004; and 301.198, RSMo 2004.

History

AUTHORITY: sections 301.196, 301.197, and 301.198, RSMo 2016. Original rule filed Dec. 19, 2005, effective June 30, 2006. Amended:

12 CSR 10-23.475 Fees and Required Documentation for Designating Manufactured Homes as Real or Personal Property {#sec-12-csr-10-23.475 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.475}

PURPOSE: This rule establishes the fees and requirements for filing documentation with the Department of Revenue for purposes of designating manufactured homes as real estate or personal property under section 700.111, RSMo.

(1) An Affidavit of Affixation Form 5312 must be recorded with the recorder of deeds in accordance with section 442.015, RSMo, and filed with the director of revenue in accordance with section 700.111, RSMo, when a manufactured home is to be deemed as real estate.

(2) An Affidavit of Severance Form 5313 must be recorded with the recorder of deeds in accordance with section 442.015, RSMo, and filed with the director of revenue in accordance with

section 700.111, RSMo, when a certificate of title application is completed on a manufactured home that was previously deemed as real estate through the filing of a properly executed Affidavit of Affixation Form 5312 with the director of revenue.

(3) When submitting a recorded Affidavit of Affixation Form 5312 to the director of revenue under section 700.111, RSMo, the affidavit shall be accompanied by either an Application for Surrender of Title or Manufacturer’s Certificate of Origin (MCO)

Form 5315 or an Application for Confirmation of Conversion Form 5314 when no such certificate of title or MCO can be located.

(4) The fee for filing an Affidavit of Affixation or Affidavit of Severance with the Department of Revenue for the purposes of complying with section 700.111, RSMo, shall be the same amount as the fee collected for an original title in accordance with section 301.190, RSMo. In addition to such filing fee, the director shall collect a processing fee in accordance with

section 136.055.1(2), RSMo.

rule filed Feb. 1, 2011, effective July 30, 2011. Amended: Filed Feb. 5, 2024, effective Sept. 30, 2024. Amended: Filed Aug. 28, 2025, *Original authority: 700.111, RSMo 1991, amended 2010.

History

AUTHORITY: section 700.111, RSMo 2016. Emergency rule filed Feb. 1, 2011, effective March 1, 2011, expired Aug. 27, 2011. Original

12 CSR 10-23.500 Optional Second Plate for Commercial Motor Vehicles {#sec-12-csr-10-23.500 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.500}

PURPOSE: This rule establishes how the Department of Revenue sets the fee authorized by section 301.130, RSMo.

(1) The fee for the optional second license plate for a commercial motor vehicle is eight dollars and fifty cents ($8.50).

Original rule filed Aug. 19, 2013, effective Feb. 28, 2014. Amended:

History

AUTHORITY: section 301.130, RSMo Supp. 2025. Emergency rule filed Aug. 19, 2013, effective Aug. 29, 2013, expired Feb. 27, 2014.

12 CSR 10-23.550 Lease Rental Companies {#sec-12-csr-10-23.550 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.550}

PURPOSE: This rule clarifies application, inspection, issuance, and procedures related to Lease Rental Fleet Companies.

(1) As used herein, the term “Registered fleet owners” shall mean lease rental companies that are qualified and have been issued fleet registration as prescribed in subsections 6 through 10 of section 301.032, RSMo.

(2) Registered fleet owner applicants shall apply to the department by completing an application prescribed by the director and by providing the following:

(A) The registered name, address, and contact information of the applicant, including a phone number and e-mail address;

(B) Proof of compliance with the minimum number of fleet vehicles as prescribed in section 301.032;

(C) The name and e-mail address for an account administrator designated by the applicant for purposes of creating and maintaining an account to provide fleet motor vehicle information to the department; and (D) Proof of financial responsibility that covers every vehicle in the registered fleet owner’s fleet.

(3) On any day in which fleet vehicles are registered, the registered fleet owner shall prepare a file with motor vehicle fleet information for the purposes of updating the department’s registration records. Such information shall be submitted to the department Monday through Friday excluding state and federal holidays. The director will provide the registered fleet owner an informational packet which will include the method and format data is to be provided to the director.

(4) Motor vehicles that are registered as a fleet as prescribed in section 301.032, RSMo, must meet the following conditions:

(A) Must be a passenger motor vehicle, or truck that can be registered at a beyond local twelve thousand pound (12,000 lb.) weight zone or below; and (B) Vehicle must be titled in the registered fleet owner’s name.

(5) License plate inventory that is not currently registered to a vehicle in the registered fleet owner’s fleet must be:

(A) Kept in a lockable storage unit, stationary safe that is securely affixed to a non-movable surface, walk-in safe or vault, closet, cabinet, or a combination of these;

(B) Kept locked at all times until registered to a vehicle in the registered fleet owner’s fleet; and (C) Accounted for and reconciled by the registered fleet owner each business day in which fleet vehicles are registered, including how much inventory remains unutilized; what, if any, inventory has been transferred; and whether any inventory has been surrendered to the department or destroyed.

(6) Registered fleet owners authorized in subsections 6 through 10 of section 301.032, RSMo shall be issued special license plates.

Each set of license plates shall bear the name or abbreviated name of this state, the letters “LR” to the left of the plate configuration, the word “fleet” at a location set forth by the director, and an arrangement of numbers or letters, or both, as shall be assigned from year to year by the director. The plates shall also contain fully reflective material with a common color scheme and design for each type of license plate issued, shall be clearly visible at night, and shall be aesthetically attractive, as prescribed in section 301.130, RSMo.

(7) Registered fleet owner licenses will be issued for no more than two (2) years and will expire on December 31 of the second year. Registered fleet owners may obtain license plates with an expiration that coincides with the license expiration.

Registered fleet owners choosing to discontinue licensure during or at the end of their licensure year shall notify the department and immediately surrender all unissued plate inventory, and collect and return to the department all issued inventory within sixty (60) days of discontinuation or expiration of the license.

(8) Registered fleet owners shall cooperate with any investigation or audit by the department authorized in section 301.032, RSMo.

Registered fleet owners shall permit an employee or agent of the department to inspect, during normal business hours, any and all motor vehicle fleet records as deemed necessary, and shall make requested records available for review or provide electronic copies of records within fifteen (15) business days in order to comply with the provisions of this section.

(9) Notwithstanding section (8) above, the department may request copies of any and all documents, logs, or books related to the accounting and reconciliation required by subsection (5)(C) above. Said documents may be provided either in paper or digital format, but must be provided to the department within two (2) business days from the date of the request. This

section shall not be construed to grant registered fleet owners two (2) business days to comply with a request for immediate inspection of such documents as described in section (8) above.

(10) The department may refuse to issue or renew any license required pursuant to subsections 6 through 10 of section 301.032, RSMo, for a specified period of time for any finding of fraud, misrepresentation, fleet license plate misuse, improper motor vehicle record retention, failure to retain the accounting and reconciliation documentation required by subsection (5)

(C) of this rule, or failure to provide accurate motor vehicle fleet information to the department as required. The department shall notify the applicant or licensee in writing at their last known address of the reasons for the refusal to issue or renew the license and shall advise the applicant or licensee of their right to file an appeal with the administrative hearing commission as provided in Chapter 621, RSMo. All license plate inventory must be returned to the Department of Revenue within thirty (30) days of written notice of refusal to issue or renew the license, or within thirty (30) days of the administrative hearing commission decision if an appeal is filed. Failure to do so may result in action against the bond filed by the licensee in the amount equivalent to the cost per license plate issued that has not been surrendered.

History

AUTHORITY: section 301.032, RSMo Supp. 2019. Original rule filed Jan. 2, 2020, effective July 30, 2020. Original authority: 301.032, RSMo 1993, amended 1995, 2009, 2012, 2019.

12 CSR 10-23.600 Complaint, Inspection, and Disciplinary Process for Transportation Network Companies {#sec-12-csr-10-23.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-23.600}

PURPOSE: This rule clarifies application, inspection, and disciplinary processes and procedures related to transportation network companies.

(1) As used herein, the following terms mean:

(A) “Commission”, the regional taxicab commission established pursuant to section 67.1804, RSMo;

(B) “Department”, the Missouri Department of Revenue;

(C) “Director”, the director of the Missouri Department of Revenue or a hearing officer or appeals referee duly appointed by the director;

(D) “Home rule city”, any home rule city with more than four hundred thousand (400,000) inhabitants and located in more than one (1) county; and (E) “Transportation network company” or “TNC”, a corporation, partnership, sole proprietorship, or other entity that is licensed pursuant to sections 387.400 to 387.440, RSMo, and operating in the state of Missouri, that uses a digital network to connect TNC riders to TNC drivers who provide prearranged rides.

(2) Applicants for initial TNC licensure or renewal shall apply to the department by completing an application and providing the following:

(A) The registered name, address, and contact information of the applicant, including a phone number and e-mail address;

(B) The name of the registered agent within the state who will accept service of process and notifications as required by section 387.406, RSMo, and direct contact information for the agent including physical address, phone number, e-mail address, and regular business hours;

(C) The name and e-mail address for an account administrator designated by the applicant for purposes of creating and maintaining an account which will meet all reporting requirements contained in section 387.436, RSMo;

(D) The five-thousand dollar ($5,000) application fee; and (E) A copy of the applicant’s privacy policy as required by, and in accordance with, section 387.425, RSMo.

Applicants shall certify that they will comply with all requirements contained in sections 387.400 to 387.440, RSMo, sections 379.1700 to 379.1708, RSMo, and all regulations promulgated by the department that are consistent with sections 387.400 to 387.440, RSMo, pursuant to the authority delegated to the department under section 387.430, RSMo.

Applicants shall further certify that their privacy policy, as provided to the department, meets all the requirements contained in section 387.425, RSMo. Applicants for renewal shall meet all of the above requirements except that applicants shall only be required to resubmit the applicant’s privacy policy if the policy has changed or is different from the privacy policy on file with the department.

(3) Upon approval of an application for TNC licensure, the designated account administrator of the TNC will be sent an electronic notification by the department containing instructions on how to create and maintain an electronic reporting account with the department for purposes of complying with section 387.436, RSMo. The TNC’s account shall be created prior to the TNC doing business as a licensee and shall be maintained throughout the duration of the license.

(4) TNCs shall cooperate with any investigation or audit by the department related to sections 387.400 to 387.440, RSMo, and sections 379.1700 to 379.1708, RSMo. TNCs shall permit an employee or agent of the department to inspect, during normal business hours, any and all records which are required to be maintained pursuant to sections 387.400 to 387.440, RSMo, if related to an investigation as described above. If a third party is utilized in accordance with section 387.420, RSMo, all records gathered and supplied by the third party shall be maintained and available for inspection by the department. Any records which may be reviewed by a home rule city or the commission must also be made available to the department for inspection purposes upon request. TNCs shall make requested records available for review or provide electronic copies of records within thirty (30) days in order to comply with the provisions of this section.

(5) The department may refuse to issue or renew any license required pursuant to sections 387.400 to 387.440, RSMo, for a specified period of time for any one (1) or any combination of causes stated in this section. The department shall notify the applicant or licensee in writing at their last known address of the reasons for the refusal to issue or renew the license and shall advise the applicant or licensee of their right to file an appeal with the administrative hearing commission as provided in Chapter 621, RSMo.

(A) The following acts constitute cause for refusal to issue or renew a license:

Any violation of sections 387.400 to 387.440, RSMo, sections 379.1700 to 379.1708, RSMo, or any rule promulgated under the authority delegated to the department under

section 387.430, RSMo;

The applicant or license holder was previously the holder of a license issued under sections 387.400 to 387.440, RSMo, which license was suspended or denied for cause and was never reissued by the department;
The applicant or license holder was previously a partner, stockholder, director, or officer controlling or managing a partnership or corporation whose license issued under sections 387.400 to 387.440, RSMo, was suspended or denied for cause and was never reissued;
Use of fraud, deception, misrepresentation, or bribery in securing a license issued pursuant to sections 387.400 to 387.440, RSMo; and 5. Failure to cooperate with the department or failure to timely respond to a request for records by the department in connection with an investigation.

(6) To the extent permitted by section 387.440, RSMo, a home

rule city or the commission may assess a fine of up to fivehundred dollars ($500) to a TNC for failure to comply with sections 387.400 to 387.440, RSMo, and shall comply with all notification requirements contained in this section.

(A) The home rule city or the commission shall send a notice to the TNC’s registered agent which includes the amount of the fine, a brief statement of facts establishing the TNC’s failure to comply with any requirement in sections 387.400 to 387.440, RSMo, and a statement indicating the right of appeal in substantially the following language: “If you are adversely affected by this notice, you may appeal to the Department of Revenue. To appeal, you must file a request for hearing with the Department of Revenue, PO Box 703, Jefferson City, MO 65105, within thirty (30) days after the date this notice was mailed or the date it was delivered, whichever date was earlier. If any such request for hearing is sent by registered mail or certified mail, it will be deemed filed on the date it is mailed; if it is sent by any method other than registered mail or certified mail, it will be deemed filed on the date it is received by the Department of Revenue.” A copy of the notice must be provided to the department upon issuance by mailing it to Department of Revenue, PO Box 703, Jefferson City, MO 65105 or by sending it electronically to mvbmail@dor.mo.gov . . Any TNC fined by a home rule city or the commission shall be entitled to a hearing before the director by filing a request for hearing with the department within thirty (30) days after the date this notice was mailed or the date it was delivered, whichever date was earlier. If the request for hearing is sent by registered mail or certified mail, it will be deemed filed on the date it is mailed; if it is sent by any method other than registered mail or certified mail, it will be deemed filed on the date it is received by the Department of Revenue.

Failure to file a timely request for hearing will be considered a waiver of the right to an administrative hearing and will establish and make final, for the purposes of administrative appeal, the home rule city or the commission’s factual findings and fines.

(B) Hearings will be held in Jefferson City, Missouri, and shall be considered contested cases as that term is defined in Chapter 536, RSMo. Hearings will be placed on an administrative docket in the order in which they are received.

(C) Parties will be notified by first class mail of the date and time of the hearing. A copy of the notice will be sent to each party or the party’s attorney of record.

(D) Parties may be allowed one (1) continuance at the discretion of the director provided good cause is shown. All requests for continuances shall be made in writing, state good cause for the continuance, and be signed and verified by the party making the request or their attorney of record.

All requests for continuance must be filed at least five (5) days prior to the date of the scheduled hearing.

(E) The department will make a record of the proceedings and evidence presented. Hearing procedures shall be substantially as follows:

The home rule city or the commission will have the initial burden of proof and must present, by a preponderance of the evidence, facts establishing the TNC’s failure to comply with sections 387.400 to 387.440, RSMo;
The TNC may present any evidence establishing or suggesting compliance with the provisions of sections 387.400 to 387.440, RSMo, or any rebuttal evidence;
Parties may present testimony by notarized affidavit or by stipulation of the parties. Affidavits or stipulations may be filed at the time of hearing or any time prior to the hearing;
The department will receive oral testimony and any live witnesses will be subject to cross examination;
Failure to appear at the hearing at the stated time may result in a default finding and decision against the absent party; and 6. When not inconsistent with this subsection, the provisions of Chapter 536, RSMo shall apply to hearings held in accordance with section 387.440, RSMo.

(F) The director shall consider all the evidence presented, make written findings of fact and conclusions of law, and enter a final decision at or within sixty (60) days from the date of the hearing. All parties will be mailed a copy of the findings of fact, conclusions of law, and final decision. No decision will be entered at the time of the hearing.

(G) The effective date of the director’s final decision shall be thirty (30) days from the date the final decision is entered.

(H) Any fines paid by a TNC in accordance with the provisions of section 387.440, RSMo, shall be remitted to the department within fifteen (15) days from the effective date of the final decision of the director or any final decision or order entered by a court of law having jurisdiction over the appeal of such fine.

(I) Any fines remitted to, or collected by, the department in accordance with sections 387.439 and 387.440, RSMo, will be distributed in accordance with Article IX, Section 7 of the Missouri Constitution.

(7) License suspensions under subsection 4 of section 387.439, RSMo shall be for a period of thirty (30) days per violation.

History

AUTHORITY: section 387.430, RSMo Supp. 2017. Original rule filed July 6, 2017, effective Dec. 30, 2017. Original authority: 387.430, RSMo 2017.

Chapter 24 Driver License Bureau Rules

12 CSR 10-24.040 Completion Requirement for Driving While Intoxicated (DWI) {#sec-12-csr-10-24.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.040}

12 CSR 10-24.050 Deletion of Traffic Convictions and Suspension or Revocation Data {#sec-12-csr-10-24.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.050}

12 CSR 10-24.060 Delegation of Authority to Administer Missouri Drivers License {#sec-12-csr-10-24.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.060}

12 CSR 10-24.070 License Issuance Procedures and One License Concept {#sec-12-csr-10-24.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.070}

12 CSR 10-24.100 Driver License Procedures for Persons Under the Age of Twenty-One {#sec-12-csr-10-24.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.100}

12 CSR 10-24.140 Procedures for Reissuance of a Missouri Driver License, Nondriver License, or Instruction Permit Not Received After Mailing {#sec-12-csr-10-24.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.140}

12 CSR 10-24.150 Procedures for Obtaining Criminal Record Check Prior to Issuance of School Bus Operator’s Permit {#sec-12-csr-10-24.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.150}

12 CSR 10-24.180 Third-Party Certification of the Department of Elementary and {#sec-12-csr-10-24.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.180}

12 CSR 10-24.190 Driver License Retesting Requirements After a License, School Bus Permit or Temporary Instruction Permit Expires/Examination Results {#sec-12-csr-10-24.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.190}

12 CSR 10-24.320 Notification to Complete Written Examinations for a Class A, B {#sec-12-csr-10-24.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.320}

12 CSR 10-24.325 License Denial for Suspension, Revocation, Disqualification, or {#sec-12-csr-10-24.325 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.325}

12 CSR 10-24.330 Delegation of Authority to Third-Party Testers to Conduct Skills {#sec-12-csr-10-24.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.330}

12 CSR 10-24.335 Commercial Drivers Licensing Third Party Examination Audit {#sec-12-csr-10-24.335 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.335}

12 CSR 10-24.350 Group Testing of Commercial Motor Vehicle Drivers by Missouri {#sec-12-csr-10-24.350 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.350}

12 CSR 10-24.370 Criteria for an Approved School Bus Program to Waive the Written {#sec-12-csr-10-24.370 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.370}

12 CSR 10-24.380 Hazardous Materials Written Test Requirements for Commercial {#sec-12-csr-10-24.380 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.380}

12 CSR 10-24.395 Delegation of Authority to the Missouri State Highway Patrol to Conduct Skills Testing of Applicants for Commercial Driver {#sec-12-csr-10-24.395 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.395}

12 CSR 10-24.400 Delegation of Authority to Administer Missouri School Bus Operator’s {#sec-12-csr-10-24.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.400}

12 CSR 10-24.405 Proof of State of Domicile Requirements for Commercial Driver {#sec-12-csr-10-24.405 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.405}

12 CSR 10-24.406 Procedures for Assessment of Points When Traffic Convictions Are {#sec-12-csr-10-24.406 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.406}

12 CSR 10-24.408 Required Signature(s) on a Commercial Drivers License Transaction {#sec-12-csr-10-24.408 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.408}

12 CSR 10-24.414 Class E, Class F or Nonlicensed Drivers Completing Driver Examinations For a Commercial Drivers License While Under {#sec-12-csr-10-24.414 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.414}

12 CSR 10-24.438 Department of Revenue not Designated as an Election Official {#sec-12-csr-10-24.438 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.438}

12 CSR 10-24.440 Motor Voter Registration Application Form {#sec-12-csr-10-24.440 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.440}

12 CSR 10-24.442 Stacking Sixty (60)-Day, Ninety (90)-Day, One Hundred Twenty (120)-Day and One Hundred Eighty (180)-Day Disqualifications {#sec-12-csr-10-24.442 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.442}

12 CSR 10-24.448 Documents Required for Issuance of a Driver License, Nondriver {#sec-12-csr-10-24.448 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.448}

12 CSR 10-24.450 Staggering Expiration Dates of Driver/Nondriver Licenses {#sec-12-csr-10-24.450 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.450}

12 CSR 10-24.462 Prohibit Release of Information on Peace Officers and Their {#sec-12-csr-10-24.462 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.462}

12 CSR 10-24.465 Disqualification of Commercial Motor Vehicle Operators Due to Railroad-Highway Grade Crossing Violations {#sec-12-csr-10-24.465 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.465}

12 CSR 10-24.470 Procedure for Obtaining a “J88” Notation on a Drivers License for {#sec-12-csr-10-24.470 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.470}

12 CSR 10-24.010 Form Filing {#sec-12-csr-10-24.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.010}

History

AUTHORITY: section 544.045, RSMo 1994. Original rule filed May 28, 1975, effective June 7, 1975. Amended: Filed Oct. 22, 1997, effective April 30, 1998. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-24.020 Trial De Novo Procedures and Parties {#sec-12-csr-10-24.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.020}

Amended: Filed Oct. 1, 1985, effective Dec. 26, 1985. Amended:

Filed Nov. 12, 1991, effective March 9, 1992. Amended: Filed July 2, 1992, effective Feb. 26, 1993. Amended: Filed Aug. 23, 2002, effective Feb. 28, 2003. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: sections 302.530 RSMo 2000 and 302.525 and 302.535, RSMo Supp. 2002. Original rule filed Feb. 3, 1984, effective May 11, 1984. Amended: Filed Aug. 14, 1984, effective Dec. 13, 1984.

12 CSR 10-24.030 Hearings {#sec-12-csr-10-24.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.030}

PURPOSE: This rule sets forth the procedures used by the director in holding hearings following the suspension or revocation of a person’s driving privilege pursuant to section 302.530, RSMo.

(1) Individuals shall make a written request for a review of the director’s determination. At the time of such request the individual must indicate whether the request is for an in-person hearing. If an in-person hearing is not requested the individual will be scheduled for a telephone hearing and will waive any further opportunity for in-person hearing. The request must actually be filed with the department on or before the effective date of the suspension or revocation. The effective date shall be fifteen (15) days after the date of issuance of the notice of suspension if the notice is hand delivered or eighteen (18) days from the date of mailing if the notice of suspension is mailed from the department. If any request for a hearing is delivered by United States mail postage prepaid after the effective date of suspension or revocation, the date of the United States postmark stamped on the envelope shall be deemed to be the date of filing. The request shall be sent to: Missouri Department of Revenue, Driver License Bureau, PO Box 3700, Jefferson City, MO 65105-3700, or the request may be made electronically in a manner prescribed by the director. If the effective date falls on a Saturday, Sunday, or legal holiday in this state, the request for hearing shall be considered timely if it is filed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday as specified in 12 CSR 10-24.340.

(2) Failure to properly request a hearing shall be considered a waiver of the right to an administrative hearing and shall make the director’s determination final.

(3) Individuals requesting hearings may request one (1) continuance for good cause shown. The decision to grant a continuance shall be at the discretion of the director. All requests for continuances should be in writing, state the factual basis for the continuance, and be signed by the individual making the request or their attorney. All requests for continuance must be filed not later than six (6) days prior to the date of the scheduled hearing. The following events or conditions shall constitute good cause to continue a hearing:

(A) Death of a party, representative or attorney of a party, or witness to an essential fact;

(B) Incapacitating illness of a party or representative, or attorney of a party, or witness to an essential fact. The request must contain a written statement by an attending physician reciting the nature and probable duration of the illness; and (C) Unavailability of a party, representative or attorney, or material witness due to an unavoidable emergency.

(4) Any delay in a hearing which is caused or requested by the party that was arrested or stopped which is not for good cause shall not result in a stay of the suspension or revocation during the period of delay.

(5) Based upon the type of hearing requested by the individual in the written request for review the director will schedule a hearing. The party arrested/stopped may be represented by an attorney during any telephonic or in-person hearing. Notice of the hearing, place, date, and time shall be sent to the party arrested/stopped and to the attorney of record, if known, at the time notice is sent. Suspension or revocation shall be stayed until a final order is issued following the hearing.

(6) The sole issue at the hearing shall be whether, by the preponderance of the evidence, the person was arrested/stopped upon probable cause to believe the alcohol concentration in the person’s blood exceeded the limits provided in section 302.505, RSMo. The provisions of Chapter 536, RSMo shall apply when not inconsistent with Chapter 302, RSMo.

(7) Subsequent to the hearing, the director shall render a final decision. The party and the attorney of record shall either be mailed copies of the decision by regular mail or be sent electronic copies of the decision in accordance with section 32.400, RSMo.

(8) At the hearing the party may present any facts which show the party was not driving a motor vehicle while the alcohol concentration in the person’s blood exceeded the limits provided in section 302.505, RSMo. A party may subpoena witnesses in accordance with the procedures of section 536.077, RSMo. A party may subpoena witnesses, including the law enforcement officer or blood alcohol concentration analyzer, to attend the hearing or participate in a telephonic hearing by requesting a subpoena from the Department of Revenue at least five (5) working days prior to the hearing. Parties and witnesses may attend in-person hearings via video conferencing when approved by the director. If a witness fails to appear or participate in the hearing, after proper service of the subpoena, the Department of Revenue will continue the hearing to enforce the subpoena including enforcement action as provided in section 536.077, RSMo. In the case of death or total incapacitation of the witness, where enforcement action is not feasible, the department may consider written testimony of the witness prepared at or near the time of the incident in lieu of the actual appearance of such witness and the party may make any objection or argument to such written testimony of the witness.

(9) The party may examine all available evidence before the hearing. Any witness may be cross-examined during the (7/31/23) John R. Ashcroft hearing.

(10) The party aggrieved by the decision of the director may appeal to the circuit court of the county in which the arrest occurred. This appeal must be filed within fifteen (15) days after the date of the final decision of the director.

Amended: Filed June 26, 1992, effective Feb. 26, 1993. Amended:

Filed Nov. 24, 1993, effective June 6, 1994. Amended: Filed Dec. 15, 1998, effective June 30, 1999. Emergency amendment filed Sept. 20, 2001, effective Sept. 30, 2001, expired March 28, 2002.

Amended: Filed July 25, 2001, effective Feb. 28, 2002. Amended:

Filed Oct. 20, 2005, effective May 30, 2006. ** Amended: Filed Jan. 25, 2023, effective Aug. 30, 2023. *Original authority: 302.530, RSMo 1983, amended 1984, 1996, 2005, 2012. **Pursuant to Executive Order 21-09, 12 CSR 10-24.030, sections (1), (5), (8), and (9) and subsection 3 of section 302.530, RSMo was suspended from April 16, 2020 through December 31, 2021.

History

AUTHORITY: section 302.530, RSMo 2016. Original rule filed Feb. 3, 1984, effective May 11, 1984. Amended: Filed Aug. 2, 1985, effective Dec. 26, 1985. Emergency amendment filed June 26, 1992, effective July 6, 1992, expired Nov. 2, 1992. Emergency amendment filed Oct. 22, 1992, effective Nov. 3, 1992, expired March 2, 1993.

12 CSR 10-24.040 Completion Requirement for Driving While Intoxicated (DWI) Rehabilitation Program {#sec-12-csr-10-24.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.040}

Amended: Filed March 9, 1995, effective Sept. 30, 1995. Amended:

Filed Oct. 10, 2003, effective April 30, 2004. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: sections 302.304, 302.540 and 577.041, RSMo Supp. 2003 and 302.342, RSMo 2000. Original rule filed Jan. 15, 1985, effective June 13, 1985. Amended: Filed Nov. 12, 1991, effective March 9, 1992. Amended: Filed July 2, 1992, effective Feb. 26, 1993.

12 CSR 10-24.050 Deletion of Traffic Convictions and Suspension or Revocation Data From Missouri Driver Records {#sec-12-csr-10-24.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.050}

(Rescinded November 30, 2018)

Amended: Filed May 1, 2000, effective Oct. 30, 2000. Amended:

Filed Sept. 27, 2001, effective March 30, 2002. Amended: Filed July 22, 2002, effective Jan. 30, 2003. Amended: Filed April 11, 2005, effective Oct. 30, 2005. Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

History

AUTHORITY: sections 302.286, 302.304, 302.309 and 303.041, RSMo Supp. 2004, and 49 CFR 384.231(d). Original rule filed May 27, 1986, effective Aug. 25, 1986. Amended: Filed Sept. 8, 1989, effective Jan. 26, 1990. Amended: Filed Jan. 31, 1992, effective June 25, 1992. Amended: Filed Nov. 4, 1999, effective May 30, 2000.

12 CSR 10-24.060 Delegation of Authority to Administer Missouri Drivers License Examinations Highway Patrol to administer written and driving examinations. {#sec-12-csr-10-24.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.060}

(1) The director authorizes the Missouri State Highway Patrol to administer a written examination, approved by the director, to assist the director of revenue in determining an applicant’s eligibility for a Missouri drivers license.

(A) The written examination shall consist of twenty-five (25) questions, including, but not limited to, an understanding of highway signs, proper turning, backing and signaling, and practical knowledge of the traffic laws of this state.

(B) Successful completion of a written examination requires the applicant for a Class F license to correctly answer twenty (20) out of twenty-five (25) questions.

(C) Successful completion of a written examination requires the applicant for a Class E license to correctly answer twenty (20) out of twenty-five (25) questions relative to commercial motor vehicle laws in addition to twenty (20) out of twenty-five (25) questions as for a Class F license.

(D) Successful completion of a written examination requires the applicant for a Class M license to correctly answer twenty (20) out of twenty-five (25) questions as for a Class F license and twenty (20) out of twenty-five (25) questions relative to the operation of a motorcycle.

(E) If an applicant for a Class E or Class M license has successfully completed the written examination for a Class F license or has a valid Class F license, and submits a copy of the test paper to the examiner, this portion of the examination for a Class E or Class M license shall be waived.

(2) The director authorizes the Missouri State Highway Patrol to administer a driving skills examination, approved by the director, to assist the director of revenue in determining an applicant’s ability to operate a motor vehicle safely.

(A) Driving skills examinations shall be conducted on dates and at locations agreed upon by the director of revenue and superintendent of the Missouri State Highway Patrol.

(B) The driving skills examination shall determine an applicant’s ability to operate a motor vehicle safely and shall require, but not be limited to, the skills of starting, stopping, parking, backing, signaling, and overall control of a vehicle.

(C) Successful completion of the driving skills examination requires a score of at least seventy percent (70%) and disallows dangerous actions and traffic violations.

(3) The director authorizes the Missouri State Highway Patrol to administer the vision acuity test as defined in section 302.175, (4) The director shall provide all forms necessary to administer driving tests.

Emergency amendment filed July 22, 1992, effective Aug. 1, 1992, expired Nov. 28, 1992. Amended: Filed March 18, 1992, effective Sept. 6, 1992. Amended: Filed Feb. 17, 2015, effective Aug. 30, 2015. *Original authority: 302.173, RSMo 1951, amended 1965, 1971, 1983, 1987, 1989, 1995, 1999, 2001, 2004, 2012.

History

AUTHORITY: section 302.173, RSMo Supp. 2013. Original rule filed July 14, 1986, effective Nov. 28, 1986. Emergency amendment filed March 18, 1992, effective April 1, 1992, expired July 29, 1992.

12 CSR 10-24.070 License Issuance Procedures and One License Concept of the Drivers License Compact {#sec-12-csr-10-24.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.070}

Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: sections 302.010, 302.301 and 302.720, RSMo Supp. 1999 and 302.015 and 302.600, RSMo 1994. Original rule filed Sept. 1, 1986, effective Nov. 28, 1986. Amended: Filed Dec. 11, 1991, effective April 9, 1992. Amended: Filed Jan. 26, 1994, effective July 30, 1994. Amended: Filed June 29, 2000, effective Dec. 30, 2000.

12 CSR 10-24.080 Drivers License Instruction Permit {#sec-12-csr-10-24.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.080}

(Rescinded January 13, 1992)

History

AUTHORITY: section 302.140, RSMo 1936. Original rule filed Nov. 6, 1986, effective Nov. 28, 1987. Rescinded: Filed Sept. 16, 1991, effective Jan. 13, 1992.

12 CSR 10-24.090 Missouri Driver License or Permit Vision Test Guidelines {#sec-12-csr-10-24.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.090}

PURPOSE: This rule establishes the vision reading requirements necessary to receive a Missouri driver license and the restrictions imposed when a person’s vision is less than 20/40.

(1) The director shall require any person applying for a new driver license or permit or a person renewing a license or permit to submit to an examination of their vision.

(2) The vision examination shall be conducted with the use of the Snellan Vision Chart or other vision device of the same standard. Vision examinations may be conducted by designated employees of the Department of Revenue, fee office employees to whom the director has delegated authority, and members of the Missouri State Highway Patrol. This person shall administer the vision test without cost to the applicant.

Upon notification to the department, a registered optometrist or physician may conduct the vision examination at the applicant’s own expense.

(3) The director may issue a license or permit with restrictions as described in sections (5)–(8) or may deny a license or permit to any applicant as described in section (9).

(4) Any person whose naked vision in either eye or both eyes is 20/40 or better may receive a license or permit without vision restrictions.

(5) Any person whose naked vision is less than 20/40 with either eye or both eyes may receive a conditional license or permit based upon compliance with the following standards:

(A) 20/40 or better with either eye or both eyes with corrective lenses shall be subject to the following restrictions:

Corrective lenses;

(B) 20/40 or better in the right eye and the applicant’s left eye tests 20/100 or less shall be subject to the following restriction(s):

With corrective lenses—Left outside rearview mirror and corrective lenses; and 2. Without corrective lenses—Left outside rearview mirror.

The corrective lenses restriction may not be required if the left eye reading cannot be improved to 20/40 or better by corrective lenses;

(C) 20/40 or better in the left eye and the applicant’s right eye tests 20/100 or less shall be subject to the following restriction(s):

With corrective lenses—Right outside rearview mirror and corrective lenses; and 2. Without corrective lenses—Right outside rearview mirror. The corrective lenses restriction may not be required if the right eye reading cannot be improved to 20/40 or better by corrective lenses; and (D) Any applicant not meeting the vision readings with or without correction as specified in this section shall be referred to a registered optometrist or physician for further testing.

(6) Any applicant whose vision does not meet the 20/40 reading with corrective lenses and has been referred to a registered optometrist or physician may receive a conditional license or permit based upon compliance with the following standards:

(A) 20/40 or better with either eye or both eyes with corrective 1. Corrective lenses;

(B) 20/41–20/59 with either eye or both eyes with corrective 1. Corrective lenses; and daylight driving only; and (C) 20/60–20/74 with either eye or both eyes with corrective 1. Corrective lenses; daylight driving only; and operating a motor vehicle at no more than forty-five miles per hour (45 mph).

(7) Any applicant for a driver license whose vision reading is 20/75–21/160 with either eye or both eyes with corrective lenses shall be referred to the department. The department shall require the applicant to submit to an examination to determine their ability to operate a vehicle safely upon the public streets and highways of this state in spite of the vision infirmity. If the department is satisfied that the person safely can operate a motor vehicle, a conditional license restricting the applicant to points of operation, times of operation, or any other driving conditions deemed necessary may be issued. The examination is not required prior to the issuance of a permit.

(8) A restriction may be removed or waived from the driver license or permit under the following circumstances:

(A) If an applicant’s vision is better than 20/160 and cannot be improved with corrective lenses, the corrective lenses restriction shall not be required. Other restrictions may be required as determined by the department; and (B) If a registered optometrist or physician recommends removal of the daylight driving only restriction; or operating a motor vehicle at no more than forty-five miles per hour (45 mph) restriction.

(9) Any applicant with a vision reading of 20/161 or less shall be denied a Missouri driver license or permit.

(10) Vision readings completed by a registered optometrist or physician are valid for one (1) year from the date of eye examination.

(11) Any applicant requesting a license with the aid of bioptic telescopic lenses, whether monocular or binocular, must be able to pass a vision test, up to 20/160, without the aid of a telescopic lens or lenses to be eligible for a Missouri license.

If the applicant has a telescopic lens or lenses mounted above the line of sight through the carrier lens of the glasses, the telescopic lens can be a supplement to the person’s vision.

Under no condition can the telescopic lens be used to correct the person’s vision in order to meet the licensing standard up to 20/160.

Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 302.175, RSMo 1965, amended 1987, 1989.

History

AUTHORITY: section 302.175, RSMo 2016. Original rule filed Dec. 2, 1986, effective March 26, 1987. Amended: Filed Sept. 17, 1987, effective Jan. 14, 1988. Amended: Filed Nov. 12, 1991, effective March 9, 1992. Amended: Filed Aug. 11, 1995, effective Feb. 25, 1996. Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004.

12 CSR 10-24.100 Driver License Procedures for Persons Under the Age of Twenty-One {#sec-12-csr-10-24.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.100}

Original rule filed Jan. 5, 1987, effective April 11, 1987. Amended:

Filed Dec. 11, 1991, effective April 9, 1992. Amended: Filed May 31, 2000, effective Nov. 30, 2000. Rescinded: Filed Dec. 22, 2017,

History

AUTHORITY: section 302.181, RSMo Supp. 1999. Emergency rule filed Jan. 5, 1987, effective Jan. 15, 1987, expired May 15, 1987.

12 CSR 10-24.110 Procedures for Issuance of a Nondriver License {#sec-12-csr-10-24.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.110}

PURPOSE: This rule establishes the procedures to be followed for issuance of an nondriver license.

(1) Application for a nondriver license shall be completed in accordance with the following procedures:

(A) The applicant shall have a Missouri address or reside within the boundaries of Missouri; and (B) The applicant shall provide verification of name, date of birth and Social Security number as established by the department.

(2) An applicant under the age of twenty-one (21) shall receive a Missouri nondriver license with the applicant’s photo image located on the left side of the nondriver license and the date that the individual reaches the age of twenty-one (21) printed in red on the nondriver license.

Original rule filed Jan. 5, 1987, effective April 11, 1987. Amended:

Filed July 19, 1991, effective Dec. 9, 1991. Amended: Filed Nov. 21, 1991, effective April 9, 1992. Amended: Filed Sept. 11, 1992, effective April 8, 1993. Amended: Filed May 31, 2000, effective Nov. 30, 2000. *Original authority: 302.181, RSMo 1939, amended 1951, 1961, 1971, 1973, 1979, 1984, 1986, 1989, 1991, 1992, 1995, 1996.

History

AUTHORITY: section 302.181, RSMo Supp. 1999. Emergency rule filed Jan. 5, 1987, effective Jan. 15, 1987, expired May 15, 1987.

12 CSR 10-24.120 Assumed or Common Use Name {#sec-12-csr-10-24.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.120}

(Rescinded May 30, 2006)

Amended: Filed Nov. 15, 2002, effective May 30, 2003. Rescinded:

Filed Nov. 10, 2005, effective May 30, 2006.

History

AUTHORITY: section 302.171, RSMo 2000. Original rule filed Jan. 29, 1987, effective May 11, 1987. Amended: Filed Feb. 28, 1992, effective Aug. 6, 1992. Amended: Filed Sept. 11, 1992, effective April 8, 1993. Amended: Filed Jan. 23, 1996, effective July 30, 1996.

12 CSR 10-24.130 Horizontal Peripheral Vision Screening Temporal Requirements {#sec-12-csr-10-24.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.130}

PURPOSE: This rule establishes the horizontal peripheral vision requirements necessary to receive a Missouri driver license.

(1) In addition to the visual acuity standards required by Missouri statutes and rules, as stated in 12 CSR 10-24.090, the director shall require any person applying for a driver license to submit to a screening of their horizontal peripheral field of vision by an objective quantitative visual field instrument.

(2) If an applicant has a fifty-five degree (55°) or better temporal horizontal peripheral vision in each eye, they shall receive a license with no additional restrictions.

(3) If an applicant has less than fifty-five degree (55°) temporal horizontal peripheral vision in one (1) eye and at least eightyfive degree (85°) temporal horizontal peripheral vision in the other eye, they shall receive a license with the following restriction:

(A) If the applicant’s right eye has less than fifty-five degree (55°) temporal horizontal peripheral vision, a right outside rearview mirror shall be required; and (B) If the applicant’s left eye has less than fifty-five degree (55°) temporal horizontal peripheral vision, a left outside rearview mirror shall be required.

(4) If an applicant has less than fifty-five degree (55°) temporal horizontal peripheral vision in one (1) eye and less than eightyfive degree (85°) temporal horizontal peripheral vision in the other eye, they shall be referred to an eye doctor or physician of their choice for screening of the applicant’s horizontal peripheral vision by an objective quantitative visual field instrument and shall receive a conditional license with the following restrictions:

(A) Daylight driving only; and (B) Restricted to forty-five miles per hour (45 mph).

At the discretion of the department, either of the two (2) restrictions listed in subsections (4)(A) and (B) may be removed or waived from the driver license if an eye doctor or physician recommends removal.
A specific driving radius may be required if a registered optometrist or physician recommends this restriction.

(5) Any applicant with a combined horizontal peripheral vision reading of less than seventy degree (70°) shall be denied a Missouri driver license.

(6) Horizontal peripheral field of vision readings completed by an eye doctor or physician are valid for one (1) year from date of eye examination.

rule filed Oct. 1, 1987, effective March 11, 1988. Amended: Filed Dec. 11, 1991, effective April 9, 1992. Amended: Filed Dec. 15, 1998, effective June 30, 1999. Amended: Filed Aug. 15, 2023, effective March 30, 2024. *Original authority: 302.175, RSMo 1965, amended 1987, 1989, and 302.301, RSMo 1951, amended 1989, 1996.

History

AUTHORITY: sections 302.175 and 302.301, RSMo 2016. Original

12 CSR 10-24.140 Procedures for Reissuance of a Missouri Driver License, Nondriver License, or Instruction Permit Not Received After Mailing by the Department {#sec-12-csr-10-24.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.140}

PURPOSE: This rule establishes the procedures to be followed when an applicant for a driver license, nondriver license, or instruction permit does not receive the document after mailing by the department.

(1) If an applicant for a driver license, nondriver license, or instruction permit does not receive the driver license, nondriver license, or instruction permit the following procedures apply:

(A) The applicant shall receive a duplicate driver license, nondriver license, or instruction permit if it was not received within twenty-five (25) working days after mailing from Jefferson City, but not more than ninety (90) days from the date Denny Hoskins (8/31/25) of application. The duplicate driver license, nondriver license, or instruction permit shall be processed at no additional cost to the applicant; and (B) The applicant shall complete the proper application for a duplicate driver license, or nondriver license, or instruction permit.

(2) If the applicant requests any changes on the duplicate driver license, nondriver license, or instruction permit, the applicant shall pay the appropriate fee as follows:

(A) For a duplicate Class F or M license, the fee shall be seven dollars and fifty cents ($7.50).

(B) For a duplicate Class E license, the fee shall be fifteen dollars ($15).

(D) For a duplicate Class E, F, or M instruction permit, the fee shall be one dollar ($1).

(E) For a duplicate photo nondriver license, the fee shall be six dollars ($6).

(F) For a duplicate nonphoto nondriver license, the fee shall be one dollar ($1).

(G) For a duplicate Class A, B, or C instruction permit, the fee shall be five dollars ($5).

(3) An additional processing fee may be charged by agents who contract with the Department of Revenue. Beginning July 1, 2003, all documents processed by state owned Department of Revenue branch offices will also include a state processing fee equal to that charged by contract agents (as authorized by

section 136.055, RSMo Supp. 2002).

Amended: Filed Sept. 11, 1992, effective April 8, 1993. Amended:

Filed May 31, 2000, effective Nov. 30, 2000. Amended: Filed Jan. 21, 2003, effective Sept. 30, 2003. *Original authority: 136.055, RSMo 1951, amended 1965, 1976, 1979, 1985, 1990, 1997, 1999, 2000, 2002; 302.181, RSMo 1939, amended 1951, 1961, 1971, 1973, 1979, 1984, 1986, 1989, 1991, 1992, 1995, 1996, 1999; and 302.185, RSMo 1939, amended 1951, 1961, 1972, 1984, 1989.

History

AUTHORITY: sections 136.055, RSMo Supp. 2002, 302.181 and 302.185, RSMo 2000. Original rule filed April 15, 1988, effective Sept. 29, 1988. Amended: Filed Dec. 11, 1991, effective April 9, 1992.

12 CSR 10-24.150 Procedures for Obtaining Criminal Record Check Prior to Issuance of School Bus Operator’s Permit {#sec-12-csr-10-24.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.150}

(Rescinded February 28, 1999)

History

AUTHORITY: section 302.272, RSMo Supp. 1989. Original rule filed Aug. 8, 1989, effective Jan. 12, 1990. Amended: Filed Dec. 11, 1991, effective April 9, 1992. Rescinded: Filed Aug. 21, 1998, effective Feb. 28, 1999.

12 CSR 10-24.160 Missouri School Bus Operator’s Permit Driving History Guidelines {#sec-12-csr-10-24.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.160}

PURPOSE: This rule establishes the criteria for denying issuance of a school bus operator’s permit due to driving history.

(1) An applicant shall be denied a school bus operator’s permit if more than two (2) convictions or six (6) or more points have been accumulated within the twelve (12) months preceding the date of application.

(2) An applicant shall be denied a school bus operator’s permit if his/her driving privilege has been suspended or revoked within five (5) years preceding the date of application— (A) For violating the provisions of sections 302.500–302.540, RSMo;

(B) As a result of a first conviction for an alcohol or drug offense or felony; or (C) For refusing to submit to a chemical test as specified in

section 577.020, RSMo.

(3) An applicant shall be denied a school bus operator’s permit if his/her driving privilege has been suspended or revoked two (2) or more times within the ten (10) years preceding the date of the application— (A) For violating the provisions of sections 302.500–302.540, RSMo;

(B) As a result of convictions of alcohol or drug offense or felony; or (C) For refusing to submit to a chemical test as specified in

section 577.020, RSMo.

(4) If the laws of any other state do not provide for offenses or violations denominated or described in precisely the words used in sections (2) and (3), the director shall identify and determine the applicability of any offense or violation of substantially similar nature as those offenses and violations described in Missouri law.

(5) An applicant shall be denied a school bus operator’s permit if s/he has one (1) or more convictions for involuntary manslaughter while operating a motor vehicle in an intoxicated condition within ten (10) years preceding the date of application.

(6) An applicant shall be denied a school bus operator’s permit if his/her driving privilege has been suspended or revoked in the previous three (3) years for any reason not listed in sections (1)–(5), except for violation of Chapter 303, RSMo or sections 544.046 and 302.341, RSMo.

(7) The criteria outlined in sections (1) through (6) of this

rule for denying issuance of a school bus operator’s permit to an applicant also apply to current holders of a school bus operator’s permit. When these actions or violations occur, the school bus permit holder is notified that his or her school bus operator’s permit is no longer valid due to the holder’s driving

history.

History

AUTHORITY: section 302.272, RSMo Supp. 1997. Original rule filed Aug. 8, 1989, effective Nov. 26, 1989. Amended: Filed March 27, 1998, effective Sept. 30, 1998. Amended: Filed Dec. 15, 1998, effective June 30, 1999. Original authority: 302.272, RSMo 1986, amended 1987, 1989, 1996.

12 CSR 10-24.180 Third-Party Certification of the Department of Elementary and Secondary Education {#sec-12-csr-10-24.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.180}

(Rescinded March 9, 1992)

Original rule filed Aug. 14, 1989, effective Nov. 26, 1989. Amended:

Filed Feb. 2, 1990, effective May 11, 1990. Emergency amendment filed June 20, 1990, effective June 30, 1990, expired Oct. 27, 1990.

Amended: Filed June 20, 1990, effective Dec. 31, 1990. Emergency (8/31/25) Denny Hoskins amendment filed Oct. 26, 1990, effective Nov. 5, 1990, expired March 4, 1991. Rescinded: Filed Nov. 12, 1991, effective March 9, 1992.

History

AUTHORITY: section 302.272, RSMo Supp. 1989. Emergency rule filed Aug. 11, 1989, effective Aug. 21, 1989, expired Dec. 19, 1989.

12 CSR 10-24.190 Driver License Retesting Requirements After a License, School Bus Permit or Temporary Instruction Permit Expires/Examination Results to be Invalid After (1) {#sec-12-csr-10-24.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.190}

Year

PURPOSE: This rule establishes the retesting requirements after a license, school bus permit or temporary instruction permit expires.

(1) Every holder of a valid Missouri driver license, school bus permit, or temporary instruction permit shall renew that license or permit on or before the date of expiration. This license or permit can be renewed up to six (6) months (one hundred eighty-four (184 days) prior to the date of expiration.

(2) If a person does not renew a driver license, issued by this state or any other state, school bus permit, or temporary instruction permit, within one hundred eighty-four (184) days from the expiration date of the license or permit, the holder of such license or permit shall be required to complete all written and skills tests required to qualify for such license or permit as required pursuant to Chapter 302, RSMo. No license or permit is valid for operation of a motor vehicle beyond the date of expiration of the license or permit.

(3) If the end of the one hundred eighty-four (184)-day period falls on a legal holiday, Saturday or Sunday, the one hundred eighty-fourth day shall be deemed to fall on the next working day.

(4) Examinations for a driver license, school bus permit or temporary instruction permit shall remain valid unless retesting is required by Missouri law or for a period of one (1) year from the date the examination completion form was completed by the Missouri State Highway Patrol or a certified Commercial Driver License Third Party Tester, whichever occurs first. An applicant shall be re-examined prior to issuance of a driver license or instruction permit if the examinations have been completed more than one (1) year prior to the date of application for a driver license, school bus permit or temporary

Amended: Filed Nov. 21, 1991, effective April 9, 1992. Amended:

Filed June 29, 2000, effective Dec. 30, 2000. Amended: Filed Sept. 27, 2001, effective March 30, 2002. Emergency amendment filed April 4, 2002, effective April 14, 2002, expired Oct. 10, 2002.

Amended: Filed April 4, 2002, effective Sept. 30, 2002. Amended:

Filed Nov. 15, 2002, effective May 30, 2003. *Original authority: 302.173, RSMo 1951, amended 1965, 1971, 1983, 1987, 1989, 1995, 1999, 2001 and 302.720, RSMo 1989, amended 1995, 2002.

History

AUTHORITY: sections 302.173, RSMo Supp. 2001, and 302.720, RSMo Supp. 2002. Original rule filed Oct. 30, 1989, effective Feb. 25, 1990. Amended: Filed July 15, 1991, effective Oct. 31, 1991.

12 CSR 10-24.200 Driver License Classes {#sec-12-csr-10-24.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.200}

PURPOSE: This rule establishes classes of licenses for Missouri motor vehicle operators.

(1) There shall be six (6) classes of licenses in Missouri.

(2) Class A—The holder of a Class A license may drive any combination of vehicles with a Gross Combination Weight Rating (GCWR) of twenty-six thousand one pounds (26,001 lbs.) or more, provided the Gross Vehicle Weight Rating (GVWR) of the vehicle(s) being towed is ten thousand one pounds (10,001 lbs.) or more, provided the license bears the proper endorsement(s), if any, required for the type of vehicle being driven. A holder of a Class A license may drive all vehicles that may be driven by a holder of a Class B, Class C, Class E, or Class F license, but not motorcycles or vehicles that require an endorsement(s) unless the proper endorsement(s) appears on the license.

(3) Class B—The holder of a Class B license may drive any single vehicle with a GVWR of twenty-six thousand one pounds (26,001 lbs.) or more, or any such vehicle towing a vehicle with a GVWR of ten thousand pounds (10,000 lbs.) or less, provided the license bears the proper endorsement(s), if any, required for the type of vehicle being driven. A holder of a Class B license may drive all vehicles which may be driven by a holder of a Class C, Class E, or Class F license, but not motorcycles or vehicles which require an endorsement(s) unless the proper endorsement(s) appears on the license.

(4) Class C—The holder of a Class C license may drive any single vehicle with a GVWR of twenty-six thousand pounds (26,000 lbs.) or less if the vehicle is designed to transport sixteen (16) or more passengers, including the driver, or if the vehicle is transporting hazardous materials and is required to be placarded under the Hazardous Material Transportation Act (46 U.S.C. section 1801), or any such vehicle towing a vehicle with a GVWR of ten thousand pounds (10,000 lbs.) or less, provided the license bears the proper endorsement(s), if any, required for the type of vehicle being driven. A holder of a Class C license may drive all vehicles which may be driven by a holder of a Class E or Class F license, but not motorcycles or vehicles which require an endorsement(s) unless the proper endorsement(s) appears on the license.

(5) Class E—The holder of a Class E license may drive all vehicles which may be driven by a holder of a Class F license and receive compensation in wages, salary, commission, or fare 1) to transport persons or property; 2) as an owner or employee carrying passengers or property for hire; or 3) occasionally operating the commercial motor vehicle of another person in the course of, or as an incident to, their employment. A holder of a Class E license shall not be entitled to drive any vehicle which operation requires the driver to hold a Class A, Class B, or Class C license. The holder of a Class E license may not drive motorcycles or vehicles which require an endorsement unless the proper endorsement appears on the license. Transportation network company drivers, as defined in section 387.400, RSMo, food delivery services, as defined in subsection 2 of section 387.438, RSMo, and taxicab drivers are not required to obtain a Class E license for purposes of providing transportation services, provided the vehicle used for such purposes has a gross vehicle weight that is less than or equal to twelve thousand (12,000) pounds.

(6) Class F—The holder of a Class F license may drive any motor vehicle other than one requiring the driver to hold a Class A, Class B, Class C, or Class E license, including any recreational vehicle being used solely for personal use, except that the holder of a Class F license may not drive motorcycles or vehicles which require an endorsement(s) unless the proper endorsement(s) appears on the license. Nothing in this section shall be construed to prevent operators of recreational motor vehicles for personal use from operating those vehicles with a Class F license. The holder of a Class F intermediate license may drive the same types of vehicles as those driven by the holder of a Class F driver license except that the holder of a Class F intermediate license cannot operate a motor vehicle on the highways of the state between the hours of 1:00 a.m. and 5:00 a.m. unless accompanied by a person who is at least twenty-one (21) years of age. The licensee is not required to be accompanied by someone twenty-one (21) years of age or older if the travel is to or from a school or educational program or activity, a regular place of employment or in emergency situations. An emergency situation is defined as any sudden or unexpected event in which a potential injury or death may occur to a living being that requires the operation of a motor vehicle.

(7) Class M—The holder of a Class M license may drive only a motorcycle or motortricycle; however, the holder of a Class M license with a U201 restriction may drive only a motortricycle.

(8) In addition to holding the appropriate class of license as prescribed, a driver of a motor vehicle used to transport hazardous material in a type, quantity, or both, as to require placarding under the Hazardous Material Transportation Act (46 U.S.C. section 1801) and the Hazardous Materials Regulations (49 CFR part 172, subpart F) must have qualified for and obtained an H endorsement. Any applicant for a commercial driver license requiring a hazardous material endorsement shall be at least twenty-one (21) years of age.

(9) In addition to holding the appropriate class of license as prescribed, a driver of a motor vehicle designed to transport any liquid or gaseous material in bulk having a rated capacity of one thousand gallons (1,000 gal.) must have qualified for and obtained an N endorsement.

(10) In addition to holding the appropriate class of license as prescribed, a driver of any commercial motor vehicle that is designed to transport any liquid or gaseous material within a tank that is either permanently or temporarily attached to the vehicle or the chassis having a rated capacity of one thousand gallons (1,000 gal.) or more must have qualified for and obtained an N endorsement.

(11) In addition to holding the appropriate class of license as prescribed, a driver of any motor vehicle designed to transport sixteen (16) or more passengers, including the driver, must have qualified for and obtained a P endorsement. In addition to any other restrictions prescribed by the director, the holder of a P endorsement may be issued a restriction of M or N limiting the passenger vehicle classification which the driver may operate. The restriction is determined by the classification of the passenger vehicle in which the driving skills examination was completed. The restriction M limits passenger vehicle operation to Class B or Class C types only. The restriction N limits passenger vehicle operation to Class C type only.

(12) In addition to holding the appropriate class of license as prescribed, a driver of a motor vehicle in any combination with double or triple trailers must have qualified for and obtained a T endorsement.

(13) If a driver has qualified for both an H endorsement and an N endorsement, an X endorsement shall be shown on the license in lieu of the H and N endorsements.

(14) If the holder of a Class A, Class B, Class C, Class E, or Class F license desires to drive a motorcycle or motortricycle upon the highways of this state, the holder must have qualified for and obtained an M endorsement.

(15) In addition to holding the appropriate class of license as prescribed, the driver of a school bus owned by or under contract with a public school or the State Board of Education must have qualified for and obtained an S endorsement in accordance with the requirement of section 302.272, RSMo. In addition, the holder of an S endorsement may be issued a restriction limiting the classification of a school bus in which the driver may operate. The restriction is determined by the school bus in which the driving skills examination was completed. The driver of a school bus, as defined in section 301.010, RSMo, that is less than or equal to twelve thousand pounds (12,000 lbs.) and designed to transport ten (10) or fewer passengers is not required to obtain other than a Class F operator license and is not required to obtain a school bus endorsement.

(16) In addition to any other restrictions prescribed by the director, the holder of a Class A, Class B, or Class C license who has not qualified to drive a motor vehicle equipped with air brakes shall have a restriction L shown on the license. The restriction L does not allow the holder of a license to drive a commercial motor vehicle equipped with air brakes.

(17) In addition to any other restrictions prescribed by the director, the holder of a Class A, Class B, or Class C license may be issued an E restriction limiting the driver to a commercial motor vehicle with an automatic transmission if the driving skills examination was completed in a vehicle equipped with an automatic transmission.

(18) In addition to other restrictions of issuance, a Missouri driver license will not be issued to an individual unless and until any previously issued Missouri or out-of-state driver license and any Missouri or out-of-state nondriver identification card is surrendered or a statement that the physical card was lost, destroyed, or stolen. An individual may hold either a valid Missouri driver license or nondriver identification card, but not both.

(A) As part of the requirements to transition to one (1) license or one (1) nondriver identification card, any person previously issued a Missouri driver license or a nondriver identification card will be required to surrender one (1) of the credential types at the time of their next application for any new, renewal, or duplicate.

(B) The holder of a Missouri driver license may during a period of suspension, revocation, denial, or disqualification of their driving privilege elect to surrender the physical driver license and obtain a nondriver identification card. The holder of a nondriver identification card issued during any period of suspension, revocation, denial, or disqualification will be required to surrender the nondriver identification card to be eligible for return or issuance of a driver license. Any applicable fees will apply.

(C) The holder of a Missouri driver license or nondriver license may hold a valid noncommercial instruction permit if other testing and eligibility conditions for the permit class type requested are met.

(D) The holder of a valid, unexpired Missouri driver license may hold a commercial learner’s permit if other permit testing and eligibility conditions are met.

Filed Jan. 3, 1991, effective June 10, 1991. Emergency amendment filed April 8, 1991, effective April 18, 1991, expired Aug. 15, 1991.

Amended: Filed April 8, 1991, effective Aug. 30, 1991. Emergency amendment filed July 15, 1991, effective July 25, 1991, expired Nov. 21, 1991. Amended: Filed July 15, 1991, effective Oct. 31, 1991.

Amended: Filed July 2, 1992, effective Feb. 26, 1993. Amended:

Filed March 10, 1993, effective Sept. 9, 1993. Amended: Filed April 16, 1993, effective Oct. 10, 1993. Amended: Filed Nov. 1, 1993, effective May 9, 1994. Emergency amendment filed Dec. 1, 1995, effective Dec. 11, 1995, expired June 7, 1996. Amended: Filed Dec. 1, 1995, effective May 30, 1996. Amended: Filed June 29, 2000, effective Dec. 30, 2000. Amended: Filed Oct. 10, 2003, effective April 30, 2004. Amended: Filed Feb. 17, 2015, effective Aug. 30, 2015. Amended: Filed Aug. 1, 2017, effective Jan. 30, 2018. ** Amended: Filed March 31, 2025, effective Sept. 30, 2025. *Original authority: 302.010, RSMo 1939, amended 1949, 1951, 1955, 1961, 1978, 1980, 1983, 1984, 1986, 1987, 1988, 1989, 1991, 1995, 1996, 2002, 2007, 2008, 2012, 2015, 2021, 2022; 302.015, RSMo 1989, amended 2014; and 387.438, RSMo 2017. **Pursuant to Executive Orders 20-04, 20-10, and 20-12, 12 CSR 10-24.200, section (6) and subsection 2 of section 302.720, RSMo was suspended from April 3, 2020 through July 15, 2020.

History

AUTHORITY: section 302.015, RSMo 2016, and sections 302.010 and 387.438, RSMo Supp. 2024. Original rule filed Jan. 16, 1990, effective May 11, 1990. Emergency amendment filed June 20, 1990, effective June 30, 1990, expired Oct. 27, 1990. Amended: Filed June 20, 1990, effective Dec. 31, 1990. Emergency amendment filed Oct. 26, 1990, effective Nov. 5, 1990, expired March 4, 1991. Amended:

12 CSR 10-24.300 Commercial Driver License Written Examinations {#sec-12-csr-10-24.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.300}

PURPOSE: This rule establishes the criteria for taking the written examination for a Class A, Class B, or Class C license.

(1) The following shall be the types of written examinations for Class A, Class B, and Class C licenses:

(A) Basic Knowledge Test—this examination shall consist of fifty (50) questions which shall include, but not be limited to, questions concerning safe vehicle operation, commercial motor vehicle safety control systems, procedures for safe vehicle control, principles and procedures for the proper handling of cargo, and knowledge of what constitutes hazardous material;

(B) Air Brakes Test—this examination shall consist of twentyfive (25) questions which shall include, but not be limited to, questions concerning air brake systems nomenclature, dangers of contaminated air supply, implications of severed or disconnected air lines, implications of low air pressure, procedures for safe and accurate pre-trip inspections, and procedures for conducting en route and post-trip inspections of air brake systems;

(C) Combination Vehicle Test—this examination shall consist of twenty (20) questions, which shall include, but not be limited to, questions concerning coupling and uncoupling procedures and procedures for performing vehicle safety inspections on combination vehicles;

(D) Hazardous Material Test—this examination shall consist of thirty (30) questions which shall include, but not be limited to, questions concerning hazardous materials regulations, the hazardous materials table, shipping paper requirements, marking, labeling, placarding requirements, hazardous materials packaging, reporting hazardous materials accidents, tunnels and railroad crossings, forbidden materials and packaging, loading and unloading, cargo segregation, parking, routes, cargo tanks, emergency equipment operations, and emergency response procedures;

(E) Tank Vehicle Test—this examination shall consist of twenty (20) questions which shall include, but not be limited to, questions concerning causes, prevention, and effects of cargo surge, proper braking procedures, difference in handling baffled versus non-baffled vehicles, effects of road grade and curvature on tank vehicles, and proper use of emergency systems;

(F) Passenger Vehicle Test—this examination shall consist of twenty (20) questions which shall include, but not be limited to, questions concerning loading and unloading procedures, proper use of emergency exits, proper responses to emergency situations, proper procedures at railroad crossings and drawbridges, and proper braking procedures;

(G) Double/Triple Trailer Test—this examination shall consist of twenty (20) questions which shall include, but not be limited to, questions concerning procedures for assembly and hookup of units, proper placement of heaviest trailer, handling and stability characteristics of double/triple combinations, and potential traffic problems of double/triple combinations; and (H) School Bus Test—this examination shall consist of twenty (20) questions which shall include, but not be limited to, questions concerning loading and unloading of passengers, emergency exits procedures for safely evacuating passengers, and state and federal laws and regulations related to safely traversing highway rail grade crossings.

(2) In order to obtain a Class A license, an applicant must take and successfully complete the Basic Knowledge Test, the Combination Vehicle Test and the Air Brakes Test, if appropriate. The holder of an out-of-state commercial driver license or commercial driver instruction permit can surrender their valid out-of-state license or permit and qualify for a waiver of the Class A Written Tests.

(3) In order to obtain a Class B license, an applicant must take and successfully complete the Basic Knowledge Test and the Air Brakes Test, if appropriate. The holder of an out-of-state commercial driver license or commercial driver instruction permit can surrender their valid out-of-state license or permit and qualify for a waiver of the Class B Written Tests.

(4) In order to obtain a Class C license, an applicant must take and successfully complete the Basic Knowledge Test, and either the Passenger Test, the Hazardous Materials Test, or both. The holder of an out-of-state commercial driver license or commercial driver instruction permit can surrender their valid out-of-state license or permit and qualify for a waiver of the Class C Written Tests.

(5) In order to obtain an H endorsement, the applicant must take and successfully complete the Hazardous Materials Test.

In order to retain an H endorsement, upon renewal or transfer, the holder must take and successfully complete the Hazardous Materials Test. In addition to the required written test, all H endorsement applicants must have an approved security threat assessment to obtain or retain the endorsement, pursuant to requirements of the USA Patriot Act.

(6) In order to obtain an N endorsement, the applicant must take and successfully complete the Tank Vehicle Test.

(7) In order to obtain a P endorsement, the applicant must take and successfully complete the Passenger Vehicle Test.

(8) In order to obtain a T endorsement, the applicant must take and successfully complete the Double/Triple Trailer Test.

(9) In order to obtain an S endorsement, the applicant must take and successfully complete the School Bus Written Test.

(10) An applicant who has taken and successfully completed both the Tank Vehicle Test and the Hazardous Materials Test shall be entitled to obtain an X endorsement.

(11) Successful completion of a test requires a score of at least eighty percent (80%) on each test taken.

(12) If an applicant does not successfully complete any written examination required in this rule, they immediately may retake the examination; however, the examiner administering the examination shall have the discretion to require the applicant to return for a retake at a later date.

(13) Written examinations shall be available at all Missouri State Highway Patrol examination stations.

(14) The Missouri State Highway Patrol, in conjunction with the director of revenue, at their discretion, may administer the written examinations required in this rule to selected groups at locations other than Missouri State Highway Patrol examination stations.

(15) Any person who practices or attempts to practice any fraud or deception while taking any test required in this rule, or who takes the test for another, or who in any way falsifies any information in a test required in this rule shall not be licensed to operate a commercial motor vehicle or non-commercial motor vehicle for a period of one (1) year after the director discovers the falsification.

Emergency amendment filed June 20, 1990, effective June 30, 1990, expired Oct. 27, 1990. Amended: Filed June 20, 1990, effective Dec. 31, 1990. Emergency amendment filed Oct. 26, 1990, effective Nov. 5, 1990, expired March 4, 1991. Amended: Filed April 8, 1991, effective Aug. 30, 1991. Emergency amendment filed July 15, 1991, effective July 25, 1991, expired Nov. 21, 1991. Amended: Filed July 15, 1991, effective Oct. 31, 1991. Amended: Filed Dec. 15, 1997, effective June 30, 1998. Amended: Filed Sept. 27, 2001, effective March 30, 2002. Amended: Filed Aug. 31, 2005, effective Feb. 28, 2006. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 302.010, RSMo 1939, amended 1949, 1951, 1955, 1961, 1978, 1980, 1983, 1984, 1986, 1987, 1988, 1989, 1991, 1995, 1996, 2002, 2007, 2008, 2012, 2015, 2021, 2022; 302.233, RSMo 2004; 302.272, RSMo 1986, amended 1987, 1989, 1996, 2004, 2005, 2018, 2025; 302.273, RSMo 2004; 302.700, RSMo 1989, amended 1991, 1995, 2003, 2004, 2009, 2012, 2013, 2014, 2018; 302.735, RSMo 1989, amended 1999, 2001, 2004, 2005, 2008, 2009, 2013, 2025; and 302.765, RSMo 1989, amended 1993, 1995.

History

AUTHORITY: sections 302.233, 302.273, and 302.765, RSMo 2016, and sections 302.010, 302.272, 302.700, and 302.735, RSMo Supp. 2025. Original rule filed March 5, 1990, effective June 11, 1990.

12 CSR 10-24.305 Commercial Driver License Requirements/ Exemptions {#sec-12-csr-10-24.305 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.305}

PURPOSE: This rule defines testing required for a commercial driver license and the conditions under which drivers of commercial motor vehicles are exempt from the provisions of sections 302.700–302.780, RSMo.

(1) To obtain a commercial driver license, an applicant must take and successfully pass written and driving tests for the operation of a commercial motor vehicle. The issuance of a commercial learner’s permit is a precondition to the initial issuance of a commercial driver license or an upgrade of a commercial driver license if the upgrade requires a skills test.

The commercial learner’s permit holder is not eligible to take the commercial driver license skills test in the first fourteen (14) days after initial issuance of the permit.

(2) The only drivers operating a commercial motor vehicle as defined in section 302.700, RSMo, who are not required to possess a Class A, Class B, or Class C license are— (A) Any person driving a farm vehicle, exclusively for the transportation of agricultural products, farm machinery, farm supplies, or fertilizers, which may include, but are not limited to, ammonium nitrate, phosphate, nitrogen, anhydrous ammonia, lime, potash, motor fuel, or special fuel, provided the Gross Vehicle Weight Rating (GVWR) of the farm vehicle does not exceed twenty-six thousand one pounds (26,001 lbs.) when transporting these hazardous materials, or a combination of them, within one hundred fifty (150) air miles of the farm, if the person is a farmer, a family member of a farmer, or an employee of a farmer and who is not a common or contract carrier;

(B) Any person driving vehicles for military purposes, which includes active duty military personnel, a member of the reserves or national guard on full-time training duty or inactive duty for training, and national guard military technicians;

(C) Any person in the employ of a fire organization or a member of a volunteer fire organization driving emergency or fire equipment;

(D) Any person in the employ of a federal, state, or local government forest service, police department, rescue and emergency squads, or departments of safety who drive emergency or firefighting equipment which shall include, but not be limited to, riot buses or volunteers who perform wilderness search and rescue functions and disaster relief activities in government-owned vehicles only when such vehicles are used in the execution of emergency governmental functions performed under emergency conditions;

(E) Any person driving or pulling, strictly for family or personal use, a recreational vehicle as defined in sections 301.010 and 700.010, RSMo;

(F) Any person driving, for personal use, a vehicle which is a commercial motor vehicle under section 302.700, RSMo, while transporting personal property of his/her own or of another, but not for hire nor as a common or contract carrier;

(G) Any person driving, in connection with construction activities, for a limited distance on the highways of this state, construction equipment which by design, appearance, and function is not intended for use on the highways. This equipment would include motorscrapers, backhoes, motor graders, compactors, excavators, tractors, trenchers, and bulldozers, but not dump trucks, tank trucks, or any equipment designed to transport materials or construction equipment overland; and (H) Any person driving a vehicle, such as amusement park trams, used exclusively on private property and not operated on any highway, state, county, or public road.

(3) A driver exempted under this rule from possessing a Class A, Class B, or Class C license must possess a valid Class E or F license, as appropriate, with the necessary restrictions and endorsements for the vehicle being driven.

Emergency amendment filed March 29, 1995, effective April 22, 1995, expired Aug. 19, 1995. Amended: Filed Nov. 15, 2002, effective May 30, 2003. Amended: Filed Aug. 16, 2010, effective Feb. 28, 2011.

Amended: Filed Feb. 17, 2015, effective Aug. 30, 2015. ** *Original authority: 302.700, RSMo 1989, amended 1991, 1995, 2003, 2004, 2009, 2012, 2013; 302.720, RSMo 1989, amended 1995, 2002, 2004, 2006, 2007, 2008, 2013; 302.765, RSMo 1989, amended 1993, 1995; and 302.775, RSMo 1989, amended 2004, 2009. **Pursuant to Executive Orders 20-04, 20-10, and 20-12, 12 CSR 10-24.305, section (1) and subsection 2 of section 302.720, RSMo was suspended from May 1, 2020 through July 15, 2020.

History

AUTHORITY: section 302.765, RSMo 2000, and sections 302.700, 302.720, and 302.775, RSMo Supp. 2013. Original rule filed March 5, 1990, effective June 11, 1990. Amended: Filed Sept. 24, 1990, effective Feb. 14, 1991. Emergency amendment filed Dec. 13, 1990, effective Dec. 23, 1990, expired April 21, 1991. Emergency amendment filed April 8, 1991, effective April 18, 1991, expired Aug. 15, 1991. Amended: Filed April 8, 1991, effective Aug. 30, 1991. Emergency amendment filed July 26, 1991, effective Aug. 5, 1991, expired Dec. 2, 1991. Amended: Filed July 26, 1991, effective Dec. 9, 1991. Amended: Filed Dec. 13, 1994, effective May 28, 1995.

(Rescinded November 30, 2000)

History

AUTHORITY: sections 302.171, RSMo Supp. 1991, 302.181, RSMo Supp. 1992 and 302.765, RSMo Supp. 1989. Original rule filed March 5, 1990, effective June 11, 1990. Amended: Filed April 8, 1991, effective Oct. 31, 1991. Emergency amendment filed July 15, 1991, effective July 25, 1991, expired Nov. 21, 1991. Amended: Filed July 15, 1991, effective Oct. 31, 1991. Amended: Filed Sept. 16, 1991, effective Jan. 13, 1992. Rescinded: Filed May 31, 2000, effective Nov. 30, 2000.

12 CSR 10-24.315 Tow Truck Operator’s and Commercial Drivers Licensing {#sec-12-csr-10-24.315 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.315}

PURPOSE: This rule specifies conditions under which tow truck drivers and tow truck operations must meet or are exempt from the Uniform Commercial Driver License Act, sections 302.700– 302.780, RSMo.

(1) The driver of a tow truck which has a Gross Combination Weight Rating (GCWR) of twenty-six thousand one (26,001) or more pounds, inclusive of the Gross Vehicle Weight Rating (GVWR) of any towed vehicle of ten thousand one (10,001) or more pounds, must possess a valid Class A license, with appropriate endorsements and restrictions.

(2) The driver of a tow truck which has a GVWR of twenty-six thousand one (26,001) or more pounds, or any such vehicle towing a vehicle which has a GVWR of ten thousand pounds (10,000 lbs.) or less, must possess either a valid Class A or Class B license, with appropriate endorsements and restrictions.

(3) The driver of a tow truck which has a GVWR of twenty-six thousand (26,000) or fewer pounds must possess a Class C license if on a subsequent move towing a vehicle placarded for hazardous materials.

(4) If a tow truck driver tows a vehicle under emergency conditions in a first move from the site of a malfunction or accident to the nearest appropriate repair facility, the driver must possess a valid license of the appropriate class, but need not possess an H, N, P, T or X endorsement.

(5) If a tow truck driver tows a vehicle on a subsequent or second move from one (1) repair facility or disposal facility to another, the driver must possess a valid license of the appropriate class with endorsements appropriate for the type of vehicle being towed, except that a tow truck driver towing a passenger vehicle need not possess a P endorsement.

History

AUTHORITY: section 302.765, RSMo Supp. 1989. Original rule filed March 5, 1990, effective June 11, 1990. Amended: Filed May 21, 1991, effective Oct. 31, 1991. Original authority: 302.765, RSMo 1989.

12 CSR 10-24.320 Notification to Complete Written Examinations for a Class A, B or C License {#sec-12-csr-10-24.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.320}

(Rescinded December 3, 1992)

Emergency rule filed April 18, 1990, effective April 28, 1990, expired Aug. 25, 1990. Original rule filed April 18, 1990, effective June 28, 1990. Emergency amendment filed July 15, 1991, effective July 25, 1991, expired Nov. 21, 1991. Amended: Filed July 15, 1991, effective Oct. 31, 1991. Rescinded: Filed April 28, 1992, effective Dec. 3, 1992.

History

AUTHORITY: sections 302.700–302.780, RSMo Supp. 1989.

12 CSR 10-24.325 License Denial for Suspension, Revocation, Disqualification, or Cancellation {#sec-12-csr-10-24.325 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.325}

PURPOSE: This rule establishes the basis for denial of a Missouri driver license when the applicant is suspended, revoked, disqualified, or canceled in this or any other state.

(1) Every applicant for a Missouri driver license or permit, including applicants for renewal or transfer, shall be checked through the National Driver Register and other records available to the director to determine the person’s license status in all states.

(2) Any person shown in the records of the National Driver Register or other records available to the director as suspended, revoked, disqualified, or canceled in this or any other state shall be denied a Missouri driver license until such time that the suspension, revocation, disqualification, or cancellation has been cleared.

Emergency rule filed June 20, 1990, effective June 30, 1990, expired Oct. 27, 1990. Emergency rule filed Oct. 26, 1990, effective Nov. 5, 1990, expired March 4, 1991. Original rule filed June 20, 1990, effective Dec. 31, 1990. Amended: Filed Dec. 14, 1993, effective July 10, 1994. Amended: Filed March 27, 1998, effective Sept. 30, 1998.

Amended: Filed Aug. 31, 2005, effective Feb. 28, 2006. Amended:

Filed April 9, 2024, effective Nov. 30, 2024. *Original authority: 302.060, RSMo 1939, amended 1951, 1961, 1982, 1983, 1984, 1987, 1989, 1991, 1996, 1999, 2005, 2008, 2009, 2012, 2013, 2014, 2015, 2018; 302.171, RSMo 1951, amended 1955, 1984, 1989, 1991, 1995, 1996, 1997, 1999, 2000, 2003, 2004, 2006, 2007, 2008, 2009, 2014, 2019, 2021, 2022; 302.600, RSMo 1985; and 302.740, RSMo 1989, amended 2004, 2013.

Denny Hoskins (8/31/25)

History

AUTHORITY: sections 302.060 and 302.171, RSMo Supp. 2024, and sections 302.600 and 302.740, RSMo 2016, and 49 CFR 383.73(a).

12 CSR 10-24.326 Third Party Tester and Examiner Sanction and Hearing Guidelines {#sec-12-csr-10-24.326 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.326}

PURPOSE: This rule establishes the guidelines for sanctioning third party testers and examiners for not conforming to the requirements of the third party tester contract, the laws and regulations of this state concerning commercial drivers and the provisions of the third party tester/examiner requirements produced by the Department of Revenue. It also includes the hearing rights and procedures of such parties.

(1) As used in this rule the following terms mean:

(A) Certification—the authority issued by the director of revenue to a third party tester to open a testing facility or to a third party examiner to administer testing for a third party tester;

(B) Decertification—the director of revenue’s removal of

Such removal shall be for a minimum period of one (1) year after which time a new application may be made; and (C) Denial—the director does not issue a certification to a third party tester or examiner. Such tester or examiner once denied may not reapply for a period of one (1) year.

(2) The department may warn, deny, refuse to issue or renew, suspend, revoke, or decertify a third party tester or examiner’s

The department recommendations for sanctions are listed in the Department’s Third Party Testing Program Sanctions for Examiners and Testers in this rule.

(3) The department shall notify the tester or examiner of its proposed action to deny, refuse to issue or renew, suspend, revoke or decertify a third party tester or examiner certification by mailing via certified mail, notice to the party’s last known address in the department’s records.

(4) The department’s notice of proposed action shall state that the party may request a hearing on the denial, refusal to issue or renew, suspension, revocation or decertification by the department within thirty (30) days of the mailing of such notice.

(5) Failure to request a hearing shall result in the proposed action of the director becoming effective thirty (30) days from the date of mailing of notice.

(6) Upon receipt of a written request for a hearing, the director shall set a hearing date, a time and location designated by the director. Notice of hearing shall be mailed to the tester or examiner at the last known address for such entity within the department’s records. Notice shall be complete upon mailing and shall state the time, date, and place of hearing and the reason or reasons for the proposed action. If a hearing is requested, the action of the director shall be stayed until a hearing is held and an order entered thereon.

(7) Such hearings shall be conducted by the director or the director’s designated hearing officer. Such hearings shall be heard in substantially the same manner as provided in Chapter 536, RSMo.

(8) The director shall enter a written hearing decision and mail that decision to the party requesting the hearing at the last known address for such party in the department’s records.

(9) Further review of the action of the director as a result of an administrative hearing may be taken pursuant to Chapter 536, (10) Nothwithstanding the provisions of section (5) of this

rule the department may summarily revoke or suspend the certificate of a third party tester, without opportunity for stay, provided that the department finds that the public safety requires emergency action and it incorporates its findings to that effect in its notice of suspension or revocation. If so requested, a hearing to review the summary action and the underlying cause shall be held in an expedited time frame not to exceed thirty (30) days and the summary suspension or revocation shall be promptly determined.

(8/31/25) Denny Hoskins MISSOURI DEPARTMENT OF REVENUE THIRD PARTY TESTING PROGRAM SANCTIONS EXAMINER VIOLATIONS FIRST SECOND THIRD FOURTH EXAMINER RECORDKEEPING AND BUSINESS PRACTICES Examiner conducts test while noncertified, suspended, or decertified.

Examiner conducts tests without DOR approval or conducts tests for more than one tester.

Examiner fails to maintain or complete records as required.

Warning letter 30-day suspension 60-day suspension Decertification Examiner fails to respond to DOR/MSHP request for information or fails to comply with DOR/MSHP instruction, directive, or ruling.

EXAMINER QUALIFICATIONS

Examiner application indicates felony conviction in last five years.

Denial/Decertification Examiner driving history indicates conviction for any alcohol related enforcement contacts (DWI, DUI, BAC, DUID, etc) in MO or any other state within last five years.

Denial/Decertificatio Examiner driving history indicates a suspension, revocation, cancellation, or disqualification in MO or any other state within last five years.

Denial/Decertificatio Examiner fails to attend required recertification courses as required by the director.

Suspension until recertification course completed.

Examiner fails to report suspension, revocation, cancellation, or disqualification. or decertification.

SKILLS TEST

ADMINISTRATION

Examiner encourages or accepts bribe or gratuity.

Examiner falsifies records or information or misrepresents by omitting any test requirement or procedure. and/or decertification.

Examiner fails to inform DOR/MSHP concerning civil or criminal actions related to skills test and/or decertification.

Examiner administers skills test without proper CDL License and appropriate endorsements and/or restrictions. 30-day minimum suspension and re-audit.

Examiner knowingly retests failed applicant within same day.

Examiner allows unauthorized passengers in the test vehicle during skills testing.

Warning letter and possible re-audit n 60-day suspension Decertification Audit of examiner finds scoring and form completions inconsistent with TPT manual guidelines.

Re-audit and/or 30 day suspension 60-day suspensio n Decertification MISSOURI DEPARTMENT OF REVENUE THIRD PARTY TESTING PROGRAM SANCTIONS TESTER VIOLATIONS FIRST SECOND THIRD FOURTH TESTER RECORDS AND BUSINESS PRACTICES Tester operates wit hout Department of Revenue authorization.

Application denied for minimum of five years Tester does not maintain insurance as required per C-3 in tester contract.

Suspended until department receives proof of required insurance. 30-day suspension and must submit proof of required insurance to Department of Revenue.

Tester does not maintain security bond as required in te ster contract.

Suspended until department receives proof of required bond Tester does not maintain certificate of authorization for use of test site(s) as required.

Suspended until receipt of authorization and posting of certificate. 30-day suspension and must receive authorization and post certificate Tester uses no -certified, suspended, or decertified examiner.

Tester uses examiner without Department of Reve nue approval or allows examiner to test for more than one tester.

Tester representative fails to attend audit/inspection wit hout notification. 60-day s u spensio Tester fails to comply with monthly reporting requirements. 60-day suspensio Tester fails to respond to DOR/MSHP request for information or fails to comply with DOR/MSHP instruction, directive, or ruling.

Tester fails to maintain permanent structure and busine ss street address.

Tester records not maintained at each test site in centralized location.

If audit can be completed, warning letter. If audit cannot be completed, warning letter and reschedule audit.

Indefinite suspension until complies Tester fails to notify DOR of any changes to tester or examiner status.

TEST SITE FACILITIES

Site does not comply wit h p re-trip, basic control and skills c ourse layout, or space requirements.

Warning letter and/or up to 30-day suspension and/or up to 60-day suspension (7/31/23) John R. Ashcroft TEST ADMINISTRATION Tester encourages or accepts bribe or gratuity.

Tester falsifies records or information, or misrepresents by omitting, any test requirement or procedure or encourages/requires examiner to do the same.

Tester fails to inform DOR/MSHP concerning civil or criminal actions related to complaints regarding skills testing. pending additional action or decertification. skills test without proper CDL license and appropriate restrictions or endorsements. 30-day suspension and reaudit. tests during non-daylight hours.

Tester allows examiner to knowingly retest failed applicant within same day.

Warning letter 30-day suspension 60-day suspension Decertification skills tests with unauthorized passengers in test vehicle.

Denny Hoskins (12/31/25)

section 302.765, RSMo 2000.* Original rule filed Sept. 27, 2001, effective April 30, 2002. Emergency amendment filed April 12, 2002, effective April 30, 2002, expired Oct. 26, 2002. Amended:

Filed April 12, 2002, effective Sept. 30, 2002. Amended: Filed Feb. 17, 2015, effective Aug. 30, 2015. 2008, 2013; 302.721, RSMo 2002; and 302.765, RSMo 1989, amended 1993, 1995.

History

authority or certification from a third party tester or examiner.
authority, whether initial or renewed. Such action may result from any violation of the third party tester contract or third party tester/examiner requirements, including but not limited to, those violations listed in the Missouri Department of Revenue Third Party Testing Program Sanctions for Examiner or Tester included herein and made a part of this rule.
AUTHORITY: sections 302.720 and 302.721, RSMo Supp. 2013, and

12 CSR 10-24.330 Delegation of Authority to Third-Party Testers to Conduct Skills Tests of Applicants for Commercial Drivers Licenses {#sec-12-csr-10-24.330 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.330}

PURPOSE: This rule establishes the authority of third-party testers to administer skills tests to commercial motor vehicle drivers.

PUBLISHER’S NOTE: The secretary of state has determined that publication of the entire text of the material that is incorporated or expensive. This material as incorporated by reference in this

(1) The director shall authorize any third-party tester certified by the director to administer skills tests to commercial motor vehicle operator applicants in accordance with the laws of this state and 49 CFR 383.75, including but not limited to maintaining a security bond and submitting test results electronically to the Department of Revenue. Any third-party tester that is a governmental entity shall not be required to maintain the security bond.

(2) The third-party tester shall administer to each applicant a skills test approved by the director, which is the same as the skills tests administered to the applicants by the Missouri State Highway Patrol.

(3) The third-party tester shall enter into a written contract with the director governing the conducting of skills tests by thirdparty examiners employed by the third-party tester.

(4) The third-party tester shall provide documentation to the applicant, on a form prescribed by the director, showing that the applicant has successfully completed the skills tests required by that applicant.

(5) The third-party tester shall provide information and documentation to the director regarding any person who takes the skills test for another or who in any way falsifies any information in any test given by the third-party examiner.

(6) The director shall prescribe all forms which the third-party tester shall provide and use in administering the skills tests.

(7) The third-party tester shall abide by all third-party tester/ examiner requirements and any changes which may occur to these requirements as prescribed by the director.

(8) 49 CFR 383.75 is incorporated by reference and made a part of this rule as published by the Code of Federal Regulations, and is available at www.ecfr.gov or by request at Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65101, dated May 17, 2023. This rule does not incorporate any subsequent amendments or additions.

History

AUTHORITY: section 302.700, RSMo Supp. 2023, and section 302.765, RSMo 2016. Emergency rule filed June 20, 1990, effective June 30, 1990, expired Oct. 27, 1990. Emergency rule filed Oct. 26, 1990, effective Nov. 5, 1990, expired March 4, 1991. Original rule filed June 20, 1990, effective Dec. 31, 1990. Amended: Filed Feb. 17, 2015, effective Aug. 30, 2015. Amended: Filed July 17, 2023, effective Feb. 29, 2024. Original authority: 302.700, RSMo 1989, amended 1991, 1995, 2003, 2004, 2012, 2013, 2014, 2018, and 302.765, RSMo 1989, amended 1993, 1995.

12 CSR 10-24.335 Commercial Drivers Licensing Third Party Examination Audit Retest Process {#sec-12-csr-10-24.335 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.335}

PURPOSE: This rule establishes the requirements for the Missouri State Highway Patrol and the Missouri Department of Revenue to conduct retesting of commercial drivers license applicants in order to determine compliance with the Third Party Commercial Drivers License Examination Program.

(1) Third-party testers certified by the director of revenue to conduct commercial drivers license skill examinations shall notify the Missouri State Highway Patrol no later than two (2) business days prior to conducting a commercial drivers license skills examination.

(A) Such notification shall be sent to the third-party tester’s designated Missouri State Highway Patrol auditor in a manner determined by the Missouri State Highway Patrol.

(B) The notification shall state the test applicant’s name, address, phone number, drivers license number/permit number, date and time of scheduled test, class and type of test, location of the examination(s), and the examiner scheduled to give the test.

(2) The Missouri State Highway Patrol auditor may agree to shorten the two- (2-) day notice for a third-party tester for emergency or urgent situations. If it is determined by the Missouri State Highway Patrol or the Missouri Department of Revenue that the scheduling or emergency scheduling process is not being adhered to, the third-party tester and/or the examiner in question may be sanctioned as outlined in 12 CSR 10-24.326.

(3) Prior to conducting commercial drivers license skills examinations, a third-party tester is required to provide a notice to every individual examined that he or she may be subject to a retest by the Missouri State Highway Patrol. The applicant must acknowledge such notice by providing their signature on the notice.

(4) The Missouri State Highway Patrol shall retest a minimum of ten percent (10%) of drivers who have taken a commercial drivers license skills examination administered by a certified third-party tester. Such retests may be unannounced and may be conducted the same day and same time as the test administered by the third-party tester or at a later date as determined by the Missouri State Highway Patrol.

(12/31/25) Denny Hoskins (5) The Missouri State Highway Patrol auditor shall notify the director of revenue of any individual who fails to pass a retest.

(6) The Missouri State Highway Patrol, on behalf of the Missouri Department of Revenue shall notify an individual who failed to pass the retest that they must complete a commercial drivers license examination with the Highway Patrol or a pre-approved third-party examiner prior to issuance of a commercial drivers license.

(7) The third-party tester and third-party examiner shall be subject to sanctions from the director of revenue as outlined in 12 CSR 10-24.326.

History

AUTHORITY: section 302.721, RSMo Supp. 2013. Original rule filed July 11, 2005, effective Jan. 30, 2006. Amended: Filed Feb. 17, 2015, Original authority: 302.721, RSMo 2002.

12 CSR 10-24.340 Receipt of Mail, Email, and Fax of Compliance Documents {#sec-12-csr-10-24.340 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.340}

PURPOSE: This rule establishes a consistent and effective method of determining receipt of mail, email, and fax of compliance documents for purposes of license suspension, revocation, and reinstatement.

(1) The director of revenue shall consider as received on the official postmark date of the United States Postal System any documents required for compliance on any suspension or revocation under Chapters 302, 303, 544, and 577, RSMo. The director of revenue shall consider as received email and fax documents on the time stamp the email or fax was received by the department.

(A) If any date for performing any act falls on a Saturday, Sunday, or legal holiday in this state, the performance of that act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or legal holiday.

(B) Any mail delivered by third-party means other than the United States Postal Service, such as Federal Express, Express Mail, or United Parcel shall be considered received by the date the transporting agency receives the mail item to be delivered as specified on the mailing invoice or order.

(2) If the official postmark date of the United States Postal System is not readable, the documents required for compliance shall be considered received three (3) days before the documents are stamped received by the Department of Revenue.

Original rule filed Sept. 27, 1990, effective Feb. 14, 1991. Amended:

Filed Jan. 31, 2024, effective Sept. 30, 2024. *Original authority: 302.281, RSMo 1951, amended 1955, 1961, 1989; 302.291, RSMo 1951, amended 1989, 1998, 1999, 2011, 2013; 302.304, RSMo 1961, amended 1972, 1973, 1979, 1983, 1984, 1989, 1991, 1996, 1999, 2002, 2003, 2008, 2012, 2013, 2014, 2015; 302.420, RSMo 1987, amended 1991, 1993, 1996, 2003, 2014; 302.515, RSMo 1983, amended 1984; 302.520, RSMo 1983, amended 1984, 1991, 1996, 2001; 302.525, RSMo 1983, amended 1984, 1991, 2002, 2008, 2012, 2013, 2015; 302.530, RSMo 1983, amended 1984, 1996, 2005, 2012; 302.535, RSMo 1983, amended 1984, 1996, 2001, 2002; 303.030, RSMo 1953, amended 1965, 1969, 1981, 1986, 1997, 2018; 303.040, RSMo 1953, amended 1976, 1979, 1986, 2010; 303.041, RSMo 1986, amended 1999, 2000, 2001, 2022; 303.042, RSMo 1986, amended 1999, 2000; 303.060, RSMo 1953, amended 1957, 1986; 303.120, RSMo 1953, amended 1965, 1981, 2018; 303.140, RSMo 1953, amended 1961, 1965, 1986; 303.270, RSMo 1953; 303.290, RSMo 1953, amended 1957, 1986; and 544.046, RSMo 1980, amended 2012.

History

AUTHORITY: sections 302.281, 302.291, 302.304, 302.420, 302.515, 302.520, 302.525, 302.530, 302.535, 303.040, 303.042, 303.060, 303.140, 303.270, 303.290, and 544.046, RSMo 2016, and sections 303.030, 303.041, and 303.120, RSMo Supp. 2023. Emergency rule filed Dec. 13, 1990, effective Dec. 23, 1990, expired April 21, 1991.

12 CSR 10-24.350 Group Testing of Commercial Motor Vehicle Drivers by Missouri State Highway Patrol {#sec-12-csr-10-24.350 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.350}

PURPOSE: This rule establishes guidelines for administering written tests for commercial drivers licenses to groups of applicants.

(1) The director authorizes the Missouri State Highway Patrol to conduct group testing by written examinations as approved by the director to applicants for commercial drivers licenses.

(2) For the purpose of this rule, a group shall consist of a number of persons adequate to conduct written tests as determined by the superintendent of the Missouri State Highway Patrol.

(3) In order to be eligible to participate in group testing, an applicant must possess a valid, unexpired drivers license from this or any other state and must be a resident of Missouri who will need a Missouri commercial drivers license.

(4) Each applicant shall be responsible for maintaining the copy of any written test results given to the applicant at the time of the testing. If test results cannot be provided by the driver at the time of application for a commercial drivers license, the applicant shall be required to retake the tests.

(5) An applicant who completed tests through group participation may not apply for a commercial drivers license from the department before the scheduled date for license renewal as established by the director.

History

AUTHORITY: sections 302.720 and 302.765, RSMo Supp. 1989. Original rule filed Nov. 15, 1990, effective April 29, 1991. Original authority: 302.720, RSMo 1989 and 302.765, RSMo 1989.

12 CSR 10-24.360 Third-Party Trainers {#sec-12-csr-10-24.360 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.360}

PURPOSE: This rule establishes the authority of third-party trainers to train third-party examiners.

(1) As used in this rule, the term third-party trainer means an entity certified by the director of revenue to instruct thirdparty examiners who are employees or potential employees of a third-party tester in the administration of commercial driver license skills tests. A third-party trainer may be a Missouri state college, Missouri state university, Missouri state community college, or the Missouri State Highway Patrol.

(2) Third-party trainers shall provide a course of instruction in the administration of commercial driver license skills tests of at least forty (40) hours, approved by the director in consultation with the superintendent of the Missouri State Highway Patrol.

(3) Third-party trainers shall provide certification to every graduate who completes an approved training program successfully.

(4) The authority of a third-party trainer may be terminated by the director at any time upon ten (10) days’ written notice. If a third-party trainer disagrees with the director’s determination to terminate their authority, the trainer may request a hearing before the director, or the director’s designee, to contest the director’s decision. A request for a hearing must be made within thirty (30) days of the date notice of termination is sent to the trainer.

(5) A third-party trainer shall maintain a record of every person who participates in an approved training program. That record shall contain, at a minimum, the name of the training program, the name of the person, the type and date of instruction given, course content, and the name of the instructor. Those records shall be filed with the director for each person who has participated in the program.

(6) A third-party trainer shall display its certificate of authorization at its principal place of business.

History

AUTHORITY: section 302.720, RSMo Supp. 2025, and section 302.765, RSMo 2016. Original rule filed Nov. 15, 1990, effective April 29, 1991. Amended: Filed July 21, 2025, effective Jan. 30, 2026.

12 CSR 10-24.370 Criteria for an Approved School Bus Program to Waive the Written Examination {#sec-12-csr-10-24.370 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.370}

(Rescinded June 30, 2006)

Amended: Filed Nov. 21, 1991, effective April 9, 1992. Amended:

Filed Oct. 22, 1997, effective April 30, 1998. Rescinded: Filed Dec. 19, 2005, effective June 30, 2006.

History

AUTHORITY: section 302.272, RSMo Supp. 1997. Emergency rule filed March 15, 1991, effective March 25, 1991, expired July 23, 1991. Original rule filed March 15, 1991, effective Aug. 30, 1991.

12 CSR 10-24.380 Hazardous Materials Written Test Requirements for Commercial Driver License Transfer or Renewal {#sec-12-csr-10-24.380 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.380}

PURPOSE: This rule establishes the conditions under which an applicant for a commercial driver license is required to complete the written knowledge test successfully for a hazardous materials endorsement.

(1) Before adding or continuing a hazardous materials endorsement, any applicant for a new, new resident transfer, or renewal of a Class A, Class B, or Class C commercial driver license shall be required to successfully complete the hazardous materials written knowledge test.

(2) Any applicant for a Class A, Class B, or Class C commercial driver license where a hazardous materials endorsement is being carried over on a new license application shall be required to successfully complete the hazardous materials written knowledge test if more than one (1) year has passed since the applicant completed their previous hazardous materials written knowledge test.

(3) To continue a hazardous materials endorsement, any applicant for a duplicate Class A, Class B, or Class C commercial driver license shall not be required to successfully complete the hazardous materials written knowledge test.

Original rule filed April 8, 1991, effective Aug. 30, 1991. Emergency amendment filed July 15, 1991, effective July 25, 1991, expired Nov. 21, 1991. Amended: Filed July 15, 1991, effective Oct. 31, 1991.

Amended: Filed April 16, 1993, effective Oct. 10, 1993. Amended:

Filed Aug. 18, 2025, effective Feb. 28, 2026. 2008, 2013, 2019, 2020.

History

AUTHORITY: section 302.720, RSMo Supp. 2025. Emergency rule filed April 8, 1991, effective April 18, 1991, expired Aug. 15, 1991.

12 CSR 10-24.385 School Bus Permits {#sec-12-csr-10-24.385 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.385}

(Rescinded August 30, 2015)

rule filed Sept. 24, 1991, effective Oct. 4, 1991, expired Jan. 31, 1992.

Original rule filed June 7, 1991, effective Oct. 31, 1991. Amended:

Filed Oct. 22, 1997, effective April 30, 1998. Amended: Filed June 24, 2003, effective Dec. 30, 2003. Rescinded: Filed Feb. 17, 2015,

History

AUTHORITY: section 302.272, RSMo 2000. Emergency rule filed June 7, 1991, effective June 17, 1991, expired Oct. 4, 1991. Emergency

12 CSR 10-24.390 Commercial Learner’s Permit {#sec-12-csr-10-24.390 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.390}

PURPOSE: This rule establishes requirements for a commercial driver to obtain a commercial learner’s permit.

(1) Before applying for a commercial learner’s permit (CLP), the person shall possess a valid Missouri driver license.

(2) Any applicant for a commercial learner’s permit shall meet all requirements of the Commercial Motor Vehicle Safety Act (sections 302.700–302.780, RSMo), except for the pre-trip inspection, off-road basic controls, and on-road driving tests.

(3) Prior to issuance of a commercial learner’s permit, the person shall present evidence that the appropriate commercial motor vehicle written tests were completed for the class and type of vehicle to be operated.

(4) A commercial learner’s permit cannot be used to operate a commercial motor vehicle transporting hazardous materials as defined in 49 CFR 383.5.

(5) A commercial learner’s permit cannot be issued with a double/triple trailer (T) endorsement.

(6) The commercial learner’s permit holder with a passenger endorsement is prohibited from operating a commercial motor vehicle carrying passengers, other than federal/state auditors and inspectors, test examiners, other trainees, and the commercial driver license holder accompanying the CLP holder as prescribed by 49 CFR 383.25(a)(1).

(7) A commercial learner’s permit holder with a school bus (S) endorsement is prohibited from operating a commercial motor vehicle carrying passengers, other than federal/state auditors and inspectors, test examiners, other trainees, and the commercial driver license holder accompanying the CLP holder as prescribed by 49 CFR 383.25(a)(1).

(8) A commercial learner’s permit holder with a tank (N) endorsement may only operate an empty tank vehicle and is prohibited from operating any tank vehicle that previously contained hazardous materials unless such tank has been purged of any residue.

(9) Notwithstanding any provision of this rule to the contrary, nothing in this rule shall be interpreted or construed as incorporating by reference any rule, regulation, standard, or guideline of a federal agency.

Amended: Filed April 3, 2024, effective Nov. 30, 2024.

History

AUTHORITY: section 302.720, RSMo Supp. 2024, and section 302.765, RSMo 2016. Emergency rule filed June 7, 1991, effective June 17, 1991, expired Oct. 4, 1991. Original rule filed June 7, 1991, effective Dec. 9, 1991. Emergency rule filed Sept. 24, 1991, effective Oct. 4, 1991, expired Jan. 31, 1992. Amended: Filed Feb. 28, 1992, effective Aug. 6, 1992. Amended: Filed June 24, 2003, effective Dec. 30, 2003. Amended: Filed Feb. 17, 2015, effective Aug. 30, 2015.

12 CSR 10-24.395 Delegation of Authority to the Missouri State Highway Patrol to Conduct Skills Testing of Applicants for Commercial Driver Licenses Highway Patrol to administer skills tests to commercial motor vehicle drivers obtaining a Missouri commercial driver license or out-of-state license holder otherwise eligible to complete commercial skills testing in Missouri. {#sec-12-csr-10-24.395 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.395}

PUBLISHER’S NOTE: The secretary of state has determined that publication of the entire text of the material that is incorporated or expensive. This material as incorporated by reference in this

(1) The director authorizes the Missouri State Highway Patrol to administer skills tests to commercial motor vehicle operator applicants in accordance with the laws of this state.

(2) Any person requiring a commercial driver license who must successfully complete the skills tests shall pass a pretrip inspection, off-road basic controls test and on-road driving test.

(3) The person shall complete three (3) skills tests, unless otherwise specified here, for a Class A, Class B, or Class C commercial driver license.

(A) Except for Class C drivers, the pre-trip inspection shall be required for any vehicle equipped with airbrakes and only those vehicles with a manufacturer’s Gross Vehicle Weight Rating (GVWR) of ten thousand one pounds (10,001 lbs.) or more. A pre-trip inspection shall include standardized inspection items as defined in the Missouri Commercial Driver License Manual section 11M, Vehicle Inspection.

(B) An off-road basic controls test shall include but not be limited to testing of the current standardized maneuvers listed in the Missouri Commercial Driver License Manual, section 12M, Basic Control Skills Test.

(C) An on-road driving test shall include but not be limited to a demonstration of skills defined in the Missouri Commercial Driver License Manual, section 13M, On-Road Driving.

(4) Successful completion of all the test’s mandatory components requires a score as shown on the Commercial Driver License (CDL) and disallows dangerous actions and traffic violations during the off-road basic controls, on-road driving tests, or both.

(5) Test scores shall be submitted to the Department of Revenue through a secure electronic means. The test scores remain valid unless retesting is required by Missouri law or one (1) year from the date indicated on the examination results, whichever occurs first. Each person shall be responsible for maintaining a copy of the test results. If test results cannot be provided by the driver at the time of application for a Missouri commercial driver license, the application may be denied; or the applicant shall be required to retake any tests necessary to receive the class of license and endorsements requested.

(6) The director shall provide all forms necessary to administer driving tests to the Missouri State Highway Patrol.

(7) The Missouri Commercial Driver License Manual is incorporated by reference and published by the Missouri Department of Revenue, August 2023. This rule does not incorporate any subsequent amendments or additions. Printed versions are available at the Harry S Truman State Office Building, 301 West High Street, Jefferson City, MO 65105, or most local license offices or testing facilities of the Missouri Department of Revenue, or available at dor.mo.gov/forms.

Amended: Filed July 21, 2025, effective Jan. 30, 2026.

History

AUTHORITY: section 302.720, RSMo Supp. 2025, and section 302.765, RSMo 2016. Emergency rule filed June 7, 1991, effective June 17, 1991, expired Oct. 4, 1991. Emergency rule filed Sept. 24, 1991, effective Oct. 4, 1991, expired Jan. 31, 1992. Original rule filed June 7, 1991, effective Oct. 31, 1991. Amended: Filed May 15, 1995, effective Nov. 30, 1995. Amended: Filed Nov. 15, 2002, effective May 30, 2003. Amended: Filed Feb. 17, 2015, effective Aug. 30, 2015.

12 CSR 10-24.400 Delegation of Authority to Administer Missouri School Bus Operator’s Permit Examinations {#sec-12-csr-10-24.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.400}

(Rescinded June 30, 2006)

Amended: Filed March 18, 1992, effective Sept. 6, 1992. Emergency amendment filed July 22, 1992, effective Aug. 1, 1992, expired Nov. 28, 1992. Rescinded: Filed Dec. 19, 2005, effective June 30, 2006.

History

AUTHORITY: section 302.272, RSMo Supp. 1989. Original rule filed July 15, 1991, effective Oct. 31, 1991. Emergency amendment filed March 18, 1992, effective April 1, 1992, expired July 29, 1992.

12 CSR 10-24.402 Department of Revenue Instruction Permits {#sec-12-csr-10-24.402 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.402}

PURPOSE: This rule establishes the requirements necessary to obtain an instruction permit issued by the director of revenue.

(1) An applicant shall not be issued a restricted temporary instruction permit until the applicant’s fifteenth birthday.

(2) Until the applicant’s sixteenth birthday, the holder of a temporary permit shall be accompanied at all times while driving a motor vehicle by a grandparent, parent, guardian, driver training instructor certified by the Department of Elementary and Secondary Education, or a qualified instructor of a private drivers’ education program as defined in the following:

(A) Grandparent shall include a foster grandparent, stepgrandparent, or adoptive grandparent;

(B) Parent shall include a foster parent, stepparent, or adoptive parent;

(C) Guardian shall be a court-appointed guardian or, in the event the parent, grandparent, or guardian of the person under sixteen (16) years of age has a physical disability which prohibits or disqualifies them from being a qualified licensed operator, the parent, grandparent, or guardian may designate a maximum of two (2) individuals authorized to accompany the applicant for the purpose of giving instruction in driving the motor vehicle. The designee must meet the requirements outlined in section 302.130, RSMo. The parent, grandparent, or guardian must complete a certified statement prescribed by the director of revenue and must provide the designee’s full name and driver license number. The name and driver license number of the designee shall be displayed on a label affixed to the temporary permit;

(D) A certified driver trainer must hold a valid driver license and an education endorsement on a teaching certificate issued by the Department of Elementary and Secondary Education and may be a driver trainer employed by a federal residential job training program; and (E) A qualified private drivers’ education program instructor must hold a valid driver license.

(3) The restricted temporary instruction permit form shall be the same form used for sixteen- (16-) year-old permit applicants.

(4) In order for the temporary instruction permit to be used in driving the motorcycle or motortricycle, the M endorsement must be shown on the permit. The temporary instruction permit issued pursuant to section 302.130, RSMo, shall not entitle the holder to legally operate a motorized bicycle.

(5) The temporary instruction permit issued pursuant to section 302.130, RSMo, shall expire twelve (12) months from the date of application. An individual may renew such permit within one hundred eighty-four (184) days of the expiration date without being required to take the written examination.

(6) The temporary motorcycle instruction permit issued to a driver aged sixteen (16) or older holding a valid driver license or a temporary operator permit with a motorcycle endorsement issued to persons aged fifteen and one-half (15½) years of age or older pursuant to section 302.132, RSMo, shall expire six (6) months (one hundred eighty-four (184) days) from the date of application. An individual may renew such permit within one hundred eighty-four (184) days of the expiration date without being required to take the written examination. An individual holding a motorcycle instruction permit or an operator permit with a motorcycle endorsement may renew such permit for one additional six- (6-) month period within one hundred eightyfour (184) days of the expiration date without being required to take the written examination. Persons at least fifteen and onehalf (15½) years of age, but less than sixteen (16), applying for a motorcycle endorsed permit must submit proof of completion of a Missouri motorcycle rider training course as provided in 302.132, RSMo.

(7) A student instruction permit issued pursuant to section 302.130.3, RSMo, shall not entitle the holder to legally operate a motorcycle, motortricycle or motorized bicycle.

rule filed Sept. 16, 1991, effective Sept. 26, 1991, expired Jan. 23, 1992. Original rule filed Sept. 16, 1991, effective Jan. 13, 1992.

Amended: Filed Sept. 15, 1995, effective March 30, 1996. Amended:

Filed Dec. 12, 1997, effective June 30, 1998. Amended: Filed Oct. 1, 1998, effective March 30, 1999. Amended: Filed Oct. 6, 2000, effective April 30, 2001. Amended: Filed Sept. 27, 2001, effective March 30, 2002. Amended: Filed April 9, 2024, effective Nov. 30, 2024. *Original authority: 302.130, RSMo 1939, amended 1951, 1989, 1991, 1995, 1997, 1998, 1999, 2001, 2002, 2004, 2006, 2012, and 302.132, RSMo 1995.

History

AUTHORITY: sections 302.130 and 302.132, RSMo 2016. Emergency

12 CSR 10-24.404 Commercial Drivers License Reciprocity {#sec-12-csr-10-24.404 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.404}

Original rule filed Sept. 16, 1991, effective Jan. 13, 1992. Amended:

Filed Dec. 15, 1998, effective June 30, 1999. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: section 302.720, RSMo Supp. 1997. Emergency rule filed Sept. 16, 1991, effective Sept. 26, 1991, expired Jan. 23, 1992.

12 CSR 10-24.405 Proof of State of Domicile Requirements for Commercial Driver License Applicants {#sec-12-csr-10-24.405 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.405}

PURPOSE: This rule clarifies what documents meet the requirements contained in 49 CFR section 383.71(a)(2)(vi) and

section 383.71(b)(10), and will thus be accepted by the Department of Revenue for purposes of issuing a commercial learner’s permit or commercial driver license.

(1) As used herein and consistent with 49 CFR section 383.5, the following words and phrases mean— (A) “State of domicile,” that state where a person has their true, fixed, and permanent home and principal residence and to which they have the intention of returning whenever they are absent;

(B) A “commercial learner's permit,” a permit issued to an individual by a state or other jurisdiction of domicile in accordance with the standards contained in 49 CFR 383, which, when carried with a valid driver license issued by the same state or jurisdiction, authorizes the individual to operate a class of commercial motor vehicle when accompanied by a holder of a valid commercial driver license for purposes of behind-thewheel training. When issued to a commercial driver license holder, a commercial learner's permit serves as authorization for accompanied behind-the-wheel training in a commercial motor vehicle for which the holder's current commercial driver license is not valid; and (C) “Commercial driver license (CDL),” a license issued by the state of Missouri or another state of domicile in accordance with 49 CFR 383, which authorizes the individual to operate a class of commercial motor vehicle.

(2) For purposes of providing proof of state of domicile in accordance with 49 CFR section 383.71(a)(2)(vi), 49 CFR section 383.71(b)(10), and 49 CFR section 383.212, all applicants for a commercial learner’s permit under section 302.720, RSMo, or a commercial driver license under section 302.735, RSMo, shall present two (2) acceptable documents from two (2) different issuing sources. Documents acceptable to verify state of domicile must contain the applicant’s name and address and must be the most recently issued credential. Acceptable documents for proof of state of domicile include the following:

(A) Utility Bill;

(B) Paycheck or Government Check;

(D) Tax Records;

(E) Voter Registration Card;

(F) Property Tax Receipt;

(G) Bank Statement;

(H) School or College Records;

(I) Vehicle Insurance Policy;

(J) Medical Record or Hospital Bill; and (K) Correspondence from Recognized Organizations, including other government-issued documents.

(3) Applicants requesting a separate mailing address for a commercial learner’s permit or commercial driver license must present one (1) additional document as proof of their mailing address.

History

AUTHORITY: section 302.765, RSMo 2016. Original rule filed Jan. 30, 2019, effective Aug. 30, 2019. Amended: Filed April 9, 2024, effective Nov. 30, 2024. Original authority: 302.765, RSMo 1989, amended 1993, 1995.

12 CSR 10-24.406 Procedures for Assessment of Points When Traffic Convictions Are Filed With the Director {#sec-12-csr-10-24.406 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.406}

(Rescinded October 30, 1997)

Original rule filed Sept. 16, 1991, effective Jan. 13, 1992. Rescinded:

Filed April 30, 1997, effective Oct. 30, 1997.

History

AUTHORITY: sections 302.060 and 302.302, RSMo Supp. 1989.

12 CSR 10-24.408 Required Signature(s) on a Commercial Drivers License Transaction {#sec-12-csr-10-24.408 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.408}

(Rescinded May 28, 1995)

Original rule filed Oct. 15, 1991, effective Feb. 6, 1992. Amended:

Filed April 28, 1992, effective Dec. 3, 1992. Amended: Filed March 10, 1993, effective Sept. 9, 1993. Emergency rescission filed Dec. 13, 1994, effective Dec. 23, 1994, expired April 21, 1995. Rescinded:

Filed Dec. 13, 1994, effective May 28, 1995.

History

AUTHORITY: section 302.765, RSMo Supp. 1989. Emergency rule filed Oct. 15, 1991, effective Oct. 25, 1991, expired Feb. 12, 1992.

12 CSR 10-24.410 Driver Examination Denial Highway Patrol and Department of Revenue to deny further skills test to an applicant for a Missouri drivers license. {#sec-12-csr-10-24.410 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.410}

(1) If an applicant fails the skills test after three (3) attempts, the Missouri State Highway Patrol shall not permit the applicant to take a fourth skills test until the director of revenue approves the applicant for further testing.

(2) The director shall review the denial report and supporting documentation received from the Missouri State Highway Patrol. Information reviewed shall include, but not be limited to, test scores, physical abilities, driving problem(s) and driver examiner recommendations. The director may solicit recommendations, when appropriate, from the Medical/Vision Advisory Board.

(3) Based upon this review, the director may— (A) Deny further testing;

(B) Allow the applicant to test at a different site with a different examiner;

(C) Request the applicant to fulfill other conditions as may be deemed necessary to successfully complete the skills test; or (D) Request the applicant to enroll in a driver training course to improve his/her driving skills. While in training, the applicant shall possess a valid temporary instruction permit as specified in 12 CSR 10-24.402 to legally operate a motor vehicle.

(4) If the director refers the applicant for training, the driver training instructor shall submit the results of the applicant’s training to the director.

(A) If the applicant fails the training program, another skills test shall not be given for one (1) year and the person’s driving privilege shall be revoked.

(B) If the applicant fails the training program and has never been licensed in Missouri, the person’s driving privilege shall be denied for one (1) year.

(C) If the applicant passes the training program and the driver training instructor’s recommendations are acceptable to the director, another skills test shall be authorized for the applicant to take.

(5) Any decision of the director shall be given to the applicant in writing by registered mail. Any person who is aggrieved by the decision of the director may appeal to the circuit court in the county of residence as prescribed in section 302.311, RSMo.

History

AUTHORITY: section 302.173, RSMo Supp. 1989. Original rule filed Feb. 28, 1992, effective Aug. 6, 1992. Original authority: 302.173, RSMo 1951, amended 1965, 1971, 1983, 1987, 1989.

PURPOSE: This rule establishes the criteria for issuance of seasonal restricted commercial driver licenses for operators of commercial motor vehicles involved in farm-related service industries.

(1) Any person who operates a Class B or Class C commercial motor vehicle who is involved in one (1) or more of the following farm-related service industries may apply for a restricted commercial driver license:

(A) Farm retail outlets and suppliers;

(B) Agrichemical businesses;

(2) A restricted commercial driver license shall not be issued to operate a Class A motor vehicle.

(3) Any commercial driver license issued in accordance with this rule shall be valid for the operation of commercial motor vehicles for one (1) period which shall not exceed one hundred eighty (180) consecutive calendar days in any twelve- (12-) month period. The period of valid operation shall be indicated on a restriction card which must be carried by the operator with the commercial driver license.

(4) Any holder of a commercial driver license restricted in accordance with this rule may operate a commercial motor vehicle only within a one hundred fifty- (150-) mile radius of the place of business or farm being served.

(5) A holder of a restricted commercial driver license issued in accordance with this rule shall not transport hazardous materials in placardable quantities except that a holder of a restricted commercial driver license may transport one thousand gallons (1,000 gal.) or less of diesel fuel, three thousand gallons (3,000 gal.) or less of liquid fertilizer, or any quantity of solid fertilizer not mixed with any organic substance.

(6) To apply for a commercial driver license restricted in accordance with this rule, the applicant must certify to the following:

(A) That they have held a driver license for at least one (1) year;

(B) That they have not had more than one (1) driver license;

(C) That their driving privilege has not been suspended, revoked, canceled, or disqualified in this or any other state within the last two (2) years;

(D) That they have not been convicted for any of the following offenses in any type of motor vehicle within the last two (2) years:

Driving while under the influence of alcohol as defined in section 302.700, RSMo (which includes driving while intoxicated (DWI) and blood alcohol content (BAC));
Driving while under the influence of a controlled substance as defined in section 302.700, RSMo;
Refusal to submit to an alcohol test;
Leaving the scene of an accident;
Felony involving a motor vehicle other than a felony described in paragraph (6)(D)8.;
Driving a commercial motor vehicle when, as a result of prior violations committed while operating a commercial motor vehicle, the driver’s commercial driver license is revoked, suspended, or canceled, or the driver is disqualified from operating a commercial motor vehicle;
Causing a fatality through the negligent operation of a commercial motor vehicle, including but not limited to the crimes of vehicular manslaughter, homicide by motor vehicle, and negligent homicide;
Using any vehicle in the commission of a felony involving the manufacturing, distributing, or dispensing of a controlled substance;
Speeding fifteen (15) or more miles over the posted speed limit;
Careless, imprudent, or reckless driving;
Erratic or improper traffic lane changes;
Following too closely;
Violating state or local law relating to motor vehicle traffic control (other than a parking violation) arising in connection with a fatal accident;
Driving a commercial motor vehicle without obtaining a commercial driver license;
Driving a commercial motor vehicle without a commercial driver license in the driver’s possession;
Driving a commercial motor vehicle without the proper class of commercial driver license and endorsements for the specific vehicle group being operated or for the passengers or type of cargo being transported; or 17. Any conviction for a traffic law violation in connection with an accident; and (E) That they have not had an accident in which they were found to have been at fault within the last two (2) years.

(7) The applicant shall indicate on the application the seasonal time period the person needs to operate commercial motor vehicles in accordance with this rule. The one (1) period shall not exceed one hundred eighty (180) consecutive calendar days in any twelve- (12-) month period.

(8) If the applicant can certify to the information required in section (6) of this rule, the director will issue a restricted commercial driver license to the applicant if otherwise eligible for licensure without completion of the commercial driver license written and skills tests.

(9) If the applicant for a restricted commercial driver license previously held a Class E license or its equivalent, the person is permitted to operate Class E or Class F motor vehicles on the restricted commercial license at any time. If the applicant for a restricted commercial driver license previously held a Class F license or its equivalent, the person is permitted to operate only Class F motor vehicles, other than when operating commercial motor vehicles in accordance with this rule.

(10) The director or the director’s designee shall annually review the driving record of the holder of any seasonal commercial driver license prior to the seasonal period indicated on the restriction card. If the driver record meets the criteria set forth in section (6) of this rule, the restricted commercial driver license shall be revalidated, and the holder shall be permitted to operate commercial motor vehicles in accordance with the license and this rule. If the driver record indicates that the holder of the restricted commercial driver license no longer meets the criteria set forth in section (6) of this rule, the restricted commercial driver license shall be canceled for a period of two (2) years.

(11) At the time of renewal of the restricted commercial driver license, the holder may apply for the license and restriction card at a Department of Revenue contract office.

Emergency amendment filed March 9, 1995, effective March 19, 1995, expired July 16, 1995. Amended: Filed Nov. 9, 1994, effective May 28, 1995. Amended: Filed June 23, 1997, effective Dec. 30, 1997.

Amended: Filed Sept. 6, 2005, effective March 30, 2006. Amended:

Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 302.765, RSMo 1989, amended 1993, 1995, and 302.775, RSMo 1989, amended 2004, 2009.

History

AUTHORITY: sections 302.765 and 302.775, RSMo 2016, and 49 CFR 383.3. Emergency rule filed May 6, 1992, effective May 16, 1992, expired Sept. 12, 1992. Emergency rule filed Sept. 3, 1992, effective Sept. 13, 1992, expired Jan. 10, 1993. Original rule filed May 6, 1992, effective Dec. 3, 1992. Emergency amendment filed Nov. 9, 1994, effective Nov. 19, 1994, expired March 18, 1995.

12 CSR 10-24.414 Class E, Class F or Nonlicensed Drivers Completing Driver Examinations For a Commercial Drivers License While Under Suspension/Revocation {#sec-12-csr-10-24.414 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.414}

(Rescinded June 30, 1999)

History

AUTHORITY: sections 302.304, RSMo Supp. 1991 and 302.765, RSMo Supp. 1989. Original rule filed June 16, 1992, effective Jan. 15, 1993. Rescinded: Filed Dec. 15, 1998, effective June 30, 1999.

12 CSR 10-24.420 Standards Governing Motorcycle Helmet Construction {#sec-12-csr-10-24.420 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.420}

PURPOSE: This rule establishes minimum performance standards for motorcycle helmets manufactured for use by motorcyclists and other motor vehicle users.

PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated or expensive. Therefore, the material which is so incorporated is on file with the agency who filed this rule, and with the Office of the Secretary of State. Any interested person may view this material at either agency’s headquarters or the same will be made available at the Office of the Secretary of State at a cost not to exceed actual cost of copy reproduction. The entire text of the rule is printed here. This note refers only to the incorporated by reference material.

(1) Protective headgear worn by operators of, or passengers on, motorcycles in this state shall meet the standards and specifications of the Department of Transportation (DOT)

Standard No. 218 as published in the Code of Federal Regulations (49 CFR 571.218). This standard establishes minimum performance criteria and testing methods for protective headgear.

Amended: Filed March 27, 1998, effective Sept. 30, 1998. *Original authority: 302.020, RSMo 1939, amended 1951, 1967, 1984, 1988, 1989, 1995, 1996.

History

AUTHORITY: section 302.020, RSMo Supp. 1997. This rule was previously filed as 12 CSR 10-40.010. Original rule filed Sept. 15, 1977, effective Feb. 11, 1978. Emergency amendment filed July 9, 1993, effective July 19, 1993, expired Nov. 16, 1993. Emergency amendment filed Nov. 16, 1993, effective Nov. 26, 1993, expired March 25, 1994. Amended: Filed July 9, 1993, effective Jan. 31, 1994.

12 CSR 10-24.422 Medical Card/Medical Exemption Card {#sec-12-csr-10-24.422 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.422}

(Rescinded April 30, 1998)

Emergency rule filed Nov. 15, 1993, effective Nov. 25, 1993, expired March 25, 1994. Emergency rule filed March 16, 1994, effective March 26, 1994, expired July 23, 1994. Original rule filed Nov. 15, 1993, effective June 6, 1994. Rescinded: Filed Oct. 22, 1997, effective April 30, 1998.

History

AUTHORITY: sections 302.720, 302.735 and 302.765, RSMo Supp.

12 CSR 10-24.424 Medical Card Denial {#sec-12-csr-10-24.424 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.424}

(Rescinded April 30, 1998)

Emergency rule filed Nov. 15, 1993, effective Nov. 25, 1993, expired March 24, 1994. Emergency rule filed March 16, 1994, effective March 26, 1994, expired July 23, 1994. Original rule filed Nov. 15, 1993, effective June 6, 1994. Rescinded: Filed Oct. 22, 1997, effective April 30, 1998.

History

AUTHORITY: sections 302.720, 302.735 and 302.765, RSMo Supp.

12 CSR 10-24.428 Excessive Speed Defined {#sec-12-csr-10-24.428 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.428}

Amended: Filed April 11, 2005, effective Oct. 30, 2005. Rescinded:

Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: sections 302.700, RSMo Supp. 2004 and 302.755 and 302.765, RSMo 2000. Original rule filed July 21, 1994, effective Jan. 29, 1995. Amended: Filed Aug. 11, 1995, effective Feb. 25, 1996.

12 CSR 10-24.430 Back of Driver License, Permits, and Nondriver License {#sec-12-csr-10-24.430 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.430}

PURPOSE: This rule complies with section 302.181, RSMo, which provides for the form of the driver license, permit, or nondriver license and includes an area to be used for placement of a sticker indicating the holder's consent to inclusion in the organ, eye, and tissue donor registry as provided in section 302.171, RSMo.

(1) The information that may be printed on the back of a person’s driver license, permit, or nondriver license includes endorsements, restrictions, two- (2-) dimensional barcode, one- (1-) dimensional barcode, inventory tracking number, card revision date, security markings, permanent disability indicator, boater identification indicator, areas for indicating whether the person has taken a skills test, and an area for placement of organ donor symbol sticker.

(2) The following information will be contained in the two- (2-) dimensional barcode on the back of a person’s license document(s):

(A) Driver license number;

(B) License expiration date;

(D) Driver name (as it appears on the face of the license);

(E) Date of birth;

(F) Residence address (which includes street, city, state and zip code);

(G) County of residence;

(H) Sex;

(I) Height;

(J) Weight;

(K) Eye color;

(L) Restrictions;

(M) Endorsements;

(N) License issue date;

(O) Document designator;

(P) State of Missouri identifier; and (Q) Optional indicators or designations that appear on the front or back of card.

Amended: Filed Aug. 26, 1999, effective Feb. 29, 2000. Amended:

Filed June 20, 2002, effective Dec. 30, 2002. Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004. Emergency amendment filed June 21, 2010, effective July 1, 2010, expired Dec. 28, 2010. Amended:

Filed June 21, 2010, effective Dec. 30, 2010. Amended: Filed April 9, 2024, effective Nov. 30, 2024. *Original authority: 302.171, RSMo 1951, amended 1955, 1984, 1989, 1991, 1995, 1996, 1997, 1999, 2000, 2003, 2004, 2006, 2007, 2008, 2009, 2014, 2019, 2021, 2022; 302.181, RSMo 1939, amended 1951, 1961, 1971, 1973, 1979, 1984, 1986, 1989, 1991, 1992, 1995, 1996, 1999, 2004, 2011, 2013, 2020; 302.182, RSMo 2009; 302.184, RSMo 2009; 302.188, RSMo 2012, amended 2015, 2017, 2021, 2024; and 302.205, RSMo 2020.

History

AUTHORITY: sections 302.182 and 302.184, RSMo 2016, and sections 302.171, 302.181, 302.188, and 302.205, RSMo Supp. 2024. Original rule filed Sept. 15, 1995, effective March 30, 1996.

12 CSR 10-24.438 Department of Revenue not Designated as an Election Official {#sec-12-csr-10-24.438 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.438}

History

AUTHORITY: section 115.160, RSMo 1994. Original rule filed Dec. 22, 1994, effective June 30, 1995. Rescinded: Filed Dec. 22, 2017,

12 CSR 10-24.440 Motor Voter Registration Application Form {#sec-12-csr-10-24.440 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.440}

(Rescinded October 30, 2025)

History

AUTHORITY: section 115.160, RSMo Supp. 2004. Original rule filed Dec. 22, 1994, effective June 30, 1995. Amended: Filed April 5, 1999, effective Sept. 30, 1999. Amended: Filed June 3, 2004, effective Dec. 30, 2004. Rescinded: Filed April 24, 2025, effective Oct. 30, 2025.

12 CSR 10-24.442 Stacking Sixty (60)-Day, Ninety (90)-Day, One Hundred Twenty (120)-Day and One Hundred Eighty (180)-Day Disqualifications {#sec-12-csr-10-24.442 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.442}

(Rescinded August 30, 2015)

History

AUTHORITY: section 302.765, RSMo 1994. Original rule filed Oct. 18, 1995, effective April 30, 1996. Rescinded: Filed Feb. 17, 2015,

12 CSR 10-24.444 Ten-Year Disqualification {#sec-12-csr-10-24.444 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.444}

PURPOSE: This rule establishes the requirements for obtaining a commercial driver license after receiving a ten- (10-) year disqualification under section 302.755.3, RSMo.

(1) Any person disqualified for life who wishes to have commercial driving privileges restored after such person has been disqualified for at least ten (10) years, shall apply in writing to the director of revenue under section 302.755.3, (2) The applicant must prove to the director or their authorized representative that during the ten (10) years immediately preceding the application the applicant— (A) Has had no alcohol, drug, or controlled substance-related conviction as defined in section 302.700, RSMo, in Missouri or any other jurisdiction;

(B) Has successfully completed an alcohol- or drug-related traffic offender rehabilitation, or a comparable program, which meets or exceeds the minimum standards approved by the Department of Mental Health if the disqualifying offenses were drug or alcohol related;

(C) Has had no commercial motor vehicle conviction in Missouri or any other state during the ten- (10-) year period preceding the application;

(D) Is no longer a threat to the public safety of this state.

The director or their authorized representative may request, and the applicant must provide, any additional information or documentation that the director or their authorized representative deems necessary to determine the applicant’s fitness for relicensure;

(E) Is otherwise eligible for licensure; and (F) Has not previously been restored to commercial motor vehicle privileges following a prior ten- (10-) year minimum disqualification.

(3) For purposes of verifying an applicant’s prior ten- (10-) year alcohol and drug history, the applicant shall provide a copy of their closed criminal history for the immediately preceding ten (10) years to the director of revenue or their representative.

(4) If the director or the director’s representative finds the applicant is eligible for restoration to commercial driving status, the written and driving skills examinations as specified in 12 CSR 10-24.395 shall be successfully completed before a commercial driver license is issued.

(5) If the applicant is found ineligible for restoration of commercial driving privileges, the director or the director’s representative shall notify the applicant of such findings by certified mail and continue the denial of commercial driving privilege until such ineligibility has been disproven to the director’s or the director’s representative’s satisfaction.

(6) Any applicant who previously had their commercial motor vehicle privileges restored pursuant to this rule shall not be able to apply for restoration of another lifetime disqualification.

(7) Any applicant who is aggrieved by the decision of the director or the director’s representative may appeal to the circuit court in the county of residence as prescribed in section 302.311, RSMo.

Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 302.755, RSMo 1989, amended 1995, 2004, 2009, 2013, 2014, 2021, and 302.765, RSMo 1989, amended 1993, 1995.

History

AUTHORITY: section 302.755, RSMo Supp. 2025, and section 302.765, RSMo 2016. Original rule filed Nov. 29, 1995, effective May 30, 1996. Amended: Filed April 11, 2005, effective Oct. 30, 2005. Amended: Filed Aug. 8, 2007, effective Feb. 29, 2008.

12 CSR 10-24.446 Affidavit of Interpretation {#sec-12-csr-10-24.446 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.446}

(Rescinded June 30, 1999)

History

AUTHORITY: section 302.171, RSMo Supp. 1995. Original rule filed June 28, 1996, effective Dec. 30, 1996. Rescinded: Filed Dec. 15, 1998, effective June 30, 1999.

12 CSR 10-24.448 Documents Required for Issuance of a Driver License, Nondriver License, or Instruction Permit {#sec-12-csr-10-24.448 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.448}

PURPOSE: This rule establishes the guidelines and documentation acceptable as proof of lawful status, identity, Social Security number, and Missouri residency for driver license, nondriver license, or instruction permit applicants.

(1) All applicants for a driver license, nondriver license, or instruction permit must provide one (1) or more documents, in English, that comply with each subsection below.

(A) Proof of Lawful Status:

U.S. Citizens who have previously verified their status as a U.S. Citizen and the license record indicates such verification may be required to show proof upon subsequent applications.

Documents acceptable to provide proof of lawful status include the following:

A. U.S. Birth Certificate: a certified copy with an embossed, stamped, or raised seal and filed with a State Office of Vital Statistics or equivalent agency in the applicant’s state of birth. Hospital certificates are not acceptable forms of documentation;

B. U.S. Passport: a valid, unexpired U.S. Passport;

C. U.S. Passport Card: a valid, unexpired U.S. Passport Card;

D. U.S. Certificate of Citizenship;

E. U.S. Certificate of Naturalization;

F. Consular Report of Birth Abroad issued by the U.S.

Department of State Form FS-240, DS-1350, or FS-545;

G. U.S. Military Identification Card: a valid, unexpired U.S. Military Identification Card accompanied by a copy of a U.S. Birth Certificate. This proof of lawful status may not be acceptable for issuance of a REAL ID-compliant document per 6 C.F.R. Section 37 and section 302.170, RSMo; or H. U.S. Military Discharge Papers accompanied by a copy of a U.S. Birth Certificate. This proof of lawful status may not be acceptable for issuance of a REAL ID-compliant document per 6 C.F.R. Section 37 and section 302.170, RSMo;

Non-U.S. Citizens present the appropriate valid, unexpired immigration documents, upon each application, indicating lawful immigration status in the United States and supporting documents to validate classification and duration of stay. Documents acceptable to provide proof of lawful status include the following:

A. I-327 – Reentry Permit;

B. I-551 – Permanent Resident Card;

C. I-571 – Refugee Travel Document;

D. I-589 – Proof of application for asylum in the U.S.;

E. Valid, Unexpired Employment Authorization Document;

F. Valid Foreign Passport stamped approved or processed for an I-551;

G. Unexpired I-94 stamped “Processed for I-551”;

H. I-797 – Notice of Action Approval accompanied by other U.S. Citizenship and Immigration Services (USCIS) documents; or I. Other documentation issued by DHS or other Federal agencies demonstrating lawful status may be acceptable when validated by USCIS and approved for purposes of proving lawful status.

Some valid, unexpired immigration documents may not be acceptable for the issuance of a REAL ID-compliant document per 6 C.F.R. Section 37 and section 302.170, RSMo. Some classes of admission codes may not be eligible to receive a REAL ID-compliant or non-compliant driver license, nondriver license, or instruction permit including, but not limited to, the following: A-1, A-2, B-1, B-2, W-B, and W-T.

(B) Proof of Identity: Documents used for purposes of proving identity must contain the applicant’s full legal name, date of birth, and match the person’s current name unless a change of name is established by a marriage certificate, marriage license, amended birth certificate, divorce decree, or other court order.

Only original documents or a photocopy, bearing an original certification by the issuing authority is acceptable.

In addition to the documents referenced in (1)(A)1.A.–F. above, the following documents may be used to establish proof of identity:

A. Permanent Resident Card: a valid, unexpired Permanent Resident Card;

B. Valid Foreign Passport stamped approved or processed for an I-551;

C. Unexpired I-94 stamped “Processed for I-551”;

D. I-766 and I-688B – an unexpired Employment Authorization Document (EAD);

E. An unexpired foreign passport with a valid, unexpired U.S. Visa affixed accompanied by the approved I-94;

F. Real ID-compliant driver license, nondriver license, or 2. For purposes of issuing a non-REAL ID-compliant duplicate driver license, nondriver license, or temporary permit document, in addition to the documents referenced in paragraph (1)(B)1., the following documents may be used to establish proof of identity:

A. Student Identification card;

B. U.S. Military Identification card;

C. Work Identification card; and D. Expired Missouri driver license, nondriver license, or (C) Proof of Social Security Number: Applicants who have record of a previously verified Social Security number on file with the department may provide the Social Security number verbally at the time of application. However, the department may still require the applicant to provide a physical document to verify the Social Security number upon request. The following documents may be used to establish proof of Social Security number:

Social Security card;
W-2 Form;
1099 – Form; or 4. Payroll stub which includes the applicant’s name and Social Security Number.

Applicants that cannot obtain, or are not eligible for, a Social Security number due to their work-authorization status must provide a letter from the Social Security Administration indicating a Social Security number will not be issued to them.

(D) Proof of Missouri Residency: “Residence address,”

“residence,” or “resident address” is defined as the location at which a person has been physically present, and that the person regards as home. A residence address is a person’s true, fixed, principal, and permanent home, to which a person intends to return and remain, even though currently residing elsewhere. A post office box is not allowed as a residential address.

Documents acceptable to verify Missouri residency must be the most recently issued credential. Examples include, but are not limited to, the following:

A. Utility Bill;

B. Paycheck or Government Check;

C. Mortgage, Housing, or Leasing Document;

D. Tax Records;

E. Voter Registration Card;

F. Property Tax Receipt;

G. Bank Statement;

H. School or College Records;

I. Vehicle Insurance Policy;

J. Medical or Hospital Bill or Record;

K. Correspondence from Recognized Organizations; and L. Correspondence from the State of Missouri.

For applicants under the age of twenty-one (21):

A. A parent or legal guardian may provide one (1) of the documents listed above and a written statement that specifies the applicant resides in their household as proof of residential address for the applicant; or B. Applicants under the age of twenty-one (21) may also present any document below which clearly indicates their full name and residential address. Examples of other acceptable residential address verification documents for applicants under the age of twenty-one (21) include recent— (I) Missouri School records;

(II) Mailed correspondence from a hospital or medical practitioner, including physician billing statements and insurance statements; or (III) Mailed correspondence issued by organizations such as— (a) Boy Scouts of America;

(b) Girl Scouts of America;

(d) Missouri Department of Conservation; or (e) Mailed correspondence from other wellestablished organizations or programs containing the name and address of the applicant.

Applicants must present one (1) document proving Missouri residency for purposes of issuing a non-REAL ID-compliant driver license, nondriver license, or instruction permit.

Applicants must present two (2) documents proving Missouri residency, from two (2) different issuing sources, for purposes of issuing a REAL ID-compliant driver license, nondriver license, or instruction permit. Applicants may present their current, unexpired Missouri driver license, nondriver license, or instruction permit for purposes of meeting one (1) of the two (2) documents required for issuance of a REAL ID-compliant document. Applicants requesting a separate mailing address for a REAL ID-compliant or non-REAL ID-compliant document must present one (1) additional document as proof that the mailing address is valid.

(2) In exceptional circumstances where proof of lawful status, identity, Social Security Number, or Missouri residency are not available, personnel authorized by the director of revenue may accept alternative documents as proof required for issuance of a driver license, nondriver license, or instruction permit.

Personnel authorized by the director of revenue may require additional documentation if there is reason to question the validity or authenticity of the document(s) presented.

Applicants presenting documents pursuant to this section may not be eligible for issuance of a REAL ID-compliant document per 6 C.F.R. Section 37 and section 302.170, RSMo.

(3) Applicants may expressly request and authorize the department to retain their source documents for a period of time greater than ten (10) years.

(4) For purposes of the fee waiver contained in section 302.185, RSMo, applicants may not be eligible for a duplicate license if they are applying within their renewal period, which is six (6) months (184 days) before or after the expiration date of a previously issued non-REAL ID-compliant driver license or nondriver license.

(5) Applicants issued a nondriver license for voting purposes at no cost pursuant to section 115.427, RSMo, will be required to pay any applicable fees to apply for and obtain a duplicate REAL ID-compliant nondriver license.

(6) Applicants seventy (70) years of age or older desiring to obtain a REAL ID-compliant nondriver license will be issued a six- (6-) year nondriver license in lieu of a nonexpiring nondriver license issued pursuant to section 302.181, RSMo, provided they meet all other requirements contained in

Chapter 302, RSMo.

Emergency amendment filed Dec. 16, 2002, effective Dec. 26, 2002, expired June 23, 2003. Amended: Filed Dec. 16, 2002, effective May 30, 2003. Emergency amendment filed June 21, 2005, effective July 1, 2005, expired Dec. 28, 2005. Amended: Filed June 21, 2005, effective Dec. 30, 2005. Amended: Filed July 31, 2018, effective March 4, 2019. Amended: Filed April 29, 2021, effective Oct. 30, 2021. *Original authority: 302.130, RSMo 1939, amended 1951, 1989, 1991, 1995, 1997, 1998, 1999, 2001, 2002, 2004, 2006, 2012; 302.170, RSMo 2017, amended 2018, 2019, 2020; 302.171, RSMo 1951, amended 1955, 1984, 1989, 1991, 1995, 1996, 1997, 1999, 2000, 2003, 2004, 2006, 2007, 2008, 2009, 2014, 2019; 302.177, RSMo 1951, amended 1955, 1965, 1971, 1984, 1989, 1999, 2001, 2004, 2005, 2008; 302.181, RSMo 1939, amended 1951, 1961, 1971, 1973, 1979, 1984, 1986, 1989, 1991, 1992, 1995, 1996, 1999, 2004, 2011, 2013, 2020; 302.720, RSMo 1989, amended 1995, 2002, 2004, 2006, 2007, 2008, 2013, 2019, 2020; and 302.735, RSMo 1989, amended 1999, 2001, 2004, 2005, 2008, 2009, 2013.

History

AUTHORITY: sections 302.130, 302.177, and 302.735, RSMo 2016, and sections 302.170, 302.171, 302.181, and 302.720, RSMo Supp. 2021. Original rule filed March 27, 1998, effective Sept. 30, 1998.

12 CSR 10-24.450 Staggering Expiration Dates of Driver/ Nondriver Licenses {#sec-12-csr-10-24.450 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.450}

(Rescinded April 30, 2004)

History

AUTHORITY: section 302.177, RSMo Supp. 1999. Original rule filed March 27, 2000, effective Sept. 30, 2000. Rescinded: Filed Oct. 10, 2003, effective April 30, 2004.

12 CSR 10-24.452 Highway Sign Recognition Test {#sec-12-csr-10-24.452 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.452}

PURPOSE: This rule establishes the passing score for the highway sign recognition test as outlined in section 302.173, RSMo.

(1) The director shall require any person applying for a new or renewal driver license to submit to an examination that tests his/her ability to understand highway signs regulating, warning or directing traffic.

(2) The person shall be presented with six (6) highway signs and must successfully identify four (4) out of the six (6) signs to pass the examination.

History

AUTHORITY: section 302.173, RSMo Supp. 1999. Original rule filed March 27, 2000, effective Sept. 30, 2000. Original authority: 302.173, RSMo 1951, amended 1965, 1971, 1983, 1987, 1989, 1995.

12 CSR 10-24.460 Driver’s Privacy Protection Act {#sec-12-csr-10-24.460 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.460}

History

AUTHORITY: section 32.091, RSMo Supp. 1999. Original rule filed May 31, 2000, effective Dec. 30, 2000. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-24.462 Prohibit Release of Information on Peace Officers and Their Immediate Family {#sec-12-csr-10-24.462 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.462}

(Rescinded March 30, 2013)

Original rule filed Sept. 27, 2001, effective March 30, 2002.

Rescinded: Filed Sept. 17, 2012, effective March 30, 2013.

History

AUTHORITY: sections 32.056 and 590.100, RSMo Supp. 2001.

12 CSR 10-24.465 Disqualification of Commercial Motor Vehicle Operators Due to Railroad-Highway Grade Crossing Violations {#sec-12-csr-10-24.465 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.465}

History

AUTHORITY: section 302.755, RSMo 2000. Original rule filed May 24, 2001, effective Dec. 30, 2001. Rescinded: Filed Dec. 22, 2017,

12 CSR 10-24.470 Procedure for Obtaining a “J88” Notation on a Drivers License for Deafness or Hard of Hearing {#sec-12-csr-10-24.470 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.470}

(Rescinded February 28, 2019)

History

AUTHORITY: section 302.174, RSMo Supp. 2001. Original rule filed Nov. 15, 2001, effective May 30, 2002. Rescinded: Filed Aug. 8, 2018, effective Feb. 28, 2019.

12 CSR 10-24.472 “Permit Driver” Sign {#sec-12-csr-10-24.472 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.472}

PURPOSE: This rule establishes the design and size requirements for a “Permit Driver” sign issued pursuant to section 302.130, PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated or expensive. Therefore, the material which is so incorporated is on file with the agency who filed this rule, and with the Office of the Secretary of State. Any interested person may view this material at either agency’s headquarters or the same will be made available at the Office of the Secretary of State at a cost not to exceed actual cost of copy reproduction. The entire text of the

rule is printed here. This note refers only to the incorporated by reference material.

(1) Upon successful application for an instruction permit issued pursuant to subsection 1 of section 302.130, RSMo, the director shall issue a sign bearing the words “Permit Driver,” form DOR- 5007, which is incorporated by reference.

(2) Such sign shall measure eleven inches wide by four and onefourth inches high (11" × 4 1/4").

(3) Such sign shall be printed with black ink on goldenrod stock paper.

History

AUTHORITY: section 302.130, RSMo Supp. 2002. Original rule filed Nov. 15, 2002, effective May 30, 2003. Original authority: 302.130, RSMo 1939, amended 1951, 1989, 1991, 1995, 1997, 1998, 1999, 2001, 2002.

12 CSR 10-24.474 Calculation of the Commercial Driver Disqualification {#sec-12-csr-10-24.474 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.474}

PURPOSE: This rule defines the usage of the motor vehicle violation (offense) date when determining if two (2) or more serious traffic convictions occurred within the three (3)-year period specified in 49 CFR 383.51.

(1) For the purpose of disqualification under section 302.755.5, RSMo, the motor vehicle traffic violation offense date shall be used in determining if two (2) or more serious traffic convictions occurred within a three (3)-year period.

History

AUTHORITY: sections 302.755.5 and 302.765, RSMo 2000 and 49 CFR 383.51. Original rule filed April 11, 2005, effective Oct. 30, 2005. Original authority: 302.755, RSMo 1989, amended 1995; and 302.765, RSMo 1989, amended 1993, 1995.

12 CSR 10-24.480 Boater Identification Indicator on Driver or Nondriver License {#sec-12-csr-10-24.480 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.480}

PURPOSE: This rule establishes the cost and criteria for placement of a boater identification indicator on a driver or nondriver license.

(1) To obtain a boater identification indicator on the back of a driver or nondriver license, the applicant must present a boater identification card issued by the Missouri State Highway Patrol (Water Patrol Division) indicating the applicant has complied with the provisions of section 306.127, RSMo.

(2) A cost of one dollar ($1) will be charged to the applicant in addition to any fees required under law or state regulation for placement of the boater identification indicator on a driver or nondriver license.

(A) An applicant will be required to pay the one dollar ($1) cost only upon initial issuance of the boater identification indicator on each document type—driver or nondriver license—received. Applicants renewing or updating a driver or nondriver license with a current indicator will not incur any cost to retain the indicator.

(B) The one dollar ($1) cost will not be charged to applicants requesting to remove a boater identification indicator. Any fees required under law or state regulation to obtain the new, renewal, or duplicate driver or nondriver license will apply.

rule filed June 21, 2010, effective Dec. 30, 2010. Amended: Filed April 9, 2024, effective Nov. 30, 2024. *Original authority: 302.184, RSMo 2009.

History

AUTHORITY: section 302.184, RSMo 2016. Emergency rule filed June 21, 2010, effective July 1, 2010, expired Dec. 28, 2010. Original

12 CSR 10-24.485 Permanent Disability Indicator on Driver or Nondriver License {#sec-12-csr-10-24.485 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-24.485}

PURPOSE: This rule establishes the criteria for placement of a permanent disability indicator on a driver or nondriver license.

(1) As used in this rule, the term “permanently disabled” means having a physical or mental impairment, which substantially limits one’s ability to perform one (1) or more major life activities and is permanent in nature, as determined by a licensed physician, physical therapist, or occupational therapist licensed pursuant to Chapter 334, RSMo, or other authorized licensed healthcare practitioner.

(2) As used in this rule, the term “healthcare practitioner” means a licensed physician, physical therapist, or occupational therapist licensed under Chapter 334, RSMo, or other authorized healthcare provider, licensed under the laws of the state of Missouri and approved by the director of revenue.

(3) To obtain a permanent disability indicator on a driver or nondriver license, an applicant at the time of application for an initial, renewal, or duplicate driver or nondriver license shall present a medical statement, as provided in section (1), completed and certified by a healthcare practitioner as provided in section (2).

(4) The issuance of a permanent disability indicator or notation on a driver or nondriver license is not for the purpose of any determination of eligibility or entitlement to any benefit or accommodation.

Original rule filed June 24, 2010, effective Dec. 30, 2010. *Original authority: 302.182, RSMo 2009.

History

AUTHORITY: section 302.182, RSMo Supp. 2009. Emergency rule filed June 24, 2010, effective July 4, 2010, expired Dec. 31, 2010.

Chapter 25 Motor Vehicle Financial Responsibility

12 CSR 10-25.010 Application for Certificate of Self-Insurance {#sec-12-csr-10-25.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.010}

12 CSR 10-25.040 Posting Real Estate Bonds as Security for an Accident {#sec-12-csr-10-25.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.040}

12 CSR 10-25.050 Filing a Report of an Accident With the Director of Revenue {#sec-12-csr-10-25.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.050}

12 CSR 10-25.080 Failure to Produce Insurance Identification Card—Other Types {#sec-12-csr-10-25.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.080}

12 CSR 10-25.090 Fees Assessed for Failure to Surrender Drivers License or {#sec-12-csr-10-25.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.090}

12 CSR 10-25.120 Application for Certificate of Self-Insurance from Religious {#sec-12-csr-10-25.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.120}

12 CSR 10-25.130 Proof of Financial Responsibility for Reinstatement of Failure to Show {#sec-12-csr-10-25.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.130}

12 CSR 10-25.010 Application for Certificate of Self-Insurance {#sec-12-csr-10-25.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.010}

(Rescinded August 30, 1991)

Filed March 15, 1991, effective Aug. 30, 1991.

History

AUTHORITY: section 303.290, RSMo 1986. Original rule filed Oct. 30, 1974, effective Nov. 11, 1974. Emergency rescission filed March 15, 1991, effective March 25, 1991, expired July 23, 1991. Rescinded:

12 CSR 10-25.020 Procedures for Obtaining Securities When a Judgment is Rendered {#sec-12-csr-10-25.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.020}

PURPOSE: This rule sets forth the procedures to be followed in order to obtain securities which have been posted with the director of revenue in compliance with Chapter 303, RSMo in satisfaction of a judgment for damages arising out of the ownership and use of a motor vehicle.

(1) Petitions for recovery of damages shall be sent to the Department of Revenue, Drivers License Bureau. The petition copy shall carry the official filing stamp of the court within which it is filed. The drivers license number of the defendant shall be provided by the attorney who submits the petition.

(2) The bureau, upon receipt of the petition, shall mark the file of the defendant subject “Litigation Pending.” If the filing stamp on the petition indicates it was filed within one (1) year of the accident, a letter confirming this is sent to the plaintiff’s attorney.

(3) Upon rendition of a judgment for plaintiff and after the time for appeal has expired, the plaintiff or the plaintiff’s attorney may submit a certified copy of the judgment to the bureau. The bureau, in the case of cash deposits, shall submit a check to the plaintiff or plaintiff’s attorney made payable to the plaintiff.

When other forms of security are posted, that is, real estate bonds or security bonds, the bond shall be sent to the clerk of the court. The attorney for the plaintiff shall be notified in each case of the submission of the security to the clerk. It shall be the attorney’s responsibility to receive the security and make partial or full satisfaction and release of the judgment.

(4) The bureau shall notify the person who posted the security of its submission to the plaintiff or plaintiff’s attorney.

(5) Whenever the words plaintiff and defendant are used in this procedure, plaintiff shall mean the person in whose favor the judgment is rendered, defendant shall mean the judgment debtor who has posted security with the Drivers License Bureau, regardless of the fact that the judgment may have been rendered upon a counterclaim or upon a third-party pleading.

History

AUTHORITY: section 303.290, RSMo 1986. Original rule filed June 12, 1974, effective June 24, 1974. Amended: Filed Sept. 14, 1981, effective Jan. 1, 1982. Amended: Filed Nov. 21, 1991, effective April 9, 1992.

12 CSR 10-25.030 Hearings Held Pursuant to Section 303.290.1, RSMo {#sec-12-csr-10-25.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.030}

PURPOSE: This rule sets forth the procedures used by the director in holding hearings as required by statute and the United States Supreme Court ruling of Bell v. Burson prior to the time any action is taken for compliance with the Safety Responsibility Law.

(1) Parties must request a hearing by the compliance date as established by the Department of Revenue. Failure to request a hearing by the date will be considered a waiver of the right to an administrative hearing and will make final for the purposes of review of the director’s decision.

(2) If any request for a hearing required to be filed on or before a prescribed date is delivered after that date by United States mail to the director of revenue, or the office or person in that office with which or with whom the request is required to be filed, the date of the United States postmark stamped on the envelope shall be deemed to be the date of filing. This shall apply only if the postmarked date falls on or before the compliance date as established by the Department of Revenue.

If any date for performing any act falls on a Saturday, Sunday or legal holiday in this state, the performance of the act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday or legal holiday.

(3) Failure to request a hearing by the compliance date with the Department of Revenue, Drivers License Bureau, or failure to appear at a hearing in person, by affidavit or by telephone, will preclude that party from obtaining judicial review in the circuit court of the county of the residence of the licensee. The filing of a petition for review under section 303.290.2, RSMo automatically will stay any decision of the director pending the decision of the court; provided, a copy of the petition is filed with the director.

(4) Hearings for mandatory insurance sampling cases will be scheduled and conducted by telephone unless a request for an in-person hearing is made. All other hearings under Chapter 303, RSMo will be held in Jefferson City, Missouri.

(5) Parties requesting hearings will be notified of the date and the time of the hearing by first class mail at least ten (10) days prior to the hearing date. Copies of the notices will go to the attorneys of record and the parties involved.

(6) Parties requesting hearings will be allowed one (1) continuance at the discretion of the hearing officer provided good cause be shown. All requests for continuances shall be made in writing, shall state good cause for the continuance, shall be signed and verified by the party making the request or his/her attorney or authorized representative. All requests for continuance must be filed not later than six (6) days prior to the date of the scheduled hearing. The following events or conditions shall constitute good cause to continue a hearing:

(A) Death of a party, representative or attorney of a party, or witness to an essential fact;

(4/30/24) John R. Ashcroft (7) Cases under section 303.290.1, RSMo shall be considered contested cases as that term is defined in Chapter 536, RSMo.

(8) Hearing Procedures.

(A) The director or his/her representative shall state to the requesting party that the request for hearing for the Notice of Suspension has been received. Other uninsured parties involved in the case, if any, shall be notified that the Department of Revenue has made a preliminary determination that a party was an uninsured motorist and subject to the Motor Vehicle Financial Responsibility Law, and a request for an administrative hearing has been received. All other insured parties involved in the case, if any, shall be notified that the Department of Revenue has determined the uninsured parties driving and/or registration privileges may be suspended as required by the Motor Vehicle Financial Responsibility Law, and a request for an administrative hearing has been received.

(B) The requesting party may present any new facts which s/ he feels may show that there is no reasonable possibility of a money judgment being rendered or that the percent of liability or amount of security required should be reduced. The party may also present any new facts that s/he feels may show why s/ he should not be suspended for violation of the Motor Vehicle Financial Responsibility Law.

(C) Parties may present testimony by affidavit. Affidavits may be filed at time of hearing or after notice of setting of hearing.

(D) Failure to appear at the hearing in person, by affidavit or by telephone at the stated time will make final the decision of the director as of that date.

(E) The provisions of Chapter 536, RSMo shall apply to hearings held pursuant to section 303.290.1, RSMo.

(9) The director shall make Findings of Fact and Conclusions of Law and enter his/her decision. All parties will be mailed a copy of the Findings of Fact and Conclusions of Law when they become final. No decision will be given at the time of the hearing.

(10) The effective date of the director’s decision shall be the compliance date established by the Department of Revenue or the date set out in the hearing decision letter, whichever date is later.

(11) A properly received request for a hearing will automatically stay the order of suspension of the director until the effective date of the director’s decision.

Amended: Filed Dec. 28, 2000, effective July 30, 2001.

Op. Atty. Gen. No. 92, Reiss (12-9-76). Chapter 303, RSMo requires the director of revenue to suspend a person’s driver’s license and registration upon receipt of a certified copy of a final judgment pursuant to sections 303.090, 303.100 and 303.110, RSMo when the judgment is rendered against that person by a court of competent jurisdiction of any state or of the United States as a result of a claim for damages arising out of the ownership, maintenance or use of any motor vehicle. There is no statutory requirement that the injury giving rise to the claim must either occur in this state or on the public highways and streets of this state.

History

AUTHORITY: section 303.290, RSMo 2000. Original rule filed Nov. 23, 1973, effective Dec. 3, 1973. Amended: Filed Jan. 17, 1974, effective Jan. 27, 1974. Amended: Filed July 3, 1981, effective Oct. 15, 1981. Amended: Filed May 31, 2000, effective Nov. 30, 2000.

12 CSR 10-25.040 Posting Real Estate Bonds as Security for an Accident {#sec-12-csr-10-25.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.040}

(Rescinded May 30, 2024)

History

AUTHORITY: section 303.290, RSMo 2000. This version of rule filed April 23, 1975, effective May 5, 1975. Amended: Filed Oct. 22, 1997, effective April 30, 1998. Amended: Filed July 26, 2004, effective Jan. 30, 2005. Rescinded: Filed Nov. 8, 2023, effective May 30, 2024.

12 CSR 10-25.050 Filing a Report of an Accident With the Director of Revenue {#sec-12-csr-10-25.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.050}

Filed Sept. 27, 1976, effective Jan. 13, 1977. Amended: Filed Nov. 21, 1991, effective April 9, 1992. Amended: Filed Dec. 12, 1997, effective June 30, 1998. Amended: Filed Aug. 21, 2000, effective Feb. 28, 2001. Amended: Filed Dec. 14, 2004, effective July 30, 2005.

Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

History

AUTHORITY: sections 303.040 and 303.290, RSMo 2000. This version of rule filed Dec. 10, 1973, effective Dec. 20, 1973. Amended:

12 CSR 10-25.060 Insurance Identification Cards {#sec-12-csr-10-25.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.060}

History

AUTHORITY: section 303.290, RSMo 1994. Original rule filed May 7, 1987, effective Aug. 27, 1987. Amended: Filed Nov. 26, 1991, effective April 9, 1992. Amended: Filed Sept. 15, 1995, effective March 30, 1996. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-25.070 Power of Attorney {#sec-12-csr-10-25.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.070}

History

AUTHORITY: section 303.290, RSMo 1986. Original rule filed May 7, 1987, effective Aug. 27, 1987. Amended: Filed Nov. 26, 1991, effective April 9, 1992. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-25.080 Failure to Produce Insurance Identification Card—Other Types of Proof Acceptable {#sec-12-csr-10-25.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.080}

History

AUTHORITY: section 303.290, RSMo 1994. Original rule filed July 6, 1987, effective Oct. 25, 1987. Amended: Filed Aug. 21, 1998, effective Feb. 28, 1999. Rescinded: Filed Dec. 22, 2017, effective June 30, 2018.

12 CSR 10-25.090 Fees Assessed for Failure to Surrender Drivers License or Registration Plates After Suspension {#sec-12-csr-10-25.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.090}

(Rescinded July 30, 2000)

History

AUTHORITY: section 303.290, RSMo 1994. Original rule filed July 6, 1987, effective Oct. 25, 1987. Amended: Filed Nov. 26, 1991, effective April 9, 1992. Rescinded: Filed Jan. 5, 2000, effective July 30, 2000.

12 CSR 10-25.100 Distribution of Fees {#sec-12-csr-10-25.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.100}

PURPOSE: This rule establishes procedures for distribution of fees deposited with the Drivers License Bureau in compliance with Chapters 302 and 303, RSMo.

(1) When an individual has more than one (1) action of suspension or revocation requiring the payment of various fees and the payee does not specify to which action the payment(s) should be applied, the monies shall be applied first to any security compliance deposit required for a motor vehicle accident. If the payment received is not sufficient to apply in total to the security compliance deposit required, payments shall be applied in suspension/revocation effective date order.

(2) Monies shall be deposited in state accounts according to the priority in which they are accepted.

(3) The suspended driver or owner, or both, shall be notified, in writing, of how the monies were distributed and of any balance due to the Drivers License Bureau. If the individual advises that s/he did not intend for monies to be distributed in the priority accounts established, the file shall be evaluated to determine reassessment of money distribution.

(4) Any excess of fees paid shall be distributed in the following manner:

(A) If seven dollars and fifty cents ($7.50) or less, the monies shall be deposited into appropriate accounts. If the individual requests refund of overpayment, a refund of seven dollars and fifty cents ($7.50) or less shall be given; and (B) If monies are in excess of seven dollars and fifty cents ($7.50), a refund of overpayment shall be given to the individual automatically.

Amended: Filed Aug. 12, 1992, effective Feb. 26, 1993. *Original authority: 302.304, RSMo 1961, amended 1972, 1973, 1979, 1983, 1984, 1989, 1991; 303.041, RSMo 1986; and 303.290, RSMo 1953, amended 1957, 1986.

History

AUTHORITY: sections 302.304, RSMo Supp. 1991 and 303.041 and 303.290, RSMo 1986. Original rule filed Aug. 8, 1989, effective Nov. 26, 1989. Amended: Filed Dec. 11, 1991, effective April 9, 1992.

12 CSR 10-25.110 Application for Certificate of Self-Insurance {#sec-12-csr-10-25.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.110}

PURPOSE: This rule establishes prerequisites necessary to apply for a self-insurance certificate pursuant to the provisions of section 303.220, RSMo (Senate Bill 424, 83rd General Assembly, Second Regular Session).

(1) The application for self-insurance authorization shall include the following:

(A) A written request from the applicant and, if from a company or business, the written request must be on the company’s letterhead and signed by an officer;

(B) Financial statements, including balance sheets and income statements audited by an independent certified public accountant containing opinions of the statements for the preceding three (3) years; and (C) A list of all vehicles registered in the name of the company or individual. This list must contain at least twentysix (26) vehicles and each vehicle must be described by make, model, year of manufacture, vehicle identification number, title number and vehicle registration number.

(2) The director shall determine, after reviewing the application, if self-insurance authorization is granted or denied and the

basis for the decision and the director shall advise the applicant of the decision in writing.

(3) Self-insurance authorization shall be valid for one (1) year from the date approved by the director unless otherwise terminated.

(4) Renewal of self-insurance authorization may be granted if the holder provides the financial statements described in subsection (1)(B) for the year preceding the date of application and a list of vehicles as described in subsection (1)(C).

(5) The director shall issue a Certificate of Self-Insurance to an applicant qualifying for self-insurance authorization.

(6) The director shall issue a sufficient number of identification cards for the self-insured vehicles as provided in section 303.220, RSMo.

(7) The director, upon reasonable grounds and after giving ten (10) days’ notice, shall cancel a Certificate of Self-Insurance.

Reasonable grounds may include, but not be limited to, failure of the self-insured to settle a court judgment or notice of bankruptcy proceedings by the self-insured. The director shall notify the self-insured in writing of his/her decision and provide the self-insured an opportunity to have an administrative hearing. The administrative hearing shall be conducted in accordance with section 303.290, RSMo.

History

AUTHORITY: section 303.290, RSMo 1986. Original rule filed Sept. 8, 1989, effective Jan. 26, 1990. Amended: Filed Nov. 26, 1991, effective April 9, 1992. Original authority 1953, amended 1957, 1986.

12 CSR 10-25.120 Application for Certificate of Self-Insurance from Religious Denominations {#sec-12-csr-10-25.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.120}

PURPOSE: This rule establishes how certain religious denominations may apply for a self-insurance certificate pursuant to the provisions of section 303.220, RSMo.

(1) Applicants for self-insurance authorization will complete an application in a form prescribed by the director of revenue which will include the following:

(A) A notarized affidavit, as prescribed by the director of revenue, on which the affiant swears or affirms to the following:

That the religious denomination and all its members are discouraged from purchasing insurance, of any form, as being contrary to the religious denomination’s tenets; and 2. That there are at least twenty-six (26) members in the religious denomination who own motor vehicles;

(B) A list, which is attached to the affidavit required by subsection (1)(A), of all members in the religious denomination who own motor vehicles. There must be at least twenty-six (26) members in the religious denomination who own motor vehicles. The list must include the following information:

The full name of the member as shown on the motor vehicle application for registration;
The member’s current address; and 3. A description of each motor vehicle owned by the member which is registered in Missouri. The description of each motor vehicle must include the vehicle year, make, model, vehicle identification number (VIN), and current registration plate number;

(C) A written explanation of how the religious denomination intends to settle damages or personal injuries caused in a motor vehicle accident by a member, and documentation of (8/31/24) John R. Ashcroft all vehicle claims made against the religious denomination in the past twelve (12) months, and those claims’ resolutions, or an attestation that no such claims have been made in the past twelve (12) months;

(D) A statement indicating any limits of liability of coverage by members of the religious denomination, but in no case may the self-insurance provided by the religious denomination be less than the minimum financial responsibility requirements established in Chapter 303, RSMo; and (E) If applicable, a copy of a membership charter showing affiliation with a larger religious denomination is required when the applicant has fewer than twenty-six (26) members owning motor vehicles in Missouri.

(2) The director shall determine after reviewing the application, if self-insurance authorization is granted or denied and the

basis for the decision and the director shall advise the requestor of the decision in writing.

(3) Self-insurance authorization shall be valid for one (1) year from the date approved by the director unless otherwise terminated.

(4) Renewal of self-insurance authorization may be granted if the religious denomination maintains membership of at least twenty-six (26) members owning motor vehicles. Any addition or removal of members or vehicles as described in, and required by, subsection (1)(B) shall be provided to the director prior to the member or vehicle being self-insured.

(A) The affidavit prescribed by the director in subsection (1)

(A) must be completed by all religious denominations every three (3) years.

(B) A list of members and vehicles as described in subsection (1)(B) shall be provided to the director annually.

(5) The director will issue a Certificate of Self-Insurance to a religious denomination qualifying for self-insurance authorization.

(6) The director will issue a Certificate of Self-Insurance for the organization to print and distribute for vehicles identified by the religious denomination.

(7) The director may request documentary proof from an applicant for self-insurance authorization or a religious denomination issued a Certificate of Self-Insurance to demonstrate that the religious denomination has unencumbered assets equal to at least the minimum financial responsibility requirements established in Chapter 303, RSMo. The religious denomination will have thirty (30) days from the date the request is made to provide the proof required by this section. Failure to timely respond or to provide adequate proof may be considered reasonable grounds to cancel a Certificate of Self-Insurance in accordance with section (8).

(8) The director, upon reasonable grounds and after giving ten (10) days notice, shall cancel a Certificate of Self-Insurance.

Reasonable grounds may include, but not be limited to, failure of the self-insured to settle a claim or satisfy a court judgment, receipt of notice of bankruptcy proceedings by the self-insured, failure to provide documentary proof as required by section (7), or evidence establishing the falsity of any information on which the department relies in issuing a Certificate of Self-Insurance.

The director shall notify the religious denomination in writing of their decision and provide the religious denomination an opportunity for a contested administrative hearing. The administrative hearing shall be conducted in accordance with

section 303.290, RSMo, and Chapter 536, RSMo.

History

AUTHORITY: section 303.290, RSMo 2016. Original rule filed Sept. 8, 1989, effective Jan. 26, 1990. Amended: Filed Nov. 26, 1991, effective April 9, 1992. Amended: Filed Sept. 24, 2021, effective March 30, 2022.

12 CSR 10-25.130 Proof of Financial Responsibility for Reinstatement of Failure to Show Proof of Financial Responsibility Suspensions {#sec-12-csr-10-25.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.130}

PURPOSE: This rule establishes the types of proof of financial responsibility that will be accepted for reinstatement of a suspension for failure to show proof of financial responsibility pursuant to Chapter 303, RSMo.

(1) For purposes of sections 303.042 and 303.044, RSMo, other forms of proof of insurance shall be a legible copy of an insurance identification card, a motor vehicle liability insurance policy, a motor vehicle liability insurance binder or a receipt which contains the policy information required in subsection 2 of section 303.024, RSMo. The director of revenue may as he/she deems necessary require additional documentation in order to determine the authenticity of any document submitted as proof of financial responsibility.

(2) If the driver’s address and driver license number are not contained on the proof of insurance document, a document containing such information must accompany the proof of insurance forwarded to the Drivers License Bureau. The driver may supply this information by returning a copy of the suspension notice received from the Department of Revenue with the proof of insurance as it contains the pertinent information.

(3) If the driver’s name is not indicated on the proof of insurance document, the insured driver must submit a copy of his or her insurance policy so the director can verify the driver has the necessary insurance.

(4) The proof of insurance document must contain the most current effective date of the policy.

History

AUTHORITY: section 303.290, RSMo 1994. Original rule filed Aug. 21, 2000, effective Feb. 28, 2001.

12 CSR 10-25.140 Financial Responsibility—Inoperable/ Stored Vehicles {#sec-12-csr-10-25.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.140}

PURPOSE: This rule establishes the procedures for individuals to notify the director of revenue that a vehicle is inoperable or has been stored and is exempt from the financial responsibility laws pursuant to sections 303.025 and 303.409, RSMo, and how to remove voluntary suspension and payment of any fines owed pursuant to sections 303.025 and 303.041, RSMo.

(1) Proof of inoperability or storage shall be submitted to the director of revenue in the form of a certified statement.

Such certified statement shall describe the reason for the inoperability and/or the period and terms of storage of the motor vehicle. The director shall have the authority to require additional documentation in order to determine the authenticity of such certified statement. Such documentation shall include but not be limited to repair bills, a statement from a mechanic, or copies of any rental, lease, or storage agreements.

(2) To remove the voluntary suspension, the director shall require proof of financial responsibility and a certified statement that the vehicle is operable or no longer being stored. The Department of Revenue will not charge a reinstatement fee for removing the voluntary suspension.

(3) At the court’s discretion, any fines owed to the state pursuant to section 303.025, RSMo, may be eligible for payment in installments based on the individual’s ability to pay and within a period of time the court determines to be reasonable. Application for such payment plan must be made with the court.

History

AUTHORITY: section 303.290, RSMo 2016, and section 303.025, RSMo Supp. 2023. Original rule filed Aug. 21, 2000, effective Feb. 28, 2001. Amended: Filed Feb. 6, 2024, effective Sept. 30, 2024. Original authority: 303.025, RSMo 1986, amended 1997, 1999, 2000, 2001, 2010, 2011, 2014, 2022, and 303.290, RSMo 1953, amended 1957, 1986.

12 CSR 10-25.150 Financial Responsibility Sampling {#sec-12-csr-10-25.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-25.150}

PURPOSE: This rule establishes procedures and guidelines necessary to administer the sampling of automobile insurance cancellations as provided in section 303.026.3(1), RSMo.

(1) A licensed insurance company, as referred to in section 303.026, RSMo, shall include any insurance company which has been issued a certificate of authority by the Missouri Department of Commerce and Insurance and writes private passenger automobile liability insurance.

(2) All licensed insurance companies, upon request by the director of revenue, shall provide the full name, date of birth, drivers license or Social Security number, and address of the named insured; the make, year, and the vehicle identification number as shown on the company’s record of each insured motor vehicle; the policy number, effective date of the policy, and the National Association of Insurance Commissioners (NAIC) identification number. Such information shall be electronically submitted on all active liability policies for a given month by the seventh day of each following month. At such time as the director has a computer system capable of making real-time inquiries or receiving real-time electronic reporting of the policy information reported pursuant to this

section, all license insurance companies shall be required to provide all active liability policies in real-time.

(3) Policy information electronically reported pursuant to

section (2) of this rule shall be reported only on active liability policies written for vehicles that are principally garaged in the state of Missouri.

(4) As used in this rule, the term active liability policies shall be all motor vehicle liability policies in force at 11:59 p.m. on the last day of each month.

(5) As used in this rule, the term “private passenger automobile liability insurance” shall have the same meaning as the term “private automobile insurance” as defined and used in section 374.450, RSMo, and 20 CSR 600-3.100, except that the term shall be limited to liability insurance. Private passenger automobile liability insurance shall also include liability insurance policies issued on motorcycles, autocycles, and motortricycles.

(6) For purposes of electronically reporting insurance information pursuant to section 303.026, RSMo, electronic reporting shall be defined as reporting in a manner by which the data is exchanged between the insurance company and the director of revenue through use of the department’s computer system without requiring the director to manually enter the information through human intervention.

History

AUTHORITY: section 303.290, RSMo 2016. Original rule filed Aug. 21, 2000, effective Feb. 28, 2001. Amended: Filed Oct. 28, 2020, effective May 30, 2021.

Chapter 26 Dealer Licensure

12 CSR 10-26.020 License Requirements for Auctions, Dealers, Franchisors, and 12 CSR 10-26.021 12 CSR 10-26.030 12 CSR 10-26.040 12 CSR 10-26.050 12 CSR 10-26.060 12 CSR 10-26.070 12 CSR 10-26.080 12 CSR 10-26.090 12 CSR 10-26.100 12 CSR 10-26.110 {#sec-12-csr-10-26.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.020}

12 CSR 10-26.120 Procedures for Filing Complaints with the Director of Revenue {#sec-12-csr-10-26.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.120}

12 CSR 10-26.130 Review of License Denial or Disciplinary Action 12 CSR 10-26.140 12 CSR 10-26.150 12 CSR 10-26.160 12 CSR 10-26.170 Prehearing Conferences and Stipulations {#sec-12-csr-10-26.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.130}

(Rescinded March 30, 2005)..10

12 CSR 10-26.180 Temporary Permits Sold by a Registered Missouri Motor Vehicle {#sec-12-csr-10-26.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.180}

12 CSR 10-26.200 Out-of-State Dealer Request to Participate in Missouri Recreational 12 CSR 10-26.210 {#sec-12-csr-10-26.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.200}

12 CSR 10-26.221 Good Moral Character of Motor Vehicle Dealers, Manufacturers, 12 CSR 10-26.230 12 CSR 10-26.231 {#sec-12-csr-10-26.221 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.221}

12 CSR 10-26.010 Bona Fide Established Place of Business {#sec-12-csr-10-26.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.010}

PURPOSE: The department must determine that applicants/ licensees such as boat dealers, boat manufacturers, trailer dealers, trailer manufacturers, motor vehicle dealers, wholesale motor vehicle dealers, motor vehicle manufacturers, public motor vehicle auctions, and wholesale motor vehicle auctions maintain a bona fide established place of business. This rule establishes criteria that may be used in determining if this requirement has been met.

(1) In order to constitute a bona fide established place of business, hereinafter referred to as a “business location,” for boat dealers, boat manufacturers, motor vehicle dealers other than dealers who sell only emergency vehicles, motor vehicle manufacturers, wholesale motor vehicle dealers, public motor vehicle auctions, trailer dealers, trailer manufacturers, powersport dealers, and wholesale motor vehicle auctions— (A) The business location must be actually occupied and primarily used in whole, or in clearly designated and segregated part, as a place of business by the licensee for the manufacturing, selling, auctioning, bartering, trading, servicing, or exchanging of motor vehicles, trailers, boats, or powersports.

Example: An applicant for a motor vehicle dealer license maintains a building or structure primarily used in the operation of a business other than the sale or exchange of motor vehicles. As a sideline, the applicant desires to engage in the business of selling motor vehicles. The building or structure used primarily for some other business, other than the selling or exchanging of motor vehicles, does not qualify as a bona fide established place of business for the selling of motor vehicles unless an area is clearly designated and segregated and records are separately maintained for the

purpose of selling, bartering, trading, servicing, or exchanging of motor vehicles or trailers;

(B) The business location must be open regular business hours during which the public and the department are able to contact the licensee. Regular business hours for purposes of this rule shall be a minimum of twenty (20) hours per week, at least four (4) of the six (6) days of Monday through Saturday each week. Only hours falling between 6 a.m. and 10 p.m. will be considered by the department in the twenty (20) hour minimum. The business hours shall be posted at the business location;

(D) The business location of licensees must also contain an area or lot which shall not be a public street upon which multiple vehicles may be displayed.

The display area or lot must be of sufficient size to physically accommodate vehicles of the type which the licensee is licensed to sell.
The display area or lot must be used exclusively for display by the licensee and must be situated to prevent confusion or uncertainty concerning its relationship to the licensee.
The display area or lot must provide unencumbered visibility from the nearest public street of the vehicles being sold by the licensee.
Auctions that are also licensed as dealers must maintain a display area or lot separate from the dealership lot for auction vehicles.
A licensee in more than one (1) class of business may use the same building and display area for all classes so long as each use is separately and clearly marked. Records must be maintained separately and separate signs, as specified in subsection (1)(E), must be displayed;

(E) Licensees must display an exterior sign that shall be of a permanent nature, erected on the exterior of the structure or on the display area, constructed or painted and maintained to withstand reasonable weather conditions, and the sign must be readable.

A temporary sign may suffice during the period of time required to obtain a permanent sign provided the order for construction, purchase, or painting has in fact been placed. A copy of the sign order must be submitted with the application along with a picture of the temporary sign.

(2) The bona fide established place of business of a licensee must be maintained for the entire licensure period. If the bona fide established place of business is not maintained, the licensee must notify the department within ten (10) days and surrender at that time the licensee’s temporary permits, license, and license plates/certificates of number.

(A) If the licensee intends to relocate prior to the expiration of the license, the department must be informed of such intent at the time the license is surrendered. If the business is then certified at a new location within the same licensure year, the department will return the temporary permits, license plates/ certificates of number, and issue a new license reflecting the new location for no additional fee. The department or its representative reserves the right to determine the existence of a bona fide established place of business at any time.

(3) A licensee who changes its business location during the licensure year must notify the department of that change prior to operating at the new site. The following must be submitted to the department:

(A) A new application certified by authorized law enforcement. “Change of Address” must be indicated at the top of the application.

If the business changes locations ninety (90) days or less before the expiration of the current license, a renewal application reflecting the new address should be filed instead of a change of address.
If the location change is not effective immediately upon filing the renewal application, a letter indicating the effective date of the address change must accompany the renewal application; and (B) A photograph of the business location that meets the specifications required of new applicants.

(4) If a licensee changes the business name during the licensure year, the licensee must notify the department of the name change prior to operating under the new name. The following must be submitted to the department:

(A) A new application properly completed that indicates “Name Change Only” at the top of the application. The application is not required to be certified by authorized law enforcement;

(B) A photograph of the business location that meets the specifications required of new applicants and that clearly shows the business sign displaying the new business name;

(C) A corporate surety bond, bond rider, or revision to the irrevocable letter of credit that reflects the licensee’s new (7/31/23) John R. Ashcroft business name, if applicable.

(5) Each business location where a licensee auctions, manufactures, sells, or displays motor vehicles, trailers, boats, or powersports must be licensed separately with the department and pay a separate licensure fee.

(6) A licensee may store cars at a storage lot location other than at the licensed business location, provided the department is notified of the storage location and no sales activity occurs on the storage lot.

History

AUTHORITY: section 301.553, RSMo 2016. Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed Aug. 23, 2002, effective Feb. 28, 2003. Amended: Filed May 15, 2008, effective Nov. 30, 2008. Amended: Filed April 7, 2017, effective Sept. 30, 2017. Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997.

12 CSR 10-26.020 License Requirements for Auctions, Dealers, Franchisors, and Manufacturers {#sec-12-csr-10-26.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.020}

PURPOSE: The department must determine whether applicants who apply for a license as a boat dealer, boat manufacturer, trailer dealer, trailer manufacturer, motor vehicle dealer, motor vehicle manufacturer, public motor vehicle auction, or wholesale motor vehicle auction under sections 301.550 to 301.562, RSMo, have met the requirements outlined in the law. This rule clarifies these requirements. This rule also establishes the requirements for issuance of a manufacturer’s license under section 301.553, RSMo, and to implement franchisor license requirements under sections 407.810 to 407.835, RSMo, otherwise known as the Motor Vehicle Franchise Practices (MVFP) Act.

(1) A separate license is required for each of the following categories of licenses:

(A) Motor vehicle dealers;

(B) Boat dealers; however, a motor vehicle or trailer dealer may purchase and sell up to five (5) vessels during each licensure period without licensing as a boat dealer;

(D) Trailer dealers;

(E) Motor vehicle, trailer, and boat manufacturers;

(F) Wholesale motor vehicle auctions; and (G) Public motor vehicle auctions.

(2) An applicant must complete in full the designated application for a license.

(A) If the applicant is a partnership or corporation and is doing business under another name (d/b/a), the applicant must list its partnership or corporate name and its d/b/a name. For example, John Smith Brothers Incorporated d/b/a Smith Brother’s Used Cars. If the applicant is an individual, the business name must also be listed on the application.

(B) The business location name and address must be recorded on the application. A post office box number is not acceptable as a business location address.

(C) A separate “Mail to” address may only be listed on the application if the local postal authorities confirm, in a letter signed by an authorized representative of the post office, that it cannot or will not deliver mail to the business address due to security reasons such as theft or vandalism. The lack of a proper mail receptacle is not justification for the use of a “Mail to” address.

(D) Applicants obtaining a manufacturer’s license must submit a letter that lists the makes of all motor vehicles/ trailers/boats they will manufacture. If licensing as a “final stage” manufacturer/converter, the makes of all vehicle bodies, i.e., dump, hoist, coach, etc., they will manufacture and a brief description of the business must accompany the application.

(E) Each applicant, officer, or owner for a license must list on the application his or her driver’s license number, birthdate, home address, and/or Social Security number.

(F) The application must be certified by an authorized law enforcement agency/officer unless exempted by law.

Applicants who are licensed within two (2) months of the license expiration period shall not be required to have his or her renewal application certified by a law enforcement agency/officer provided the renewal is filed before the present license expires.

(3) The corporate surety bond or an irrevocable letter of credit required in section 301.560.1, RSMo, shall be filed with the application and shall be maintained for the entire licensure period. The bond or letter of credit must either be irrevocable for the entire licensure period or by its terms require that the bonding company or entity issuing the bond or letter of credit to notify the department at least thirty (30) days prior to the cancellation or revocation date.

(4) The photograph of the bona fide established place of business may be either a black and white or color photograph. If more than one (1) photograph is necessary to show the building, lot, and sign, a statement, signed by the applicant, must accompany the photograph explaining that all photographs were taken at the same address.

(A) A temporary sign may be used (as set forth in 12 CSR 10- 26.010). If this is the case, a copy of the sign order and a picture of the temporary sign must be submitted with the application.

(5) For purposes of the franchise agreement requirement in

section 301.559, RSMo, a letter of appointment or similar document signed by an authorized representative of the manufacturer will satisfy this requirement. The document must include the name and address of the franchise, the effective date of the franchise agreement, the expiration date of the franchise agreement, if applicable, and the make(s) of vehicle(s) the franchisee is authorized to sell. The letter must provide for notification to the department at least thirty (30) days prior to cancellation of the franchise. A manufacturer’s letter of intent shall not suffice as proof of franchise.

(6) A new applicant must complete and submit the appropriate form(s) requesting a criminal record check directly to the Missouri State Highway Patrol’s General Headquarters along with the appropriate fee. The patrol shall provide the director with the results of the applicant’s criminal record check to assist the director in determining the applicant’s qualifications as provided in sections 301.559 and 301.562, RSMo.

(7) If any of the owners, partners, or principal officers (if a corporation) are residents of a state other than Missouri or another country, they must obtain a current criminal record check from their state highway patrol or corresponding law enforcement agency and submit that record check with new and renewal applications.

(8) The applicant must submit appropriate fees as prescribed in 12 CSR 10-26.040.

(9) A “franchisor,” as defined in the MVFP Act, may meet Denny Hoskins (8/31/25) the licensing requirements of the MVFP Act by obtaining a manufacturer’s license under this rule.

(A) Notwithstanding any other provision of this rule, an applicant for a manufacturer’s license, in order to comply with the franchisor licensing requirements of the MVFP Act, shall provide— 1. The street address for the franchisor location;

The telephone number for the franchisor location in paragraph (9)(A)1.;
A list of the names of the principal officers of the corporation;
A list of all other names it is doing business as, if applicable;
A list of all vehicle makes which the corporation authorizes franchise dealers to sell;
The state or province and the country of the franchisor’s location in paragraph (9)(A)1.;
The name and address of a mediation service provider or a list of mediators as prescribed in section 407.822, RSMo;
The motor vehicle or trailer manufacturer’s license fee as authorized by 12 CSR 10-26.040; and 9. A certified statement attesting that— A. The franchisor’s place of business identified in paragraph (9)(A)1. is occupied and is used, in part, to facilitate the franchising of motor vehicle dealers who operate within the state of Missouri;

B. The franchisor maintains regular business hours during which the department is able to contact the franchisor;

C. The franchisor will notify the department not less than ten (10) days prior to moving its place of business or changing its telephone number.

(B) All franchisor manufacturer licenses shall expire July 31 of each year. The license fee referenced in paragraph (9)(A)8. shall not be prorated.

(C) The franchisor shall be issued a license in the manufacturer’s range of distinctive license numbers: DM-0 through DM-999.

(D) Dealer license plates shall not be issued to franchisors.

History

AUTHORITY: sections 301.553 and 301.559, RSMo 2000, sections 301.550 and 301.560, RSMo Supp. 2010, and sections 407.810 to 407.838, RSMo 2000 and Supp. 2010. Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed Aug. 23, 2002, effective Feb. 28, 2003. Amended: Filed Dec. 28, 2007, effective June 30, 2008. Emergency amendment filed Aug. 18, 2010, effective Aug. 28, 2010, expired Feb. 24, 2011. Amended: Filed Aug. 18, 2010, effective Feb. 28, 2011. Original authority: 301.550, RSMo 1998, amended 1993, 1997, 2002, 2007; 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997; 301.559, RSMo 1988, amended 1993, 1997; 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997, 2002, 2006, 2007, 2010; 407.810–407.838, see Missouri Revised Statutes 2000 and Missouri Revised Statutes Cumulative Supplement 2010.

12 CSR 10-26.021 Issuance of Biennial Salvage Business Licenses {#sec-12-csr-10-26.021 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.021}

PURPOSE: This rule provides for issuing biennial salvage business licenses on a staggered basis to equalize the Department of Revenue’s workload and for the corresponding fees that are required.

(1) Salvage business licenses expire on June 30 of the designated expiration year. The renewal period begins April 1 in the year of their expiration.

(A) New applicants for salvage business licensure will be issued a two- (2-) year license expiring June 30 of the appropriate year. The cost for licensure shall be one hundred thirty dollars ($130) for each type of business activity indicated on the application, except that only one (1) one hundred thirtydollar ($130) fee shall be collected if the applicant applies for licensure as a used parts dealer and a salvage dealer or dismantler. If the licensure period is for less than a two- (2-) year period, the licensure fee shall be prorated for each type of business activity on a quarterly basis based on the application receipt date as follows:

July 1 to September 30—one hundred thirty dollars ($130);
October 1 to December 31—one hundred thirteen dollars and seventy-five cents ($113.75);
January 1 to March 31—ninety-seven dollars and fifty cents ($97.50);
April 1 to June 30—eighty-one dollars and twenty-five cents ($81.25).

(B) Late renewal applicants who submit their application for a salvage business license have the option of receiving a one- (1-) year or two- (2-) year license. These applicants must obtain a certification from authorized law enforcement as required by

section 301.219, RSMo.

(2) Each application for a salvage business license must be accompanied by a five-dollar ($5) fee for a criminal record check for each owner, partner, or corporate officer listed on the application. The deposited fees are forwarded to the Missouri State Highway Patrol. The patrol shall provide the director with the results of the applicant’s criminal record check to assist the director in determining the applicant’s qualifications as provided in section 301.221, RSMo.

(3) In the event that owners, partners, or principal officers (if a corporation) are residents of a state other than Missouri or another country, they must obtain a current criminal record check from their state highway patrol or corresponding law enforcement agency and submit that record check with new and renewal applications. The five-dollar ($5) fee referenced in section (2) of this rule is inapplicable to this circumstance.

History

AUTHORITY: sections 301.219, 301.221, and 301.229, RSMo 2016. This rule was originally filed as 12 CSR 10-23.465. Original rule filed Sept. 16, 2004, effective March 30, 2005. Moved to 12 CSR 10-26.021 and amended: Filed Jan. 9, 2024, effective July 30, 2024. Original authority: 301.219, RSMo 1979, amended 1986, 2004; 301.221, RSMo 1979, amended 1986, 2004, 2007; and 301.229, RSMo 1979, amended 1988, 2007.

12 CSR 10-26.030 License Renewal {#sec-12-csr-10-26.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.030}

PURPOSE: This rule sets forth the procedures for renewing dealer licenses.

(1) Renewal applications will be mailed by the department to the registered business address of the licensee at least ninety (90) days before the date of license expiration.

(A) Renewal applications received by the department less than sixty (60) days prior to the license expiration date must include an additional twenty-five dollar ($25) processing fee.

New applicants who are approved during the last ninety (90) days of the licensure period are not subject to the twenty-five dollar ($25) additional processing fee at the time of renewal.

(8/31/25) Denny Hoskins (B) Applications received after the license expiration date must include a fifty dollar ($50) late fee.

(2) The department will mail all licenses issued to the registered business address of the licensee. The licenses must be prominently displayed at the place of business.

(3) For renewal of a license of a motor vehicle dealer, an applicant must submit all previous monthly sales reports that document at least eight (8) sales made during the last year licensed, if the applicant was licensed for the full calendar year. For licensure of less than one (1) year, the department will prorate the eight (8) sales requirement provided in section 301.550, RSMo, by requiring two (2) sales for each full three- (3-) month period licensed.

(4) For renewal of a license of a boat dealer, an applicant must submit all previous monthly sales reports that document at least six (6) sales made during the last year licensed, if the applicant was licensed for the full calendar year. For licensure of less than one (1) year, the department will prorate the six (6) sales requirement provided in section 301.550, RSMo, by requiring one (1) sale for each full two- (2-) month period licensed.

History

AUTHORITY: sections 301.550, 301.553, 301.559, and 301.560, RSMo Supp. 2024. Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed March 31, 2025, effective Sept. 30, 2025. Original authority: 301.550, RSMo 1988, amended 1993, 1997, 2002, 2007, 2017, 2018, 2021; 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997, 2018; 301.559, RSMo 1988, amended 1993, 1997, 2012, 2016, 2018; and 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997, 2002, 2006, 2007, 2010, 2012, 2018, 2019, 2020.

12 CSR 10-26.040 Fees {#sec-12-csr-10-26.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.040}

PURPOSE: This rule sets forth the fees payable to the department for dealer licenses.

(1) License fees must be submitted by applicants according to the fee schedule established below beginning with applications submitted for the 2009 calendar/licensure year:

(A) Motor Vehicle Dealer or Trailer Dealer $150 (B) Boat Dealer or Boat Manufacturer $ 80 (C) Wholesale or Public Auction $150 (D) Wholesale Motor Vehicle Dealer $150 (E) Motor Vehicle or Trailer Manufacturer $150 (2) If a license is lost, stolen, or destroyed, the licensee may obtain a replacement license for a fee of eight dollars and fifty cents ($8.50).

History

AUTHORITY: section 301.553, RSMo 2000 and section 301.560, RSMo Supp. 2007. Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed May 15, 2008, effective Nov. 30, 2008. Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997; and 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997, 2002, 2006, 2007.

12 CSR 10-26.050 Business Records Required to be Maintained by Licensees {#sec-12-csr-10-26.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.050}

PURPOSE: This rule establishes the business records to be retained by boat dealers, boat manufacturers, motor vehicle dealers, wholesale motor vehicle dealers and motor vehicle manufacturers.

(1) A licensee shall maintain clear and complete books, records, files and other matters required and necessary to conduct the business of manufacturing and/or selling motor vehicles, trailers and/or boats including but not limited to titles, riders, disclosure statements, affidavits, inventory and related documentation.

(2) The licensee shall have sufficient proof of ownership at the business location for each vehicle/unit owned by the licensee in the form of a certificate of ownership or copy thereof, bill of sale or invoice.

(3) The business records of a licensee shall be maintained at the office of the licensee’s business location.

(4) A licensee shall maintain business records for a period of not less than three (3) years, unless otherwise specified by law.

(5) A licensee shall maintain clear and complete copies of all odometer disclosure documents issued and received by the licensee for a period of five (5) years.

History

AUTHORITY: sections 301.553 and 301.560, RSMo Supp. 1998. Original rule filed Nov. 1, 1999, effective May 30, 2000. Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997; and 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997.

12 CSR 10-26.060 Dealer License Plates/Certificates of Number {#sec-12-csr-10-26.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.060}

PURPOSE: This rule establishes guidelines for use of dealer license plates/certificates of number.

(1) Dealer license plates, other than powersport dealer license plates, shall be of standard size (approximately twelve inches by six inches (12" × 6")) and may only be used as provided by law.

(A) Motor vehicle dealer and manufacturer license plates may only be displayed on motor vehicles, trailers, and motorcycles/motortricycles.

(B) Recreational motor vehicle dealer license plates may be displayed on recreational motor vehicles, trailers, and only on other motor vehicles acquired as a trade-in.

(D) Powersport dealer license plates shall be motorcycle-size (approximately seven and one-fourth inches by four and oneeighth inches (7 1/4" × 4 1/8")) and may only be displayed on motorcycles/motortricycles, trailers, and personal watercraft.

(E) Dealer license plates may only be displayed on vessels if the licensee owns and holds for resale no more than five (5) vessels during the licensure period.

(2) A certificate of number issued to a boat dealer or boat manufacturer shall not exceed five inches by twenty-four inches (5" x 24") and may only be used as provided by law. In addition to obtaining a certificate of number, a boat dealer or manufacturer may obtain a boat dealer trailer license plate solely for the purpose of demonstrating a vessel trailer. A certificate of number or boat dealer trailer license plate may be displayed on a vessel trailer which is transporting a vessel for demonstration or to an exhibit or show as long as both units are for resale.

Denny Hoskins (8/31/25)

(3) Dealer license plates or certificates of number may only be used by an employee, owner or officer of the licensee, or customer test driving the motor vehicle, trailer, or vessel, or by a customer whose vehicle is being serviced or repaired at the dealership.

(4) A customer who is having a motor vehicle serviced may only operate a motor vehicle owned by the dealership at which the vehicle is being serviced while using the dealership’s dealer license plates for a duration not to exceed two (2) business days. “Service” is defined in this rule is a regular maintenance procedure performed on a motor vehicle at a set time interval or after a vehicle reaches a certain mileage threshold.

(5) A customer who is having a vehicle repaired may only operate a motor vehicle owned by the dealership at which the vehicle is being repaired while using the dealership’s dealer license plates for a duration not to exceed twenty-four (24) business days. “Repair” as defined in this rule is a procedure performed on a motor vehicle to fix or mend the vehicle due to the vehicle’s damage, malfunction, or inoperability, including any procedure performed on a motor vehicle upon recall of the vehicle or any of its components by the vehicle’s manufacturer or the National Highway Traffic Safety Administration.

(6) A customer who is test driving a vehicle or vessel for more than forty-eight (48) hours, or who is test driving a tractor, truck, or a trailer under loaded conditions, must have a written demonstration agreement in the vehicle which has been signed and dated by both the customer and the licensee. The written demonstration agreement must be on the licensee’s letterhead and include the following items:

(A) A statement that the vehicle or vessel is being used for demonstration purposes only and the anticipated duration of the demonstration;

(B) A description of the vehicle or vessel, including the year, make and identification number;

(D) The licensee’s name, dealer number, and business address;

(E) A statement of the type of property being transported, if applicable; and (F) The mileage on the odometer of the vehicle at the time the demonstration began.

(7) Proof of service or repair orders shall be retained for a duration set forth in 12 CSR 10-26.050(4), and must be provided to the Department of Revenue upon request within fifteen (15) business days.

(8) A licensee must account for all dealer license plates/ certificates of number at all times.

(9) Whenever a licensee is no longer entitled to a license due to cessation of business, sale of the business, abandonment of the business, suspension or revocation of the license, or other circumstance, the dealer license plates/certificates of number, business license, required monthly sales reports, and any unissued permits, if applicable, shall be surrendered to the department immediately, but in no event later than ten (10) days following such circumstance. If a licensee dies or becomes incapacitated, the heirs or estate of the licensee or legal guardian may retain these items for no more than one hundred eighty (180) days after death or incapacitation, or until the license expires, whichever comes first, in which to settle the affairs of the licensee or to apply for a new license in the name of the successor.

Amended: Filed Dec. 28, 2007, effective June 30, 2008. Amended:

Filed Aug. 28, 2019, effective March 30, 2020. *Original authority: 301.550, RSMo 1988, amended 1993, 1997, 2002, 2007, 2017, 2018; 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997, 2018; 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997, 2002, 2006, 2007, 2010, 2012, 2018, 2019; 301.562, RSMo 1988, amended 1993, 1997, 2004, 2009, 2012, 2015, 2018.

History

AUTHORITY: sections 301.550, 301.553, 301.560, and 301.562, RSMo Supp. 2019. Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed Sept. 23, 2002, effective March 30, 2003.

12 CSR 10-26.070 Procedural Requirements For Wholesale Motor Vehicle Auctions {#sec-12-csr-10-26.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.070}

PURPOSE: This rule outlines the procedural requirements for wholesale motor vehicle auctions as defined in section 301.550, RSMo.

(1) For purposes of this rule, the term “auction” shall mean, “wholesale motor vehicle auction” unless specified otherwise.

(2) Auctions shall maintain the following information for five (5) years from the date of sale of any motor vehicle or trailer:

(A) The year, make, model and vehicle identification number (B) The name and address of the seller;

(D) The date of sale and the purchase price;

(E) The odometer reading of the motor vehicle at the time of sale and odometer disclosure information that complies with the state and federal laws; and (F) The certificate of title number and state of issue.

(3) Each auction shall maintain for three (3) years a file on each licensed dealer who buys or sells vehicles at the auction. The file must contain the dealership’s name, dealer license number, the state(s) where licensed, dealership’s address, dealership’s owner(s), partner(s) or corporate officers and the name and address of all individuals authorized to buy and sell on behalf of the dealership.

(4) Any individual conducting a wholesale motor vehicle auction must be licensed pursuant to all applicable laws and make available for inspection all applicable licenses to law officers or Department of Revenue employees. An auction shall maintain a record of each individual performing auctioneering services and the inclusive dates of such services.

(5) Prior to transfer of title of any motor vehicle at auction, an auction shall review all applicable vehicle documentation for all vehicles sold through the auction including but not limited to the following: certificate of title and odometer disclosure statement, if applicable.

(A) The auctioneer must announce any title brands known, the condition of the vehicle, any known damage to the vehicle, the odometer reading of the vehicle on the date of sale and whether the odometer disclosure is actual, not actual, exceeds mechanical limits, or exempt.

(6) Motor vehicles sold at auction are not required to display a Federal Buyer’s Guide, unless such vehicles are being sold by a government entity, whose sales are opened to the public as required by law.

(8/31/25) Denny Hoskins (7) An auction must verify that each dealer who buys and sells at the auction is currently licensed as a motor vehicle dealer in the state of Missouri or another jurisdiction at the time of registration with the auction. Thereafter, the auction shall verify that the dealer’s license is valid on an annual basis.

(8) A certificate of number (license) issued to an auction by the director must be prominently displayed at the auction’s bona fide established place of business.

(9) An auction may only conduct business at its licensed location. Off-site sales are prohibited.

(10) An auction must issue to the buyer and seller of each vehicle a sales document that contains— (A) The year, make, model and vehicle identification number (B) The name and address of the seller;

(D) The date of sale and the purchase price; and (E) The odometer reading of the motor vehicle at the time of sale.

(11) Records required by this regulation may be maintained in an electronic format.

History

AUTHORITY: sections 301.550–301.573, RSMo 1994 and Supp. 1998. Original rule filed Nov. 1, 1999, effective May 30, 2000. Original authority: see Missouri Revised Statutes 1994 and Missouri Revised Statutes Cumulative Supplement 1999.

12 CSR 10-26.080 Procedural Requirements For Public Motor Vehicle Auctions {#sec-12-csr-10-26.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.080}

PURPOSE: This rule outlines the procedural requirements for public motor vehicle auctions as defined in section 301.550, RSMo.

(1) For purposes of this rule, the term “auction” shall mean “public motor vehicle auction” unless specified otherwise.

(2) Auctions shall maintain the following information for five (5) years from the date of sale of any motor vehicle or trailer:

(A) The year, make, model, and vehicle identification number (B) The name and address of the seller;

(D) The date of sale and the purchase price;

(E) The odometer reading of the motor vehicle at the time of sale and an odometer disclosure statement that complies with the state and federal laws;

(F) A photocopy of both the front and back of the certificate of title; and (G) Copies of any supporting rider, statement, affidavit, inspection, or other document that accompanied the transaction.

(3) The motor vehicle auction must be scheduled and publicized at least one (1) week prior to the sale date.

(4) Any individual conducting a public motor vehicle auction must be licensed pursuant to all applicable laws and make available for inspection all applicable licenses to law officers or Department of Revenue employees. An auction shall maintain a record of each individual performing auctioneering services and the inclusive dates of such services.

(5) Prior to selling any motor vehicle at auction, an auction shall review all applicable vehicle documentation, including but not limited to the following: certificate of title and odometer disclosure statement, if applicable.

(A) Prior to selling a vehicle at auction, the auctioneer must announce any brands printed on the title, the condition of the vehicle, any known damage to the vehicle, the odometer reading of the vehicle, and any other information on the odometer disclosure statement.

(6) Auctioneers shall announce at the beginning of each public auction that the vehicles offered for sale may not have been safety inspected.

(7) Both licensed dealers and the public may attend and buy or sell at a public motor vehicle auction.

(8) Motor vehicle auctions shall not accept for sale from a dealer any vehicle without a Federal Buyer’s Guide affixed to the vehicle or which does not comply with other applicable state or federal disclosure requirements.

(9) An auction must verify that each dealer who sells at the auction is currently licensed as a motor vehicle dealer in the state of Missouri or another jurisdiction.

(10) A certificate of number (license) issued to an auction by the director must be prominently displayed at the auction’s bona fide established place of business. A separate license must be obtained by each public motor vehicle auction.

(11) An auction may only conduct business at its licensed location. Off-site sales are prohibited.

(12) An auction must issue to the buyer and seller of each vehicle a document that contains— (A) The year, make, model, and vehicle identification number (B) The name and address of the seller;

(D) The date of sale and the purchase price; and (E) The odometer reading of the motor vehicle at the time of sale.

(13) Federal Buyer’s Guide, revised November 2016, is incorporated by reference, as published by the Federal Trade Commission, and can be obtained from the Federal Trade Commission at www.ftc.gov/business-guidance/resources/buyers-guide or the Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65109. These forms do not include any amendments or additions since the revision date noted.

Amended: Filed Nov. 9, 2023, effective May 30, 2024. *Original authority: 301.550, RSMo 1988, amended 1993, 1997, 2002, 2007, 2017, 2018, 2021, and 301.580, RSMo 2012, amended 2014.

History

AUTHORITY: section 301.550, RSMo Supp. 2023, and section Denny Hoskins (1/29/26) 301.580, RSMo 2016. Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed Oct. 25, 2018, effective May 30, 2019.

12 CSR 10-26.090 Regulation of Off-Premises Shows and Tent Sales {#sec-12-csr-10-26.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.090}

PURPOSE: This rule specifies the requirements a motor vehicle dealer must meet in order to participate in a show or sale conducted away from their bona fide established place of business as provided in section 301.566, RSMo.

(1) For purposes of this rule, dealers shall be divided into classes, as provided in section 301.550.3, RSMo, as follows:

(A) Classic motor vehicle dealer—A dealer of motor vehicles at least five (5) years of age that were produced in limited numbers or otherwise have special value unrelated to basic transportation, excluding recreational motor vehicles, historic motor vehicles, motorcycles, motortricycles and all terrain vehicles;

(B) Franchised new motor vehicle dealer—A dealer of new motor vehicles, excluding recreational motor vehicles, motorcycles, motortricycles and all terrain vehicles, and of used motor vehicles for sale. The term “franchised new motor vehicle dealer” is not synonymous with the term “new motor vehicle franchise dealer” as defined in section 301.550.1, RSMo.

It is a narrower term that excludes dealers of recreational motor vehicles, motorcycles, motortricycles and all terrain vehicles;

(C) Historic motor vehicle dealer—A dealer of motor vehicles that are at least twenty-five (25) years old, excluding recreational motor vehicles, classic motor vehicles, motorcycles and motortricycles;

(D) Powersport dealer—A dealer who sells, either pursuant to a franchise agreement or otherwise, primarily motor vehicles including but not limited to motorcycles, all-terrain vehicles and personal watercraft as those terms are defined in Chapters 301 and 306, RSMo;

(E) Recreational motor vehicle dealer—A dealer of new or used motor vehicles designed, constructed or substantially modified for use as temporary housing quarters, including sleeping and eating facilities which are either permanently attached to the motor vehicle or attached to a unit which is securely attached to the motor vehicle;

(F) Used motor vehicle dealer—A dealer of used motor vehicles, provided that the majority of units sold are not motorcycles, motortricycles, personal watercraft or recreational motor vehicles. The term “used motor vehicle dealer” as used in section 301.550.3, RSMo is not synonymous with the term as used in section 301.550.1, RSMo. As used in this rule, the term is a narrower term that excludes dealers of historic motor vehicles, classic motor vehicles and wholesale motor vehicles;

(G) Wholesale motor vehicle dealer—A dealer of motor vehicles only to new motor vehicle franchised dealers or other used motor vehicle dealers or via auctions limited to other dealers of any class.

(2) For the purpose of determining pursuant to section 301.566.1, RSMo, whether a majority of the motor vehicle dealers within a class of dealers in a city or town participate or are invited and have the opportunity to participate in an off-premises show or sale, any dealers whose official mailing address is in the city or town shall be included.

(3) If motor vehicle dealers from more than one city or town are to participate in the same off-premises show or sale, a majority of the dealers in each such city or town must participate or be invited and have the opportunity to participate.

(4) Show, as used in section 301.566, RSMo, shall be deemed to include the stationary display of all or any part of a motor vehicle dealer’s inventory at any location other than the dealer’s usual, bona fide established place of business, regardless of whether sales agents or other dealership employees or owners are present to promote the sale of or to sell the displayed vehicle(s) or to otherwise transact business concerning the dealership, except:

(A) Promotions or contests, conducted by a person or business who is not a licensed motor vehicle dealer, which involve the stationary display of a dealer’s motor vehicle as a means of attracting attention to and participation in the promoter’s event, service or product. The dealer providing the motor vehicle must remove all items identifying the dealership from the motor vehicle prior to its display, with the exception of such information as may be required by federal or state law to be displayed on the vehicle. The promoter, not the dealer, may identify the dealer only by means of a notation on its promotional material stating “vehicle provided courtesy of (name of dealer)” or similar language;

(B) The display of motor vehicles at meetings of organizations which are open only to members of the organization and not to the general public;

(D) Parades in which one (1) or more local dealerships provide motor vehicles from their inventory to be driven as

part of the parade.

(5) Trailers and vessels, including personal watercraft, are excluded from the provisions of this rule.

History

AUTHORITY: sections 301.553 and 301.566, RSMo 2000 and 301.550, RSMo Supp. 2002. Original rule filed Nov. 1, 1999, effective May 30, 2000. Amended: Filed Aug. 23, 2002, effective Feb. 28, 2003. Original authority: 301.550, RSMo 1988, amended 1993, 1997, 2002; 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997; and 301.566, RSMo 1988, amended 1993, 1996, 1997.

12 CSR 10-26.100 Advertising Regulation {#sec-12-csr-10-26.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.100}

(Rescinded June 30, 2003)

Original rule filed Nov. 1, 1999, effective May 30, 2000. Rescinded:

Filed Dec. 16, 2002, effective June 30, 2003.

History

AUTHORITY: sections 301.553 and 301.562, RSMo Supp. 1998.

12 CSR 10-26.110 Antique Motor Vehicle {#sec-12-csr-10-26.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.110}

PURPOSE: This rule defines “antique motor vehicle” as that term is used in section 301.570.1, RSMo.

(1) “Antique motor vehicle” means any motor vehicle at least twenty-five (25) years of age.

(1/29/26) Denny Hoskins *Original authority: 301.550, RSMo 1988, amended 1993, 1997; 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997.

History

AUTHORITY: sections 301.550.3 and 301.553, RSMo Supp. 1998. Original rule filed Nov. 1, 1999, effective May 30, 2000.

12 CSR 10-26.120 Procedures for Filing Complaints with the Director of Revenue {#sec-12-csr-10-26.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.120}

(Rescinded February 28, 2026)

Amended: Filed Aug. 27, 2003, effective Feb. 29, 2004. Rescinded:

Filed Aug. 18, 2025, effective Feb. 28, 2026.

History

AUTHORITY: sections 301.114, 301.218, 301.553, and 301.557, RSMo 2000. Original rule filed Nov. 1, 1999, effective May 30, 2000.

12 CSR 10-26.130 Review of License Denial or Disciplinary Action {#sec-12-csr-10-26.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.130}

Original rule filed Nov. 1, 1999, effective May 30, 2000. Rescinded:

Filed Sept. 16, 2004, effective March 30, 2005.

History

AUTHORITY: sections 301.553 and 301.562, RSMo Supp. 1998.

12 CSR 10-26.140 Hearing Procedures Nov. 1, 1999, effective May 30, 2000. Rescinded: Filed Sept. 16, {#sec-12-csr-10-26.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.140}

12 CSR 10-26.150 Designated Hearing Officer Nov. 1, 1999, effective May 30, 2000. Rescinded: Filed Sept. 16, {#sec-12-csr-10-26.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.150}

12 CSR 10-26.160 Waiver of Hearing Nov. 1, 1999, effective May 30, 2000. Rescinded: Filed Sept. 16, {#sec-12-csr-10-26.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.160}

12 CSR 10-26.170 Prehearing Conferences and Stipulations Nov. 1, 1999, effective May 30, 2000. Rescinded: Filed Sept. 16, {#sec-12-csr-10-26.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.170}

12 CSR 10-26.180 Temporary Permits Sold by a Registered Missouri Motor Vehicle Dealer {#sec-12-csr-10-26.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.180}

PURPOSE: This rule clarifies the sale by registered Missouri motor vehicle dealers of temporary permits to operate motor vehicles and trailers on the streets and highways of Missouri.

(1) A registered dealer may provide no more than one (1) temporary permit per motor vehicle or trailer sold by his/her dealership. The temporary permits shall be effective for the number of days provided by law and shall be nonrenewable.

No dealer shall sell a permit for use on any motor vehicle or trailer other than a motor vehicle or trailer sold by the dealer or his/her authorized employees at the dealer’s own certified place of business except that a franchised motor vehicle dealer may issue a temporary permit for use on a motor vehicle the dealer delivers to a purchaser pursuant to a courtesy delivery arrangement made with another franchised dealer or manufacturer.

(2) The sale of all temporary permits, except those permits issued pursuant to a courtesy delivery arrangement, shall be recorded in the appropriate space on the dealer’s monthly sales report by notation of the true, accurate and complete permit number next to the corresponding motor vehicle or trailer sale listed.

(3) A registered dealer may charge no more than the fee prescribed by law for each temporary permit as specified in

section 301.140.4, RSMo.

(4) Upon each sale of a temporary permit, each dealer shall fully complete all information on the temporary permit in accordance with Department of Revenue instructions. If the permit is issued pursuant to a courtesy delivery arrangement, the dealer issuing the permit must record the words courtesy delivery on the corresponding permit. The information listed shall be true, accurate, and complete. Temporary permits that are spoiled shall be marked void and kept as a part of the dealership’s records. Temporary permit records shall be maintained for a period of at least five (5) years for inspection by law enforcement or Department of Revenue officials.

(5) The Department of Revenue shall use reasonable diligence to ascertain whether the number of temporary permits requested by any dealer is reasonably proportionate to the number of motor vehicle and trailer sales previously reported by the dealer on his/her monthly sales reports. In cases of discrepancy, the department may reduce the number of temporary permits provided to a dealer or refuse a request for temporary permits based upon its findings.

(6) No temporary permit shall be issued for use on a motor vehicle unless there is a valid certificate of inspection and approval for the particular motor vehicle in accordance with

section 307.380, RSMo. Dealers shall enter the true, accurate and complete motor vehicle inspection certificate number on the temporary permit record. No temporary permit shall be issued when the ownership document is a salvage certificate of title.

(7) Upon a finding that a dealer has failed to comply with any of the provisions of this rule, the department may reduce the number of temporary permits issued to a dealer or refuse a dealer’s request for temporary permits.

Original rule filed Oct. 1, 1985, effective Dec. 26, 1985. Amended:

Filed Nov. 13, 1986, effective Feb. 28, 1987. Amended: Filed Nov. 17, 1987, effective April 11, 1988. Emergency amendment filed Oct. 26, 1990, effective Nov. 5, 1990, expired March 4, 1991. Amended: Filed July 2, 1990, effective Dec. 31, 1990. Amended and moved: Filed May 14, 2003, effective Nov. 30, 2003. Amended: Filed Oct. 25, 2018, effective May 30, 2019. *Original authority: 301.140, RSMo 1939, amended 1947, 1951, 1978, 1979, 1986, 1987 Denny Hoskins (1/29/26) and 307.380, RSMo 1967, amended 1981.

History

AUTHORITY: section 307.380, RSMo 2016, and section 301.140, RSMo Supp. 2018. This rule previously filed as 12 CSR 10-23.190.

12 CSR 10-26.190 Dealers’ Monthly Reports {#sec-12-csr-10-26.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.190}

PURPOSE: The director of the Department of Revenue is responsible for receiving dealers’ monthly sales reports and secure power of attorney forms. This rule establishes time limits and guidelines concerning the submission of those reports and forms.

(1) Every motor vehicle and boat dealer must file a monthly sales report on a form prescribed by the director of revenue in accordance with section 301.280, RSMo. This report shall be completed in full and received by the Department of Revenue on or before the fifteenth day of the month following the month for which the sales are being reported. (Example: Sales occurring during the month of July must be filed on or before August 15.)

(A) If any due date for filing the report falls on a Saturday, Sunday, or legal holiday in this state, the report shall be considered timely if it is filed on the next day which is not a Saturday, Sunday, or legal holiday.

(2) Every motor vehicle and boat dealer filing sales reports electronically in accordance with section 301.280, RSMo shall continue to file reports electronically even when monthly sale amounts do not meet the minimum amounts required to file electronically.

(3) No motor vehicle or boat dealer, agent or representative shall willfully or knowingly make a false statement in any monthly sales report required by section 301.280, RSMo and this rule; nor shall the agent or representative omit any information requested or fail to report any sale made by the dealership.

(4) Every motor vehicle and boat dealer shall retain copies of the sales reports and shall hold them available for inspection by appropriate law enforcement officials, and officials of the Department of Revenue.

(5) Every motor vehicle dealer shall submit a copy of the secure power of attorney form in which the dealer is listed as purchaser and a copy of the corresponding certificate of title with the dealer’s monthly sales reports as provided in 12 CSR 10-23.420.

Amended: Filed March 26, 1982, effective July 12, 1982. Amended:

Filed Sept. 3, 1985, effective Jan. 26, 1986. Amended: Filed May 27, 1986, effective Aug. 25, 1986. Amended: Filed March 25, 1991, effective Aug. 30, 1991. Amended and moved: Filed June 24, 2003, effective Dec. 30, 2003. Amended: Filed Oct. 25, 2018, effective May 30, 2019. *Original authority 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996; 301.280, RSMo 1939, amended 1974, 1983, 1984, 1986, 1988, 1990, 1993, 1997; and 301.560, RSMo 1988, amended 1989, 1993, 1995, 1997, 2002.

History

AUTHORITY: sections 32.057 and 301.280, RSMo 2016, and section 301.560, RSMo Supp. 2018. This rule previously filed as 12 CSR 10- 23.050. Original rule filed April 14, 1980, effective Sept. 12, 1980.

12 CSR 10-26.200 Out-of-State Dealer Request to Participate in Missouri Recreational Vehicle Show or Exhibit {#sec-12-csr-10-26.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.200}

(Rescinded November 30, 2018)

Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

History

AUTHORITY: sections 301.553, RSMo 2000 and 301.566, RSMo Supp. 2007. Original rule filed Aug. 8, 2007, effective Feb. 29, 2008.

12 CSR 10-26.210 Dealer Seminar Certification Requirements {#sec-12-csr-10-26.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.210}

PURPOSE: Section 301.560, RSMo, requires applicants who apply for a used motor vehicle dealer license to complete a departmentapproved educational seminar course before their applications for license are approved. This rule clarifies what constitutes an “approved educational seminar” for licensing purposes and the requirements for seminar providers.

(1) An initial application for a used motor vehicle dealer’s license must be accompanied by proof that the applicant has completed an educational seminar course approved by the department within the last twelve (12) months.

(2) A seminar provider must be a recognized business or school with a lawful presence in the state of Missouri and with demonstrable experience in providing professional education, including consumer protection laws, to used motor vehicle dealers. Tangible evidence must be provided that these requirements are met. The provider must submit an application form provided by the director to be certified by the department.

(3) The Dealer Educational Seminar Certificate issued by the department is valid for one (1) year as noted on the certificate.

(4) A seminar provider must have— (A) A minimum of two (2) instructors meeting departmental requirements with the knowledge and capability to conduct the required seminar curriculum. A list of certified instructors must be provided to the director;

(B) Staff capable of providing information about the seminars and registering prospective attendees;

(C) An available telephone number, fax line, and Internet access available during normal working hours (Monday through Friday) to enable potential attendees to inquire about and register for seminars;

(D) A minimum of one (1) scheduled seminar per month, which must be posted on the provider’s website at least thirty (30) days in advance. The seminar schedule and locations must be publicized by the provider with registration information and necessary forms obtainable through the provider’s website.

If a scheduled seminar has no registered attendees and the provider opts to cancel, notification must be posted clearly on the provider’s website at least forty-eight (48) hours prior to the seminar’s scheduled start time.
If advanced cancellation notice is not posted as indicated above, a certified instructor must be at the seminar’s scheduled location at the scheduled time;

(E) Capability to issue each attendee a certificate of completion at the end of each seminar; and (F) An accurate and current electronic database of seminar attendees, maintained by the provider for a minimum of one (1) year. The provider must confirm all seminar attendees’ identity through display of a non-expired federal or state-issued photo identification card, with the capability to electronically transmit attendee information to the department as required.

These records must be available on demand and are subject to audit by the director without prior notice.

(1/29/26) Denny Hoskins (5) Dealer educational seminar curriculum must be presented in a room in a non-residential building that is dedicated solely to the seminar for the duration of the seminar and compliant with the Americans with Disabilities Act of 1990, 42 U.S.C. section 12101 et seq., as amended. The curriculum must include a minimum of four (4) hours of instruction and provide detailed training regarding compliance with— (A) Sections 301.550 to 301.573, RSMo, and all rules promulgated by the department to implement, enforce, and administer these statutes;

(B) Federal Trade Commission’s Used Car Rule;

(D) Truth-in-Lending requirements;

(E) Equal Credit Opportunity Act;

(F) The United States of America Patriot Act;

(G) Federal and state laws and regulations regarding deceptive and unfair trade practices;

(H) Uniform Commercial Code regulations;

(I) U. S. Treasury Department rules and cash reporting requirements; and (J) Any other federal or state laws regulating the business of selling and financing motor vehicles.

(6) A seminar provider must certify to the director and, upon request, provide evidence to establish that its instructors have, at a minimum, the experience outlined in one (1) of the following minimum qualification requirements— (A) Two (2) years of experience in the motor vehicle dealer industry with expertise in the areas specified in section (5) of this rule;

(B) One (1) year in an appropriate position with a professional organization associated with the automobile dealer business (e.g., Missouri Automobile Dealers Association, Inc. instructor or Missouri Independent Automobile Dealers Association policy writer); or (C) One (1) year of experience as an investigator dealing with state and federal motor vehicle dealer compliance laws.

(7) Seminar providers must ensure that their seminar instructors— (A) Utilize training materials when conducting the seminar;

(B) Incorporate course curriculum into reference/resource manuals to be distributed to attendees and provide periodic updates to ensure current and accurate information applicable to dealer’s operations;

(C) Provide instruction using computerized slide presentations and provide work-sheets/handouts to each attendee, including compliant sample forms required by state and federal law; and (D) Make available to the director, upon request, copies of all training materials (manuals, handouts, presentations, etc.) for review.

(8) The director may revoke or refuse to issue or renew a certification of a provider for conducting a seminar not in compliance with this rule, for failing to hold a scheduled seminar, or for any one (1) or any combination of the following causes— (A) The applicant or seminar provider or its seminar instructor was previously the holder of a license issued under sections 301.550 to 301.573, RSMo, which license was revoked for cause and never reissued by the department, or which license was suspended for cause and the terms of suspension have not been fulfilled;

(B) The applicant or seminar provider or its seminar instructor was previously a partner, stockholder, director, or officer controlling or managing a partnership or corporation whose license issued under sections 301.550 to 301.573, RSMo, was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled;

(C) The applicant or seminar provider or its seminar instructor has, within ten (10) years prior to the date of the application, been finally adjudicated and found guilty, or entered a plea of guilty or nolo contendere, in a prosecution under the laws of any state or of the United States for any offense reasonably related to the qualifications, functions, or duties of any business licensed under sections 301.550 to 301.573, RSMo; for any offense, an essential element of which is fraud, dishonesty, or an act of violence; or for any offense involving moral turpitude, whether or not sentence is imposed;

(D) Use of fraud, deception, misrepresentation, or bribery by the applicant or seminar provider or its seminar instructor in securing any certificate issued pursuant to section 301.560.9, RSMo;

(E) The applicant’s or seminar provider’s or its seminar instructor’s obtaining or attempting to obtain any money, commission, fee, barter, exchange, or other compensation by fraud, deception, or misrepresentation;

(F) The applicant’s or seminar provider’s or its seminar instructor’s violation of, or assisting or enabling any person to violate any provisions of Chapters 301, 306, 307, 407, 578, and 643, RSMo, or of any lawful rule or regulation adopted pursuant to Chapters 301, 306, 307, 407, 578, and 643, RSMo;

(G) The applicant or seminar provider or its seminar instructor has filed an application for certification which, as of its effective date, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact;

(H) The applicant or seminar provider or its seminar instructor has failed to pay the proper application or license fee or other fees required pursuant to Chapter 301 or 306, RSMo, or fails to establish or maintain a bona fide place of business as required by law;

(I) The applicant or seminar provider or its seminar instructor is finally adjudged insane or incompetent by a court of competent jurisdiction;

(J) The applicant’s or seminar provider’s or its seminar instructor’s use of any advertisement or solicitation which is false; or (K) The applicant’s or seminar provider’s or its seminar instructor’s violations of sections 407.511 to 407.556, RSMo, or section 578.120, RSMo, which resulted in a conviction or finding of guilt or violation of any federal motor vehicle laws which result in a conviction or finding of guilt.

(9) The decision to revoke or refuse to issue or renew a certification of a provider is the final decision of the director.

(10) Seminar providers must apply to the department for recertification by September 1 of each year.

(11) Failure to hold scheduled or rescheduled seminars or maintain acceptable standards of training or providing false information to the director will result in the provider’s certification becoming invalid upon notice by the director.

History

AUTHORITY: section 301.553, RSMo 2000, and sections 301.560 to 301.573, RSMo 2000 and Supp. 2011. Original rule filed May 15, 2008, effective Dec. 30, 2008. Amended: Filed Feb. 1, 2012, effective July 30, 2012. Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997 and 301.560–301.573, see Missouri Revised Statutes. Pursuant to Executive Orders 20-04, 20-10, and 20-12, 12 CSR 10-26.210, section (1) and subsection 10 of section 301.560, RSMo was suspended from May 1, 2020 through July 15, 2020.

12 CSR 10-26.220 Dealer Disciplinary Hearings {#sec-12-csr-10-26.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.220}

PURPOSE: The department must provide an opportunity for a hearing on the issue of the discipline to be imposed against a license upon a finding by the Administrative Hearing Commission that grounds exist to discipline that license. This rule establishes the procedure for scheduling and conducting that hearing.

(1) As used in this rule the following terms mean— (A) The term “dealer” as used in this rule shall include the classes of dealers set forth in section 301.550.3, RSMo.

(B) The term “department” as used in this rule shall mean the Missouri Department of Revenue.

(2) Within thirty (30) days of the receipt of the certification of the Administrative Hearing Commission’s record, findings of fact, conclusions of law, and transcript finding that cause exists to discipline a dealer’s license, the director shall set the matter for hearing and notify the dealer of the time and place of the (3) The notice will be given by U.S. mail, first class, postage prepaid to the dealer’s business address or the registered agent, if applicable, or to the dealer’s attorney, and to the dealer at the dealer’s address as shown on the dealer license application, together with the sanction, if any, recommended by the Motor Vehicle Bureau of the department.

(4) The hearing will be held in Jefferson City, Missouri. A hearing officer designated by the director shall conduct the (5) The sole issue at the hearing shall be the appropriate disciplinary sanction to be imposed.

(6) The provisions of Chapter 536, RSMo shall apply to the (7) Each party shall be allowed one (1) continuance; any further continuance shall only be for good cause shown. Requests for continuance shall be in writing signed by the party requesting the continuance or that party’s attorney. Requests for continuance must be filed not later than ten (10) days prior to the scheduled hearing date.

(8) Each party shall be allowed to submit one (1) brief to the hearing officer within thirty (30) days of the date of the hearing. No rebuttal or reply briefs are permitted.

(9) The hearing officer shall make findings of fact, conclusions of law, and recommendations as to any sanctions to be imposed.

(10) Nothing contained herein shall prevent the dealer waiving his right to a hearing and accepting the sanction, if any, recommended by the Motor Vehicle Bureau of the department or otherwise mutually agreeing to a sanction with the department. Any waiver of the hearing and agreement as to the sanction must be in writing, signed by both parties, and transmitted to the hearing officer prior to the date of the hearing for final approval.

(11) The director may accept, reject, or modify the hearing officer’s recommendations, or impose any other sanction permitted by section 301.562, RSMo, including refusing to renew the dealer’s license, as the director deems appropriate in the circumstances.

(12) The decision of the director shall become final on the date of mailing of that decision to the parties.

History

AUTHORITY: section 301.553.4, RSMo 2000. Original rule filed July 1, 2008, effective Dec. 30, 2008. Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997.

12 CSR 10-26.221 Good Moral Character of Motor Vehicle Dealers, Manufacturers, Boat Dealers, Salvage Dealers, and Title Service Agents {#sec-12-csr-10-26.221 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.221}

PURPOSE: The director of the Department of Revenue is charged with the responsibility of determining that applicants for registration as motor vehicle dealers, salvage dealers, and title service agents are of good moral character. This rule establishes the guidelines which will be used to determine if the applicant is eligible for registration.

(1) Except with a showing of evidence to the contrary, the following will be considered prima facie evidence on which the registration of a motor vehicle dealer, manufacturer, boat dealer, salvage dealer, or title service agent will be denied because of lack of good moral character if the applicant— (A) Has ever been convicted in any federal or state court of a felony relating to the acquisition or transfer of motor vehicles, trailers, motor vehicle parts, or boats;

(B) Within five (5) years preceding the application, has been convicted in any federal or state court of a felony, within the last three (3) years, or has been convicted in any federal or state court of a misdemeanor relating to the acquisition of or transfer of motor vehicles, trailers, motor vehicle parts, or boats; and (C) Within three (3) years preceding the application, has been convicted in any federal or state court of a misdemeanor, or has shown contempt of laws in civil or administrative proceedings; or has had a motor vehicle dealer registration, manufacturer registration, boat dealer registration, salvage dealer registration, or title service agent registration revoked in this or another state and has demonstrated through conduct since the date of the occurrence that no substantial improvement in character or reliability has occurred. A determination by the director of revenue that conduct subsequent to the occurrence in question demonstrated a failure to improve character or reliability will be made only following a notice to the applicant and a subsequent hearing before the director of revenue or their representative.

(2) Any dealer or applicant who receives notice of denial or revocation and desires to contest the prima facie of the fact(s)

(7/31/26) Denny Hoskins recited in subsection (1)(A) or (B) may request a hearing for the

purpose of showing substantial rehabilitation or improvement in character sufficient to rebut the presumption created by the cited subsections. Request for a hearing should be submitted to Attn: Division Director by mail at Division of Motor Vehicle and Driver Licensing, PO Box 629, Jefferson City, MO 65105, by fax at (573) 522-4197, or by email at dealerlic@dor.mo.gov.

Amended: Filed May 15, 2023, effective Dec. 30, 2023. Moved to 12 CSR 10-26.221 and amended: Filed Jan. 9, 2024, effective Aug. 30, 2024. *Original authority: 301.114, RSMo 1984; 301.221, RSMo 1979, amended 1986, 2004, 2007; 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997, 2018; and 301.559, RSMo 1988, amended 1993, 1997, 2012, 2016, 2018.

History

AUTHORITY: sections 301.114 and 301.221, RSMo 2016, and sections 301.553 and 301.559, RSMo Supp. 2023. This rule was originally filed as 12 CSR 10-23.160. Original rule filed Oct. 15, 1984, effective Feb. 11, 1985. Amended: Filed June 4, 1986, effective Aug. 25, 1986.

12 CSR 10-26.230 Dealer Administrative Fees and System Modernization {#sec-12-csr-10-26.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.230}

PURPOSE: Section 301.558, RSMo, requires motor vehicle dealers collecting administrative fees to remit ten percent (10%) of those fees to the Motor Vehicle Administration Technology Fund for the development of a modernized, integrated system for the Department of Revenue. This rule clarifies the process for declaring whether an administrative fee is charged and, if so, the amount, the process for remitting payment and reporting sales, disciplinary action that may occur for failure to timely remit payment, and provides other guidelines for modernization efforts.

(1) Beginning December 1, 2021, all motor vehicle dealers, boat dealers, trailer dealers, and powersport dealers licensed pursuant to sections 301.550 to 301.580, RSMo (“licensees”), who charge an administrative fee as allowed under section 301.558, RSMo, must remit funds equaling ten percent (10%) of all administrative fees collected to the Motor Vehicle Administration Technology Fund (the “fund”) for the implementation of the modernized, integrated system described in section 301.558, RSMo. If an administrative fee is charged but is later refunded or credited back to the purchaser of a vehicle or vessel, no credit or refund will be permitted on any fees remitted to the fund.

(A) Beginning on January 20, 2022, for motor vehicle, boat, trailer, and powersport sales in December 2021, and on or about the 20th of each month thereafter for sales occurring the month prior, an electronic notification will be generated and issued to each licensee which charges an administrative fee in compliance with section 301.558, RSMo. The electronic notification will indicate the amount due and payable to the fund, and the licensee must authorize the Department of Revenue to initiate an automated clearing house (ACH) transaction with the licensee’s financial institution to credit/ debit the amount due and payable to the fund. The amount due and payable will be ten percent (10%) of each administrative fee charged by the licensee based upon the total number of sales reported in the previous month, as well as any additional or amended sales in prior monthly sales reports, less any sales exempted pursuant to section 301.558, RSMo.

Any licensee charging administrative fees must provide the following information to the Department of Revenue:

A. Name of the bank or other financial institution;

B. Banking or other financial institution account number;

C. Banking or other financial institution routing number;

D. Whether or not the account is a checking or savings account;

E. Signature of an authorized person on the bank or other financial institution account; and F. Any other information necessary to complete the monthly ACH transaction.

(2) Effective January 1, 2022, all licensees will be required to apply for licensure or license renewal through the Department of Revenue’s electronic online business licensing portal.

(3) Effective January 1, 2022, as part of an initial application for licensure or a licensee’s renewal application for licensure, any applicant or licensee must declare whether it intends to collect an administrative fee under section 301.558, RSMo, and if so, at what dollar amount that fee will be established. The applicant or licensee must charge the declared administrative fee to all retail customers for the entire licensure period on all sales not exempted pursuant to section 301.558, RSMo. In addition, all applicants desiring to collect an administrative fee and renewal licensees must provide the information required by paragraph (1)(A)1. above.

(A) Licensees shall be authorized to charge an administrative fee of up to five hundred dollars ($500), and the maximum fee permitted to be charged shall be increased annually as described in section 301.558, RSMo. The director of the Department of Revenue shall base any maximum fee increase identified on an annual review of the prior calendar year, and shall furnish the maximum annual fee determined to the secretary of state on January 15 of each year, or as soon as is practicable thereafter.

(B) The table outlined in 12 CSR 10-26.231 provides calendar year adjustments to the administrative fee in accordance with

section 301.558, RSMo.

All licensees may adjust their dealer administrative fee one (1) time per calendar year. Licensees who choose to adjust their dealer administrative fee must declare through their online account portal no later than April 30.

(C) Franchised new motor vehicle dealers limited by a franchise agreement, or documents incorporated by the franchise agreement, may exempt certain classes of customers clearly identified in the franchise agreement or incorporated documents from being required to charge the declared administrative fee. New motor vehicle dealers seeking licensure or renewal shall indicate whether any classes of customers are exempted under the terms of its franchise agreement or incorporated documents and must report any exempted sales in its monthly electronic sales reporting required by section 301.280, RSMo, and this rule.

The licensee must maintain monthly documentation in a table or worksheet of all sales which are exempted and include in the table or worksheet the purchaser’s name, date of sale, class of customer, as well as the year, make, and Vehicle Identification Number (VIN) of the purchased vehicle.
The required documentation must be provided to the Department of Revenue upon a request to inspect such documentation, and the documentation must be maintained for a minimum of three (3) years after the year in which the sale occurred.
Upon implementation of updates to the electronic dealer sales reporting system incorporating a means to report exempted sales, the department may notify licensees that they no longer need to meet the requirements of paragraphs (3)(C)1.- 2. above.

(4) Any licensee who fails to meet its obligation relating to section 301.558, RSMo, or this rule shall be subject to disciplinary action for violation of section 301.562, including but not limited to suspension, revocation, non-renewal of the licensee’s license to operate a motor vehicle dealership; and revocation of the ability to issue temporary registrations upon the sale of vehicles. If appropriate, the Department of Revenue may enter into a settlement with the licensee consistent with

section 501.562, RSMo, to resolve a disciplinary action arising under this provision. Any such settlement will only be entered into upon full payment of monies owed and payable to the fund, and any other amounts assessed as a result of disciplinary action shall be separate and distinct from monies owed to the fund. An employee with the Department of Revenue, as well as any other duly authorized law enforcement agency, may audit any licensee in similar manner and scope as is allowed under section 301.564, RSMo, to ensure compliance with the requirements of section 301.558, RSMo, and this rule.

(5) To ensure the timely remittance of all dealer fees required to be paid pursuant to sections 301.550 to 301.580, RSMo, all sales required to be reported pursuant to section 301.280, RSMo, must be filed electronically with the Department of Revenue for the 2022 licensure year and every year thereafter. However, any dealer which has been previously licensed prior to January 1, 2022, and who is not charging an administrative fee may choose to file sales reports electronically or by paper process until the next license renewal.

Emergency amendment filed Feb. 4, 2026, effective Feb. 20, 2026, expired Aug. 18, 2026. Amended: Filed Feb. 4, 2026, effective Aug. 30, 2026. *Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997, 2018, and 301.558, RSMo 2009, amended 2021, 2025.

History

AUTHORITY: sections 301.553 and 301.558, RSMo Supp. 2025. Emergency rule filed Aug. 19, 2021, effective Sept. 2, 2021, expired Feb. 28, 2022. Original rule filed Aug. 19, 2021, effective Feb. 28, 2022. Amended: Filed Feb. 1, 2023, effective Aug. 30, 2023.

12 CSR 10-26.231 Maximum Dealer Administrative Fees {#sec-12-csr-10-26.231 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-26.231}

PURPOSE: Section 301.558, RSMo, requires that the maximum administrative fee collected by motor vehicle dealers, boat dealers, trailer dealers, and powersport dealers licensed pursuant to sections 301.550 to 301.580, RSMo, be increased annually by an amount equal to the percentage change in the annual average of the Consumer Price Index for All Urban Consumers, or its successor index. This rule will annually establish what, if any, maximum administrative fee may be collected by licensees.

(1) As required by section 301.558(4), RSMo, the values in the table below are the yearly maximum administrative fees which may be collected by motor vehicle dealers, boat dealers, trailer dealers, and powersport dealers licensed pursuant to sections 301.550 to 301.580, RSMo, and as published in the Missouri Register as soon as practicable after January 14 of each year.

Maximum Fee (Year)

CPIAUC

Increase New Maximum Fee Effective Licensure Year $500 (2021)4.7%$523.502022 $523.50 (2022)8.0%$565.382023 $565.38 (2023)3.9%$587.432024 $587.43 (2024)2.9%$604.472025 $604.47 (2025)2.7%$620.792026 (2) For all calendar years starting January 1, 2026, or after, the director of revenue shall compute the annual maximum administrative fee and shall post the rate as soon as practicable after January 14 of each year on the dealers and lienholders page of the department’s website at https://dor.mo.gov/motorvehicle/dealers-lienholders/ to comply with the provisions of

section 301.558, RSMo. The new fee will be effective February 1 each year.

History

AUTHORITY: sections 301.553 and 301.558, RSMo Supp. 2025. Original rule filed Feb. 21, 2022, effective Aug. 30, 2022. Emergency amendment filed Jan. 30, 2023, effective Feb. 14, 2023, expired Aug. 12, 2023. Amended: Filed Jan. 30, 2023, effective Aug. 30, 2023. Emergency amendment filed Feb. 7, 2024, effective Feb. 23, 2024, expired Aug. 20, 2024. Amended: Filed Feb. 7, 2024, effective Sept. 30, 2024. Emergency amendment filed Feb. 3, 2025, effective Feb. 19, 2025, expired Aug. 17, 2025. Amended: Filed Feb. 3, 2025, effective July 30, 2025. Emergency amendment filed Feb. 4, 2026, effective Feb. 20, 2026, expired Aug. 18, 2026. Amended: Filed Feb. 4, 2026, effective Aug. 30, 2026. Original authority: 301.553, RSMo 1988, amended 1989, 1993, 1995, 1997, 2018, and 301.558, RSMo 2009, amended 2021, 2025.

Chapter 39 Collections for State Hospitals and Institutions

12 CSR 10-39.010 Statements of Account {#sec-12-csr-10-39.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-39.010}

(Rescinded March 30, 2024)

History

AUTHORITY: section 31.040, RSMo 1986. Rule filed Dec. 31, 1975, effective Jan. 10, 1976. Rescinded: Filed July 31, 2023, effective March 30, 2024.

Chapter 40 Motorcycle Helmet Standards

12 CSR 10-40.010 Standards Governing Motorcycle Helmet Construction {#sec-12-csr-10-40.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-40.010}

(Moved to 12 CSR 10-24.420)

MATTBLUNT(5/31/01)

Chapter 41 General Tax Provisions

12 CSR 10-41.020 Disclosure of Information, Returns, Reports, or Facts Shown {#sec-12-csr-10-41.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-41.020}

12 CSR 10-41.025 Disclosure of Confidential Taxpaper Information to Officers, Members, {#sec-12-csr-10-41.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-41.025}

12 CSR 10-41.010 Annual Adjusted Rate of Interest {#sec-12-csr-10-41.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-41.010}

PURPOSE: Under the Annual Adjusted Rate of Interest (section 32.065, RSMo), this rule establishes the annual adjusted rate of interest to be implemented and applied on taxes remaining unpaid.

(1) Pursuant to section 32.065, RSMo, the director of revenue upon official notice of the average predominant prime rate quoted by commercial banks to large businesses, as determined and reported by the Board of Governors of the Federal Reserve System in the Federal Reserve Statistical Release H.15(519) for the month of September of each year, has set by administrative order the annual adjusted rate of interest to be paid on unpaid amounts of taxes during the succeeding calendar year as follows:

Calendar Rate of Interest on Unpaid Year Amounts of Taxes 1995 12% 1996 9% 1997 8% 1998 9% 1999 8% 2000 8% 2001 10% 2002 6% 2003 5% 2004 4% 2005 5% 2006 7% 2007 8% 2008 8% 2009 5% 2010 3% 2011 3% 2012 3% 2013 3% 2014 3% 2015 3% 2016 3% 2017 4% 2018 4% 2019 5% 2020 5% 2021 3% 2022 3% 2023 6% 2024 9% 2025 8% 2026 7% (2) On unpaid amounts of taxes due and owing prior to January 1, 1983, the rate of interest to be paid is the rate as set in the statute regarding that specific tax from the date due to December 31, 1982.

(3) The annual adjusted rate of interest shall be applied on a per diem basis and shall not be compounded.

(4) For all calendar years staring January 1, 2026, or after, the director of revenue shall compute the annual adjusted rate of interest and shall post the rate on or before October 22 of each year on the taxation page of the department’s website at dor.mo.gov/taxation/ to comply with the provisions of section 32.065, RSMo.

Amended: Filed Oct. 13, 1983, effective Jan. 13, 1984. Emergency amendment filed Oct. 19, 1984, effective Oct. 29, 1984, expired Feb. 26, 1985. Amended: Filed Oct. 19, 1984, effective May 11, 1985.

Emergency amendment filed Oct. 24, 1985, effective Nov. 4, 1985, expired April 3, 1986. Amended: Filed Oct. 24, 1985, effective Jan. 26, 1986. Emergency amendment filed Oct. 22, 1986, effective Nov. 1, 1986, expired March 1, 1987. Amended: Filed Oct. 22, 1986, effective Feb. 12, 1987. Emergency amendment filed Oct. 22, 1987, effective Nov. 1, 1987, expired March 1, 1988. Amended: Filed Oct. 22, 1987, effective Feb. 11, 1988. Emergency amendment filed Oct. 21, 1988, effective Oct. 31, 1988, expired Feb. 28, 1989. Amended:

Filed Oct. 21, 1988, effective April 13, 1989. Amended: Filed Aug. 21, 1988, effective April 13, 1989. Emergency amendment filed Oct. 20, 1989, effective Oct. 30, 1989, expired Feb. 27, 1990. Amended:

Filed Oct. 20, 1989, effective Feb. 25, 1990. Emergency amendment filed Oct. 26, 1990, effective Nov. 5, 1990, expired March 4, 1991.

Amended: Filed Oct. 26, 1990, effective March 14, 1991. Emergency amendment filed Sept. 23, 1991, effective Oct. 3, 1991, expired Jan. 30, 1992. Amended: Filed Sept. 23, 1991, effective Feb. 6, 1992.

Emergency amendment filed Oct. 22, 1992, effective Jan. 1, 1993, expired April 30, 1993. Emergency amendment filed April 14, 1993, effective May 1, 1993, expired Aug. 28, 1993. Amended: Filed Oct. 22, 1992, effective May 6, 1993. Emergency amendment filed Nov. 15, 1993, effective Jan. 1, 1994, expired April 30, 1994. Amended:

Filed Nov. 15, 1993, effective June 6, 1994. Emergency amendment filed April 20, 1994, effective May 1, 1994, expired Aug. 28, 1994.

Emergency amendment filed Oct. 31, 1994, effective Jan. 1, 1995, expired April 30, 1995. Amended: Filed Oct. 31, 1994, effective April 30, 1995. Emergency amendment filed Dec. 8, 1995, effective Jan. 1, 1996, expired June 28, 1996. Amended: Filed Dec. 8, 1995, effective June 30, 1996. Amended: Filed May 29, 1996, effective Nov. 30, 1996. Emergency amendment filed Nov. 13, 1996, effective Jan. 1, 1997, expired June 29, 1997. Amended: Filed May 2, 1997, effective Oct. 30, 1997. Amended: Filed Oct. 24, 1997, effective April 30, 1998. Emergency amendment filed Dec. 8, 1998, effective Jan. 1, 1999, expired June 29, 1999. Amended: Filed Dec. 8, 1998, effective June 30, 1999. Emergency amendment filed Nov. 10, 1999, effective Jan. 1, 2000, expired June 28, 2000. Amended: Filed Nov. 10, 1999, effective May 30, 2000. Emergency amendment filed Oct. 31, 2000, effective Jan. 1, 2001, expired June 29, 2001. Amended: Filed Oct. 31, 2000, effective April 30, 2001. Emergency amendment filed Oct. 31, 2001, effective Jan. 1, 2002, expired June 29, 2002.

Amended: Filed Oct. 31, 2001, effective April 30, 2002. Emergency amendment filed Nov. 15, 2002, effective Jan. 1, 2003, expired June 29, 2003. Amended: Filed Nov. 15, 2002, effective April 30, 2003.

Emergency amendment filed Nov. 17, 2003, effective Jan. 1, 2004, expired June 28, 2004. Amended: Filed Nov. 17, 2003, effective May 30, 2004. Emergency amendment filed Nov. 30, 2004, effective Jan. 1, 2005, expired June 29, 2005. Amended: Filed Nov. 30, 2004, effective June 30, 2005. Emergency amendment filed Dec. 21, 2005, effective Jan. 1, 2006, expired June 29, 2006. Amended: Filed Dec. 21, 2005, effective May 30, 2006. Emergency amendment filed Oct. 25, 2006, effective Jan. 1, 2007, expired June 29, 2007.

Amended: Filed Oct. 25, 2006, effective May 30, 2007. Emergency amendment filed Oct. 16, 2007, effective Jan. 1, 2008, expired June 28, 2008. Amended: Filed Oct. 16, 2007, effective April 30, 2008.

(3/31/26) Denny Hoskins Emergency amendment filed Oct. 21, 2008, effective Jan. 1, 2009, expired June 29, 2009. Amended: Filed Oct. 21, 2008, effective May 30, 2009. Emergency amendment filed Oct. 27, 2009, effective Jan. 1, 2010, expired June 29, 2010. Amended: Filed Oct. 27, 2009, effective April 30, 2010. Emergency amendment filed Oct. 22, 2010, effective Jan. 1, 2011, expired June 29, 2011. Amended: Filed Oct. 22, 2010, effective April 30, 2011. Emergency amendment filed Oct. 24, 2011, effective Jan. 1, 2012, expired June 28, 2012. Amended:

Filed Oct. 24, 2011, effective April 30, 2012. Emergency amendment filed Oct. 22, 2012, effective Jan. 1, 2013, expired June 29, 2013.

Amended: Filed Oct. 22, 2012, effective April 30, 2013. Emergency amendment filed Oct. 22, 2013, effective Jan. 1, 2014, expired June 29, 2014. Amended: Filed Oct. 22, 2013, effective April 30, 2014.

Emergency amendment filed Oct. 22, 2014, effective Jan. 1, 2015, expired June 29, 2015. Amended: Filed Oct. 22, 2014, effective April 30, 2015. Emergency amendment filed Oct. 22, 2015, effective Jan. 1, 2016, expired June 28, 2016. Amended: Filed Oct. 22, 2015, effective April 30, 2016. Emergency amendment filed Oct. 21, 2016, effective Jan. 1, 2017, expired June 29, 2017. Amended: Filed Oct. 21, 2016, effective April 30, 2017. Emergency amendment filed Oct. 20, 2017, effective Jan. 1, 2018, expired June 29, 2018. Amended:

Filed Oct. 20, 2017, effective April 30, 2018. Emergency amendment filed Oct. 22, 2018, effective Jan. 1, 2019, expired June 29, 2019.

Amended: Filed Oct. 22, 2018, effective April 30, 2019. Emergency amendment filed Oct. 21, 2019, effective Jan. 1, 2020, expired June 28, 2020. Amended: Filed Oct. 21, 2019, effective April 30, 2020.

Emergency amendment filed Oct. 19, 2020, effective Jan. 1, 2021, expired June 29, 2021. Amended: Filed Oct. 19, 2020, effective May 30, 2021. Emergency amendment filed Oct. 19, 2021, effective Jan. 1, 2022, expired June 29, 2022. Amended: Filed Oct. 15, 2021, effective April 30, 2022. Emergency amendment filed Oct. 21, 2022, effective Jan. 1, 2023, expired June 29, 2023. Amended: Filed Oct. 21, 2022, effective May 30, 2023. Emergency amendment filed Nov. 14, 2023, effective Jan. 1, 2024, expired June 28, 2024. Amended:

Filed Nov. 14, 2023, effective May 30, 2024. Emergency amendment filed Dec. 3, 2024, effective Jan. 1, 2025, expired June 29, 2025.

Amended: Filed Dec. 3, 2024, effective June 30, 2025. Emergency amendment filed Oct. 20, 2025, effective Jan. 1, 2026, expired June 29, 2026. Amended: Filed Oct. 20, 2025, effective April 30, 2026. *Original authority: 32.065, RSMo 1982, amended 1986, 1995.

History

AUTHORITY: section 32.065, RSMo 2016. Emergency rule filed Oct. 13, 1982, effective Oct. 23, 1982, expired Feb. 19, 1983. Original rule filed Nov. 5, 1982, effective Feb. 11, 1983. Emergency amendment filed Oct. 13, 1983, effective Oct. 23, 1983, expired Feb. 20, 1984.

12 CSR 10-41.020 Disclosure of Information, Returns, Reports, or Facts Shown By Them to State and Federal Prosecuting Officials {#sec-12-csr-10-41.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-41.020}

PURPOSE: This rule provides guidance for the disclosure of all tax information, returns, reports, or facts shown by them when requested by state or federal prosecuting officials.

(1) The director of revenue or other designated official of the Missouri Department of Revenue is permitted to disclose all tax information, returns, reports, or facts shown by them to a state or federal prosecuting official, their designees or other persons officially involved in any criminal, quasi-criminal, or civil investigation action or proceeding under the laws of this state or of the United States, if the tax information, returns, reports, or facts shown are pertinent to a criminal, quasi-criminal, or civil investigation involving the enforcement of revenue laws or investigations of public officials.

(2) All requests for tax information, returns, reports, or facts shown by them must be made to the director of revenue.

Requests not directed to the director of revenue will not be honored and will be returned to the party(ies) making the request.

(3) Each request must contain the following information:

(A) Name and title of person making the request;

(B) Description of all tax information, returns, reports, or facts shown by them being requested including the specific taxable years;

(D) A brief description of the entire investigation including the specific revenue laws believed to have been violated or crimes committed by the public official under investigation; and (E) Name of the person or corporation being investigated.

(4) The requesting party must execute a statement swearing that they will not disclose to anyone, without the prior written approval of the director of revenue, the tax information, returns, reports, or facts they received from the director of revenue. The director of revenue’s decision as to the dissemination of any information provided to any person under this rule shall be final and binding upon all persons with knowledge of any tax information, returns, reports, or facts provided by the director of revenue.

History

AUTHORITY: section 32.057, RSMo 2016. Original rule filed Oct. 15, 1985, effective Jan. 26, 1986. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014.

12 CSR 10-41.025 Disclosure of Confidential Taxpayer Information to Officers, Members, Partners, and Employees of a Business {#sec-12-csr-10-41.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-41.025}

PURPOSE: Businesses often communicate with the Missouri Department of Revenue through officers, members, partners, or employees. This rule establishes a simplified process for documenting such persons’ authority to communicate with the department on behalf of a business about confidential tax matters, when a power of attorney is not necessary.

(1) The director of revenue or other designated official of the Missouri Department of Revenue may disclose all tax information relating to a particular taxpayer’s return to an officer, member, partner of the business, or authorized representative related to any period for which the officer, member, partner, or authorized representative is registered with the Department of Revenue.

(2) The director of revenue or other designated official of the Missouri Department of Revenue may disclose all tax information to any employee with job duties that include, but are not limited to, the following:

(A) Responsibility for answering correspondence dealing with state tax matters;

(B) Responsibility for answering verbal requests from a tax

(C) Responsibility for reviewing state tax matters and submitting requested information to a tax authority; or (D) Responsibility for preparing tax documents (but not necessarily responsibility for signing such documents) to be filed with a tax authority.

(3) Before the director of revenue or other designated official of the Missouri Department of Revenue may release any confidential tax information under section (2) of this rule, the business must provide the department a document stating that the employee has the authority to perform any of the above job duties as regular course of work on tax matters and that the information requested is strictly to be used for state tax matters, unless otherwise restricted. The document shall be on company letterhead with the company’s address and phone number and must be signed by an officer, member, or partner of the company, or by the supervisor of the employee.

Alternatively, the document stating the employee’s authority may be an email containing the company’s phone number and physical address, sent to the Missouri Department of Revenue by an officer, member, or partner of the company, or the supervisor of the employee, using an email address with a domain that exactly matches the domain of the company’s website.

(A) If the employee’s authority is limited, the letter or email shall specify the tax periods, tax types, or tax forms that may be released to the employee.

(B) If the employee’s authority shall be for a limited time, the letter or email shall specify the time limitation on the employee’s authority.

(C) If the letter or email does not include any limitation, the director of revenue or other designated official of the Missouri Department of Revenue may disclose all information without limitation until such time as the company revokes or limits the employee’s authority in writing.

(D) If there are any concerns regarding the authenticity or veracity of the letter or email, the Missouri Department of Revenue may require additional evidence or documentation from the company before relying upon such letter or email.

History

authority dealing with state tax matters;
AUTHORITY: section 32.057.2.(1)(a), RSMo 2016. Original rule filed Jan. 15, 2013, effective July 30, 2013. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014.

12 CSR 10-41.030 Power of Attorney {#sec-12-csr-10-41.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-41.030}

PURPOSE: This rule provides guidance as to when a power of attorney is required to be provided by the taxpayer to allow disclosure of confidential Missouri tax information about the taxpayer to the taxpayer’s authorized representative.

(1) The director of revenue or other designated official of the Missouri Department of Revenue is permitted to disclose all tax information, returns, reports, or facts relating to a particular taxpayer’s return to the duly authorized representative of the taxpayer with respect to the tax matter designated by the taxpayer.

(2) Except as otherwise provided by regulation, in order for a third party to qualify as a duly authorized representative, the taxpayer must execute and file with the Department of Revenue a power of attorney designating the third party as taxpayer’s duly authorized representative.

(3) A duly authorized representative may include, but is not limited to, a person currently employed by the taxpayer, a tax return preparer, a certified public accountant, or an attorney.

(4) The power of attorney must be executed as follows:

(A) Individual. In the case of an individual taxpayer, by the individual;

(B) Husband and Wife. In the case of any taxable year for which a combined return was made, by both husband and wife if both are to be represented by the same representative, except that either spouse may sign for the other if the signature is duly authorized in writing by the other spouse. In the case of any taxable year for which a combined return was made, by either the husband or the wife if both are not represented by the same representative; however, the representative cannot perform any act with respect to a combined return year that the spouse represented cannot perform alone;

(C) Partnership. In the case of a partnership, by all members or by one (1) of the partners duly authorized to act for the partnership who shall certify that the partner has authority;

(D) Corporation. In the case of a corporation, by an officer of the corporation having authority to bind the corporation who shall certify that the officer has authority;

(E) Limited Liability Company. In the case of a limited liability company, by all members or by one (1) duly authorized to act for the limited liability company who shall certify that the member has authority;

(F) Association. In the case of an association, the requirements for corporations shall be followed;

(G) Trustee Under Agreement or Declaration. In the case of a taxpayer who has appointed a trustee, by the trustee. If there is more than one (1) trustee appointed, all should join unless it is shown that less than all have authority to act. Department of Revenue officials may require the submission of documentary evidence of the authority of the trustee to act. Evidence may be either a copy of the trust instrument, properly certified, or certified copies of contracts from the trust instruments showing— 1. The date of the instrument;

That it is or is not of record in any court;
The beneficiaries;
The appointment of the trustee, the authority granted and other information as may be necessary to show that authority extends to Missouri tax matters; and 5. That the trust has not been terminated and the trustee appointed in the trust is still acting. In the event that the trustee appointed in the original trust instrument is no longer acting and has been replaced by another trustee, documentary evidence of the appointment of the new trustee should be submitted;

(H) Dissolved Partnership. In the case of a dissolved partnership, by each of the former partners, or by one (1) of the partners duly authorized to act for the partnership, who shall provide evidence of their authority to act. If one (1) or more of the partners are dead, their legal representatives must sign in their stead (see subsection (4)(L) of this rule), unless, under the laws of the particular state, the surviving partners, at the time of execution of the power of attorney or tax information authorization, have exclusive right to control and possession of the firm’s assets for the purpose of winding up its affairs, in which case their signatures alone will be sufficient. If only the surviving partners sign the power of attorney, Department of Revenue officials may require the submission of a copy of, or a citation to the pertinent provisions of, the state law under which the surviving partners claim authority without legal representatives of the deceased partners;

(I) Dissolved Corporation. In the case of a dissolved corporation, by the liquidating trustee(s) under dissolution, if one (1) or more have been appointed, or by a trustee deriving authority under a statute of the state in which the corporation was organized. If there is more than one (1) trustee, all must join unless (3/31/26) Denny Hoskins it is established that less than all have authority to act in the matter under consideration. Department of Revenue officials may require the submission of a properly authenticated copy of the instrument under which the trustee derives the trustee’s

(J) Insolvent Taxpayer. In the case of an insolvent taxpayer, by the trustee, receiver, or attorney appointed by the court.

Department of Revenue officials may require the submission of a certificate from the court having jurisdiction over the insolvent showing the appointment and qualification of the trustee, receiver, or attorney and that authority of the appointed individual has not been terminated. In cases pending before a district court of the United States, an authenticated copy of the order approving the bond of the trustee, receiver, or attorney will meet this requirement;

(K) Estate. In the case of an estate, by any conservator or personal representative, who shall provide evidence of status as a conservator or personal representative. Department of Revenue officials may require the submission of authenticated copies of letters testamentary or letters of administration showing that the authority of the personal representative or conservator is in full force and effect at the time the power of attorney is submitted; and (L) Deceased Taxpayers. In the case of a deceased taxpayer, by the personal representative of a probate estate if one has been appointed and is acting and responsible for disposition of the matter pending with the department. If no personal representative is acting or responsible for disposition of the matter, or the estate has been distributed to the residuary legatee(s), the power of attorney should be executed by the individual appointed to handle the affairs of the deceased in a will. Department of Revenue officials may require the submission of a statement from the court certifying that no personal representative or trustee under the will is acting or responsible for disposition of the matter and copies of the will. In the event that the decedent died intestate and the personal representative has been discharged and is not responsible for disposition of the matter, or none was ever appointed, the power of attorney must be executed by the distributees. Department of Revenue officials may require the submission of evidence of the discharge of the personal representative if one had been appointed and evidence that the personal representative is not responsible for disposition of the matter and statements made under penalties of perjury and other appropriate evidence as can be produced tending to show the relationship to the deceased of the signatories to the power of attorney and the right of each of them to the respective shares claimed under the law of the domicile of the deceased.

(5) The execution of a power of attorney by the taxpayer allows the representative to obtain copies of all confidential information in the hands of the Department of Revenue with respect to the tax matters designated by the taxpayer.

In addition, the authorized representative is permitted to represent the taxpayer before the Department of Revenue with respect to the tax matters designated by the taxpayer.

(6) Instances a power of attorney is required include, but are not limited to:

(A) During audit if someone other than the taxpayer is to provide information to the auditor or to receive information (including the audit report) from the auditor;

(B) When the taxpayer protests an assessment to the director of revenue and is to be represented by someone other than the taxpayer; and (C) Where the taxpayer’s representative appears on behalf of the taxpayer before the Department of Revenue.

(7) If an individual taxpayer has executed a durable power of attorney, it is not necessary that the taxpayer execute any other power of attorney if the durable power of attorney specifies that the power of attorney has the authority to act on tax matters and the power to receive confidential tax information.

The duly authorized representative must submit a copy of the durable power of attorney to the department with the representative’s request for confidential information. If the power of attorney document does not provide sufficient information for the Department of Revenue to determine the identity of the taxpayer, then the Department of Revenue may request a form prescribed by the director.

(8) If the taxpayer executes a second power of attorney, the taxpayer shall specify whether the execution of a second power of attorney revokes the prior named representative’s authority.

The taxpayer may revoke a power of attorney granted to a representative without authorizing a new representative.

(9) If the mailing address a taxpayer has furnished the Department of Revenue is the mailing address of a third party (for example, John Doe, c/o Jane Smith, C.P.A.), the Department of Revenue will treat this as a release of confidential tax information to the named third party. As a result all tax information, returns, reports, billing notices, and deficiencies will be forwarded to the taxpayer using the address as supplied by the taxpayer for that specific tax. Submission of a power of attorney form by a taxpayer will not in itself suffice as an official notification of mailing address change with the department.

rule filed June 17, 1986, effective Nov. 28, 1986. Amended: Filed May 12, 1987, effective Aug. 27, 1987. Amended: Filed June 15, 1998, effective Dec. 30, 1998. Amended: Filed Jan. 10, 2002, effective July 30, 2002. Amended: Filed Jan. 15, 2013, effective July 30, 2013. *Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008.

History

authority. If the trustee’s authority is derived under a state statute, Department of Revenue officials may require the submission of a copy of or a citation to the pertinent provisions of the statute, together with a statement made under penalties of perjury setting forth the facts required by the statute as a condition precedent to the vesting of authority in the trustee and stating that in the case of any trustee, the trustee’s authority has not been terminated. If there is no trustee, the power of attorney must be signed by a sufficient number of individuals to constitute a majority of the voting stock of the corporation as of the date of dissolution. Department of Revenue officials may require submission of a statement showing the total number of outstanding shares of voting stock as of the date of dissolution, the number of shares held by each signatory to the power of attorney, the date of dissolution and positive averments as to the nonexistence of any trustee;
AUTHORITY: section 32.057.2(1)(a), RSMo Supp. 2012. Original

12 CSR 10-41.040 Retribution of Bad Checks {#sec-12-csr-10-41.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-41.040}

(Rescinded October 30, 2025)

History

AUTHORITY: section 139.235, RSMo 1994. Original rule filed Dec. 15, 1987, effective April 11, 1988. Amended: Filed May 29, 1996, effective Nov. 30, 1996. Rescinded: Filed April 24, 2025, effective Oct. 30, 2025.

Chapter 42 General Department Policies

12 CSR 10-42.060 Investment and Cash Management Procedures {#sec-12-csr-10-42.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.060}

12 CSR 10-42.030 Gifts to the State {#sec-12-csr-10-42.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.030}

PURPOSE: This rule clarifies the procedure for acceptance of gifts to the state of Missouri.

(1) Any devise, bequest, donation, gift or assignment of money, bonds or choses in action, or of any property, real, personal or mixed, to a specific department, division, commission, institution or other agency of the state of Missouri shall be received and accepted by such department, division, commission, institution or other agency pursuant to the constitutional or statutory authority granted to such agency.

(2) Any devise, bequest, donation, gift or assignment of money, bonds or choses in action, or of any property, real, personal or mixed, to the state of Missouri, and not to a specific department, division, commission, institution or other agency thereof authorized to receive and accept same, may be received and accepted by the Director of Revenue upon such terms, conditions and limitations as are acceptable to the Director of Revenue. The Director of Revenue’s authority to receive and accept a devise, bequest, donation, gift or assignment may, by designation of the Director of Revenue, be delegated to other officials or employees of the Department of Revenue.

(3) Every devise, bequest, donation, gift or assignment to the state of Missouri submitted to the Director of Revenue for purpose of acceptance shall be documented in form substantially as follows: ********************************** STATE OF MISSOURI DEED OF GIFT FROM:

Name of Donor Street Address City State Zip Code KNOW ALL PERSONS BY THESE PRESENTS that the Donor does hereby convey to the state of Missouri without consideration all right, title and interest in the following property upon such terms, conditions and limitations as are specifically set forth herein:

(Description of Property)

(Description of Terms, Conditions and Limitations)

It is intended that this conveyance constitute a valid gift under the laws of the state of Missouri so that the right and title to such property shall pass to and vest in the state of Missouri, and all such property and the proceeds thereof may be appropriated for educational purposes or for such other purposes as the General Assembly may direct.

Signature of Donor (or Authorized Representative)

Title (if applicable)

Date ********************************** (4) A prospective donor should contact the general counsel of the Department of Revenue for the purpose of discussing any terms, conditions or limitations of a gift to the state of Missouri, and to discuss the manner of delivery of the gift to the state of Missouri.

History

AUTHORITY: section 33.550, RSMo 1994. Original rule filed Nov. 14, 1985, effective April 25, 1986. Amended: Filed Feb. 23, 1989, effective June 11, 1989. Rescinded and readopted: Filed June 7, 1999, effective Dec. 30, 1999. Original authority: 33.550, RSMo 1939, amended 1947.

12 CSR 10-42.040 Documents Requiring the Director’s Personal Signature {#sec-12-csr-10-42.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.040}

PURPOSE: This rule clarifies what documents as ministerial acts may be delegated by the director to his/her subordinates.

(1) The director of revenue may delegate to his/her subordinates the right to execute on behalf of the Department of Revenue all documents which record the performance of a ministerial act. The following departmental documents are examples of documents which can be signed by duly authorized subordinates: sales/use tax assessments, final notice of state income tax deficiency, certification of delinquent sales tax, assessment of delinquent cigarette tax, certificate of title and notice of loss of driving privilege.

History

AUTHORITY: section 136.120, RSMo 1986. Original rule filed March 28, 1986, effective July 11, 1986.

12 CSR 10-42.050 Disclosure of Public Records and Confidentiality of Closed Records {#sec-12-csr-10-42.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.050}

PURPOSE: This rule informs the public what information can be obtained from the Department of Revenue.

(1) Except as otherwise provided, all records retained by or for the Department of Revenue, including any report, survey, memorandum, or other document or study prepared and presented to the Department of Revenue by a consultant or other professional service paid for in whole or in part by public funds or any employee of the Department of Revenue except as provided in this rule, is a public record and available to any individual, agency, or organization upon request.

(9/30/23) John R. Ashcroft (2) All reports or returns filed with the Department of Revenue, abstract or portion of any report or return, information obtained by an investigation conducted by the Department of Revenue in the discharge of its official duty, information received by the director of revenue in cooperation with the United States or other states in connection with the administration of the tax laws of the state of Missouri is a closed record subject to disclosure as provided in section 32.057.2., RSMo.

(3) All sales tax information which is a closed record pursuant to section 32.057, RSMo, will be disclosed to counties and political subdivisions imposing a sales tax upon request as provided in sections 144.121 and 144.122, RSMo.

(4) All records, files, memorandums, reports, or research conducted by or on behalf of the criminal investigation bureau or the general counsel’s office pertaining to legal actions, causes of action, and litigation involving the Missouri Department of Revenue are closed records, as public knowledge will adversely affect the legal action, cause of action, or litigation and are not subject to disclosure unless otherwise required to be disclosed by statute or regulation.

(5) All records, files, memorandums, reports, or research related to any matter conducted by the attorney general’s office or any prosecuting attorney pertaining to legal actions, causes of action, and litigation involving the Missouri Department of Revenue are closed records, as public knowledge will adversely affect the legal action, cause of action, or litigation and are not subject to disclosure unless otherwise required to be disclosed by statute or regulation.

(6) All software, programs, and access codes for electronic data processing and documentation thereof are closed records pursuant to section 610.021, RSMo.

(7) All license plates and drivers licenses issued pursuant to

section 301.146, RSMo, are not subject to disclosure.

(8) All requests for public records relating to motor vehicles vehicle operator laws of the state of Missouri must be made to the Division of Motor Vehicle and Driver’s Licensing by letter, email, or by telephone. All telephone requests must be subsequently reduced to writing by either the party making the request or the department. All correspondence should be mailed or emailed to one (1) of the following addresses:

(A) Requests for Public Record(s) Relating to Motor Vehicles.

Division of Motor Vehicle and Driver’s Licensing PO Box 100, Jefferson City, MO 65105 DLRecords@dor.mo.gov; and (B) Requests for Public Record(s) Relating to Motor Vehicle Operator Laws.

Division of Motor Vehicle and Driver’s Licensing PO Box 200, Jefferson City, MO 65105 MVRecords@dor.mo.gov.

(9) All requests for public records and disclosure of closed records pursuant to section 32.057.2., RSMo, and regulations relating to the revenue laws of the state of Missouri may be made by letter, email, or by telephone to the division of taxation, unless otherwise required by regulation or law to be sent to another government agency. All requests for information relating to billings, assessments, notices, audit reports, or correspondence from the Department of Revenue may be made by telephone. All correspondence should be mailed or emailed to the appropriate address— Tobacco Tax PO Box 3320 excise@dor.mo.gov Financial Institution Tax PO Box 898 fit@dor.mo.gov Cigarette Tax PO Box 811 excise@dor.mo.gov Motor Fuel Tax PO Box 300 Motor Fuel Refunds: motorfuelrefunds@dor.mo.gov All other questions: excise@dor.mo.gov County Tax PO Box 475 countyfees@dor.mo.gov Sales/Use Tax PO Box 840 salesuse@dor.mo.gov Withholding Tax PO Box 999 withholding@dor. mo.gov Corporation Income Tax PO Box 3365 corporate@dor.mo.gov Weekly Withholding Tax PO Box 3333 withholding@dor.mo.gov Individual Income Tax PO Box 2200 income@dor.mo.gov Property Tax Credit Refund Claims PO Box 2800 PropertyTaxCredit@dor.mo.gov Pass-through Entity Tax PO Box 3080 corporate@dor.mo.gov Fiduciary Income Tax PO Box 3815 Jefferson City, MO 65105-3815 dor.fiduciary@dor.mo.gov (10) Personnel records relating to specific employees are maintained for the purpose of hiring, firing, disciplining, or promoting. The files are closed records not subject to disclosure.

Personnel records not relating to specific employees, such as job descriptions, statistical studies, and salary schedules, are public records. All requests for personnel records which are public records must be made to the division of administration by letter, email, or by telephone. Telephone requests must be subsequently reduced to writing by the party making the request or by the department. Correspondence should be mailed or emailed to the following address:

Division of Administration PO Box 475, Jefferson City, MO 65105 HRO@dor.mo.gov (11) All discussions between the Missouri Department of Revenue and its representatives in preparation for negotiations with employee groups are closed meetings. All work product developed by the department and its representatives in preparation for negotiations with employee groups are closed records.

(12) Each request must contain the following:

(A) Name and title (if any) of the person making the request;

(B) Description of the information being requested.

(13) The party requesting information from the Department of Revenue is required to pay a fee for each request at the time of making, according to the fee schedule in effect at the time the information is requested of the Department of Revenue.

Depending on the type of request, the requesting party may be required to pay sales tax.

(14) See 12 CSR 10-41.020 for disclosure of information, returns, reports, or facts shown to state and federal prosecuting attorneys.

(15) All Social Security numbers disclosed to the Department of Revenue are closed records and are not available to the public.

(16) The Department of Revenue is permitted to publish— (A) Statistics, statements, or explanations so classified as to prevent the identification of any taxpayer or of any particular reports or returns and the item thereof; and (B) The names and addresses without any additional information of persons whose tax refund checks have been returned undelivered by the United States Post Office.

(17) The following examples of common information requests and whether such information can be disclosed are provided as a convenience and are not exhaustive. Each request will be reviewed on an individual basis— (A) Motor Vehicle Information—title histories, dealer sales reports, license registration information, and driving records are not confidential:

(B) Tax return information is confidential subject to disclosure pursuant to section 32.057, RSMo;

(D) The amount of a particular taxpayer’s delinquency is confidential subject to disclosure pursuant to section 32.057, RSMo;

(E) The total dollar amount of delinquent taxes owed to the state of Missouri and the area of the state of Missouri with the highest rate of delinquent taxpayers is not confidential;

(F) Final decisions issued by hearing officers in regard to motor vehicle dealer license and salvage business licensee revocations, driver’s license suspensions, and driving while intoxicated (DWI) hearings are not confidential; and (G) Information regarding the total payments made to the crime victims’ fund by all courts in the state of Missouri is not confidential.

(18) All written requests for public records from the Department of Revenue under the Missouri Sunshine Law, section 610.010, et seq., should be mailed or emailed to the custodian of records at the following address:

Department of Revenue General Counsel’s Office PO Box 475 OpenRecords@dor.mo.gov

Filed April 1, 1987, effective July 11, 1987. Amended: Filed March 31, 1988, effective Sept. 29, 1988. Amended: Filed Dec. 20, 1989, effective May 11, 1990. Amended: Filed March 28, 2023, effective Oct. 30, 2023. *Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014; 610.010, RSMo 1973, amended 1977, 1978, 1982, 1987, 1993, 1998, 2004; and 610.025, RSMo 2004.

History

AUTHORITY: sections 32.057, 610.010, and 610.025, RSMo 2016. Original rule filed June 17, 1986, effective Sept. 26, 1986. Amended:

12 CSR 10-42.060 Investment and Cash Management Procedures {#sec-12-csr-10-42.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.060}

(Rescinded November 30, 2018)

History

AUTHORITY: section 136.110, RSMo 1986. Original rule filed Jan. 20, 1987, effective May 11, 1987. Rescinded: Filed May 9, 2018, effective Nov. 30, 2018.

12 CSR 10-42.070 Sales Tax Financial Report {#sec-12-csr-10-42.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.070}

(Rescinded January 30, 2007)

Amended: Filed July 17, 1989, effective Oct. 27, 1989. Rescinded:

Filed July 27, 2006, effective Jan. 30, 2007.

History

AUTHORITY: sections 32.057, 66.620.5, 67.525.3, 67.570.3, 67.594.3, 67.712.3, 92.410.3, 94.550.3, 94.625.3, 94.725.3. and 144.122, RSMo 1986. Original rule filed April 1, 1987, effective July 11, 1987.

12 CSR 10-42.080 Industry Type Report (ITR) {#sec-12-csr-10-42.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.080}

PURPOSE: To inform the public, state agencies, and political subdivisions of the availability of the Industry Type Report (ITR).

(1) The Industry Type Report (ITR) is a statistical summary of the number of business accounts within a particular political subdivision of the state of Missouri based on the North American Industry Classification System Code (NAICS Code).

(2) The following information is contained in the ITR:

(A) NAICS Code;

(4/30/24) John R. Ashcroft (B) Type of industry;

(D) Amount of taxable sales of all business accounts for the particular NAICS Code if there are six (6) or more business accounts by year and quarter; and (E) Time period of report.

(3) The ITR is available on the Department of Revenue’s website (dor.mo.gov) under public information reports.

History

AUTHORITY: section 32.057, RSMo 2016. Original rule filed April 1, 1987, effective July 11, 1987. Amended: Filed Nov. 8, 2023, effective May 30, 2024. Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014.

12 CSR 10-42.090 Business Listing Report {#sec-12-csr-10-42.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.090}

PURPOSE: To inform state agencies and political subdivisions of the availability of the Sales and Use Tax Business Listing Report.

(1) The Business Listing Report (BLR) is a listing of the name and address of businesses which have a sales tax license within a particular county, city, or mass transit district within the state of Missouri.

(2) The BLR is available to local taxing authorities imposing a sales tax. It contains the following information for their taxing jurisdiction:

(A) Name and address of business;

(B) Name and address of location;

(D) Date location opened and closed (if applicable);

(E) Whether the business has a liquor license;

(F) Jurisdiction code and site code;

(G) North American Industry Classification System (NAICS) standard industry code and description;

(H) Account tax type and location type;

(I) Account filing frequency;

(J) Whether location is located within city limits; and (K) The number of businesses and the total number of locations within the political subdivision.

(3) The department has made these reports available on a secure portal by accessing the MyTax Missouri portal at mytax.mo.gov and creating an account as a Government User. Each individual listed on Form 4379 Request for Information or Audit of Local Sales and Use Tax Records will need to register separately on MyTax Missouri as a Government User. Each Government User will receive an email with their temporary password at which time they may log into MyTax Missouri and set up a series of security questions and make any changes to their user profile.

Once all desired Government User accounts have been created, complete Form 4379 Request for Information or Audit of Local Sales and Use Tax Records with the usernames and submit it to the department. The department will validate the information provided on the form and grant access as requested. Access granted by Form 4379 will last until the end of the calendar year. A new form will need to be completed and submitted annually to continue access to secure reports. In order for Form 4379 to be valid, it must be signed by an authorized person for the political subdivision. A county will need a signature from a county commissioner. A city will need the mayor, city administrator, manager, or chairperson to sign the form. A district will need to have a signature from a member of the board of directors.

(4) The BLR is available for any time period that is on the file including one (1) day.

(5) Each request must contain the following information:

(A) Name, Missouri’s MyTax Government User ID, and title (if any) of the person making the request;

(B) Name of the political subdivision or state or federal agency or company making the request (if applicable); and (C) All written requests for a BLR must be made by email to localgov@dor.mo.gov, by fax to (573) 522-1160, or by mail to Request for Information or Audit of Local Sales and Use Tax Records with Taxation Division, PO Box 3380, Jefferson City, MO 65105.

(6) The information contained in the BLR is confidential information subject to the disclosure provisions of section 32.057, RSMo. Illegal disclosure by the local taxing authority or an employee thereof may invoke the criminal penalty of

section 32.057, RSMo, and forfeiture of access to Department of Revenue records, this report, and the Monthly Sales Tax Distribution Report pursuant to section 144.122, RSMo.

(7) Form 4379, Request for Information or Audit of Local Sales and Use Tax Records, revised April 2021, is incorporated by reference and published by and can be obtained from the Missouri Department of Revenue, PO Box 100, Jefferson City, MO 65105-0100 or at dor.mo.gov. This form does not include any amendments or additions since the revision date noted.

rule filed April 1, 1987, effective July 11, 1987. Amended: Filed Aug. 21, 1987, effective Dec. 12, 1987. Amended: Filed Nov. 9, 2023, effective May 30, 2024. *Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014, and 144.083, RSMo 1961, amended 1965, 1986, 2004, 2007.

History

AUTHORITY: sections 32.057 and 144.083, RSMo 2016. Original

12 CSR 10-42.100 Monthly Sales and Use Tax Distribution Report {#sec-12-csr-10-42.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.100}

PURPOSE: This rule informs local taxing authorities imposing a sales tax of the availability of the Monthly Sales Tax Distribution Report as an alternative to the physical audit of sales tax records maintained by the Department of Revenue.

(1) The Monthly Sales Tax Distribution Report (the “Report”) is a listing of all sales tax collected by the Department of Revenue for the local taxing authority imposing a sales tax.

(2) The following information is contained in the Report:

(A) Name of business;

(B) Missouri tax ID number;

(D) Amount of distribution for each filing period paid by the taxpayer during this month.

(3) The Report is only available to those taxing authorities imposing a sales tax.

(4) All requests for a Report must be made by filing a Form 4379 Request for Information or Audit of Local Sales and Use Tax Records with Taxation Division, PO Box 3380, Jefferson City, MO 65105.

(5) Each request must contain the following information:

(A) Name, email address, user ID, signature, and title of person making the request; and (B) Name of the taxing authority making the request.

(6) The request must be made by the chief executive of the taxing authority. Portal access will be granted to each individual with a user ID listed on the request.

(7) The information contained in the Report is confidential information subject to the disclosure provisions of section 32.057, RSMo. Illegal disclosure by the local taxing authority or an employee thereof may invoke the criminal penalty of

section 32.057, RSMo, and a forfeiture of access to Department of Revenue records, this Report, and the Sales Tax Trust Fund Report pursuant to section 144.122, RSMo.

(8) Form 4379, Request for Information or Audit of Local Sales and Use Tax Records, revised April 2021, is incorporated by reference and published by and can be obtained from the Missouri Department of Revenue, PO Box 100, Jefferson City, MO 65105-0100 or at dor.mo.gov. This form does not include any amendments or additions since the revision date noted.

Filed Nov. 8, 2023, effective May 30, 2024. *Original authority: 32.057, RSMo 1979, amended 1980, 1983, 1993, 1994, 1996, 2003, 2004, 2008, 2014; 144.121, RSMo 1973, amended 1979, 1980, 1993, 1994; and 144.122, RSMo 1973, amended 1980.

History

AUTHORITY: sections 32.057, 144.121, and 144.122, RSMo 2016. Original rule filed April 1, 1987, effective July 11, 1987. Amended:

12 CSR 10-42.110 Local Tax Management Report {#sec-12-csr-10-42.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-42.110}

(Rescinded May 30, 2007)

History

AUTHORITY: section 32.057, RSMo 1986. Original rule filed April 1, 1987, effective July 11, 1987. Rescinded: Filed Oct. 23, 2006, effective May 30, 2007.

Chapter 43 Investment of Nonstate Funds

12 CSR 10-43.010 Department of Revenue Investment Group {#sec-12-csr-10-43.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-43.010}

PURPOSE: This rule establishes the Department of Revenue Investment Group and grants it authority to formulate, subject to the approval of the director of revenue, investment policies and procedures designed to invest nonstate funds in safe, competitive yield investment instruments prior to distribution of the principal and interest to local political subdivisions.

(1) The director of revenue creates the Department of Revenue Investment Group. This group shall be composed of employees from the Department of Revenue.

(2) All inquiries or notices relating to the Investment Group should be directed to the director of the Fiscal Services Division as follows:

Fiscal Services Division Missouri Department of Revenue PO Box 87 301 West High Street Jefferson City, MO 65105-0087 (573) 751-7429 (3) The Investment Group has the responsibility of assisting the director of revenue in formulating and carrying out investment policies and procedures designed to invest nonstate funds in safe, competitive yield investment instruments prior to distribution of the principal and interest to local political subdivisions. Before any of the investment policies and procedures formulated by the Investment Group are implemented, the policies and procedures must be reviewed and approved by the director of revenue.

(4) The Investment Group will meet at least quarterly and may meet more often as necessary.

(5) The Investment Group shall have the right to request the attendance of additional Department of Revenue employees, investment advisors, banking experts and other finance experts to help the Investment Group formulate and implement the department’s investment policies and procedures.

History

AUTHORITY: section 136.120, RSMo 2000. Original rule filed May effective July 23, 1987. Amended: Filed Sept. 11, 2006, effective April 30, 2007.

12 CSR 10-43.020 Investment Instruments for Nonstate Funds {#sec-12-csr-10-43.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-43.020}

PURPOSE: This rule establishes the types of investment instruments in which nonstate funds may be invested prior to distribution of principal and interest to local political subdivisions.

(1) All nonstate funds held for any purpose by any investment agent of the director of revenue shall be held by the agent in an interest bearing account.

(2) The Department of Revenue Investment Group shall use their collective best judgment to ensure that the investment instruments purchased on behalf of the director of revenue by his/her investment agent shall be in the best overall interest of the local political subdivisions. In making their recommendations, the Investment Group shall give due consideration to— (A) The preservation of all nonstate funds and earned interest;

(B) The comparative yield to be derived from the investment instrument;

(C) The effect upon the economy and welfare of the people of Missouri of the removal or withholding from banking institutions in the state of all or some such nonstate funds and investing same; and (D) All other factors which to them as a prudent Investment Group seem to be relevant to the general public welfare in the light of the circumstances at the time prevailing.

(3) The nonstate funds may only be invested in the following instruments:

(A) United States Treasury Bills Notes and Bonds;

(B) Time Deposits;

(C)

Repurchase Agreements and Reverse Repurchase Agreements secured by United States Treasury obligations or obligations of the agencies listed in subsections (3)(D)–(H) of this rule;

(D) Federal National Mortgage Association Securities;

(E) Federal Agricultural Mortgage Corporation (FAMC)

Securities;

(F) Federal Home Loan Bank Securities;

(G) Federal Home Loan Mortgage Corporation Securities;

(H) Federal Farm Credit System Securities;

(I) Commercial Paper (no more than ten percent (10%) to any one (1) issuer); and (J) No other type of investment instrument may be purchased for nonstate funds.

(4) No one (1) security listed in subsections (3)(D)–(H) of this rule shall exceed twenty-five percent (25%) of the Department of Revenue’s investment portfolio, unless specified otherwise.

Amended: Filed Aug. 12, 1999, effective Feb. 29, 2000. Amended:

Filed Sept. 11, 2006, effective April 30, 2007. Amended: Filed Jan. 24, 2023, effective Aug. 30, 2023.

History

AUTHORITY: section 136.120, RSMo 2016. Original rule filed May effective July 23, 1987. Amended: Filed Dec. 15, 1987, effective May 12, 1988. Amended: Filed Aug. 28, 1990, effective Dec. 31, 1990.

12 CSR 10-43.030 Collateral Requirements for Nonstate Funds {#sec-12-csr-10-43.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-43.030}

PURPOSE: This rule establishes collateral requirements for nonstate funds collected and invested by the Department of Revenue. These requirements are designed to guarantee that nonstate funds are secured against loss while they are being invested in safe, competitive yield investment instruments prior to distribution of principal and earned interest to local political subdivisions.

(1) Any depository investing nonstate funds as an investment agent of the director of revenue must guarantee there will be (7/31/23) John R. Ashcroft no deficiencies in daily transactions, or losses in any principal or interest due to the department on investment transactions.

(2) Any depository investing nonstate funds as an investment agent of the director of revenue must be subject to examination by—the Federal Deposit Insurance Corporation (FDIC) or other like federal government agency, the Securities and Exchange Com-mission (SEC), the Missouri Division of Finance or other like state agency, and independent auditors. The investment agent also shall have an internal audit program which meets the specifications of the Department of Revenue Investment Group.

(3) Any depository investing nonstate funds as an investment agent of the director of revenue must adhere to the following rules governing collateral:

(A) Before the investment agent places deposits with depository institutions, the investment agent must require that the institutions pledge collateral security. The following general procedures will be used:

Only securities that are issued or guaranteed by the United States government or its agencies or are at least A rated from one of the Nationally Recognized Statistical Ratings Organizations and are accepted as collateral by the Treasurer of the State of Missouri are acceptable to secure nonstate funds;
The entire value of the nonstate funds on deposit with the depository, including accrued interest, must be covered by the market value of securities pledged less applicable FDIC or other like insurance;
The investment agent may not disburse funds for investment until it is assured that adequate and proper collateral has been pledged. Telephone confirmation of securities pledged from a third-party custodian is acceptable pending receipt of the actual safekeeping document;
Securities may not be released until deposits, including accrued interest, are received from the depository institution;
The investment agent may allow substitution of acceptable collateral securities with equal or greater market value if the substitution occurs on a simultaneous basis. That is, the new collateral must be received before or at the same time the old collateral is released;
Excess collateral may be released if it is reasonable as determined by the investment agent. The investment agent will determine the market value of all collateral every two (2) weeks and compare that to the amount of deposits at each deposit institution. When the value of collateral falls below the amount of deposits, the investment agent must immediately demand additional collateral. If the depository institution fails to post the additional collateral within two (2) days of the day requested, the investment agent will request withdrawal of all deposits at that institution; and 7. The director of revenue, upon the recommendation of the Department of Revenue Investment Group, may require an institution pledging collateral to use a different third-party custodian which will be acceptable to the director;

(B) Repurchase Agreements and Reverse Repurchase Agreements will be handled in a manner similar to the state treasurer’s procedures and are restricted as follows:

Transactions will be on an overnight basis or for a period not to exceed thirty (30) days;
Market value of collateral securities must be at least equal to one hundred and two percent (102%) of the repurchase agreement;
Securities will be priced daily before they are accepted and weekly thereafter; and 4. No more than twenty-five percent (25%) of the total market value of the portfolio may be invested in repurchase agreements with any one issuer, unless specified otherwise;

(C) The investment agent must provide adequate collateral security for department funds in the investment agent’s custody and control. These funds consist of each day’s deposits plus any uncollected funds and any other noninvested funds; and (D) The investment agent’s collateral system must be subject to on-line electronic access by the department’s employees.

This system must include the following features:

The investment agent will price all securities as they are placed on the system. The investment agent will ensure that securities are acceptable and marketable and will periodically review securities for these features;
On a daily basis, the investment agent will compare collateral security to all deposited funds;
The investment agent will generate appropriate exception reports. These will include, at a minimum, identifying those securities for which the safekeeping receipt has not yet been received. The investment agent will immediately follow-up on any deposit for which the safekeeping receipt is not received within five (5) working days; and 4. The investment agent will produce a report identifying deficiencies in collateral. This report will be produced daily and the investment agent will follow up on a same-day basis to ensure that adequate collateral is pledged.

Amended: Filed Aug. 28, 1990, effective Dec. 31, 1990. Amended:

Filed Jan. 14, 1992, effective May 14, 1992. Amended: Filed Aug. 12, 1999, effective Feb. 29, 2000. Amended: Filed Feb. 8, 2002, effective Aug. 30, 2002. Amended: Filed Sept. 11, 2006, effective April 30, 2007. Amended: Filed Sept. 19, 2008, effective April 30, 2009.

Amended: Filed Oct. 17, 2011, effective March 30, 2012. Amended:

Filed Jan. 24, 2023, effective Aug. 30, 2023.

History

AUTHORITY: section 136.120, RSMo 2016. Original rule filed May effective July 23, 1987. Amended: Filed June 14, 1988, effective Oct. 27, 1988. Amended: Filed Jan. 18, 1989, effective June 11, 1989.

Chapter 44 Miscellaneous Fees and Taxes

12 CSR 10-44.010 Tire Fee Application {#sec-12-csr-10-44.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-44.010}

PURPOSE: This rule clarifies the definition and the application of the tire fee to sales of tires. The tire fee is imposed by section 260.273, RSMo.

(1) The fifty-cent ($.50) tire fee is applicable to each new tire sold at retail or sold as a retail sale. The terms “sold at retail” and “retail sale” do not include the sale of new tires to a person solely for the purpose of resale, if the subsequent retail sale in this state is to the ultimate consumer and is subject to the fee.

(A) “Tire,” a continuous solid or pneumatic rubber covering encircling the wheel of any self-propelled vehicle not operated exclusively upon tracks, or a trailer as defined in Chapter 301, RSMo, except farm tractors and farm implements owned and operated by a family farm or family farm corporation as defined in section 350.010, RSMo.

(B) A trailer is any vehicle without motive power designed for carrying property or passengers on its own structure and for being drawn by a self-propelled vehicle. The term trailer shall not include cotton trailers or manufactured homes as defined in sections 301.010 and 700.010, RSMo.

(2) Organizations exempt from sales tax under Chapter 144, RSMo including but not limited to non-profit organizations, political subdivisions, charitable organizations, and common carriers, are not exempt from the tire fee.

(3) Following is a list of types of tires normally subject to the tire fee:

(A) Automobile tires;

(B) Pickup and small truck tires;

(D) Bus tires;

(E) Airplane tires;

(F) Golf cart tires;

(G) Motorcycle and all-terrain vehicle (ATV) tires;

(H) Go-cart tires;

(I) Construction equipment tires;

(J) Tires used on any “self-propelled” vehicle;

(K) Earth mover tires;

(L) Trailer tires; and (M) Recreational vehicle and camper tires.

(4) Following is a list of types of tires which are normally considered exempt from the tire fee:

(A) Farm implement tires;

(B) Manufactured home tires;

(D) Bicycle tires;

(E) Used tires; and (F) Recapped tires.

(5) Sales of tires by a tire wholesaler to a car dealer are subject to the tire fee unless the car dealer is registered and remitting the tire fee to the Department of Revenue.

(6) Regardless of the applicability of the tire fee, all waste tires generated must be managed in accordance with sections 260.270 through 260.278, RSMo, and the rules promulgated thereunder. Questions regarding waste tire requirements should be directed to the Missouri Department of Natural Resources’ Solid Waste Management Program at PO Box 176, Jefferson City, MO 65102, by email at wmp@dnr.mo.gov, or by telephone at (573) 751-5401.

History

AUTHORITY: section 260.273, RSMo Supp. 2023. Original rule filed Oct. 22, 1990, effective March 14, 1991. Amended: Filed Nov. 26, 1997, effective June 30, 1998. Rescinded and readopted: Filed Aug. 21, 1998, effective Feb. 28, 1999. Amended: Filed Dec. 20, 2023, effective July 30, 2024. Original authority: 260.273, RSMo 1990, amended 1995, 1999, 2005, 2009, 2014, 2019, 2023.

12 CSR 10-44.020 Tire Fee Reporting and Payment Requirements {#sec-12-csr-10-44.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-44.020}

PURPOSE: This rule interprets section 260.273, RSMo as it applies to the reporting and filing requirements for the fifty-cent per tire fee pursuant to Senate Bill 530.

(1) All the reporting and payment requirements of Chapter 144, RSMo will apply to the tire fee. In addition— (A) The tire fee shall be reported and taxes paid on a quarterly basis for all retailers required to collect and remit this fee. For the purpose of the tire fee, calendar quarter is defined as the period of three (3) consecutive calendar months ending on March 31, June 30, September 30 or December 31. Returns are due on the last day of the month following the end of the calendar quarter;

(B) Tire retailers are required to register, collect and remit the tire fee. However, there is no additional licensing or bonding requirement;

(C) For every remittance to the director of revenue, the person required to remit shall be entitled to deduct and retain an amount equal to six percent (6%) of the remittance. (Note:

This amount is considered a cost of collection allowance, not a timely filing allowance as defined in section 144.140, RSMo.); and (D) The fifty-cent (50¢) tire fee is applicable to each new tire sold at retail. No sales tax exemptions under Chapter 144, RSMo apply.

History

AUTHORITY: section 260.273, RSMo Supp. 1997. Original rule filed Oct. 22, 1990, effective March 14, 1991. Amended: Filed Nov. 26, 1997, effective May 30, 1998. Original authority: 260.273, RSMo 1990, amended 1995.

12 CSR 10-44.100 Excess Traffic Violation Revenue {#sec-12-csr-10-44.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-44.100}

PURPOSE: Sections 479.350 to 479.372, RSMo, provide for cities, towns, villages, and counties to file certain addendums and remit to the Department of Revenue any amount from fines, bond forfeitures, and court costs for minor traffic violations occurring within cities, towns, villages, and counties that are in excess of a statutory percentage of its total annual general operating revenue.

This rule explains the procedure for remitting the excess amount to the department.

PUBLISHER’S NOTE: The secretary of state has determined that publication of the entire text of the material that is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall (6/30/24) John R. Ashcroft be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

(1) Definitions. For purposes of this rule and any determinations required to be made under sections 479.350 to 479.372, RSMo, the following definitions apply:

(A) “Annual general operating revenue”—as defined in

section 479.350(1), RSMo;

(B) “Court costs”—as defined in section 479.350(2), RSMo;

(C) “Minor traffic violation”—as defined in section 479.350(3), RSMo; and (D) “Statutory percentage”—the percentage of annual general operating revenue applicable to the city, town, village, or county pursuant to section 479.359, RSMo.

(2) Submission of Excess Revenue.

(A) If the city, town, village, or county received more than the applicable statutory percentage of its annual general operating revenues from fines, bond forfeitures, and court costs for minor traffic violations, the amount in excess of the applicable statutory percentage must be remitted to the department.

(B) Any city, town, village, or county shall remit the amount in excess of the applicable statutory percentage to the Department of Revenue postmarked no later than the date that the addendum Form A 15-1 is filed with the state auditor.

The city, town, village, or county must clearly mark the payment as “Excess Traffic Fees” and must include a copy of the addendum Form A 15-1 required by section 479.359, RSMo, with the payment.

(C) Any city, town, village, or county that fails to remit the correct amount of revenue in excess of the applicable statutory percentage, with a payment postmarked no later than the date that the addendum Form A 15-1 is filed with the state auditor, shall be subject to the penalties and remedies set forth in sections 479.350 to 479.372, RSMo.

(3) The addendum Form A 15-1, revised December 2017, is incorporated by reference and published by and can be obtained from the Missouri State Auditor’s Office, PO Box 869, Jefferson City, MO 65102, or by email at localgovernment@ auditor.mo.gov. These forms do not include any amendments or additions since the revision date noted.

Amended: Filed Sept 1, 2015, effective Feb. 29, 2016. Amended:

Filed Dec. 20, 2023, effective July 30, 2024. *Original authority: 479.359, RSMo 2015, amended 2016.

History

AUTHORITY: section 479.359, RSMo 2016. Original rule filed Sept. 27, 2010, effective March 30, 2011. Emergency amendment filed Sept 1, 2015, effective Sept 11, 2015, expired March 8, 2016.

Chapter 101 Sales/Use Tax-Nature of Tax

12 CSR 10-101.600 Successor Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 {#sec-12-csr-10-101.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-101.600}

12 CSR 10-101.500 Burden of Proof {#sec-12-csr-10-101.500 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-101.500}

PURPOSE: Section 136.300, RSMo, ad-dresses which party has the burden of proof on any factual issue relevant to ascertaining the liability of a taxpayer. Sections 32.200, article V, section 2; 144.210; and 144.635, RSMo, also address the burden of proof and in particular the use of exemption certificates to meet the burden. Section 621.050, RSMo, addresses which party has the burden of proof in a proceeding before the Administrative Hearing Commission. This rule explains how these rules work together to determine which party has the burden of proof in a dispute involving sales or use tax.

(1) In general, the taxpayer has the burden of proof except in specific circumstances.

(2) Definition of Terms.

(A) Burden of proof—Burden of persuading the finder of fact that the existence of a fact is more probable than the nonexistence.

(B) Good faith—Honesty of intention and freedom from knowledge of circumstances which ought to put the holder upon inquiry.

(3) Basic Application of Burden of Proof.

(A) The director always has the burden of proof regarding— 1. Whether the taxpayer has been guilty of fraud with attempt to evade tax; and 2. Whether the taxpayer is liable as the transferee of property of another taxpayer.

(B) The taxpayer always has the burden of proof on any issue with respect to the applicability of any tax credit.

(C) The taxpayer has the burden of proof on all other issues unless— 1. The taxpayer has produced sufficient evidence establishing there is a reasonable dispute with respect to the issue;

The taxpayer has adequate records of its transactions and provides the Department of Revenue reasonable access to these records; and 3. If both conditions are met, the director has the burden of proof with respect to any factual issue relevant to ascertaining the liability of a taxpayer.

(D) A taxpayer can generally meet its burden of proof that a sale of tangible personal property, services, substances, or things was not a taxable sale at retail by obtaining and maintaining an exemption certificate signed by the purchaser or its agent. An exemption certificate that is not obtained in good faith, however, will not satisfy the burden of proof. Even when a taxpayer does not have a valid exemption certificate, it may prove that the transaction is exempt from sales and use tax by proof admissible under the applicable rules of evidence.

(4) Examples.

(A) The director alleges that a taxpayer fraudulently fabricated exemption certificates in order to evade sales tax.

The director has the burden of proof.

(B) A person is a donee, heir, legatee, devisee, or distributee of a taxpayer that owes sales tax. The director issues assessments to this person as a transferee. The director has the burden of proof to show the person is a transferee of the delinquent taxpayer.

(C) An audited taxpayer is assessed unpaid sales tax on unreported sales of meals it provided to customers. The taxpayer has the burden of proof to supply the applicable documentation that it correctly collected and remitted sales tax on the meals provided to its customers. If the taxpayer had adequate records and provided those to the department during the audit, and later produces evidence establishing that the unreported sales of meals were to non-profit customers that presented exemption certificates to the taxpayer at the time of sale, the burden of proof then shifts to the director provided the exemption certificates were received in good faith.

(D) An out-of-state vendor registered to collect use tax is assessed use tax on the sale of a computer to a Missouri customer. The vendor has the burden of proof to supply the applicable documentation that it correctly collected and remitted use tax on the sales of tangible personal property. If the vendor had adequate records and provided those to the department, the burden of proof then shifts to the director.

(E) A taxpayer is assessed use tax on its purchase of a wood lathe that it purchased out-of-state. The taxpayer has the burden of proof to supply the applicable documentation that it purchased tangible personal property that was exempt from sales or use tax. If the taxpayer has adequate records which it made available to the department and produces evidence that the lathe is used to manufacture furniture later sold for ultimate use or consumption, the burden of proof then shifts to the director.

(F) A taxpayer sells tangible personal property and claims that it was a sale for resale. The taxpayer presents a valid resale exemption certificate that was accepted in good faith. The taxpayer has met its burden of proof.

(G) A jeweler sells an expensive diamond ring to his neighbor, known to the taxpayer not to be in the jewelry business. The neighbor presents an exemption certificate claiming that the ring was purchased for resale and therefore exempt from tax.

The jeweler may not accept the exemption certificate without further inquiry.

(H) A jeweler sells an expensive diamond ring to a purchaser unknown to the jeweler, but does not receive an exemption certificate. If the jeweler fails to collect and remit tax, upon assessment by the director the jeweler has the burden of proof and may prove that the sale was exempt through testimony and documents admissible under the rules of evidence.

(I) A jeweler sells an expensive diamond ring to a purchaser unknown to the jeweler, but does not receive an exemption certificate. The jeweler presents to the department an invoice for the diamond ring showing it was sold to a wholesale jeweler. The burden of proof shifts to the director.

Blevins Asphalt & Construction Co. v. Director of Revenue, 938 S.W.2d 899 (Mo. banc 1997). The taxpayer has the burden of proof in most cases. “Good faith,” in the context of exemption certificates, requires honesty of intention and freedom from knowledge of circumstances that ought to put the holder upon inquiry. Accord Conagra Poultry Co. v. Director of Revenue, 862 S.W.2d 915 (Mo. banc 1993); Gammaitoni v. Director of Revenue, 786 S.W.2d 126 (Mo. banc 1990).

(12/31/25) Denny Hoskins

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed Nov. 18, 1999, effective June 30, 2000. Amended: Filed Oct. 2, 2018, effective April 30, 2019. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

12 CSR 10-101.600 Successor Liability {#sec-12-csr-10-101.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-101.600}

PURPOSE: Section 144.150, RSMo, makes a person acquiring a business, or the stock of goods or assets of a business, liable for the seller’s tax liability. This rule explains how that liability is incurred and what steps must be taken in order for a purchaser to be relieved of this liability.

(1) In general, any purchaser of substantially all of a business or stock of goods of a business is liable for the seller’s tax liability. The purchaser is required to withhold and remit to the department sufficient purchase money to pay the seller’s tax liability upon the purchase of the business or stock of goods.

The purchaser is relieved of liability by receiving from the seller a receipt from the director of revenue showing that the taxes have been paid.

(2) Definition of Terms.

(A) Purchase money—any consideration flowing directly, or indirectly through intermediate parties or otherwise, to a seller and is not limited to actual cash transferring directly to the seller.

(B) Stock of goods—the amount of movable personal property and/or inventory of a business.

(C) Purchaser—any “person” as defined in section 144.010.1, RSMo, who, directly or indirectly, purchases substantially all of a business or stock of goods.

(3) Basic Application.

(A) Any person acquiring a business should require the seller to provide a receipt from the department stating that all taxes have been paid or a certificate of no tax due issued by the department. The purchaser can rely on the department’s certificate of no tax due for one hundred twenty (120) days from issuance.

(B) If the seller does not provide a receipt or certificate of no tax due from the department, the purchaser must pay any tax due. The purchaser should withhold a sufficient amount of the purchase money to cover taxes, interest and penalties due and unpaid by all former owners or predecessors, whether immediate or not. If the purchaser does not withhold and remit a sufficient amount, the purchaser is personally liable for the unpaid taxes, interest, additions to tax and penalties accrued.

To determine the amount to be withheld, the purchaser should require the seller to provide a statement from the department showing the amount of taxes, interest, additions to tax or penalties due and owing, including the date of the last payment for such taxes, interest, additions to tax or penalties.

(C) A purchaser who obtains a certificate of no tax due or withholds and pays the department a sufficient amount of the purchase money to cover the amount of tax, interest, additions to tax and penalties is not liable for additional tax owed as the result of a subsequent audit of the tax periods covered by the previous owner. The previous owner remains liable for the tax.

(D) Any creditor acquiring the business or stock of goods as a result of an enforcement action, or any immediate or subsequent purchaser from such creditor, is not liable for the taxes, interest, additions to tax and penalties of the previous owner. The previous owner remains liable.

(E) Reliance on an affidavit pursuant to Missouri’s Bulk Transfer Act stating that there were no creditors of the business will not relieve a purchaser from a previous owner’s tax liability.

(4) Examples.

(A) A taxpayer purchased an ice cream business. The previous owner had a tax liability with the department. The taxpayer required the previous owner to provide a statement from the department listing the amount owed. The taxpayer withheld the amount of the tax liability from the purchase price. The previous owner then provided a statement from the department showing the tax had been paid. The taxpayer is relieved of any liability and may pay the balance of the purchase price to the previous owner. If the previous owner had not provided the statement, the taxpayer would have been required to remit the withheld money directly to the department.

(B) A motel owner with an accrued tax liability of $18,000 defaulted on a loan. The lender acquired the motel in a private settlement with the owner. A taxpayer subsequently purchased the motel from the lender without receiving from the lender a receipt from the director of revenue showing that the amount of taxes, interest to date and penalties have been paid or a certificate stating that no taxes were due. The lender and the taxpayer are personally liable for the unpaid tax, penalty and interest to date on the motel. If the lender had acquired the motel through an enforcement action, the taxpayer would not have been liable for the previous owner’s tax.

(C) A taxpayer acquired a car and some records from a business, which were not substantially all of the business or stock of goods of the business. The taxpayer is not liable for any tax liability of the previous owner.

rule filed Nov. 9, 2000, effective May 30, 2001. Amended: Filed Aug. 26, 2005, effective Feb. 28, 2006. Amended: Filed July 16, 2025, effective Jan. 30, 2026. *Original authority: 144.150, RSMo 1939, amended 1941, 1943, 1945, 1961, 1987, 1990, 1994, and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

Surrey’s on the Plaza, Inc. v. Director of Revenue, 128 S.W. 3d 508 (Mo. banc 2004). The Court held that a successor is liable for tax owed by its predecessor unless the successor both withholds the amount of the tax from the purchase price and remits the amount withheld to the director. The Court also held that a business owner sells “all or substantially all of his or their business or stock of goods” when it sells all or substantially all of the assets of a distinct business or location, even if that does not constitute all or substantially all of the seller’s assets.

Air Management Supply, Inc. v. Director of Revenue (AHC 1998). The taxpayer purchased a car and some records from its predecessor. The AHC ruled that in order to be liable as a successor, a taxpayer must purchase all or substantially all of a business or stock of goods.

Winchell’s Donuts Houses Operating Co. v. Director of Revenue (AHC 1998). The taxpayer entered into a lease and license agreement of a donut shop with an individual. The licensing agreement required the individual to pay all taxes incurred in the operation of the business. The individual failed to pay federal taxes and the IRS enforced its lien, locking the doors of the donut shop. The taxpayer was forced to pay for the food inventory to protect its interest in the real property and equipment. Although taxpayer acquired the stock of goods (food inventory), because they were acquired as a result of an enforcement action by a creditor, the taxpayer was not liable as a successor.

Kim Poore v. Director of Revenue (AHC 1997). The taxpayer maintained that the seller of the business had committed fraud by not disclosing certain encumbrances. The AHC held that the taxpayer was nevertheless liable as a successor.

Stuffin’s Corp. v. Director of Revenue (AHC 1993). The AHC held that the successor liability imposed upon a purchaser may be greater than the purchase price paid for the business.

History

AUTHORITY: sections 144.150 and 144.270, RSMo 2016. Original

12 CSR 10-101.700 Bankruptcy and Other Court Appointments {#sec-12-csr-10-101.700 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-101.700}

PURPOSE: This rule explains the treatment under federal law of sales and use tax in a bankruptcy or other court appointments, and the liability of trustees, assignees and receivers for sales and use tax.

(1) In general, any trustee, assignee or receiver must notify the department upon being appointed to such position by the court. The trustee, assignee or receiver is responsible for sales and use tax on behalf of the debtor.

(2) Basic Application.

(A) All outstanding sales and use tax, interest and penalties due the state from a debtor must be paid before any distribution to general unsecured creditors.

(B) When a court appoints any person, whether trustee, assignee or receiver, to take over any business and operate or liquidate it, the person appointed must collect and remit sales tax for the debtor during such appointment. The person appointed must use the sales tax license of the debtor during such appointment.

(C) The person appointed is liable for any tax, interest or penalties not paid as required by subsections (2)(A) and (B).

rule filed Nov. 7, 2005, effective May 30, 2006. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961 and 144.705, RSMo 1959.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2000. Original

Chapter 102 Sales/Use Tax-Taxpayers Rights

12 CSR 10-102.110 Protest Payments, Protest Overpayments, and Protest Payment {#sec-12-csr-10-102.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-102.110}

12 CSR 10-102.016 Refunds and Credits {#sec-12-csr-10-102.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-102.016}

PURPOSE: Section 144.190, RSMo, permits a seller to file a claim for refund of an over-payment of sales or use taxes resulting from a mistake of fact or law and it permits a purchaser that is not able to obtain a refund of an over-payment of sales or use tax from the seller to file a claim for refund with the department. Section 144.100, RSMo, requires a seller to file an amended return to correct an error or omission on a return. This requirement is in addition to the requirement that a refund application be filed. Section 144.746, RSMo, allows the seller and the department to extend by agreement the time to file a claim for refund. Section 144.030.2, RSMo, establishes special refund procedures for purchasers of domestic utilities under a non-domestic utility rate classification.

This rule explains requirements for obtaining a refund or credit on over-payment of sales and use taxes.

(1) In general, if a seller has overpaid tax, the seller may file a claim for a refund with the department. If a purchaser is not able to obtain a refund from the seller, the purchaser may qualify to file a claim for refund with the department.

(2) Basic Application.

(A) A seller may file a claim for a refund within ten (10) years after the date of an overpayment. The date of the overpayment is the due date of the original return or the date paid, whichever is later. The department will not consider a claim unless it is filed within the ten- (10-) year period. Every claim must be in writing, signed by the applicant, and must state the specific grounds upon which the claim is founded. If the overpayment is due to an error or omission in a previously filed return, the claim must be accompanied by an amended return for each period in which the tax was originally reported.

If the error or omission is corrected in the return immediately following the filing period in which the error or omission occurred, no amended return or claim for refund is required.

(B) The person requesting the refund or credit must be the person who is legally obligated to remit the tax to the Department of Revenue or the purchaser that originally paid the tax to the seller. A purchaser seeking a refund of an erroneously paid tax must first seek a refund from the seller. A seller may file a claim on behalf of the purchaser by submitting a claim for refund and amended returns for the period(s) in which the tax was erroneously remitted or the seller may provide an assignment of rights to the purchaser to file the claim for refund. The purchaser may also file a claim for refund with the department if— 1. The seller refuses to assign the rights to file a claim for refund within sixty (60) days of the date of the purchaser’s written request to the seller;

The seller is out of business; or 3. The purchaser cannot locate the seller.

The claim by the purchaser is subject to any offset, defense, or any claim the director has against the purchaser or the seller.

(C) The department will notify a registered seller of refund claims filed by a purchaser without the seller’s assignment of rights. If the seller objects to the refund claim, the department will not pay the refund. If the seller agrees that the purchaser may pursue a refund claim, or fails to respond to the notification within thirty (30) days of the date of notification, the department will process the refund and will amend the return of the seller to reflect the refund if granted. A refund claim will not be considered filed until the seller agrees the purchaser may pursue a refund claim or thirty (30) days after the department has notified the seller of the purchaser’s claim.

(D) The department will issue a statement approving a credit in the amount of the overpayment instead of a refund if the seller requests a credit on the claim. A seller cannot take a credit for any overpayment of tax unless prior approval has been obtained from the department. If it is determined later that the seller will incur no future liability, for example if the business is closed, the seller may return the credit authorization to the department and request a refund. A purchaser may not obtain a credit.

(E) If a sale is rescinded, no amended return or claim for refund is required. The seller may adjust its gross receipts on its next filed return. The adjustment may not exceed the gross receipts for the filing period.

(F) Section 32.068, RSMo, establishes the interest rate paid on refunds. Interest does not apply to a credit.

(G) The seller and the department may extend, by signed agreement (waiver of statute of limitations), the period allowed for filing a claim for refund. Such an agreement is allowed only if the time for filing a claim for refund has not yet expired.

(H) In addition to the refund claim procedure described above, a purchaser of taxable, non-domestic utility services using any portion of the services for nontaxable domestic use may also claim a refund from the department on the domestic use portion of the purchase. A purchaser of utility services for domestic use for occupants of residential apartments, condominiums, and nursing homes through a single or master meter may claim a refund on the domestic use portion of the purchase, which includes common areas and facilities as well as vacant units. The claim for refund must be filed between the first day of the first month (January 1) and the fifteenth day of the fourth month (April 15) following the year of purchase.

(I) A taxpayer is not entitled to receive a refund for overreported taxable sales if it previously received a refund for this same issue and guidance has been previously provided.

This restriction only applies to overpayments based on sales and it does not apply to overpayments based on purchases.

However, a taxpayer may receive more than one (1) refund for the same issue of overreported taxable sales if the subsequent overreported taxable sales were the result of any of the following:

Receipt of additional information or an exemption certificate from the purchaser of the item at issue;
A decision of a court of competent jurisdiction or the administrative hearing commission; or 3. Changes in regulations or policy by the Department of Revenue.

(3) Examples.

(A) A seller collects tax on a sale to a customer that takes place in August and reports it on its August sales tax return. In October, that customer presents a valid exemption certificate for the August sale. To claim a refund, the seller must complete a claim for refund and submit it with a copy of the invoice, the customer’s exemption certificate, and an amended August return.

(B) A carpet seller determines that in the past ten (10) years it has been collecting and remitting sales tax on carpet sales in which it is also installing the carpet in homes and businesses.

The seller purchases its carpet from a wholesaler located outside of the state. Therefore, the carpet seller should have been paying use tax on its purchases of the carpet from its (3/31/26) Denny Hoskins wholesaler and selling its carpet without charging sales tax on its installation sales. The seller should complete amended sales tax returns for each period during the ten (10) years and amended use tax returns for each period during the ten (10) years. If the amended returns result in an overpayment, the carpet seller may claim a refund by completing a refund application.

(C) A computer store sells a computer to a customer and reports the tax on its May sales tax return. In July the customer returns the computer for a full refund. Because the May sales tax has been remitted to the department the computer store adjusts its gross receipts for July. If the adjustment exceeds its July gross receipts, the computer store must submit an application for refund and an amended return for May.

(D) A manufacturer discovers it paid tax on its purchase of a piece of equipment that qualified for an expanded plant exemption. The manufacturer purchased the equipment from an equipment supply company who reported the tax to the department. The supply company may request the refund from the department on behalf of the manufacturer by submitting a refund application, the manufacturer’s exemption certificate, and an invoice of the sale or the supply company may provide the manufacturer an assignment of rights statement allowing the manufacturer to file the refund claim with the department.

(E) In September 2019, a taxpayer discovers it paid tax on a January 2009 sale for which it has an exemption certificate.

The taxpayer submits a refund application for the exempt sale.

Because the due date and the date paid of the original January 2009 return and payment was February 20, 2009, the refund application will be denied because it is not within the ten- (10-) year statute of limitations.

(F) In 2017, an apartment complex under a non-domestic rate classification pays the water bill, including sales tax, to the utility company for the entire complex. The apartment complex may file a claim for refund on its 2017 purchases of water prior to April 15, 2018.

(G) A nursing home that is under a non-domestic rate classification pays for the electricity, including tax for the entire facility in 2010, 2011, and 2012. The electric company may file a claim for refund on behalf of the nursing home in January 2020, as long as it is filed within ten (10) years of the due date or the date paid, whichever is later.

(H) A purchaser purchases manufacturing equipment on July 1, 2012, and pays sales tax on the purchase. On October 1, 2012, the purchaser presents an exemption certificate to the seller and requests the seller in writing to file a refund request for the taxes paid. The seller does not respond to the purchaser’s request within sixty (60) days. The purchaser then files a refund claim with the department and the department notifies the seller of the claim for refund. The seller does not respond to the department’s notification. The department verifies that the equipment qualifies for the exemption and the taxes paid on the purchase. The department issues the refund to the purchaser. This action, however, is predicated on the department verifying that the seller did report that as a taxable sale on the July 2012 sales tax return and verifying that this return was paid in full.

(I) A purchaser purchases manufacturing equipment on July 1, 2012, and pays sales tax on the purchase. On October 1, 2012, the purchaser presents an exemption certificate to the seller and requests the seller in writing to file a refund for the taxes paid. The seller does not respond to the purchaser’s request within sixty (60) days. The purchaser then files a refund claim with the department and the department notifies the seller of the claim for refund. The seller responds to the department’s notification and directs the department to not refund the tax.

The department cannot issue the refund to the purchaser.

Amended: Filed April 1, 2002, effective Oct. 30, 2002. Amended:

Filed Sept. 8, 2020, effective March 30, 2021. Amended: Filed Oct. 9, 2025, effective April 30, 2026. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

History

AUTHORITY: section 144.270, RSMo 2016. This rule originally filed as 12 CSR 10-110.016. Original rule filed Sept. 29, 1999, effective March 30, 2000. Changed to 12 CSR 10-102.016, Dec. 31, 2000.

12 CSR 10-102.100 Bad Debts Credit or Refund {#sec-12-csr-10-102.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-102.100}

PURPOSE: sections 144.190 and 144.696, RSMo provide for refund of overpayments. Section 144.220, RSMo sets forth the law on the statute of limitations. This rule explains how to claim a credit or refund for tax paid on a sale that has become a bad debt.

(1) In general, a seller may file for a credit or refund within the ten- (10-) year statute of limitations when sales are written off as bad debts.

(2) Definition of Terms.

(A) Bad debt is a sale that has been written off for state or federal income tax purposes. In order to qualify for a bad debt deduction for sales or use tax purposes, a sale must have been previously reported as taxable.

(B) Accrual or gross sales reporting method means a seller reports the sale and remits the tax at the time of the sale. The receipts are not received from the buyer until a later date.

Therefore, a timing difference occurs between the time that the sale, with applicable sales tax, is reported to the state and the time that the seller receives payment from the buyer.

(3) Basic Application of the Law.

(A) A seller may file for a refund or credit within the ten- (10-) year statute of limitations for those sales written off as bad debts if the sales were reported using the accrual or gross sales method. This period is calculated from the due date of the return or the date the tax was paid, whichever is later.

(B) If a bad debt credit or refund is given and the debt is later collected, that amount must be reported on the next return as a taxable sale.

(4) Examples.

(A) A retailer reports and pays sales tax on the accrual or gross sales method. The retailer determines some sales to customers are not collectible and writes them off as bad debts for income tax purposes. The retailer requests a credit or refund from the state within the ten- (10-) year statute of limitations.

The credit or refund would be granted.

(B) A retailer reports and pays sales tax on the accrual or gross sales method. The retailer determines some sales to customers are not collectible and writes them off as bad debts for income tax purposes. The retailer requests a credit or refund from the state eleven (11) years after the sale was reported and the tax was remitted to the state. The credit or refund would be denied.

Filed Jan. 2, 2020, effective July 30, 2020. Amended: Filed Oct. 28, 2020, effective May 30, 2021. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

History

AUTHORITY: section 144.270, RSMo 2016. This rule originally filed as 12 CSR 10-115.100. Original rule filed April 19, 2000, effective Oct. 30, 2000. Changed to 12 CSR 10-102.100 Dec. 31, 2000. Amended:

12 CSR 10-102.110 Protest Payments, Protest Overpayments, and Protest Payment Returns {#sec-12-csr-10-102.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-102.110}

PURPOSE: This rule interprets the sales tax law as it applies to protest payments, protest overpayments, and protest payment returns.

(1) If the taxpayer in good faith believes that they are not subject to the sales tax under the Missouri sales tax act, they, upon payment of the required amount of tax, and denoting the payment as a protest payment when made, may file a protest payment affidavit, in which they specifically shall set out why they are protesting payment of the tax and give supporting information. The protest claim shall be made by filing a Form 163, Sales Tax Protest Payment Affidavit, under oath and submitted within thirty (30) days after the protest payment.

Failure to denote the payment as made under protest, or to make a protest claim within the time required, and under the conditions specified will void the protest claim.

(2) If a protest payment is not made by the required due date, interest and additions to tax should be included in the payment to properly perfect the protest.

(3) Overpayments resulting from clerical, mathematical, or similar errors should be recovered by following the refund procedures outlined in section 144.695, RSMo. If any taxpayer, in good faith, and for just cause, feels the imposition of Missouri use tax has been improperly charged against them, they, when making their payment, may denote the payment as a protest payment, and execute a protest payment using a Sales or Use Tax Protest affidavit, Form 163B, specifically stating the grounds upon which the protest is being made. The claim must be made under oath within thirty (30) days after payment. If this procedure is not followed, all payments will be accepted by the director as proper payments.

(4) A taxpayer filing a protest payment return must submit a notarized protest payment affidavit with the return, reflecting the specific amount of tax being paid under protest. Separate checks need not be submitted for the state and local sales taxes being protested.

(5) Form 163, Sales Tax Protest Payment Affidavit, and Form 163B, Sales or Use Tax Protest Affidavit, revised March 2020, are incorporated by reference and are published by and can be obtained from the Missouri Department of Revenue at www. dor.mo.gov or at the Harry S Truman State Office Building, 301 W. High Street, Jefferson City, MO 65101. These forms do not include any amendments, or additions since the revision dates noted.

regulation 240-3 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. This rule was previously filed as 12 CSR 10-3.552. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981.

Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Moved to 12 CSR 10-102.110 and amended: Filed Aug. 7, 2023, effective March 30, 2024. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. S.T.

12 CSR 10-102.160 Effect of Saturday, Sunday, or Holiday on Payment Due {#sec-12-csr-10-102.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-102.160}

PURPOSE: This rule establishes the due date for payment of taxes where the original due date falls on certain days and interprets and applies section 144.655, RSMo.

(1) If the last day for payment of the taxes falls on a Saturday, Sunday or legal holiday, the payment shall be considered timely if it is postmarked or filed in person the next succeeding day, which is not a Saturday, Sunday or legal Missouri or national holiday.

This rule was previously filed as 12 CSR 10-4.160. Moved to 12 CSR 10-102.160, effective Aug. 31, 2023. *Original authority: 144.705, RSMo 1959.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 655-1 filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976.

12 CSR 10-102.554 Filing Protest Payment Returns {#sec-12-csr-10-102.554 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-102.554}

(Rescinded May 30, 2024)

rule was previously filed as 12 CSR 10-3.554. Moved to 12 CSR 10- 102.554, effective Aug. 31, 2023. Rescinded: Filed Nov. 8, 2023, effective May 30, 2024.

History

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 240-4 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. This

Chapter 103 Sales/Use Tax-Imposition of Tax

12 CSR 10-103.380 Photographers, Photofinishers and Photoengravers, as Defined {#sec-12-csr-10-103.380 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.380}

12 CSR 10-103.381 Items Used or Consumed by Photographers, Photofinishers and Photoengravers, as Defined in Section 144.054, RSMo {#sec-12-csr-10-103.381 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.381}

12 CSR 10-103.017 Ticket Sales {#sec-12-csr-10-103.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.017}

PURPOSE: This rule clarifies what sales tax is required to be paid and collected on the sale of tickets. Applicable sales taxes are enumerated and the method of determining the tax due is specified. This rule interprets and applies sections 144.010.1(4) and 144.020, RSMo.

(1) In general, all tickets sold to permit admission to any theater, sporting event, exhibit, or any other event are subject to sales tax that should be collected by the seller. This includes all paper and digital tickets.

(2) Basic Application of Tax.

(A) All tickets sold to permit admission to any theater, sporting event, exhibit, or any other event where sales tax is required to be paid and collected must contain a statement on the face of the ticket “This ticket is subject to a sales tax,” as provided in section 144.020.2., RSMo.

(B) All tickets stating a single amount as the price for the ticket and containing the statement set forth in section (1) shall be subject to the sales tax on the single amount so stated and the tax rate shall be applied against that amount.

(C) If the total selling price of a ticket is intended to include sales tax, the vendor must advise the purchaser of the cost of admission and the amount of tax by printing these amounts on the ticket, by posting a prominently displayed sign stating that amount, by breaking those figures out in the digital ticket, or by giving other written notice.

The ticket or notice must contain the following language:

Cost of admission $(amount)

Sales tax $(amount)

Ticket price $(amount)

Otherwise, the vendor shall be subject to sales tax on all receipts and the total price of the tickets shall be considered receipts.

(D) All ticket sales are also subject to all applicable local sales taxes and all special purpose state sales taxes, which may now be or become applicable to these sales. The seller may include an additional statement that the ticket is subject to all applicable sales taxes, both state and local. Any local license fees must be included in the gross receipts of the sale of the ticket and sales tax must be collected and remitted on that amount.

(E) If the cost of admission and the applicable sales tax is not separately stated to the purchaser, as set out in section (3), the vendor shall be subject to sales tax on all receipts and the total price of the tickets shall be considered taxable receipts.

Director of Revenue, 526 S.W.3d 124 (Mo. banc 2017). The Court held that entertainment license tax (ELT), which the franchise was obligated to pay to city based upon the gross receipts derived from admission charges and that professional sports franchise passed directly onto ticket buyers, was included in “the amount paid for admission,” for purposes of sales tax statute. Thus the total amount franchise received from ticket buyers, including the ELT, was subject to sales tax and did not constitute a tax upon a tax.

History

AUTHORITY: section 144.270, RSMo 2016. This rule originally filed as 12 CSR 10-3.017. Original rule filed Dec. 5, 1983, effective March 11, 1984. Amended: Filed Oct. 15, 1984, effective Feb. 11, 1985. Moved to 12 CSR 10-103.017 and amended: Filed Oct. 2, 2018, effective April 30, 2019. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, The St. Louis Rams LLC, f/k/a The St. Louis Rams Partnership v.

12 CSR 10-103.050 Drinks and Beverages {#sec-12-csr-10-103.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.050}

PURPOSE: This rule interprets the sales tax law as it applies to the sale of drinks and beverages, and interprets and applies sections 144.010 and 144.088, RSMo.

(1) Sales tax applies to the total selling price of drinks and beverages, whether intoxicating or otherwise, unless the business or person selling the drink has a prominently displayed sign separately stating the price of the drink as well as the amount of the applicable sales tax or has an express written notice stating the price of the drink as well as the amount of the applicable sales tax on the menu, ticket, bill or cash register receipt which is supplied to each and every patron.

(2) Example 1: A bar sells mixed drinks for two dollars ($2).

There are neither signs in the establishment nor any other written notification supplied to each patron that separately states the price of the drink and the applicable sales tax. The business is subject to sales tax on the two dollars ($2).

(3) Example 2: A bar sells mixed drinks for one dollar and seventy-five cents ($1.75) plus twenty-five cents (25¢) sales tax for a total price of two dollars ($2). The bar has a prominently displayed sign that reads: Mixed drinks one dollar and seventyfive cents ($1.75). The business is subject to sales tax on the one dollar and seventy-five cents ($1.75).

(4) Example 3: A bar sells mixed drinks for two dollars ($2).

The bar supplies the patron, simultaneously with the drink, a cash register receipt that reads: Mixed drinks one dollar and seventy-five cents ($1.75) plus twenty-five cents (25¢) sales tax, total two dollars ($2). The business is subject to sales tax on the one dollar and seventy-five cents ($1.75).

(5) Example 4: A restaurant sells mixed drinks for one dollar and seventy-five cents ($1.75) plus twenty-five cents (25¢) sales tax for a total price of two dollars ($2). The restaurant provides to each patron a menu which states: Mixed drinks one dollar and seventy-five cents ($1.75). The restaurant is subject to sales tax on the one dollar and seventy-five cents ($1.75).

(6) Example 5: A restaurant has an attached lounge that sells mixed drinks for two dollars ($2). While the patrons sitting in the restaurant are supplied with a menu which complies with section (5), the lounge patrons are not supplied with any written notification, such as a sign or otherwise, therefore, the restaurant lounge is subject to sales tax on the two dollars ($2).

regulation 010-21 was last filed Oct. 28, 1975, effective Nov. 7, 1975.

Refiled March 30, 1976. Amended: Filed April 11, 1984, effective Oct. 11, 1984. This rule was previously filed as 12 CSR 10-3.050.

Moved to 12 CSR 10-103.050, effective Aug. 31, 2023. Amended:

Filed Aug. 28, 2025, effective Feb. 28, 2026. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, Carousel, Inc. v. Director of Revenue, (A.H.C. 2016). The Administrative Hearing Commission found that Carousel did not correctly calculate and remit sales tax on its room rentals. The commission agreed with the director’s assessment that Carousel should have collected and remitted sales tax on the full room rate, as there was no indication to customers that sales tax was included in the room charge. Carousel’s method of backing out sales tax from the room rate was not supported by law, as the sales tax was not separately stated or charged. Consequently, Carousel is also liable for the additions to tax and interest as a matter of law.

History

AUTHORITY: section 144.270, RSMo 2016. This rule was previously filed as rule no. 66 Jan. 22, 1973, effective Feb. 1, 1973. S.T.

12 CSR 10-103.170 Aggregate Amount Defined {#sec-12-csr-10-103.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.170}

PURPOSE: This rule defines the term aggregate amount for Missouri use tax purposes and interprets and applies section 144.660, RSMo.

(1) For the purpose of the compensating use tax law, aggregate amount is defined as only the amount of state compensating use tax due.

(2) When a vendor is unable to file a return by the due date, the vendor may estimate the amount of tax due for the first two (2) months of a quarter based on the best information available such as the same month the previous year with a modifier for business or economic conditions.

(3) A return must be filed and completed in its entirety even if a taxpayer is filing an estimated return (see section 144.660, RSMo).

History

AUTHORITY: section 144.705, RSMo 2016. U.T. regulation 655-3 30, 1976. This rule was previously filed as 12 CSR 10-4.170. Moved to 12 CSR 10-103.170 and amended: Filed July 25, 2023, effective March 30, 2024.

12 CSR 10-103.180 Filing Final Return {#sec-12-csr-10-103.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.180}

PURPOSE: This rule establishes the due date for a final return and sets forth the assumed liability of a purchaser of a business.

(1) Any vendor terminating or selling his/her business, stock, furnishings or fixtures is required to file, within fifteen (15) days after terminating, a final return to be furnished by the director upon specific request. The return should be forwarded to the director of revenue with an accompanying remittance for taxes, interest and penalty if applicable, to the date of termination.

(2) Should an obligation exist, the purchaser shall withhold a sufficient amount from the purchase price of the business to defray any liability until the former owner provides the director of revenue with satisfactory evidence that the liability has been satisfied and no further liability exists or until the former owner obtains a certificate of no tax due from the director of revenue. If the person acquiring the business fails to accomplish the previously mentioned, s/he shall become liable for any taxes, interest or penalty charges made against the former owner.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 655-5 30, 1976. This rule was previously filed as 12 CSR 10-4.180. Moved to 12 CSR 10-103.180, effective Aug. 31, 2023.

12 CSR 10-103.185 Filing Returns When No Liability Exists {#sec-12-csr-10-103.185 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.185}

PURPOSE: This rule prescribes that a return shall be filed even though no liability exists.

(1) Every business, making sales of tangible personal property or rendering a taxable service, is required to file a combined sales/use tax return even though no (zero) (0) sales were made during the period covered by the return.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 655-6 30, 1976. This rule was previously filed as 12 CSR 10-4.185. Moved to 12 CSR 10-103.185, effective Aug. 31, 2023.

12 CSR 10-103.200 Isolated or Occasional Sale {#sec-12-csr-10-103.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.200}

PURPOSE: Section 144.020.1(1), RSMo, imposes a tax on sellers engaged in the business of selling tangible personal property or rendering taxable service at retail. Section 144.010.1(2), RSMo, excludes certain isolated or occasional sales from tax. This rule explains when a sale is a nontaxable, isolated or occasional sale.

(1) In general, sales of tangible personal property are subject to tax only if the taxpayer is engaged in the business of making such sales. Isolated or occasional sales by a person not engaged in the business generally are not taxable. There are exceptions to this rule based on the frequency of such sales and total dollars of annual sales.

(2) Definition of Terms.

(A) Business—any activity engaged in by a person, or caused to be engaged in by the person, with the object of direct or indirect gain, benefit, or advantage.

(B) Nonbusiness enterprise—any activity engaged in by a person that is not part of the person’s business.

(3) Basic Application.

(A) Isolated or occasional sales of tangible personal property made by persons not engaged in the business of selling such property are not subject to tax if the gross receipts from all such sales are less than three thousand dollars ($3,000) in a calendar year.

(B) Factors which are considered in deciding if a taxpayer is engaged in business include, but are not limited to, the following criteria:

Holding out as being engaged in business by the seller, such as advertising in telephone books, media advertising, solicitation, etc.;
Frequency and duration of sales; and 3. The nature of the market for the service or property sold or leased.

(C) If annual sales exceed three thousand dollars ($3,000) in a calendar year, such sales will not be considered isolated or occasional, even though the taxpayer is not regularly engaged in the business of selling such products.

(D) Sales made in the partial or complete liquidation of a household, farm, or nonbusiness enterprise are not included in the three thousand dollars ($3,000) threshold. These sales are not taxable.

(4) Examples.

(A) A grocery store sells a used cash register for $1,000. No other non-inventory items are sold during the year. This would qualify as an isolated or occasional sale, and would not be (B) Same facts as in (A), except that the taxpayer sells used cash registers and fixtures that total $4,000 during the calendar year. The taxpayer replaces these cash registers and fixtures by purchasing new models. The total $4,000 of these sales is subject to tax.

(C) Same facts as in (B), except that the taxpayer does not replace the cash registers or fixtures. This would qualify as a partial liquidation of a nonbusiness enterprise. Therefore, the sales are not subject to tax even though the gross receipts exceed $3,000 in a calendar year.

(D) A barbershop sells tangible personal property (shampoo, combs, etc.) as a regular part of its ongoing business. These sales are subject to sales tax even if the gross receipts are less than $3,000 in a calendar year.

(E) A construction company buys new equipment every few years, and sells its used equipment to other construction businesses. Gross receipts from these sales exceed $3,000 in a calendar year. The construction company is required to collect tax on the sale of the used equipment.

(F) A homeowner holds a weekend garage sale once a year.

As long as the property was not created with the intent to sell or purchased for resale, the sale of the merchandise is not subject to tax because the garage sale qualifies as a partial liquidation of a household.

(G) A person regularly attends garage sales. He buys merchandise that he intends to sell at his monthly garage sales. The gross receipts from his garage sales are taxable even if they do not exceed $3,000 because he is in the business of operating garage sales.

In Staley v. Missouri Director of Revenue, 623 SW2d 246 (Mo.

Banc 1981) a partnership contracted to sell all furnishings in a one time liquidation sale. The court found that since Section 144.020 provided that “business” and “isolated and occasional sale” are separate terms, no tax is due on isolated or occasional liquidation sales by parties not engaged in the business of selling such items.

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Jan. 3, 2000, effective July 30, 2000. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.210 Auctioneers and Other Agents Selling Tangible Personal Property {#sec-12-csr-10-103.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.210}

PURPOSE: This rule interprets the sales and use tax law as it applies to sales of tangible personal property when an auctioneer or other agent is involved in the sale.

(1) In general, an auctioneer who does not disclose the principal will be considered the seller of the tangible personal property and will be required to collect and remit sales tax on the gross receipts of the property sold. The principal is liable for collecting and remitting the tax if the auctioneer discloses the principal to the purchasers at the auction. An organization exempt from tax on its sales (see 12 CSR 10-110.955) acting as an agent to sell tangible personal property to raise funds for the exempt organization is not required to collect and remit tax; the principal must collect and remit the tax. All other agents selling tangible personal property, by consignment or otherwise, must collect and remit tax even if the principal is disclosed.

(2) Definition of Terms.

(A) Agent—a person who acts on behalf of a principal.

(B) Auctioneer—an agent licensed as an auctioneer who sells tangible personal property belonging to another at public or private auction and who receives compensation for conducting the sale.

(3) Basic Application of Tax.

(A) The principal is liable for collecting and remitting the tax if the auctioneer discloses the principal to the purchasers at the auction. An auctioneer may disclose the principal by written or oral communication to the purchasers.

(B) Tangible personal property sold at public or private auction in the course of the partial or complete liquidation of a household, farm or non-business enterprise is not subject to tax. See 12 CSR 10-103.200.

(C) Tangible personal property, except inventory of the seller, sold at public or private auction in the course of a liquidation of a business is not subject to tax. The sale of inventory is (4) Examples.

(A) An auctioneer conducts a weekly auction in which the auctioneer sells various items obtained from numerous undisclosed principals. The auctioneer must collect and remit sales tax on these sales.

(B) An auctioneer conducts an auction on behalf of a disclosed principal. The principal is responsible for collecting and remitting the sales tax on the sales.

(C) A retired farmer contracts with an auctioneer to sell the assets of the family farm. The receipts from these sales are not subject to tax because the assets are sold in the course of a partial or complete liquidation of a household, farm or nonbusiness enterprise.

(D) A grocery store is going out of business and contracts with an auctioneer to sell the fixtures and inventory of the store. The sales of the cash registers, display counters and refrigeration equipment are not subject to sales tax as a liquidation of a business. The sales of inventory items such as groceries are subject to sales tax.

(E) An antique store sells some goods on consignment from the owners. The store agrees with the owners to split the proceeds of the sale, 60% to the owner and 40% to the store. The store must collect and remit tax on the entire sale price even if it discloses the owners of the consigned goods.

(F) An art gallery sells works by artists for a commission. The gallery must collect and remit tax on the entire sale price even though the artists are disclosed.

(G) A parent teacher organization (PTO) agrees with a candy company to sell candy as a fundraiser for a public elementary school. The PTO buys the candy from the company and has the right to return any unsold candy over the minimum agreed amount. The sale is not subject to tax because the PTO is the seller of the candy and its sales are exempt from tax as sales by a public elementary school.

(H) A parent teacher organization agrees with a wrapping paper company to sell wrapping paper as a fundraiser for a public elementary school. The PTO takes orders for the wrapping paper and forwards the orders to the company.

The PTO never takes title to the wrapping paper—it merely takes the orders and delivers the paper. The company must collect and remit tax because the company is the seller of the wrapping paper.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed Sept. 9, 2004, effective March 30, 2005. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.220 Resale {#sec-12-csr-10-103.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.220}

PURPOSE: This rule interprets the resale exemption in section 144.615(6), RSMo, and the resale exclusion in section 144.010.1(9), RSMo.

(1) In general, purchases of tangible personal property or taxable services are not subject to sales or use tax if purchased for ultimate sale at retail.

(2) Definition of Terms.

(A) Purchase for resale—a purchase for ultimate sale at retail.

(B) Sale—any transfer of title or ownership to tangible personal property or rendering of taxable service for consideration.

(C) Sale at retail—a sale of tangible personal property or services for use or consumption by the purchaser that is taxable under section 144.020, RSMo.

(3) Basic Application of Tax.

(A) A taxpayer may purchase tangible personal property or taxable services for resale if the purchase is for subsequent sale at retail. Purchases of tangible personal property or taxable services that are not subsequently transferred in transactions that constitute sales at retail are taxable at the time of purchase.

(B) When tangible personal property is given away, tax must be paid at the time of purchase, unless there is a bargained for exchange between the seller and buyer and a direct quantitative connection between the giveaway and actual sales at retail.

(C) The purchase of tangible personal property resold as real property or incidental to the rendering of a nontaxable service is taxable.

(D) If a purchaser makes more than a nominal use of the tangible personal property before the resale takes place, the purchase is subject to tax.

(4) Examples.

(A) A grocery store purchases bread and other food items from a wholesaler. Because the food items will be resold, the grocery store may purchase them without paying tax.

(B) A grocery store purchases grocery bags. The grocery bags are provided only to customers who purchase merchandise.

The grocery bags can be purchased exempt from tax because they are transferred to the customer as part of the sale of the merchandise.

(C) An appliance store purchases a refrigerator for its own use. Tax is due on the purchase of the refrigerator even if the refrigerator is ultimately sold at retail after its use.

(D) A taxpayer selling building materials purchases boxes and other packaging materials. These purchases are used to ship its products to its customers. The boxes and other packaging materials can be purchased exempt from tax as a purchase for resale.

(E) A taxpayer sells custom software. The taxpayer’s purchases of compact discs and related packaging materials are subject to tax because custom software is the sale of a nontaxable service.

Consequently, the compact discs and packing materials do not qualify as purchases for resale.

(F) A taxpayer purchases boxes to store merchandise within the taxpayer’s warehouse. The boxes are not shipped to a customer. The purchase of the boxes is subject to tax.

(G) A business advertises a buy one, get one free sale. The business does not have to pay tax at the time of purchase of the “free” item because it is subsequently resold as part of the sales transaction.

(H) A professional baseball team gives promotional baseballs to the first 10,000 customers. The team should not pay tax on the purchase of the baseballs because tax is collected and remitted on the sale of the tickets.

Kansas City Power & Light Co. v. Director of Revenue, 83 S.W.3d 548 (Mo. banc 2002). The taxpayer claimed a resale exemption for electricity purchased by hotels for use in guest rooms. The Court held that the hotels transferred the right to control the electricity when the guest was able to adjust the temperature. The guests pay consideration for that right when they pay for the hotel room because the cost of the electricity is “factored into” the cost of the room. Therefore, the sales of electricity to the hotels for use in the guest rooms were not subject to tax. The Court also affirmed the Administrative Hearing Commission’s calculation of the refund due based on a square footage analysis as “the best method available on the record before it.” The Court recognized, however, that there were substantial questions regarding whether such a measure would withstand scrutiny on a more complete record “in a future case.”

Kansas City Royals Baseball Corp. v. Director of Revenue, 32 S.W.3d 560 (Mo. banc 2000). The taxpayer claimed a resale exemption for promotional items distributed to its paying customers at its baseball games. The promotional items were also given away to attendees who had complimentary tickets and if items were left after a game, people received them without paying any admission at all. The Court found that consideration was paid for the promotional items because the cost of the items was “factored into” the price of the tickets to see the game. The Court stated: “there is a direct connection between the ticket price charged the paid attendees who received the promotional items and the promotional items themselves.”

Westwood Country Club v. Director of Revenue, 6 S.W.3d 885 (Mo. banc 1999), determined that meals and beverages served by Westwood, a private club not open to the public, were not sales at retail. Westwood could not claim a resale exemption on its purchases of food and beverages. The Court also found that Westwood did not owe sales tax on fees that it charged for use of its golf carts because it paid sales tax on its purchases of the golf carts.

Aladdin’s Castle, Inc. v. Director of Revenue, 916 S.W.2d 196 (Mo. banc 1996), dealt with the taxation of prizes awarded to customers playing arcade games. Aladdin collected and remitted sales tax on tokens purchased by customers to play the arcade games. Aladdin purchased the prizes for resale and did not pay a tax. The Court found that Aladdin met the three factors set forth in Sipco, Inc. v.

Director of Revenue and did not have to show that the cost of the prizes was specifically factored into the price of the sale of tokens to each customer to take advantage of the resale exemption.

In Sipco, Inc. v. Director of Revenue, 875 S.W.2d 539 (Mo. banc 1994), the issue was whether dry ice used to package fresh pork products for transport to customers was exempt as a purchase for resale. The court held that the seller need not show the cost is specifically factored into the price of the goods in order to claim a resale exemption. The Court stated that “one need not be an accountant to understand that the value of the dry ice was factored into the total consideration paid for the pork.”

In Spudich v. Director of Revenue, 745 S.W.2d 677 (Mo. banc 1988), a taxpayer purchased billiard tables for display and possible resale. The Supreme Court held that the exemption for resale was available only for items purchased solely for resale. The billiard tables in question were purchased primarily as display items to solicit orders. Any resale of the tables was incidental to their primary purpose. Resale only occurred if that particular table was the last of its kind in inventory or a customer wanted that specific table. The Court held the taxpayer’s purchases subject to use tax.

R & M Enterprises v. Director of Revenue, 748 S.W.2d 171 (Mo. banc 1988), dealt with the taxation of samples. The Court noted that there was no quantitative connection between the furnishing of sample books to retailers and the purchase of fabric by retailers for their customers. Therefore, R & M was required to pay sales/use tax on their purchases of sample books.

History

AUTHORITY: sections 144.010(9) and 144.615(6), RSMo Supp. 2004 and 144.150, 144.270 and 144.705, RSMo 2000. Original rule filed Sept. 27, 2000, effective March 30, 2001. Amended: Filed Aug. 26, 2005, effective Feb. 28, 2006. Original authority: 144.010, RSMo 1939, amended 1941, 1943, 1945, 1947, 1974, 1975, 1977, 1978, 1979, 1981, 1985, 1988, 1993, 1996, 1998, 1999, 2001; 144.150, RSMo 1939, 1941, 1943, 1945, 1961, 1987, 1990, 1994; 144.270, RSMo 1939, amended 1941, 1943, 1947, 1955, 1961; 144.615, RSMo 1959, amended 1961, 1985, 1986, 2003, 2004; and 144.705, RSMo 1959.

12 CSR 10-103.250 Purchaser’s Responsibility for Paying Use Tax {#sec-12-csr-10-103.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.250}

PURPOSE: This rule explains when a purchaser is required to pay use tax pursuant to sections 144.610 and 144.655, RSMo.

(1) In general, when a taxpayer purchases tangible personal property from outside the state for use, storage or consumption in this state the taxpayer must pay use tax. Any Missouri tax due is reduced by any sales or use tax properly paid to another state.

(2) Basic Application of Tax.

(A) Generally, if a taxpayer does not pay use tax to a seller on out-of-state purchases of tangible personal property for use, storage or consumption in this state, the taxpayer must file a use tax return and remit the tax.

(B) If a taxpayer’s out-of-state taxable purchases on which tax has not been paid are less than two thousand dollars ($2,000) in a calendar year, the taxpayer is not required to file a use tax return. This is an exclusion from filing, but not a two thousand dollar ($2,000) use tax exemption. Therefore, if the annual taxable purchases on which tax has not been paid equal or exceed two thousand dollars ($2,000) the taxpayer must report and pay on the total taxable purchases (including the first two thousand dollars ($2,000) of taxable purchases). Any amount of tax reported by the taxpayer must be remitted with the return.

(C) An out-of-state seller with nexus must collect tax even if the buyer expects to have less than two thousand dollars ($2,000) in out-of-state purchases for the year.

(D) The buyer is liable for the tax on its purchases unless the buyer has proof of paying Missouri tax to the seller. When an out-of-state seller has nexus, the seller is also liable for the tax.

(3) Examples.

(A) A grocery store purchases a freezer for $5,000 from an out-of-state seller. The out-of-state seller did not collect any use tax. The grocery store is required to report and pay tax on this purchase on its next use tax return.

(B) Same facts as in (3)(A), except the out-of-state seller invoiced the grocery store and collected Missouri use tax. The grocery store is not required to report this purchase on a use tax return.

(C) During the first quarter of the calendar year, a taxpayer registered to pay use tax purchased $1,800 of tangible personal property from an out-of-state seller. The seller did not collect tax and there is no exemption covering these purchases.

Because the year-to-date total of out-of-state taxable purchases is less than $2,000, the taxpayer is not required to report the $1,800 on that quarter’s use tax return or pay any tax, even though the department may require a registered taxpayer to file a return. The taxpayer should check the box on the return marked “I do not have cumulative taxable purchases totaling more than $2,000 this calendar year and do not owe Consumer’s Use Tax at this time.” The taxpayer should not enter figures on the consumer’s use tax line on the return. If figures are entered on the return, the tax is due.

(D) A taxpayer purchases $1,500 of items during each of the first and second quarters. No purchases were reported for the first quarter. Because the year-to-date total of out-of-state taxable purchases now exceeds $2,000, the taxpayer must report the entire $3,000 ($1,500 from the first quarter plus $1,500 from the second quarter) on the second quarter use tax return and pay the tax.

(E) A Missouri business purchases goods from a Kansas distributor and picks up the goods in Kansas. The Kansas distributor properly collects Kansas tax on the transaction. The business brings the goods to Missouri for use. Use tax is due on the goods, but a credit is allowed for the amount of Kansas tax paid on the goods. If the Kansas tax was not properly due under Kansas law on the transaction, no credit is allowed against the Missouri use tax.

Rembrandt Restaurant, Inc. v. Director of Revenue (AHC 1995).

The fact that an out-of-state seller has nexus with Missouri does not relieve the Missouri purchaser from liability for use tax.

Witt & Juckette v. Director of Revenue (AHC 1981). A construction company was charged Iowa tax on materials. The tax was improperly imposed. The commission held no credit was allowed against Missouri tax because the tax was not properly imposed.

History

AUTHORITY: section 144.705, RSMo 2000. Original rule filed Nov. 9, 2000, effective May 30, 2001.

12 CSR 10-103.310 Timely Filing {#sec-12-csr-10-103.310 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.310}

PURPOSE: This rule refers to the postmark being prima facie evidence in determining the date a return is filed and interprets and applies section 144.655, RSMo.

(1) Returns must be filed as stated in section 144.655, RSMo. The postmark date of the envelope will be prima facie evidence of the date of filing the return.

History

AUTHORITY: section 144.705, RSMo 1994. U.T. regulation 710-2 30, 1976. This rule was previously filed as 12 CSR 10-4.310. Moved to 12 CSR 10-103.310, effective Aug. 31, 2023.

12 CSR 10-103.350 Sales Tax on Motor Vehicles {#sec-12-csr-10-103.350 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.350}

PURPOSE: This rule explains the application of sales tax on the sale of motor vehicles as it relates to sections 144.010.1(5), 144.020.1(1), 144.025.1, 144.069 and 144.070, RSMo.

(1) In general, the sale of motor vehicles and trailers are subject (2) Definition of Terms.

(A) Agricultural use—used in cultivating or raising agricultural products.

(B) All-terrain vehicle—any motorized vehicle manufactured and used exclusively for off-highway use which is fifty inches (50") or less in width, with an unladen dry weight of six hundred (600) pounds or less, traveling on three (3), four (4) or more low pressure tires, with a seat designed to be straddled by the operator, and handlebars for steering control.

(C) Grain or livestock produced or raised by the purchaser— means the purchaser of the motor vehicle or trailer has either cultivated the grain or has cared for the livestock.

(D) Highway—any public thoroughfare for vehicles.

(E) Motor vehicle—any self-propelled vehicle not operated exclusively upon tracks, except farm tractors. Off-road utility vehicles are not motor vehicles, but all-terrain vehicles are treated as motor vehicles for purposes of this rule.

(F) Off-road utility vehicle—any motorized vehicle manufactured and used exclusively for off-highway use with a seat that is not designed to be straddled by the operator, and with a steering mechanism other than handlebars.

(G) Trailer—any vehicle without motive power designed for carrying property or passengers on its own structure and for being drawn by a motor vehicle, except those running exclusively on tracks, cotton trailers and manufactured homes.

(H) Vehicle—any mechanical device on wheels, designed primarily for use, or used, on highways, except motorized bicycles, vehicles propelled or drawn by horses or human power, or vehicles used exclusively on fixed rails or tracks, or cotton trailers or motorized wheelchairs operated by handicapped persons.

(3) Basic Application.

(A) Sales tax on motor vehicles and trailers is remitted to the Department of Revenue when submitting the application for title to the department. The applicable tax rate is the rate in effect at the address of the purchaser at the time the application is submitted to the department.

(B) If a person purchases a motor vehicle or trailer, and, before titling and registering it in Missouri, moves and titles it out-of-state within thirty (30) days of the purchase, no Missouri tax is due. If a person registers a motor vehicle or trailer in another state and regularly operates it in such state for at least ninety (90) days prior to registering it in Missouri, no Missouri tax is due. If the vehicle is brought to Missouri within ninety (90) days of registering the motor vehicle or trailer, Missouri tax is due but is reduced by any tax paid to the other state.

(C) A person registered with the department as a motor vehicle leasing company may elect to pay tax on its purchase of a motor vehicle or trailer or may purchase the motor vehicle or trailer without paying tax on the purchase and collect and remit tax on the lease receipts. If the motor vehicle leasing company chooses to pay tax on its purchase rather than the lease receipts, the tax rate it remits is based on the location of the motor vehicle leasing company. If the motor vehicle leasing company elects to collect and remit tax on the lease receipts and the lease is for more than sixty (60) days, tax is due on any down payment and lease receipts based on the address of the lessee. If the lease is for sixty (60) days or less, tax is due based on the location of the motor vehicle leasing company. Once a motor vehicle leasing company makes an election to pay tax on its purchases or to collect and remit tax on its subsequent lease receipts, the election must be the same for all vehicles it purchases for lease. To qualify as a motor vehicle leasing company that will remit tax on lease receipts, the company must first obtain a permit to operate as a motor vehicle leasing company from the department.

(D) When a person trades tangible personal property to a motor vehicle dealer for a motor vehicle or trailer, tax is due on the difference between the price of the motor vehicle or trailer purchased and the amount allowed for the trade-in. If the amount allowed for the trade-in is greater than the purchase price of the motor vehicle or trailer, no tax is due. When a manufacturer’s rebate is offered, the tax due is based on the purchase price of the motor vehicle or trailer less the rebate.

A trade-in allowance applies only to transactions between a purchaser and a motor vehicle dealer.

(E) Except as provided in subsection (3)(F), if an article is traded for a motor vehicle or trailer, the person trading the

article must have paid or otherwise satisfied the tax on the purchase of the article unless the purchase was exempt or excluded from tax.

(F) Grain or livestock raised or produced by a purchaser may be traded for a motor vehicle or trailer, if the motor vehicle or trailer is purchased from a motor vehicle dealer for agricultural use.

(G) If a person purchases or contracts to purchase a motor vehicle or trailer and sells one (1) or more motor vehicles or trailers within one hundred eighty (180) days before or after the purchase or contract to purchase, the person owes tax on the difference between the purchase price and the sale price of the respective motor vehicles or trailers. If the person paid the full amount of the tax on the purchase, the person may obtain a refund of the excess tax paid.

(H) If a person suffers a total insurance loss and subsequently purchases or contracts to purchase a replacement vehicle after the date of loss but no later than one hundred eighty (180) days after the date of the total loss payment, the person can offset the insurance payoff amount plus any deductible against the purchase price and remit tax on the difference. If the vehicle is not covered by insurance, the person must purchase the replacement vehicle within one hundred eighty (180) days of the loss. The person can only offset the loss against the purchase of one (1) replacement vehicle.

(I) If a person who has previously titled and paid tax on a vehicle gives the vehicle to another person, the person must complete a gift statement for the person to whom the vehicle was given to present when titling with the department. No tax is due.

(J) A sale of an all-terrain vehicle by a non-dealer is subject to sales tax if the purchase price is more than three thousand dollars ($3,000). A sale of an all-terrain vehicle by a non-dealer is not subject to sales tax if the purchase price is three thousand dollars ($3,000) or less. See 12 CSR 10-103.200.

(4) Examples.

(A) A person purchases a vehicle for $18,000 at the local car dealership. As a part of the transaction, the dealer offers a $500 rebate and the person trades a vehicle for another $3,000. The purchaser must pay tax to the Department of Revenue when titling the vehicle on $14,500 ($18,000 – $3,500 = $14,500). The applicable rate is the rate in effect at the purchaser’s address at the time of titling.

(B) A person purchases a vehicle from a dealer for $25,000 in May. That person pays tax on $25,000. In June, the person sells a different vehicle for $15,000 and an outboard motor for $500.

Because the sales took place within 180 days of the purchase of the vehicle, the person can obtain a refund of tax paid on the purchase transaction based upon the $15,500 received on the sale.

(C) A person is in an accident that results in a total loss of the vehicle. After the loss of this vehicle, the person buys a new vehicle for $15,000 and pays tax on the full amount when titling the vehicle with the department. Two weeks after purchasing the vehicle, the insurance company pays $5,000 on the loss of the vehicle. The policy included a $500 deductible.

The person can obtain a refund of tax based upon $5,500, which includes the $5,000 paid by the insurance company and the $500 deductible.

(D) A person owns a motor vehicle. The person buys a second motor vehicle and puts the first motor vehicle on the market.

Before the first vehicle is sold, it is in an accident that results in a total loss of the vehicle. Two weeks after the accident, the insurance company pays $5,000 on the loss of the first vehicle.

The person cannot obtain a refund of tax because the person did not purchase a replacement vehicle after the first vehicle was destroyed.

(E) A person is in an accident that results in a total loss of the vehicle. The vehicle was not insured. After the loss of this vehicle, the person buys a new vehicle for $15,000. The Kelly Blue Book value for the lost vehicle is $5,000. When titling the vehicle with the department, the person pays tax on $10,000, which is the $15,000 cost of the new vehicle less the value of the loss.

(F) A person purchases an all-terrain vehicle from a local dealer. The purchaser must obtain a title and remit tax to the department based on the rate in effect at the purchaser’s location at the time of titling.

(G) A business sells an off-road utility vehicle. The utility vehicle is not a motor vehicle and does not need to be titled.

The business must collect and remit tax on the sale.

(H) A person trades in grain valued at $5,000 to a dealer on the purchase of a cattle trailer valued at $10,000. The purchaser grew the grain and will use the cattle trailer in its business of raising cattle. The purchaser receives a trade-in credit of $5,000 on the purchase of the trailer because the purchaser produced the grain and the trailer is used by the purchaser in agriculture.

(I) Same situation as subsection (4)(H), except the purchaser’s son produced the grain. The purchaser receives no trade-in credit because the purchaser did not produce the grain that was traded.

(J) A landowner agrees with a local farmer that the farmer can farm some of landowner’s land in exchange for 50% of the crops produced on the land. The landowner trades in grain grown by the farmer on the land on the purchase of a horse trailer used in the landowner’s breeding operations. The landowner receives a trade-in credit on the purchase of the trailer. The landowner shares the risk of a successful harvest and therefore, is cultivating the grain.

(K) A landowner agrees with a local farmer that the farmer can farm some of landowner’s land in exchange for $1,000. The farmer delivers grain grown on the land valued at $1,000 in payment of the rent. The landowner trades in the grain on the purchase of a horse trailer used in the landowner’s breeding operations. The landowner does not receive a trade-in credit on the purchase of the trailer because the landowner is merely renting land, not cultivating grain.

(L) A farmer sells grain raised by the farmer to an elevator and directs the elevator to pay the farmer for the grain by delivering a check payable to a local motor vehicle dealer. The farmer uses the check to purchase a pickup truck that will be used to haul and carry necessary supplies and materials to and from the farm. The transaction does not qualify for the trade-in allowance because the grain was not traded to the dealer for the truck. Instead, it was sold to the elevator and the proceeds were used to purchase the truck.

(M) An out-of-state motor vehicle leasing company purchases a motor vehicle out of state and leases it to a Missouri resident.

The leasing company has elected to pay tax on lease receipts rather than on the purchase. The lease payments are subject to sales tax at the rate in effect at the location of the Missouri resident.

(N) An out-of-state motor vehicle leasing company purchases a motor vehicle out-of-state and leases it to an out-of-state resident. The resident’s state requires the leasing company to pay tax on all proceeds under the lease at the time of the lease.

During the term of the lease, the lessee moves to Missouri.

Under section 144.440, RSMo, the lease payments are subject to highway use tax at the rate in effect at the location of the Missouri resident. The lessor receives credit for any tax paid to another state on the lease receipts.

(O) An individual purchases a used motor vehicle by making a down payment, trading in another vehicle, and using dealer financing for the balance of the purchase price. Prior to titling the vehicle, the dealer repossesses the vehicle for failure to make payments under the financing agreement. The individual still owes sales tax on the purchase of the vehicle unless the dealer agrees in writing to void the sale and return all payments and the trade-in to the purchaser.

History

AUTHORITY: sections 144.010.1(5), 144.020.1(1) and 144.025.1, RSMo Supp. 2005 and 144.069, 144.070 and 144.270, RSMo 2000. Original rule filed Sept. 12, 2005, effective March 30, 2006. Original authority: 144.010, RSMo 1939, amended 1941, 1943, 1945, 1947, 1974, 1975, 1977, 1978, 1979, 1981, 1985, 1988, 1993, 1996, 1998, 1999, 2001, 2005; 144.020, RSMo 1939, amended 1941, 1943, 1945, 1947, 1963, 1965, 1972, 1975, 1979, 1982, 1985, 1996, 1998, 2001; 144.025, RSMo 1963, amended 1977, 1979, 1985, 1986, 1994, 1998, 2003, 2004, 2005; 144.069, RSMo 1986, amended 1996; 144.070, RSMo 1939, amended 1941, 1943, 1945, 1947, 1951, 1961, 1974, 1975, 1977, 1985, 1997; and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.360 Titling and Sales Tax Treatment of Boats and Outboard Motors {#sec-12-csr-10-103.360 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.360}

PURPOSE: Section 144.020.1(1), RSMo, taxes the retail sale of tangible personal property. This rule interprets the sales tax law as it applies to the sale and lease of watercraft and outboard motors pursuant to sections 144.020.1(8), 144.069 and 144.070, RSMo.

Chapter 306 requires the owner to obtain a certificate of title for certain watercraft and outboard motors from the Department of Revenue.

(1) In general, the purchaser must pay directly to the Department of Revenue the sales tax due on the sale of watercraft and outboard motors required to be titled. The sales tax due on the sale of all other watercraft must be collected from the purchaser by the seller and remitted to the Department of Revenue.

(2) Definition of Terms.

(A) Boat/outboard motor leasing company—A company obtaining a permit from the Department of Revenue to operate as a boat or outboard motor leasing company.

(B) Documented vessel—A vessel documented by the United States Coast Guard or other agency of the federal government.

Such vessels are not subject to any state or local sales or use tax but are instead subject to an in-lieu watercraft tax. See section 306.016, RSMo, for information regarding the in-lieu tax.

(C) Motorboat—Any watercraft propelled by machinery, whether or not such machinery is the principal source of propulsion.

(D) Outboard motor—an internal combustion engine with an integrally attached propeller or waterjet propulsion unit temporarily secured to the stern of a boat.

(E) Personal watercraft—A class of inboard vessel, which uses an internal combustion engine powering a jet pump as its primary source of propulsion.

(F) Vessel—Any motorboat or motorized watercraft; also, any watercraft more than twelve feet (12') in length which is powered by sail or a combination of sail and machinery. The term vessel does not include any watercraft solely propelled by a paddle or oars. A vessel kept within this state must be registered and titled.

(G) Watercraft—Any boat or craft used or capable of being used as a means of transport on waters. Watercraft may or may not be required to be titled.

(3) Basic Application of Tax.

(A) The sales tax due on the sale of a vessel or outboard motor required to be titled must be paid by the purchaser directly to the department at the time the vessel or motor is titled. The rate of sales tax paid is based on the address of the purchaser and the rate in effect on the date the purchaser submits the application for title to the department.

(B) The seller must collect the sales tax due on the sale of all watercraft not covered by section (1) above from the purchaser in accordance with the general sales tax collection methods under Chapter 144, RSMo.

(C) Persons engaged in the lease or rental of watercraft or outboard motors have the option of— 1. Paying taxes on the full purchase price of the watercraft or outboard motor at the time of purchase or titling, depending on the type of craft; or 2. Collecting and remitting the sales tax on the gross receipts derived from the lease or rental of the watercraft or outboard motor.

(D) A person engaged in the lease or rental of watercraft or outboard motors must choose one of the methods listed in (3)

(A) or (3)(B) and must treat all watercraft and outboard motors the same for sales tax purposes.

(E) If the lessor chooses the option to collect and remit sales tax based on the lease or rental of the watercraft or outboard motor, the lessor must register with the Department of Revenue as a leasing company pursuant to section 144.070, RSMo. If this option is chosen, the lessor should not pay sales tax on the purchase of the watercraft or outboard motor at the time of purchase or titling.

(F) The rental or lease of watercraft or outboard motors is not considered a fee paid in or to a place of amusement, entertainment or recreation and is therefore not subject to tax as such. This provision avoids double taxation on the purchase and subsequent lease or rental of watercraft or outboard motors.

(G) Examples.

Mr. Justin purchases a motorboat and a personal watercraft (jet ski) to be kept in this state. Because the motorboat and jet ski are types of vessels, they are required to be titled. Mr. Justin must title the motorboat and jet ski with the Department of Revenue and pay sales tax on the purchase price of these items directly to the department upon titling.

The local sales tax is based upon Mr. Justin’s address.

Ms. Lindsey purchases a canoe from a boat dealer. A canoe is not a vessel, therefore a title is not required. The seller should charge sales tax on the purchase price of the canoe at the time of sale. The local sales tax is based upon the place of business of the boat dealer.
Mr. Biggs rents motorboats, canoes and paddleboats.

Mr. Biggs has chosen to pay sales tax at the time of purchase or titling and not to collect sales tax on the rental receipts of the watercraft. Mr. Biggs must pay sales tax on the purchase price of the motorboats directly to the Department of Revenue at the time the boats are titled because the motorboats are vessels required to be titled. Mr. Biggs must pay sales tax to the seller of the canoes and paddleboats at the time of purchase; the canoes and paddleboats are not required to be titled because they do not meet the definition of vessel. Mr. Biggs has chosen to pay sales tax at the time of purchase or titling and should therefore use this same method for all watercraft and outboard motors that will be rented.

Mr. Kev also rents motorboats, canoes and paddleboats.

However, Mr. Kev has chosen to collect and remit sales tax on the rental receipts rather than to pay sales tax on the purchase price of the watercraft. In order to choose this option, Mr. Kev must first register with the Department of Revenue as a leasing company. Mr. Kev should then provide his lease/rental number to the Department of Revenue at the time of titling of the motorboats. Mr. Kev should also present a resale exemption certificate to the vendor of the canoes and paddleboats at the time of purchase. Mr. Kev has chosen to collect and remit sales tax on the rental receipts and should therefore use this same method for all watercraft and outboard motors that will be rented.

JJ’s Resort operates a place of amusement at which motorboats and canoes may also be rented. JJ has the option of paying tax on the motorboats and canoes at the time of purchase or titling or to collect and remit sales tax on the rental receipts. Should JJ choose to pay tax at the time of purchase or titling, the gross receipts from the rental of the motorboats and canoes are not subject to sales tax notwithstanding the fact that JJ operates a place of amusement, entertainment or recreation.

rule filed Nov. 10, 1999, effective May 30, 2000. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961; 144.705, RSMo 1959.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 1994. Original

12 CSR 10-103.370 Manufactured Homes {#sec-12-csr-10-103.370 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.370}

PURPOSE: Sections 144.044 and 700.010, RSMo create a partial tax exemption for new manufactured homes and an exclusion for qualifying used manufactured homes. This rule interprets the tax law as it applies to the sale of manufactured homes. This rule also identifies charges included as part of the retail sale price of the manufactured home.

(1) In general, the retail sale of a new manufactured home is considered to be a sale of sixty percent (60%) tangible personal property and forty percent (40%) service. The sixty percent (60%) portion of the sale price is subject to tax. The sale of a used manufactured home upon which Missouri tax has already been paid is not subject to tax. The sale of a used manufactured home on which Missouri tax has not already been paid is subject to tax on one hundred percent (100%) of the sale price.

(2) Definition of Terms.

(A) Dealer—any person, other than a manufacturer, who sells or offers for sale four (4) or more manufactured homes, recreational vehicles or modular units in any twelve (12)-month period.

(B) Manufactured home—a factory built structure designed as a dwelling unit with or without permanent foundation, equipped with the necessary service connections and made to be readily moveable on its own running gear. A modular unit is not a manufactured home and is subject to the same tax rules that apply to a building constructed by a contractor.

(C) Setup—the services performed and the materials used to perform the service for the purchaser at the occupancy site including but not limited to, moving, blocking, leveling, anchoring, supporting and assembling multiple or expandable units.

(3) Basic Application of Tax.

(A) Dealers selling new manufactured homes must collect and remit tax on sixty percent (60%) of the gross receipts from these sales. The dealer must provide the buyer of a new manufactured home a signed receipt confirming that tax has been paid.

(B) The owner of a new manufactured home must produce a signed receipt for the tax on the purchase price of the new manufactured home when applying for title. If the owner fails to present a signed receipt, the owner must remit the tax due on the new manufactured home prior to title being issued.

(C) The sale of a used manufactured home upon which Missouri tax has already been paid is not subject to Missouri tax. The sale of a used manufactured home upon which Missouri tax has not been previously paid is subject to tax on one hundred percent (100%) of the purchase price unless the used manufactured home meets the requirements of section 700.111, RSMo.

(D) The transfer of the ownership of or title to a manufactured home involving the assumption of the obligation to pay for the home is considered a sale at retail of the manufactured home subject to tax unless Missouri tax has been previously paid.

(E) The new manufactured home dealer is responsible for collecting tax on sixty percent (60%) of the retail sale price. The retail sale price includes additional tangible personal property installed by the manufacturer and the installed price of the following items of tangible personal property if installed by the dealer:

Central air conditioning;
Dishwasher;
Range or cook top;
Oven;
Microwave oven;
Refrigerator;
Washer and dryer;
Skirting;
Anchors and other stabilizing devices;
Blocks;
Shims;
Steps;
Gutters;
Decks;
Awnings; and 16. Plumbing and electrical parts and supplies necessary for installation and hookup of plumbing and electrical apparatus.

Any other tangible personal property added by a dealer should be separately stated and taxed at one hundred percent (100%) of the sale price.

(F) A dealer may elect to separately state charges for delivery, setup and installation. These charges would not be subject to tax because the dealer is performing a service. The dealer should pay tax, at the time of purchase, on any materials used in performing these services. Setup and installation can include but are not limited to adding a deck to the home or pouring concrete slabs as a foundation for the home.

(G) The dealer should pay tax, at the time of purchase, on items that are attached to a used manufactured home on which Missouri tax was previously paid. The dealer should purchase items attached to a used manufactured home on which Missouri sales tax has not been paid under a sale for resale exclusion.

(4) Examples.

(A) A customer purchases a new manufactured home from a dealer for $40,000, including delivery, setup and installation.

The manufacturer includes an installed stove, refrigerator, and washer/dryer. The cost of delivery, setup and installation is $5,000. If the dealer includes delivery, setup and installation in the retail sales price, tax is due on 60% of $40,000. If the dealer separately states delivery, setup and installation charges from the retail sales price, tax is due on 60% of $35,000. If the dealer separately states these charges, the dealer should pay tax on its purchase of any materials used for the delivery, setup and installation of the manufactured home. The customer should retain his paid receipt to verify tax paid when making application for license/title/registration of the manufactured home.

(B) A dealer took a manufactured home in trade from a customer. The original owner paid Missouri tax. The dealer sells the used manufactured home. No tax is due on the used manufactured home because tax was paid on the original purchase of the home.

(C) A dealer sold a new manufactured home including a stove and refrigerator added by the dealer. As an incentive, the dealer included a personal computer. The computer should be separately stated from the manufactured home sale price and taxed at 100%. The installed price of the stove and refrigerator can be included in the manufactured home sale price and tax is due on 60% of that price. The dealer may issue a resale exemption certificate when purchasing these items.

(D) A dealer hires a contractor to add patios and garages to the site for customers who purchase new manufactured homes.

These charges can be separately stated from the manufactured home sale price without being taxed. The contractor should pay tax on any supplies used to build the patios and garages because the contractor is the final user and consumer of these supplies.

Benton Homes, Inc. v. Director of Revenue, (AHC 1992). Benton Homes purchased various items such as carpet, drapes, appliances and water heaters for the repair and refurbishment of used mobile homes to upgrade the home for future sale to the public.

Benton Homes avoided paying sales and use tax by purchasing these items under the resale exemption; however, the items were never “resold,” because the definition of “retail sale” excludes the transfer of used mobile homes. Items such as concrete blocks and furniture that did not lose their individual character when included in a used mobile home sale, were exempt from tax as they were purchased for resale in the regular course of business.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed Jan. 24, 2001, effective July 30, 2001. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.380 Photographers, Photofinishers and Photoengravers, as Defined in Section 144.030, RSMo {#sec-12-csr-10-103.380 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.380}

(Rescinded April 30, 2009)

Amended: Filed Aug. 14, 2007, effective Feb. 29, 2008. Rescinded:

Filed Sept. 19, 2008, effective April 30, 2009.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed June 29, 2000, effective Dec. 30, 2000. Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008.

12 CSR 10-103.381 Items Used or Consumed by Photographers, Photofinishers and Photoengravers, as Defined in Section 144.054, RSMo {#sec-12-csr-10-103.381 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.381}

(Rescinded April 30, 2026)

History

AUTHORITY: sections 144.270, RSMo 2000, and 144.054, RSMo Supp. 2007. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Original rule filed Aug. 14, 2007, effective Feb. 29, 2008. Rescinded: Filed Oct. 9, 2025, effective April 30, 2026.

12 CSR 10-103.390 Veterinary Transactions {#sec-12-csr-10-103.390 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.390}

PURPOSE: Sections 144.010.1 and 144.020.1, RSMo, taxes the retail sale of tangible personal property. This rule interprets the sales tax laws as they apply to veterinarians. This rule also interprets sales tax exemptions that apply to veterinarians including section 144.030.2(22), RSMo.

(1) In general, veterinarians are rendering services not subject to sales tax. However, veterinarians making retail sales of tangible personal property are responsible for collecting and remitting sales tax on the gross receipts derived from these sales.

(2) Definition of Terms.

(A) Livestock—cattle, calves, sheep, swine, ratite birds including but not limited to ostrich and emu, aquatic products as defined in section 277.024, RSMo, llamas, alpaca, buffalo, bison, elk documented as obtained from a legal source and not from the wild, goats, horses, other equine, honey bees, or rabbits raised in confinement for human consumption.

(B) Prescription drug—a drug administered, prescribed, or dispensed only by or upon a lawful written or oral prescription or order of a licensed veterinarian. A prescription must exhibit one (1) of the following legends:

“Rx Only”; or 2. “Caution: Federal law restricts this drug to be used by or on order by a licensed veterinarian.”

(3) Basic Application of Tax.

(A) Veterinarians pay tax on their purchases of items consumed in their veterinarian service. Such items may include, but are not limited to, instruments, bandages, splints, syringes, furniture, and equipment.

(B) Veterinarians that sell items including but not limited to, leashes, shampoos, collars, nonprescription drugs, and food for animals (except livestock or poultry) for nonfood producing animals are responsible for collecting and remitting tax on the gross receipts derived from these sales. Veterinarians should provide an exemption certificate to the vendor when purchasing items for resale.

(C) Purchases for resale subsequently used or consumed by the veterinarian are subject to the applicable tax. The veterinarian should accrue and remit this tax to the Missouri Department of Revenue. Veterinarians have used or consumed items purchased for resale if they dispense these items to clients for no charge at the same time they provide a nontaxable service. Medications and vaccines administered to livestock or poultry in the production of food or fiber are exempt from tax.

(D) Prescription drugs are exempt. Products bearing labels, such as, “Available through veterinarians,” “For sales to licensed veterinarians” or “Available through licensed veterinarians exclusively,” are not prescription drugs and are subject to tax.

(4) Examples.

(A) A veterinarian purchased an examining table and operating supplies for the veterinary practice. The purchase is (B) A veterinarian sells dog food at retail and also operates a kennel. The veterinarian feeds the dogs in the kennel the same dog food the veterinarian purchases exempt for resale. When the veterinarian removes the food from inventory to use in the kennel, tax is due.

The farmer also purchases vaccines for the farmer’s pets. The vaccines for the poultry are exempt; however, the vaccines for the pets are subject to sales tax.

(D) A veterinarian purchases surgical tools bearing the label “For sale to licensed veterinarians” to use in the practice. This purchase is subject to tax.

(E) A customer takes a sick cat to the veterinarian. The veterinarian examines the cat and gives the cat an antibiotic shot, administers nonprescription eye drops, and gives the customer a bottle of nonprescription eye drops to administer twice a day for two weeks, starting tomorrow. The bill reads as follows: Office visit $25; Antibiotic shot $15; Eye drops $5;

Bottle of eye drops $12; Total $57. There is no tax due from the customer on the shot or eye drops administered by the veterinarian because the veterinarian uses them in providing the service. There is no tax due from the veterinarian on the purchase of the antibiotic shot because it is an exempt prescription drug. The veterinarian must pay tax on the purchase of the nonprescription eye drops administered in the office. The customer must pay tax on the purchase of the separate bottle of nonprescription eye drops.

(F) A veterinarian has items for sale in the waiting room area including pet food, flea collars, and shampoos. A customer purchases a flea collar for his/her dog. The veterinarian must collect tax on the sale of the flea collar.

rule filed Nov. 10, 1999, effective May 30, 2000. Amended: Filed March 23, 2010, effective Oct. 30, 2010. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

Exotic Animal Paradise, Inc. v. Director of Revenue, (A.H.C. 1989). Purchases of feed and hay for animals in an amusement park were not tax-exempt under section 144.030.2(1), RSMo, even though some animals qualified as livestock, because the exemption applies only to feed and hay for animals that will be ultimately resold. The park was also denied an exemption under

section 144.030.2(18), RSMo, for purchases of prescription drugs because it failed to show that any of the items claimed required a prescription.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

12 CSR 10-103.395 Physicians, Dentists, and Optometrists {#sec-12-csr-10-103.395 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.395}

PURPOSE: Sections 144.010.1(13) and 144.020.1(1), RSMo, tax the retail sale of tangible personal property. This rule interprets the tax laws as they apply to physicians, dentists, and optometrists.

(1) In general, physicians, dentists and optometrists are rendering services not subject to tax. Tangible personal property purchased by physicians, dentists, and optometrists and used or consumed in the practice of their professions is subject to tax when purchased. Tangible personal property purchased by physicians, dentists, and optometrists and not used or consumed in the practice of their professions is subject to tax when resold by them.

(2) Definition of Terms.

(A) Dentist—a person licensed to practice dentistry.

(B) Optometrist—a person licensed to practice optometry.

(D) Used in the practice of the profession—employed in providing, directly or indirectly, professional care.

(3) Basic Application of Tax.

(A) Physicians, dentists, and optometrists must pay tax on the purchase of items used or consumed in the practice of their profession. Such items include, but are not limited to, medical instruments, bandages, splints, x-ray film, medical equipment, toothpaste, floss, eyeglasses, frames, and lenses.

(B) Physicians, dentists, and optometrists that sell items that are not used in the practice of their profession are responsible for collecting and remitting the tax on the gross receipts derived from these sales.

(C) Sales by persons other than physicians or optometrists of eyeglasses, frames, and lenses are subject to tax. The person must collect and remit tax on their gross receipts from these sales.

(D) See also 12 CSR 10-110.013 Drugs and Medical Equipment, which contains an explanation of other exemptions that may apply to these transactions.

(4) Examples.

(A) A physician purchases diagnostic equipment, surgical tools, and supplies for use in providing care to his/her patients.

These purchases are subject to tax.

(B) A dentist purchases dental chairs from an out-of-state supplier. The chairs are shipped to the dentist’s location in Missouri. The supplier does not charge tax on the invoice for the chairs. The dentist must accrue and remit use tax on this purchase.

(C) An optometrist purchases eyeglasses, frames, and lenses and uses these items in the diagnosis, treatment, and correction of conditions of the human eye. The optometrist charges the patient a separate amount for the frame and lenses. The optometrist should pay tax on these items because they are consumed in the practice of his/her profession. The amount charged the patient for the frame and lenses is not a sale at retail and is not subject to tax.

(D) A retailer of prescription eyeglasses, lenses, and frames advertises that an optometrist is available to examine customers. The optometrist performs eye examinations for customers of the retailer, but the retailer owns the inventory held for sale. Sales of the eyeglasses, lenses, and frames are subject to tax because they are not sales by the optometrist.

(E) An optician makes and sells eyeglasses to fill a patient’s prescription. These sales are subject to tax.

(F) A dentist sells accessories such as travel kits, mirrors, and other items not related to the practice of the profession. These sales are subject to tax.

(G) A dentist provides small tubes of toothpaste, floss, and mouthwash to each patient following a visit. Providing the items is not a sale at retail and are not subject to tax.

The dentist should pay tax on these items because they are consumed in the practice.

William H. Grant III, O.D. v. Director of Revenue (AHC 1995).

An optometrist operated a business composed of two elements, a professional practice and the sale of articles of tangible personal property associated with eye care and eyeglass repair. The Commission found that sales of frames, eyeglass cases, and other item's reasonable related to providing the professional service were not subject to tax.

History

AUTHORITY: section 144.020, RSMo 2016, and section 144.010, RSMo Supp. 2018. Original rule filed April 1, 2002, effective Oct. 30, 2002. Amended: Filed Oct. 2, 2018, effective April 30, 2019. Original authority: 144.010, RSMo 1939, amended 1941, 1943, 1945, 1947, 1974, 1975, 1977, 1978, 1979, 1981, 1985, 1988, 1993, 1996, 1998, 1999, 2001, 2005, 2011, 2013, 2016, 2017, 2018; and 144.020, RSMo 1939, amended 1941, 1943, 1945, 1947, 1963, 1965, 1972, 1975, 1979, 1982, 1985, 1996, 1998, 2001, 2011, 2013, 2015, 2016.

12 CSR 10-103.400 Sales Tax on Vending Machine Sales {#sec-12-csr-10-103.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.400}

PURPOSE: Section 144.021, RSMo, imposes a tax on a seller’s gross receipts. Section 144.012, RSMo, provides the method for determining gross receipts and the applicable local tax for sales of tangible personal property through vending machines. This

rule also addresses the purchase of vending machines under

section 144.518, RSMo. This rule does not address receipts from amusement devices.

(1) In general, sales of tangible personal property, other than photocopies and tobacco products, through vending machines are subject to tax based on one hundred thirty-five percent (135%) of the net invoice price of the tangible personal property.

The applicable tax rate is the rate in effect at the location of the vending machine. Sales of photocopies and tobacco products are subject to tax on their retail sales price. Purchases of machines or parts for machines used in a commercial vending machine business are not subject to tax if tax is paid on the gross receipts derived from the sale of the tangible personal property through the vending machines.

(2) Definition of Terms.

(A) Net invoice price—the cost of the product, including freight, less any quantity or timely payment discounts allowed by the supplier, with no allowance for spoilage or loss.

(B) Vending machine—a coin or currency operated device that is used to sell tangible personal property without requiring the vendor’s physical attention at the time of the sale. The term vending machine is not limited to mechanically operated devices and includes honor boxes.

(3) Basic Application of Tax.

(A) The vendor must report and remit sales tax on one hundred thirty-five percent (135%) of the net invoice price of the tangible personal property purchased for sale through vending machines. The vendor must report and remit sales tax for the period in which the items are sold or in which the items are removed from inventory due to spoilage or loss.

(B) Sales of tangible personal property through vending machines located outside Missouri are not subject to tax.

(C) Sales of tangible personal property through vending machines located on the premises of religious organizations, charitable organizations and public elementary and secondary schools are not subject to tax.

(D) A vendor with multiple machines or locations may compute taxable sales for each machine or location either by specifically identifying the net invoice price of the items sold through each machine or by using an apportionment method. An apportionment method calculates taxable sales for each individual location by first determining the percentage of gross sales attributed to each location. This percentage is then applied to the net invoice price of the tangible personal property vended and allocates the same percentage to the location(s).

(E) A manufacturer that sells its manufactured product at retail through vending machines and wholesale to other vendors must self-assess tax on its vending machine sales at one hundred thirty-five percent (135%) of the average price at which the product is sold to other vendors. A manufacturer who sells its manufactured products to the public through vending machines and does not make any sales to other purchasers or vendors must self-assess tax on its vending machine sales at one hundred thirty-five percent (135%) of the total cost of the manufactured products, including materials, labor and manufacturing overhead.

(F) No allowance, credit or refund of sales tax is allowed for spoilage or loss, such as from breakage or theft.

(G) The taxable receipts from a vending machine are subject to the sales tax at the rate in effect at the location of the machine.

(H) Sales of qualifying food through vending machines are subject to the reduced food tax rate. See 12 CSR 10-110.990.

(I) Purchases of machines or parts for machines used in a commercial vending machine business are not subject to tax if tax is paid on the gross receipts derived from the sale of the tangible personal property through the vending machines.

(4) Examples.

(A) A vendor purchases tangible personal property for a gross price of $10,000 to sell in its vending machines. The vendor’s supplier allows the vendor a 2% timely payment discount of $200 as well as a 5% quantity discount of $500. The net invoice price of the tangible personal property is $9,300 ($10,000 minus $700 total discounts). The amount subject to sales tax is $12,555 ($9,300 net invoice price multiplied by 135%). The vendor sold all the products for $20,000. The vendor has vending machines located at a retail store and at an exempt public elementary school. The sales at the school were $5,000 (25% of gross sales) and the sales at the retail store were $15,000 (75% of gross sales).

The gross receipts for the exempt location are $3,138.75 ($12,555 multiplied by 25%) and for the taxable location are $9,416.25 ($12,555 multiplied by 75%).

(B) A vendor has vending machines located on the premises of taxable organizations. The machines are located both in the city of Columbia and rural Boone County. The Columbia machines provided 60% of the vendor’s gross sales and the rural Boone County machines provided 40% of gross sales. The vendor must report and remit tax on 60% of his gross receipts at the sales tax rate in effect for Columbia and on 40% at the sales tax rate in effect for Boone County.

(C) A commercial vending business purchases a vending machine and places the machine in an exempt church. The business must pay tax on the purchase price of the machine because it will not pay tax on the receipts from the machine.

The machine is later moved to a gas station and tax is paid on 135% of the net invoice price of the goods sold from the machine. The subsequent purchases of repair parts for the machine are exempt.

(D) A commercial vending business purchases ten new vending machines. Six of the machines are placed in grocery stores and other commercial enterprises open to the general public. Four are placed in schools and churches. The purchase of the six machines is not subject to tax because the business will pay tax on the receipts from the machines. The purchase of the four machines is subject to tax because the business will not pay tax on the receipts from the machines.

(E) A commercial vending business purchases a vending machine and places the machine in a gas station. The purchase of the machine is not subject to tax because the business will pay tax on the receipts from the machine. The machine is later moved to a church. The subsequent purchases of repair parts for the machine are subject to tax.

(F) A newspaper sold through a vending machine is subject to tax at 135% of the average price charged to retail sellers.

Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Amended: Filed Aug. 14, 2007, effective Feb. 29, 2008. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961 and 144.518, RSMo 1999, amended 2005, 2007.

History

AUTHORITY: section 144.270, RSMo 2000, and 144.518, RSMo Supp. 2007. Original rule filed May 1, 2006, effective Nov. 30, 2006.

12 CSR 10-103.500 Sales of Food and Beverages to and by Public Carriers {#sec-12-csr-10-103.500 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.500}

PURPOSE: Section 144.020.1(1), RSMo, taxes the retail sale of tangible personal property. This rule interprets the sales tax law as it applies to the sale of food and beverages to and by public carriers.

(1) In general, the sales of food and beverages to public carriers are subject to tax unless the carrier charges a separate amount for the sale of these items to its passengers or crew.

(2) Definition of Terms.

(A) Airline—a person engaged in the carriage of persons or cargo for hire by commercial aircraft pursuant to the authority of the federal Civil Aeronautics Board, or successor thereof.

(B) Missouri passenger miles—miles from airline flights that either land in or take off from locations in Missouri.

(C) Public carrier—a person engaged in the business of transporting persons or cargo for hire for the use or benefit of all.

(3) Basic Application of Tax.

(A) Public carriers that purchase food and beverages in this state to be used in serving passengers and crew should pay tax on these items at the time of purchase, unless the public carrier separately charges for the sales of these items.

(B) A public carrier may issue a resale exemption certificate to a seller of food and beverages if the public carrier sells the food and beverages to its passengers or crew and charges them a separately stated amount for these items. If a public carrier chooses this option, it is subject to tax on the gross receipts from all sales in this state of food or beverages to passengers or crew.

(C) Federal statutes exempt Amtrak from state sales tax on the gross receipts from sales in this state to passengers or crew.

(D) Airlines which purchase alcoholic beverages from wholesale distributors must remit tax of those beverages on the following basis:

On all sales made on the ground in this state, tax should be collected on the sales price of the drink;
The tax due on sales made in flight should be determined by multiplying the tax rate times the Missouri gross liquor revenues; and 3. The Missouri gross liquor revenues are the airline’s total gross liquor revenue times the percentage of Missouri passenger miles to total passenger miles.

(E) Federal law, 49 U.S.C. 40116 (c), prohibits a state from taxing activities on flights that merely fly over a state without taking off or landing from an airport in the state.

(4) Examples.

(A) Cool Crowd Airlines is engaged in the business of transporting persons and cargo for hire and has operating facilities in this state where aircraft are furnished with food and beverages. Cool Crowd does not separately charge for sales of food and beverages to its passengers or crew and therefore must pay tax on the purchase of these items when they are delivered in this state.

(B) Assume the same facts as in example one except that Cool Crowd does separately charge for sales of food and drink to passengers or crew. In this instance, Cool Crowd should issue a resale exemption certificate to its food and beverage vendors and purchase these items tax free. Cool Crowd should then collect and remit tax on all sales of food and beverages that occur in this state.

(C) Cool Crowd Airlines purchases alcoholic beverages tax free for resale both in clubs located in this state and in flight.

Cool Crowd should remit sales tax on the total gross receipts resulting from all sales made on the ground in this state. For sales occurring in flight, Cool Crowd should remit use tax on the Missouri gross liquor revenues. The Missouri gross liquor revenues are computed by multiplying the airline’s total gross liquor revenue times a fraction, the numerator of which is Missouri passenger miles and the denominator of which is total passenger miles.

rule filed Nov. 10, 1999, effective May 30, 2000. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961; 144.705, RSMo 1959.

Republic Airlines Inc. v. Wisconsin Department of Revenue, 159 Wis. 2d 247; 464 N.W. 2d 62: (Wisc. App. 1990). Republic reported tax on the gross receipts of food, beverages and peanuts based on a ratio of revenue passenger miles flown in Wisconsin (the numerator), to its revenue passenger miles everywhere (the denominator). The numerator included flights that landed in or took off from Wisconsin but did not include overflights. The Wisconsin Department of Revenue adjusted the numerator of this fraction upward to include overflights. The Wisconsin Court of Appeals ruled that the Wisconsin statute did not authorize the inclusion of flyover miles in the sales tax apportionment factor, even though such inclusion was authorized by the applicable

regulation. The court determined that the Legislature’s use of the word “in” in the statute did not authorize the Revenue Department’s promulgation of a regulation including miles merely “over” the State in the apportionment factor.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 1994. Original

12 CSR 10-103.555 Determining Taxable Gross Receipts {#sec-12-csr-10-103.555 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.555}

PURPOSE: Section 144.021, RSMo, imposes a tax on a seller’s gross receipts. Section 144.083, RSMo, addresses the application of tax involving third party payments. This rule provides guidance for reporting gross receipts.

(1) In general, all gross receipts resulting from the sale of tangible personal property and taxable services should be reported to the department. When filing a return, the taxpayer should deduct nontaxable receipts from gross receipts to arrive at taxable sales.

(2) Definitions.

(A) Buydown payments—payments received by a seller under an agreement with a manufacturer or wholesaler to lower the cost of inventory sold to consumers for a stated sales price.

(B) Gross receipts—the total amount of the sale price of taxable services and tangible personal property including any services, other than charges incident to the extension of credit, that are a part of such sale and are capable of being valued in money, whether received in money or otherwise.

(D) Store coupons—coupons issued by the seller to reduce the stated price of a product to the purchaser.

(E) Taxable sales—the total amount of gross receipts plus or minus any adjustments permitted or required by law.

(F) Third party coupons—coupons issued by a manufacturer or other third party to apply to the purchase of the product.

(3) Basic Application of Tax.

(A) Tax is imposed on the total amount of the sale price received for the sale of tangible personal property and taxable services. The total amount of each sale should be reported as gross receipts even if the seller separately states to the customer the various components of the sale. Exempt sales should be deducted from gross receipts to arrive at taxable sales. Tax collected as a part of a sale should not be included in gross receipts.

(B) When a taxpayer receives consideration other than money, the full market value of the item exchanged should be included in gross receipts.

(C) When the seller accepts third party coupons, only the price paid by the purchaser is included in the gross receipts (D) The value of a store coupon issued and redeemed by a seller is not subject to tax. Store coupons are not included in gross receipts.

(E) When the seller accepts federal food stamp coupons, the value of the federal food stamp coupons is not included in gross receipts.

(F) Rebates from sellers or manufacturers do not reduce taxable sales unless they are offered instantly at the time of sale, except for rebates on motor vehicles, boats, trailers and outboard motors.

(G) A taxpayer accepting an article in trade as a credit or part payment on the purchase price should include the value of the article in gross receipts. The value of the article should be deducted from gross receipts when calculating taxable sales.

(H) Money received in advance, such as down payments, layaways or gift certificates, are not included in gross receipts until the sale has been consummated.

(I) Charges to customers for the extension of credit, such as late fees or financing charges are excluded from gross receipts.

(J) A seller’s expenses associated with utilizing the service of credit card companies are not excluded from gross receipts.

(K) If the taxpayer’s inventory is stolen or destroyed by fire or other casualty, the insurance receipts are not subject to tax and should not be included in gross receipts.

(L) When tangible personal property is subject to a federal manufacturer’s excise tax imposed by sections 4041, 4061, 4071, 4081, 4091, 4161, 4181, 4251, 4261, or 4271 of Title 26, United States Code, the amount of the tax is not included in gross receipts if the retail seller collects the excise tax from the purchaser and remits it to the federal government.

(M) Gross receipts from the sale of cigarettes do not include the amount of the sale price that represents the state tax on the cigarettes under Chapter 149, RSMo. Gross receipts from the sale of other tobacco products include the amount of the sale price that represents the state tax on the other tobacco products under Chapter 149, RSMo. Local cigarette taxes authorized by law and imposed and paid in the manner of the state tax under

Chapter 149, RSMo, are not included in gross receipts. All other local cigarette taxes are included in gross receipts.

(N) Buydown payments are not gross receipts subject to tax. Buydown payments serve to reduce the sales price to all purchasers by reducing inventory cost to the seller. Buydown payments are not payments for the retail price of the product.

(4) Examples.

(A) A grocery store accepts manufacturer’s coupons from its customers on purchases of various goods. The store sells aluminum foil for $1.50. The customer presents to the store a $.50 manufacturer’s coupon and pays the remaining balance of $1.00. The store submits the $.50 coupon to the manufacturer for payment of the $.50. The gross receipts from the sale of the aluminum foil are $1.00 and total taxable sales are $1.00. Tax should be charged on $1.00.

(B) On Tuesdays, the same grocery store in Example (A) doubles all manufacturers’ coupons. The store then receives $.50 from the customer and $.50 from the manufacturer. Gross receipts are $.50, and total taxable sales are $.50. Tax should be charged on $.50.

(C) An appliance manufacturer offers a $100 cash rebate on an $800 refrigerator. Tax is due on $700, if the rebate is received by the customer at the time of purchase. If the customer must request the rebate from the manufacturer at a later date, tax is due on $800 because that is the sale price paid at the time of purchase.

(D) A furniture retailer allows customers to “layaway” their purchases until they have paid the full sale price. When the customer has paid the full sale price, the retailer completes the sale and transfers the furniture to the customer. The furniture dealer should not include the layaway amount in its gross receipts until the sale is complete. At that time the total sale price should be reported as gross receipts.

(E) A construction company purchases a new bulldozer. The equipment dealer agrees to sell it a new machine for $50,000 and give a trade-in allowance of $10,000 for the old one. The equipment dealer should report $50,000 in gross receipts. The equipment dealer should then deduct the $10,000 trade-in value to arrive at taxable sales.

(F) A retailer sells a chair for $100 to a customer who uses his credit card to pay for the purchase. The seller should charge tax on the full $100 sales price of the chair. The seller should report $100 in gross receipts, even though it must pay the credit card company a transaction fee.

(G) A retailer ordinarily sells a brand of cigarettes for $4 per pack. The manufacturer of that brand of cigarettes agrees to a “buydown” with the retailer. Under the buydown agreement, the manufacturer will reimburse the retailer $.50 per pack if the retailer sells the cigarettes for $3.50 for a month. The gross receipts and taxable sales from the sales of the cigarettes are $3.50 per pack, which includes the buydown, less any amount attributable to the state tax imposed pursuant to Chapter 149, RSMo.

(H) A retailer ordinarily sells a brand of cigarettes for $4 per pack. The manufacturer of that brand of cigarettes agrees with the retailer to reduce the purchase price to the retailer by $.50 per pack if the retailer sells the cigarettes for $3.50. The gross receipts from the sales of the cigarettes are $3.50 per pack, less any amount attributable to the state tax imposed pursuant to

Chapter 149, RSMo.

Central Hardware Company, Inc. v. Director of Revenue, 887 S.W.2d 593 (Mo. banc 1994). The taxpayers were not entitled to a refund of the sales tax paid on the percentage of their credit sales they paid as fees to credit card companies. The fees were not excludable from the sales price as charges incident to the extension of credit. The fees were an expense paid by the taxpayers to the credit card companies and were not a charge to their customers incident to the extension of credit. They charged their customers the same sales price irrespective of the mode of payment and there was no charge to a customer who paid by credit card. The taxpayers cannot alternatively claim that because they never actually received the fees, they were not part of the gross receipts. The transactions on which the gross receipts were based and on which the sales tax should be calculated were the retail sales that occurred between the taxpayers and their customers and not the transactions between the taxpayers and the credit card companies. The fact that the taxpayers chose to pay the fees out of the credit draft proceeds did not decrease the amount of their gross receipts.

Oakland Park Inn v. Director of Revenue, 822 S.W.2d 425 (Mo. banc 1992). Hotel was liable for sales tax on amounts paid as mandatory gratuities. Under the hotel’s banquet contracts, customers were obligated to pay a 16% gratuity. The gratuities were part of the sale price of the food and drink because they were mandatory. The fact that the gratuities were separately stated and served to equalize employee wages does not affect taxability of the gratuity.

Golde’s Department Stores, Inc. v. Director of Revenue, 791 S.W.2d 478 (Mo. App. 1990). A department store that paid sales tax on gross sales was entitled to refund of sales tax that was overpaid. Under gross sales reporting method, it reported credit sales for which no payment was ever received. It was entitled to compute its liability under gross receipts reporting method because the law imposes the sales tax based on gross receipts, not gross sales.

History

AUTHORITY: section 144.270, RSMo 2000, and 144.083, RSMo Supp. 2007. Original rule filed Aug. 21, 2000, effective Feb. 28, 2001. Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Amended: Filed Aug. 14, 2007, effective Feb. 29, 2008. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961 and 144.083, RSMo 1961, amended 1965, 1986, 2004, 2007.

12 CSR 10-103.560 Accrual vs. Cash Basis of Accounting {#sec-12-csr-10-103.560 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.560}

PURPOSE: Section 144.021, RSMo, imposes tax on a taxpayer’s gross receipts. This rule explains when a taxpayer reports its gross receipts depending upon whether the taxpayer is using the accrual or cash basis of reporting.

(1) In general, a taxpayer should report gross receipts in the period in which payment is actually received. A taxpayer using the accrual basis of accounting may report gross receipts in the period in which the transaction takes place.

(2) Application of Tax.

(A) A taxpayer should report the gross receipts from its sales in the period in which payment is received. When the taxpayer and purchaser enter into an installment agreement, the taxpayer should report each installment, less any finance charge, as a part of gross receipts in the period in which payment is received. Tax should be calculated at the tax rate in effect at the time of entering the installment agreement.

(B) A taxpayer using the accrual basis of accounting may report the gross receipts from its sales in the period in which the transaction is completed, rather than the period in which payment is actually received. When the taxpayer and purchaser enter into an installment agreement and the taxpayer uses the accrual basis of accounting, the taxpayer may report the sale price in gross receipts when the revenue is recognized pursuant to generally accepted accounting principles. Tax should be calculated at the tax rate in effect at the time of entering the installment agreement.

(3) Examples.

(A) A furniture retailer, a cash basis taxpayer, sells furniture to a customer and agrees to receive payments on the furniture over a period of 1 year with a 5% interest charge on the unpaid balance. Tax is computed only on the sale price of the furniture, not the finance charge. The amount of each payment, less the tax and finance charge, is included in gross receipts in the period each payment is received. An accrual basis taxpayer may include the entire sale price in the gross receipts at the time of the sale.

(B) A furniture retailer makes a charge sale to a customer in December 1999, with payment due in March. The local sales tax rate changes effective January 1, 2000. If the retailer is a cash basis taxpayer, it charges tax based on the rate in effect in December and reports the gross receipts when received in March. If the retailer elects to report gross receipts on an accrual basis, it charges tax based on the rate in effect in December and it should report the sale in its December gross receipts.

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Aug. 1, 2000, effective Jan. 30, 2001. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1995, 1947, 1955, 1961.

12 CSR 10-103.600 Sales of Tangible Personal Property and Services {#sec-12-csr-10-103.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.600}

PURPOSE: Section 144.020.1, RSMo provides that sales of tangible personal property and certain enumerated services are subject to tax. Section 144.010.1(3), RSMo defines which charges are subject to tax when included in the sale price of tangible personal property. This rule explains which charges are subject to tax when a transaction involves the sale of a service or both tangible personal property and a nontaxable service.

(1) In general, the sale of tangible personal property is subject to tax unless a specific statute exempts it. The sale of a service is not subject to tax unless a specific statute authorizes the taxation of the service. When a sale involves both tangible personal property and a nontaxable service, the sale of the tangible personal property will be subject to tax, and the service will not be subject to tax, if the sale of each is separate.

When the sale of tangible personal property and a nontaxable service are not separable, the entire sale price is taxable if the true object of the transaction is the transfer of tangible personal property. None of the sale price is taxable if the true object of the transaction is the sale of the nontaxable service.

(2) Definition of Terms.

(A) Personal service—service involving either intellectual or manual personal labor of the server rather than a salable product of the server’s skill.

(B) Sale price—the consideration paid to the seller for tangible personal property, including any service charges other than charges incident to the extension of credit.

(C) True object—the real object the buyer seeks in making the purchase. The essentials of the transaction determine the true object. The true object of the transaction is the tangible personal property if:

The purchaser desires and uses the tangible personal property;
The tangible medium is not merely a disposable conduit for the service or intangible personal property;
The tangible personal property is a finished product; or 4. The tangible personal property is not separable from the service or intangible personal property.

(D) The true object of the transaction is the service or intangible personal property if the tangible personal property is merely the medium of transmission for an intangible product and can be discarded after the purchaser has obtained access to the intangible component.

(3) Basic Application.

(A) Shipping, Handling, Minimums, Gratuities and Similar Charges.

If the purchaser is required to pay for the service as part of the sale price of tangible personal property, the entire sale price is subject to tax.
If the purchaser is not required to pay the service charge as part of the sale price of tangible personal property, the amount paid for the service is not subject to tax if the charge for such service is separately stated. If the charge for the service is not separately stated, the entire sale price is subject to tax.

(B) Repair and Personal Services.

If the amount paid for the repair or personal service is separately stated from the tangible personal property used to perform the repair or personal service, the amount paid for the repair or personal service is not subject to tax.
If the amount paid for the repair or personal service is not separately stated, the entire sale price is taxable.

However, if the retail price of the tangible personal property constitutes less than ten percent (10%) of the total sale price, the department will consider none of the sale price as taxable. The seller must pay tax on the purchase of the tangible personal property.

If the purchaser obtains a service as part of a transaction in which the true object is the purchase of tangible personal property, the entire sale price is taxable even if the charge for the service is separately stated.
If the purchaser obtains tangible personal property as part of a transaction in which the true object of the transaction is the purchase of a service, none of the sale price is taxable unless the charge for the tangible personal property is separately stated. If the charge for the tangible personal property is separately stated only the charge for the tangible personal property is taxable.

(D) A person selling tangible personal property to a retailer of a nontaxable service must collect and remit tax on such sales.

(E) When a service provider also sells tangible personal property in transactions separate from the provision of services, the sales of tangible personal property are subject to tax.

(4) Examples.

(A) A steel fabricator enters into an agreement to fabricate steel beams for a building. The fabricator makes a retail sale of the steel beams. Even though the fabrication labor is separately stated on the sales invoice, the total sale price including charges for the fabrication labor is subject to tax.

(B) A person purchases a compact disc (CD) through a mail order club. The seller charges a set amount for shipping and handling the CD. Because the buyer is required to pay the shipping and handling charge, the entire amount charged, including the shipping and handling, is subject to tax.

The seller gives the buyer a choice of shipping the furniture or the buyer may arrange for the furniture to be delivered to their home. Because the shipping is optional, it is not subject to tax.

(D) A person purchases ten (10) yards of concrete from a concrete company. The concrete company separately states the optional delivery charge but has a mandatory minimum service charge of twenty-five dollars ($25) on all orders less than twelve (12) yards. Tax is due on the concrete price and the mandatory service charge, but not on the delivery charge.

(E) A car dealer sells an automobile to a buyer, which includes as part of the purchase price an initial warranty for services including parts. Tax is due on the entire sale price.

The dealer does not owe tax on parts supplied pursuant to the initial warranty when the manufacturer provides the parts to the dealer free of charge. The car dealer also sells the buyer an optional extended warranty beyond the initial warranty for services only. The sale price for the optional warranty is separately stated. The extended warranty is not subject to tax.

If the dealer bills the buyer additional charges for repair parts as needed, the dealer must charge the buyer tax on the repair parts. If the extended warranty includes parts, the dealer is liable for tax on the purchase of the parts used to fulfill the extended warranty contract.

(F) Taxpayer sells a typewriter for three hundred dollars ($300) and an optional one (1) year maintenance contract for an additional twenty-five dollars ($25). The maintenance contract is segregated on the billing from the cost of the typewriter.

Tax is due on the three hundred dollars ($300) but is not due on the twenty-five dollars ($25) maintenance contract. If the maintenance contract states that the seller provides repair parts, the seller must pay tax on its purchases of repair parts to fulfill the agreement. If the maintenance contract states that the seller bills the customer an additional charge for repair parts, then the seller must collect and remit tax on the amount charged for the parts.

(G) An architect prepares original architectural plans for an addition to a home. Because the true object of this transaction is the architectural service, the original plans and copies prepared by the architect are not subject to tax, unless the architect separately states the charge for the copies. If the architect uses the services of another party to create the copies, the third party should charge the architect tax. Copies of the plans purchased by the homeowner from a third party are (H) A tool and die manufacturer designs and builds a custom machine tool for a customer. The tool will be installed on the customer’s existing equipment. The manufacturer purchases from an independent mechanical engineer shop drawings showing how to build the tool and showing precisely how and where the tool should be installed on the customer’s equipment.

The manufacturer’s agreement with its customer requires that the drawings be provided to the customer along with the tool.

The entire purchase price paid by the manufacturer’s customer, including the cost of the shop drawings (even if separately stated) is subject to tax. The transfer of the drawings is a part of the sale of the tool.

(I) A monument seller separately states its charges for headstones and inscription of headstones. The entire sale price, including inscription, is taxable.

(J) A person takes her car to a mechanic for new brakes.

The mechanic installs new brakes and charges sixty dollars ($60) for the parts and fifty dollars ($50) for labor, which is separately stated on the invoice. Tax is due on the sixty dollars ($60) charge for the brakes. If the mechanic does not separately state the labor, tax should be charged on the total invoice of one hundred ten dollars ($110), because the cost of new brakes exceeds ten percent (10%) of the sale price of the repair.

(K) A warehouse stores and ships materials in cardboard boxes. The charge for the boxes is included in the charge for the warehousing service and not separately stated. The charge for the boxes is not subject to tax, and the warehouse must pay tax on its purchases of the boxes. If the charge for the boxes is separately stated, it is subject to tax.

(L) A binding company binds materials provided to it by customers and also binds books that it sells to the public.

Materials and supplies used by the binding company in binding materials for customers are not subject to tax unless the charges for the materials and supplies are separately stated.

The binding company must pay tax on its purchase of such materials and supplies. The binding company may purchase exempt from tax materials and supplies it incorporates in books made for sale to the public.

(M) A laundry or dry cleaner provides a nontaxable service and does not collect or remit tax. The laundry or dry cleaner should pay tax on tangible personal property used in performing the service including items such as hangers and plastic bags. If a laundry also sells laundry detergents, sales of the detergents are subject to tax.

(N) A man takes his suit to the dry cleaner with a request to clean and press the suit, replace a missing button and sew a split seam. Because the price of the button and thread is less than ten percent (10%) of the total cost the dry cleaner does not collect tax. The dry cleaner should purchase these materials (O) A barbershop that also sells hair care products must collect and remit tax on all sales of such products.

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed June 8, 2000, effective Jan. 30, 2001. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.610 Sales of Advertising {#sec-12-csr-10-103.610 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.610}

PURPOSE: This rule explains, pursuant to section 144.034, RSMo, when sales of advertising are sales of a service, which are not subject to tax, and when such sales of advertising are sales of tangible personal property, which are subject to tax.

(1) In general, if a sale of advertising involves the transfer of tangible personal property, it is a sale of tangible personal property subject to tax unless it is preliminary art or the sale is made by an exempt business. If the sale is made by an exempt business, the transaction is the sale of a service and is not subject to tax when the true object of the sale is the advertising. When the true object of a sale by an exempt business is tangible personal property, it is subject to tax.

(2) Definition of Terms.

(A) Advertising—the expression of an idea created and produced for reproduction and distribution in the media, such as television, radio, newspapers, newsletters, periodicals, trade journals, publications, books, other printed materials, magazines, standardized outdoor billboards, direct mail or point-of-sale (POS) displays, and which is designed to promote sales of a particular product or service or otherwise affect consumer behavior.

(B) Advertising agency—a business, not owned by an advertiser, which is directly responsible to an advertiser for and whose predominant functions as a business are the creation or supervision of the production and placement of advertising and advertising materials in the media.

(C) Broadcast station—a radio or television enterprise which engages in the collection, writing, production and dissemination of news, public affairs or entertainment by means of transmitting signals through space or wires intended for reception by the public on a receiving set.

(D) Exempt business—advertising agency, broadcast station, legal newspaper pursuant to Chapter 493, RSMo, or standardized outdoor billboard company exempt from the sales tax law pursuant to section 144.034, RSMo.

(E) Finished art—the final art used in print advertising for actual reproduction by photochemical or other process, or the master tape or film and duplicate prints used in broadcast advertising.

(F) Preliminary art—art, film or tape prepared by a person engaged in the advertising business for the purpose of conveying or demonstrating an idea or concept for acceptance by a buyer before the final approval is given by a buyer for finished art or finished film or tape. Examples of preliminary art include, but are not limited to: roughs; visualizations; comprehensives; layouts; sketches; drawings; paintings; designs; story boards; rough cuts of film and tape; initial audio and visual tracks; work prints; and music or sound effects.

(G) Specialty advertising—items of tangible personal property on which advertising is placed but which have a use and value separate from the advertising. Such items include, but are not limited to: tee shirts, key chains, glassware, frisbees, rulers, pens, calendars, matchbooks, calculators, clocks, notebooks and pocket protectors.

(3) Basic Application.

(A) Sales of advertising by exempt businesses are not subject (B) Sales of preliminary art by nonexempt businesses are not taxable if separately stated.

(D) Required services included as part of the sale price for taxable advertising are also subject to tax.

(E) Optional services included as part of the sale price for taxable advertising are not subject to tax, if the charge for such services is separately stated. If the charge for such services is not separately stated, the entire sale price is subject to tax.

(F) Services provided in connection with the sale of nontaxable advertising are also not subject to tax.

(G) A person selling equipment, materials or supplies to a seller of nontaxable advertising must collect tax from the seller of such advertising.

(H) Sales of tangible personal property that are not advertising but may contain advertising, such as specialty advertising, are subject to tax, even if the sale is made by an exempt business.

(4) Examples.

(A) The following items are generally considered to be tangible personal property, not advertising, although they may have promotional value:

Specialty advertising;
Business cards;
Brochures and books not promoting sales of products or services;
Annual reports;
Informational pamphlets not promoting sales of products or services;
Training materials not promoting sales of products or services;
Banners (not POS);
Posters (not POS);
Signs (not POS);
Educational films not promoting sales of products or services;
Employee benefits material and plan descriptions not promoting sales of products or services;
Business signage, logos and stationery designs;
Business directories including yellow pages;
Warranty books and product instructions not promoting sales of products or services; and 15. Items mass produced or reproduced in quantities in excess of that reasonably anticipated to be necessary for an advertising campaign and sold for purposes other than promoting sales of a particular product or service.

(B) The following items are generally considered to be advertising:

Printed materials promoting sales of products and services, including fliers, handouts, brochures and sales promotion materials;
Direct mail and direct marketing materials (not distributed by mail), promoting sales of products and services;
POS materials, including displays, banners, posters and table tents and package designs, promoting sales of products and services;
Radio commercials, including film and video cassettes and tapes of them;
Television commercials, including film and video cassettes and tapes of them;
Audio or visual commercials for promotional or merchandising purposes, including audio and visual tapes, cassettes and films of them;
Print media advertising, including magazine ads, newspaper ads, periodical ads, trade journal ads, publication ads, book ads, other printed material, ads and newspaper inserts;
Billboards, signage, transit advertising (bus, rail, taxi and airport) and shopping mall and sports arena advertising and displays, promoting sales or products or service;
Product and service sales materials for dealers, distributors and other sales persons; and 10. Corporate advertising.

(C) The following services are generally considered not to be taxable if the charges for such services are separately stated:

Writing original manuscripts and news releases;
Composing music;
Conducting research and compiling statistical or other information;
Providing time and space for advertising;
Arranging for the placing of advertising in newspapers, magazines, television, radio, billboards, transportation facilities or other media;
Securing the services of actors, directors and artists; and 7. Delivering or causing the delivery of brochures, pamphlets, cards and similar items after passage of title.

Gammaitoni v. Director of Revenue, 786 S.W.2d 126 (Mo. banc 1990). The taxpayer produced commercials on videotape as well as instructional and other non-advertising videotapes. The court held that the true object of the sales of these videotapes was the finished videotapes themselves. The court also held that the taxpayer was not an exempt business under section 144.034, RSMo. The taxpayer did not meet the definition of a broadcast station because it did not transmit by radio or television nor was it a facility equipped for radio or television transmissions. It did not qualify as an advertising agency because it did not contract with advertisers to place the advertising in the media.

Travelhost v. Director of Revenue, 785 S.W.2d 541 (Mo. banc 1990). The taxpayer sold advertising in a magazine it purchased but then distributed for free. The court held that the taxpayer was an advertising agency and therefore exempt pursuant to section 144.034, RSMo from tax on its sales. The court also held that the express terms of section 144.034, RSMo required the taxpayer to pay tax on its purchases of the magazines.

The Hearst Corp. v. Director of Revenue (AHC 1992). The taxpayer, a video production house, produced commercials for advertisers. The taxpayer retained the master tape and provided duplicates for use by the advertisers. The commission held that the taxpayer was not an exempt business pursuant to section 144.034, RSMo. However, the commission found that the true object of these transactions was the production services provided by the taxpayer. The taxpayer retained the master and the advertisers had no need for the physical copy of the tape once the commercial was broadcast.

Neely v. Director of Revenue (AHC 1990). The taxpayer, a broadcast station, purchased advertising to promote the station from a production house. The commission held that section 144.034, RSMo, was inapplicable because it relates only to sales of advertising by exempt businesses. The taxpayer, an exempt business, was purchasing, not selling, advertising. The production house was not an exempt business. The commission, however, also held that the true object of the transaction was the purchase of advertising services. Therefore, the taxpayer was liable for tax only on the separately stated charge for the finished master tape.

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Jan. 3, 2000, effective July 30, 2000. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.620 Florists {#sec-12-csr-10-103.620 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.620}

PURPOSE: This rule explains when sales by Missouri florists are subject to Missouri sales tax.

(1) In general, sales of tangible personal property by florists are subject to Missouri sales tax on orders taken in Missouri even when the tangible personal property is delivered outside the state. Sales of tangible personal property by florists are not subject to Missouri sales tax on original orders taken outside Missouri even when a Missouri florist delivers the tangible personal property in the state.

(2) Basic Application.

(A) A Missouri florist who takes the original order and subsequently forwards that order either to another in-state florist or an out-of-state florist for delivery is subject to sales tax on the transaction. The sale is subject to the local sales tax in effect at the location where the florist takes the original order.

(B) When an out-of-state florist takes the original order and subsequently forwards the order to a Missouri florist, the Missouri florist is not subject to Missouri sales tax.

History

AUTHORITY: sections 144.020.1, RSMo Supp. 2005 and 144.270, RSMo 2000. Original rule filed Nov. 9, 2005, effective May 30, 2006. Original authority: 144.020, RSMo 1939, amended 1941, 1943, 1945, 1947, 1963, 1965, 1972, 1975, 1979, 1982, 1985, 1996, 1998, 2001 and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.630 Return Required {#sec-12-csr-10-103.630 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.630}

PURPOSE: This rule interprets the use tax law as it applies to use tax return filing requirements and interprets and applies sections 144.655, and 144.660, RSMo.

(1) A use tax return must be filed and completed in its entirety.

(2) If the state use tax collections exceed two hundred fifty dollars ($250) in any one (1) calendar month, the business is required to report and remit tax for this month by the twentieth of the following month. Each month stands on its own and the two hundred fifty dollars ($250) is not a cumulative total.

In completing the return for a calendar quarter in which a monthly return has been filed, tax should be computed and shown only for the months not previously filed. The months covered by the return and the month previously filed must be clearly stated on the return.

History

AUTHORITY: section 144.705, RSMo 1994. This rule originally filed as 12 CSR 10-4.600. Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Moved to 12 CSR 10-103.630, effective Aug. 31, 2023.

12 CSR 10-103.640 Annual Filing {#sec-12-csr-10-103.640 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.640}

PURPOSE: This rule interprets the use tax law as it applies to the annual filing of use tax returns and interprets and applies sections 144.655 and 144.660, RSMo.

(1) Any person whose state use tax liability is less than forty-five dollars ($45) in each calendar quarter may file an annual return for that calendar year on or before January 31 of the succeeding year.

History

AUTHORITY: section 144.705, RSMo 1994. This rule originally filed as 12 CSR 10-4.610. Original rule filed Sept. 7, 1984, effective Jan. 12, 1985. Moved to 12 CSR 10-103.640, effective Aug. 31, 2023.

12 CSR 10-103.700 Packaging and Shipping Materials {#sec-12-csr-10-103.700 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.700}

PURPOSE: Section 144.018.1, RSMo excludes from tax purchases intended to be resold as tangible personal property. Section 144.030.2(2), RSMo exempts materials that become a component

part of new personal property. Section 144.011.1(10), RSMo excludes from tax certain items of a non-reusable nature purchased by eating or food service establishments. This rule explains when purchases of packaging and shipping materials are not subject (1) In general, purchases of packaging and shipping materials included with, or used to deliver, a product for ultimate sale at retail are not subject to tax. Purchases of non-reusable items by eating or food service establishments are not subject to tax.

(2) Definition of Terms.

(A) Packaging and shipping materials—containers, pallets, drums, and other items used to ship merchandise to customers. It also includes supplies used in shipping, such as tape, strapping, plastic peanuts, foam, cardboard pads, packaging slips, etc. Finally, packaging encompasses integral parts of the finished product such as display cartons and packaging containing the product, e.g., cereal box, and shipping containers.

(3) Basic Application of Tax.

(A) The purchase of packaging and shipping materials are taxable if— 1. The packaging is used solely “in house” by the seller and is not subsequently transferred to a purchaser;

The packaging material must be returned to the seller and the customer does not acquire title to, ownership of, or the right to use the packaging material;
The packaging is transferred incidental to the rendering of a non-taxable service, such as with the sale of custom software or color separations; or 4. The packaging is used to ship items that are being transferred, such as gifts or free samples.

(B) Purchases of items of a non-reusable nature by persons operating eating or food service establishments making retail sales are not subject to tax if the item is furnished with or in conjunction with the retail sale. Such items include, but are not limited to, wrapping and packaging items, non-reusable paper, wood, plastic, and aluminum articles including containers, trays, napkins, dishes, silverware, cups, bags, boxes, straws, and toothpicks.

(4) Examples.

(A) A retailer packages its goods to be shipped to its customers. The packaging and shipping items include boxes, pallets, metal banding, cardboard pads, etc. The customer is not required to return any of these items. The retailer does not owe tax on its purchase of these items.

(B) A distributor separately purchases boxes to store its merchandise in its warehouse. These boxes are not subsequently used for shipments to its customers. The purchase of these boxes is subject to tax.

(C) A grocery store purchases bags that its customers use to carry out their groceries. The grocery store may purchase these bags exempt from tax.

(D) A taxpayer purchases or leases pallets that will be used to ship merchandise to its customers. The customer is required to return the pallet and never acquires title to, ownership of, or the right to use them. The purchase or lease of the pallets is taxable.

(E) A taxpayer purchases or leases pallets that will be used to ship merchandise to its customers. The customer is required to return the pallet, but does have the right to use the pallet until it is returned. If there is consideration paid for the use of the pallet, the purchase or lease of the pallets is not taxable.

(F) A dry cleaner purchases plastic bags used to protect clothes after cleaning. Because the dry cleaning is not a taxable service, the dry cleaner must pay tax on the purchase of the bags.

House of Lloyd v. Director of Revenue, 884 S.W.2d 271 (Mo. banc 1994) (House of Lloyd II), House of Lloyd (HOL) sold merchandise, such as Christmas gifts, through a hostess program. At issue was the packaging containing the individual boxes that were used to deliver the goods from HOL to its hostesses. DOR argued that HOL was the user and consumer of this packaging. The Court held that the incidental benefit received by the seller did not violate the resale claim of exemption.

Sipco, Inc. v. Director of Revenue, 875 S.W.2d 539 (Mo. banc 1994), the purchase of dry ice that was used to package fresh pork products and to transport the products to customers was exempt from tax as a purchase for resale.

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed Aug. 21, 2000, effective March 30, 2001. Amended: Filed Oct. 2, 2018, effective April 30, 2019. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, Brambles Industries, Inc. v. Director of Revenue, 981 S.W.2d 568 (Mo. banc 1998), the Court held that leases of packaging material are excluded from sales tax when the packaging material is leased for the purpose of transferring the right to use the packaging material to a subsequent purchaser for valuable consideration.

12 CSR 10-103.800 Tax Computation {#sec-12-csr-10-103.800 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.800}

PURPOSE: Section 144.020, RSMo imposes a four percent sales tax.

Section 144.610, RSMo imposes the state’s use tax at the same rate as the sales tax. The Missouri Constitution, Article IV, section 43(a) imposes a one-eighth of one percent tax for conservation purposes and Article IV, Section 47(a) imposes a one-tenth of one percent tax for soil and water conservation and for state parks.

Missouri law also provides authority for counties, cities and other political subdivisions to enact local taxes. Sections 144.021, 144.080 and 144.285, RSMo require sellers to collect the correct amount of tax. This rule explains how to determine the correct rate of tax.

(1) In general, the seller should charge the rate of state and local tax in effect on the date of the sale.

(2) Basic Application of Rule.

(A) The state tax rate is 4.225 percent. This is comprised of:

Four percent state tax, one-eighth of one percent conservation tax, and one-tenth of one percent soil and water conservation tax.

(B) Local political subdivisions may impose local taxes in addition to the state tax rate. The local tax rate is available from the local jurisdiction or on the department’s website.

(D) When a change in the tax rate becomes effective, all gross receipts from sales made by the retailer before the effective date of the rate change are subject to the old tax rate. A taxpayer reporting sales on a cash basis should report gross receipts from credit or time sales on a separate line on the return, showing the tax rate in effect when the sales were made. When following this procedure, the entry on the return should specifically state the rate in effect at the time of sale. All gross receipts from sales made on or after the effective date are subject to the new tax rate.

(E) Amounts charged to and received from purchasers as tax are not included in gross receipts.

(3) Examples.

(A) A retailer located in an area with city and county taxes totaling two percent must charge and collect a total sales tax of 6.225% on all sales.

(B) The same retailer as in (3)(A) incorrectly charges its customers 5.225% tax. The retailer is responsible for the additional tax.

Associated Industries of Missouri v. Lohman, 114 S.Ct. 1815 (1994). The U.S. Supreme Court ruled that a local use tax rate greater than the local sales tax rate is unconstitutional.

May Department Stores Co. v. Director of Revenue (AHC 1985). The issue was whether credit sales made in 1982 and reported as gross receipts in 1983 were subject to Proposition C, which increased the state sales tax rate from three percent to four percent, effective January 1, 1983. A cash basis taxpayer had filed its February 1983 sales tax return at the three percent rate on credit sales made to its customers from September 1, 1982 to December 31, 1982. The Commission concluded that the increased rate only applied to those gross receipts attributable to sales made on or after the effective date of the law change.

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Aug. 21, 2000, effective Feb. 28, 2001. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-103.876 Taxation of Sod Businesses {#sec-12-csr-10-103.876 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-103.876}

PURPOSE: This rule interprets the sales tax law as it applies to the production, installation and retail sale of sod.

(1) In general, the retail sale of sod is a taxable sale of tangible personal property.

(2) Definition of Terms.

(A) Harvester—any person who severs growing grass from the earth for resale or otherwise as sod.

(B) Installer—any person engaged in the business of purchasing sod from either a sod producer or harvester for resale or use in a contract to improve real property.

(C) Integrated sod producer—any person who grows, harvests, and installs sod under contracts for improvements to real property.

(D) Sod producer—any person engaged in the business of planting and cultivating grass for resale or otherwise as sod.

(3) Basic Application of Tax.

(A) Sod producers not acting as contractors are making sales at retail and must collect and remit sales tax unless the purchaser provides an exemption certificate for resale or otherwise.

(B) Harvesters who purchase sod for resale from sod producers are subject to sales tax on their sales of sod to any purchaser unless the purchaser provides an exemption certificate for resale or otherwise.

(C) Installers who purchase sod to improve real property in their capacity as contractors or subcontractors must pay sales or use tax on their purchases of sod. A contractor incorporating tangible personal property into real property as part of an improvement to real property is deemed to be the final user and consumer and must pay tax on its purchases.

(D) Installers who purchase sod for resale and not in their capacity as contractors, subcontractors, or the like are subject to sales tax on their sales of sod to consumers. Any separately stated charges by the installer for labor to install the sod are subject to tax if the installation charges are part of the sale of the sod. The installer should furnish a certificate of exemption for resale to his/her sod supplier for these transactions.

(4) Amounts Subject to Tax. Sales of sod by sod producers, harvesters, or other retail sellers are subject to tax upon total gross receipts. If the sale of the sod includes delivery and handling charges, the delivery charges are not subject to tax if they are usual and customary. Charges for installation are subject to tax if the sod is being sold at retail and the installation is part of the sale of the sod.

(5) Related Exemptions to Sales Tax.

(A) Organizations exempt pursuant to section 144.030.2(19), (20) and (22), RSMo, including governmental agencies, are exempt from tax and the exempt entity may issue a project exemption certificate to its contractor pursuant to section 144.062, RSMo. If such a certificate is issued, the contractor may present this certificate upon purchase of the sod.

(B) Seed, lime, and fertilizer purchased by sod producers are exempt from sales tax if the sod is ultimately sold at retail.

(C) Purchases of machinery and equipment by sod producers are exempt if the sod is grown to be sold ultimately at retail and the machinery and equipment is exclusively used for agricultural purposes.

(D) Purchases of seed, fertilizer, and limestone are not exempt if the sod is grown for use by an integrated producer in its capacity as a contractor.

(6) Examples:

(A) The sod producer grows, harvests, and sells sod to installers. Terms are free on board (FOB) the farm and delivery charges to installers’ worksites are separately stated. Producer invoices installer for two thousand (2000) yards of sod at fiftyfive cents (55¢) per square yard and separately charges fifty dollars ($50) for delivery. Sales tax is due at the appropriate rate on receipts of one thousand one hundred dollars ($1,100)

(2000 × 55¢);

(B) The sod producer sells sod to a harvester who harvests sod and resells the sod to installers. Harvester furnishes sod producer an Exemption for Resale Certificate. Sod producer does not collect sales tax from harvester. Harvester charges sales tax on gross amount of the sales price to this customer.

If harvester purchases two thousand (2000) square yards of sod from sod producer at thirty cents (30¢) per square yard and sells it to installers for sixty cents (60¢) per square yard, sales tax is due on the one thousand two hundred dollars ($1,200) (2,000 × 60¢) of receipts. Delivery charges, if usual and customary, are not taxable;

(C) Installer purchases two thousand (2,000) square yards of sod for the farm from sod producer. Installer has agreed with its customer to sell customer sod for fifty-five cents (55¢) per square yard and, as part of the same transaction, agreed to install the sod for fifteen cents (15¢) per square yard. The title to the sod passes prior to installation. Installer should provide sod producer with a Certificate of Exemption for Resale and charge sales tax to its customer on one thousand four hundred dollars ($1,400) at the appropriate rate;

(D) Installer purchases two thousand (2,000) square yards of sod as personal property from producer for thirty cents (30¢) per square yard. Installer contracts separately with a harvester for cutting and delivery of sod for twenty cents (20¢) per square yard. Installer contracts with his/her customer for installation of sod at eighty cents (80¢) per square yard. Producer should collect sales tax from installer at the appropriate rate on six hundred dollars ($600) (2,000 × 30¢) of receipts;

(E) An integrated sod producer grows, harvests, and installs two thousand (2,000) square yards of sod as part of a contract to improve real property. The contract calls for a price of one dollar ($1) per square yard of sod installed. The sod grower needs only to pay tax on the seed, fertilizer, and limestone.

The two thousand dollar ($2,000) receipts from the installation contract are not taxable;

(F) An integrated sod producer who normally acts as a contractor occasionally sells sod at retail to homeowners.

In these retail sales cases, the integrated operator should charge tax on the gross receipts of the sale to the homeowner and purchase the seed, fertilizer, and limestone tax exempt pursuant to section 144.030.2(1), RSMo; and (G) An integrated sod producer acting as a contractor is able to have two (2) cuttings of sod with each seeding. The first cutting results from the seeding and the second cutting results from regrowth. The integrated sod producer has no taxable event on those cuttings which are produced from regrowth.

History

AUTHORITY: section 144.270, RSMo 2016. This rule originally filed as 12 CSR 10-3.876. Original rule filed July 2, 1990, effective Dec. 31, 1990. Moved to 12 CSR 10-103.876 and amended: Filed Oct. 2, 2018, effective April 30, 2019. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961,

Chapter 104 Sales/Use Tax-Registration

12 CSR 10-104.050 Sales and Use Tax Return - Electronic Filing Requirement and {#sec-12-csr-10-104.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-104.050}

12 CSR 10-104.020 Sales and Use Tax Bonds {#sec-12-csr-10-104.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-104.020}

PURPOSE: Section 144.087, RSMo, requires licensees in default in filing a return and paying taxes when due to file a bond in an amount to be determined by the Director of Revenue. Section 144.625, RSMo, explains how to calculate and submit a bond, the different types of bonds that may be filed with the department, and how to obtain a bond refund.

(1) In general, taxpayers seeking reinstatement of a revoked license may be required to file a bond in an amount determined by the director. The bond may be a cash bond, surety bond, certificate of deposit, or an irrevocable letter of credit. The department will refund the bond to the taxpayer after one (1) year of satisfactory tax compliance or when the taxpayer closes its sales/use tax account, provided the account has no outstanding delinquencies.

(2) Basic Application of Tax.

(A) Taxpayers in default in filing a return and paying taxes may be required to submit a bond calculated at two (2) times the average monthly tax liability of the taxpayer. The department may not issue a license until the taxpayer submits sufficient bond. The department estimates the bond based on the nature of the applicant’s business. If the business is substantially the same as that of a previous owner, the previous business experience may be used. If the department determines a bond is insufficient to cover the taxpayer’s liability, the department can require the taxpayer to adjust the bond amount.

(B) The calculated bond will be rounded to twenty-five dollars ($25) if calculated below this threshold.

(C) Cash bonds must be in the form of a cashier’s check, money order, or certified check. A completed and signed cash bond form must accompany a cash bond.

(D) A surety bond issued by an insurance company licensed for bonding in Missouri may be submitted as bond on behalf of the taxpayer. The surety bond must bear the seal of the insurance company, contain the current effective date, be accompanied by a power of attorney letter if it is signed by the attorney in fact, and must be signed by the applicant. The department maintains a list of insurance companies approved by the Department of Insurance to underwrite surety bonds in Missouri. Surety companies who fail to comply with the rules of the Department of Insurance or who unreasonably fail to pay a taxpayer’s delinquency within thirty (30) days of notification that the taxpayer has become delinquent, are subject to removal from the department’s list of authorized surety companies. Additionally, the department will not accept future bonds from this company until the Department of Insurance reinstates the surety company. A taxpayer bonded by a surety company that is removed from the department’s authorized list has thirty (30) days to file a new bond with the Department of Revenue. Failure to meet this requirement will result in the license being declared null and void.

(E) A certificate of deposit (CD) issued by a state or federally chartered financial institution may be submitted as a bond. A CD must be a new CD in the names of the Missouri Department of Revenue and the taxpayer. The names on the CD must be joined by the word “AND.” The CD must be endorsed by the taxpayer and include an Assignment of Certificate of Deposit Form when submitted to the department. Book entry CDs must be accompanied by a signed withdrawal slip or a letter from the issuing bank indicating the means of withdrawal. The interest derived from the CD is compounded at maturity. If a delinquency occurs, the department may redeem the CD. Any proceeds from the CD exceeding the delinquency, including interest proceeds, will be converted to a cash bond. The department will not reinvest the proceeds from the CD after it has been converted to a cash bond. The taxpayer is liable for all taxes on the interest derived from the CD or penalties resulting from cashing the CD prior to maturity even if the department seizes the CD (and accumulated interest) for payment of a delinquency incurred by the taxpayer.

(F) An irrevocable letter of credit issued by a commercial bank chartered under the laws of Missouri or chartered pursuant to the National Banking Act may be submitted as a bond. The letter of credit is irrevocable and the beneficiary is the department. Payment will be made immediately upon presentation of a demand for payment signed by the Director of Revenue or his/her designated representative. All letters of credit must conform to a required format provided by the department and be accompanied by an authorization for release of confidential information to the issuing bank. The issuer can cancel a letter of credit sixty (60) days after written notice is delivered to the department. If the department is notified of a cancellation, the taxpayer must substitute another bond within sixty (60) days. If the required bond is not received within the sixty (60) days, the taxpayer’s license is null and void. If a taxpayer closes its business, the department will retain the letter of credit until satisfied that no claim exists against the letter.

(G) The department may refund or release a bond to the taxpayer after one (1) year of satisfactory tax compliance. A taxpayer’s tax record is considered satisfactory if there is no tax due and the taxpayer has fully filed and paid all returns due in a timely manner. The bond will also be released or refunded when the taxpayer closes its sales/use tax account, files a final return, and owes no tax, penalties, or interest. If a taxpayer replaces its current bond by any other acceptable type of bond, the bond being replaced will also be returned.

(3) Examples.

(A) A taxpayer has been operating a restaurant and bar for the past 18 months. The sales tax license is revoked for failure to report and remit sales tax. The department calculates $15,432.67 as the average sales tax delinquency, requiring a bond of $30,865 for reinstatement.

January $ 12,152 February $ 13,565 March $ 13,999 April $ 15,544 May $ 17,699 June $ 17,594 July $ 18,412 August $ 17,552 September $ 16,451 October $ 15,497 November $ 14,862 December $ 11,865 Average Sales Delinquency $ 15,432.67

rule filed June 8, 2000, effective Dec. 30, 2000. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, (1/29/26) Denny Hoskins 2008, and 144.705, RSMo 1959.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

12 CSR 10-104.030 Filing Requirements as Defined in Section 144, RSMo {#sec-12-csr-10-104.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-104.030}

PURPOSE: This rule provides general guidance for determining a taxpayer’s filing frequency and the taxpayer’s obligation to file a return and remit tax on the due date according to sections 144.080, 144.081, 144.090, 144.100, 144.140, 144.160, 144.170, and 144.250, RSMo.

(1) In general, sellers of tangible personal property and taxable services are required to file and remit tax on an annual, quarterly, or monthly basis. Some sellers who file on a monthly

basis may be required to remit tax on a quarter-monthly basis.

Failure to file or remit taxes when due results in interest and additions to tax on the unpaid amount.

(2) Definitions.

(A) Calendar month—the first day to the last day of any of the twelve (12) months of the Gregorian calendar.

(B) Calendar quarter—the period of three (3) consecutive calendar months ending on March 31, June 30, September 30, or December 31.

The eighth through the fifteenth day of a calendar month;
The sixteenth through the twenty-second day of a calendar month; and 4. The twenty-third day through the last day of a calendar month.

(3) Basic Application.

(A) Every licensed taxpayer must file a return and remit tax due as provided in subsection (3)(C). The taxpayer must file a return even if no sales were made during the reporting period.

The taxpayer is responsible for obtaining the necessary forms for filing. Failure to obtain tax forms does not relieve the taxpayer from filing.

(B) The taxpayer’s filing frequency is determined by the amount of state sales tax collected by the taxpayer for all business locations during the previous calendar year. The filing frequency of a new business is based on the estimated taxable sales for the first year of operation. Local, conservation, or parks and soils taxes are not considered in determining filing frequency.

If state tax collections equal or exceed five hundred dollars ($500) per calendar month, the taxpayer must file and remit taxes on a monthly basis.
If state tax collections are less than five hundred dollars ($500) per calendar month but equal or exceed two hundred dollars ($200) in a calendar quarter, the taxpayer must file and remit taxes on a quarterly basis.
If state tax collections are less than two hundred dollars ($200) per quarter, the taxpayer must file and remit taxes on an annual basis.

(C) A monthly return is due on the last day of the following month. A quarterly return filed for the last month of a quarter is due on the last day of the following month. An annual return is due on January 31 following the calendar year. If the due date falls on a Saturday, Sunday, or state of Missouri holiday, the return is due on the next business day.

(D) The United States Postal Service postmark date determines the date the return is filed. If the postmark date is on or before the due date, it is timely. If the postmark is after the due date, the return is late. If a return contains both a taxpayer’s metered postal impression and the U.S. Postal Service postmark, the date of the U.S. Postal Service postmark date determines the date the return is filed. If the return is mailed by registered mail, the date of registration determines the date the return is filed.

(E) A taxpayer filing a return and remitting the tax due on or before the due date is permitted a two percent (2%) timely payment allowance.

(F) A taxpayer failing to file a return by the due date will be assessed additions to tax of five percent (5%) on the unpaid amount for each month a return is late, up to a maximum of twenty-five percent (25%). A taxpayer failing to pay a return by the due date will be assessed additions of five percent (5%) on the unpaid amount. If a taxpayer both fails to timely file and fails to timely pay, the additions for failing to timely file applies. A taxpayer that fails to pay the proper amount of tax by the due date must pay interest on the unpaid amount at a rate determined pursuant to section 32.065, RSMo.

(G) The department may extend the time to file or pay a return for up to sixty (60) days. In order to obtain an extension, the taxpayer must obtain approval from the department prior to the date due. Extensions will only be granted for good cause.

If the department approves an extension to file or pay, the taxpayer is not permitted a two percent (2%) timely payment allowance. Interest also accrues on any amount not paid by the due date.

(H) The department may require a taxpayer to remit state tax on a quarter-monthly basis if the taxpayer’s state tax is fifteen thousand dollars ($15,000) or more per month in each of at least six (6) months of the prior twelve (12) months. A quarter-monthly taxpayer must remit the tax within three (3) banking days after the end of each quarter-monthly period.

The postmark date or registration date of the remittance will determine timeliness of the quarter-monthly payment. A quarter-monthly taxpayer must file a monthly return and remit any unpaid amounts.

(I) A taxpayer failing to remit a quarter-monthly payment is assessed a five percent (5%) penalty on the underpayment. A penalty will not be assessed if the quarter-monthly remittances are at least:

Ninety percent (90%) of the state tax due for the month; or 2. Twenty-five percent (25%) of the average monthly state tax liability of the taxpayer for the previous calendar year.

The department excludes the highest and lowest monthly liability when calculating the average monthly liability.

(J) If a penalty is due, the underpayment amount is calculated as the difference between any timely remittance and the lesser of the two (2) amounts above. The penalty will not be imposed in the first two (2) months the seller is obligated to remit quarter-monthly tax or if the taxpayer can demonstrate reasonable cause.

(4) Examples.

(A) A taxpayer’s average monthly taxable sales are $15,000.

The taxpayer’s filing frequency is monthly because state tax collections computed as follows exceeds $500 per calendar month—$15,000 × 4% (state rate) = $600. Note: Local, conservation, or parks and soils taxes are not considered in determining filing frequency.

(B) A taxpayer prepares its February return on March 31 and calculates tax due at twenty-five thousand dollars ($25,000).

When preparing the return the taxpayer takes the two percent (2%) timely payment allowance equaling five hundred dollars ($500). The postal carrier picks up the return and payment on its last run of the day at 5:00. The post office postmarks all mail from its 5:00 pick-up for the next day. Because the return is postmarked on April 1, the return is one (1) day late. The taxpayer loses the two percent (2%) timely payment allowance.

The twenty-five thousand dollars ($25,000) is subject to five percent (5%) additions to tax. Interest accrues on five hundred dollars ($500) until it is paid to the department.

When preparing the return the taxpayer takes the two percent (2%) timely payment allowance equaling five hundred dollars ($500). The taxpayer sends the return and payment to its mailroom for metering. The taxpayer’s mailroom meters the envelope on March 31. The postal carrier picks up the return on its last run of the day at 5:00. The post office postmarks all mail from its 5:00 pick-up for the next day. Because U.S. Postal Service’s postmark is April 1, the return is one (1) day late.

(D) A taxpayer sends a check for its February tax on March 10. The taxpayer discovers it sent the check without the return and mails the return on April 30. The taxpayer retains its 2% allowance because payment was received before the due date.

(E) A business’ average monthly state tax for the previous calendar year equals $20,000. The estimated quarter-monthly payment is $5,000 per quarter-monthly period. The business’ actual state tax collections are $6,000 per quarter-monthly period. If the business remits quarter-monthly payments of $5,000 timely, no penalty is charged. If the business underpays one (1) of the estimated quarter-monthly payments by $2,000 (it remits $3,000), the penalty is 5% of the difference between the amount paid, $3,000, and the estimate, $5,000. The penalty is calculated as follows: $5,000 – $3,000 = $2,000 × 5% penalty = $100.

(F) A business elects to make quarter-monthly payments on an actual basis. If the business pays at least 90% of the state tax collections for the month with the quarter-monthly payments, no penalty is charged. If the business does not meet the required 90% state tax collections for the month with the quarter-monthly payments, the penalty is 5% of the difference between the amount paid and the required 90% state tax collections.

rule filed June 29, 2000, effective Dec. 30, 2000. Amended: Filed Jan. 15, 2013, effective July 30, 2013. Amended: Filed Oct. 12, 2021, effective April 30, 2022. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

12 CSR 10-104.040 Direct-Pay Agreements {#sec-12-csr-10-104.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-104.040}

PURPOSE: This rule explains how to qualify for and enter into a direct-pay agreement with the department pursuant to section 144.190, RSMo. A direct-pay agreement requires a taxpayer to accrue and pay tax on all its purchases directly to the department instead of the seller.

(1) In general, a purchaser making more than seven hundred fifty thousand dollars ($750,000) in annual purchases may enter into a direct-pay agreement with the department to accrue and pay taxes owed on all its purchases directly to the department instead of the seller.

(2) Basic Application.

(A) To obtain a direct-pay agreement, a purchaser must complete an application prescribed by the department and demonstrate with its records that it qualifies.

(B) In determining whether the purchaser has more than seven hundred fifty thousand dollars ($750,000) in annual purchases, only purchases of tangible personal property and taxable services that are not for resale are included. However, in the case of a dual operator, the items purchased for resale can be included in the seven hundred fifty thousand dollars ($750,000) as it is unknown at the time of purchase which items are for resale and which items tax will be accrued on.

(C) Upon approval of a direct-pay agreement, the department will issue a certificate that the purchaser must present to its sellers. Acceptance of this certificate relieves the seller of responsibility for collecting and remitting the tax.

(D) A direct-pay agreement remains in effect for five (5) years, unless the department or the taxpayer cancels the agreement.

If the agreement is cancelled, the purchaser must notify each seller in writing that its certificate is no longer valid.

(E) A purchaser with a direct-pay agreement must accrue and pay all taxes based upon the purchaser’s place of business. The purchaser must file returns and pay tax monthly. If filed and paid on a timely basis, the two percent (2%) payment discount will be allowed.

(3) Examples.

(A) A purchaser has been buying taxable supplies from a Missouri seller and the seller has been collecting and remitting sales tax. The purchaser enters into a direct-pay agreement with the department. The purchaser then provides a copy of its direct-pay certificate to the seller. The seller stops collecting sales tax on the purchaser’s transactions. The purchaser must pay tax on these purchases directly to the department based upon the purchaser’s place of business.

(B) A taxpayer has been granted a direct-pay exemption.

The taxpayer makes five hundred thousand dollars ($500,000) in purchases for its place of business in St. Louis and seven hundred thousand dollars ($700,000) for its place of business in Branson. The taxpayer should file a direct-pay return and report the purchases at the St. Louis rate for the St. Louis purchases and at the Branson rate for the Branson purchases.

History

AUTHORITY: section 144.190, RSMo Supp. 2025. Original rule filed Dec. 1, 2004, effective July 30, 2005. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. Original authority: 144.190, RSMo 1939, amended 1941, 1943, 1945, 1979, 1986, 1988, 1991, 1999, 2001, 2002, 2003, 2012, 2016, 2019.

12 CSR 10-104.050 Sales and Use Tax Return - Electronic Filing Requirement and Waiver {#sec-12-csr-10-104.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-104.050}

PURPOSE: This rule provides guidance for the efficient and accurate filing of sales and use tax returns, resulting in expedited sales and use tax distributions to local jurisdictions.

(1) Filers with fewer than three (3) registered business locations from which sales are made or orders are fulfilled must file a return with the director indicating their tax liability, using either paper forms or electronic methods approved by the director.

(2) Filers with three (3) or more registered business locations from which sales are made or orders are fulfilled must file a (1/29/26) Denny Hoskins return with the director indicating their tax liability, using the electronic methods approved by the director, unless they have received written confirmation from the director that the filer is exempt.

(A) The director may grant an exemption to the electronic filing requirement. Reasons for the exemption will be limited to— 1. The filer does not possess a computer;

The filer has internet connectivity issues;
The filer is closing the business; or 4. The filer requests an exemption from this requirement from the director for any reason that the director deems reasonable.

rule filed Dec. 21, 2020, effective July 30, 2021. *Original authority: 144.100, RSMo 1939, amended 1941, 1943, 1945, 1947, 1949, 1951, 1957, 1965, 1974, 1994 and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

History

AUTHORITY: sections 144.100 and 144.270, RSMo 2016. Original

Chapter 107 Sales/Use Tax-Exemption Certificates

12 CSR 10-107.100 Use of and Reliance on Exemption Certificates {#sec-12-csr-10-107.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-107.100}

PURPOSE: Section 144.210, RSMo, requires sellers to obtain and maintain an exemption certificate when a purchaser claims a sale is exempt from tax. Section 32.200, RSMo, relieves a seller from liability for tax if the seller receives and accepts an exemption certificate in good faith. This rule describes procedures for sellers to follow when accepting exemption certificates.

(1) In general, a seller that receives and accepts an exemption certificate in good faith is not required to collect and remit tax on a sale covered by the exemption certificate. If the exemption certificate accepted in good faith is not valid, the purchaser is liable for the tax.

(2) Definition of Terms.

(A) Exemption certificate—A certificate signed by the purchaser and provided to the seller that specifies the basis for the purchaser’s claim of exemption. A copy of a letter of exemption issued by the department to an exempt entity and delivered to a seller is equivalent to an exemption certificate for purposes of this rule.

(B) Good faith—Honesty of intention and freedom from knowledge of circumstances which ought to put the holder upon inquiry. Also see 12 CSR 10-101.500(2)(B), Burden of Proof.

(C) Burden of Proof—Burden of persuading the finder of fact that the existence of a fact is more probable than the nonexistence.

(3) Application of Rule.

(A) The seller must obtain and maintain exemption certificates for any exempt sales. If the seller does not have an exemption certificate for a sale it claims was exempt, the seller may be held liable for the tax.

(B) The seller must indicate on each invoice or bill of sale the name of the purchaser claiming the exemption.

(C) If a seller has an exemption certificate from the purchaser on file, the seller may rely on the certificate on file for future sales unless— 1. The certificate, by its terms, does not apply to the transaction; or 2. The seller can no longer rely in good faith on the certificate.

(D) A document issued by the purchaser stating that a specific transaction is subject to tax requires the seller to collect tax on the transaction, even if it contradicts the purchaser’s prior claim of exemption. A claim of exemption issued by the purchaser relating to a specific transaction applies only to that transaction and is not a general claim of exemption.

(E) If a purchaser gives the seller an exemption certificate claiming an exemption that the purchaser is not entitled to claim, or if the purchaser subsequently uses the tangible personal property in a manner inconsistent with the purchaser’s claim of exemption, then the purchaser is liable for the tax. If sales tax should have been paid on the original purchase, then the purchaser should report and remit sales tax based on the location of the seller. If use tax should have been paid on the original purchase, then the purchaser should report and remit use tax based on the location of the purchaser. If the purchaser cannot determine whether the goods are subject to sales or use tax, the goods are subject to the sales tax rate at the location of the purchaser.

(F) If a seller does not act in good faith when accepting an exemption certificate, the seller and purchaser are jointly liable for the amount due.

(4) Examples.

(A) A Joplin grocery store buys two (2) dozen mops for resale from a seller in St. Joseph, Missouri, and delivers an exemption certificate. The grocery store then removes six (6) of these mops from stock for use in cleaning the store. The grocery store is subject to sales tax on the actual cost of the six (6) mops removed from stock based on the rate in effect at the seller’s St. Joseph location.

(B) A Missouri seller has an exemption certificate on file from a Missouri purchaser. Therefore, the seller should not collect tax from the purchaser. On a future purchase, the purchaser issues a purchase order stating that the purchase is taxable.

The seller must collect and remit tax on the transaction.

The seller’s invoices do not identify the purchasers. Unless the seller can otherwise establish the validity of the exemptions, the seller must remit tax on these sales.

(D) A retailer has an unsigned exemption certificate from a customer. The retailer does not charge tax on the sales it makes to that customer. The retailer is liable for tax on the sales to that customer, because an unsigned exemption certificate is not valid.

(E) An out-of-state seller sells to a Missouri customer. The Missouri customer issues an exemption certificate, which is taken in good faith. The out-of-state seller should not collect or remit Missouri tax. The Missouri buyer must report and remit tax if the items are not exempt.

All Star Amusement, Inc. v. Director of Revenue, 873 S.W.2d 843 (Mo. banc 1994). A seller that accepts an exemption certificate in good faith is not required to collect and remit tax on the sale. There is no requirement that a seller accept an exemption certificate contemporaneously with the sale or that the certificate be dated to fulfill the good faith requirement. However, the fact that an exemption certificate is received after the sale or is not dated may influence a factual finding on the issue of the seller’s good faith.

Conagra Poultry Co. v. Director of Revenue, 862 S.W.2d 915 (Mo. banc 1993). In order to accept an exemption certificate in good faith, a seller must act with honesty of intention and freedom from knowledge that ought to put the seller on notice. When seller prepared the exemption certificates two (2) years after the transaction and obtained the buyer’s signatures, the seller did not act in good faith.

Director of Revenue v. Armco, Inc., 787 S.W.2d 722 (Mo. banc 1993). Failure by seller to provide exemption certificates at time of department audit forfeited the right to claim the sales were exempt.

(2/29/24) John R. Ashcroft Cadwell Supermarket, Inc. v. Director of Revenue (AHC 1997). When seller’s employees personally knew the buyers were purchasing for exempt purposes, failure to obtain exemption certificates did not defeat the exemption claim.

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed Oct. 25, 2004, effective May 30, 2005. Amended: Filed May 10, 2005, effective Nov. 30, 2005. Amended: Filed July 25, 2023, effective March 30, 2024. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

Chapter 108 Sales/Use Tax-Taxable Services

12 CSR 10-108.300 Sales of Electricity, Water, and Gas as Defined in Section 144, RSMo {#sec-12-csr-10-108.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-108.300}

PURPOSE: Section 144.020.1(3), RSMo, imposes a tax on the basic rate paid for sales of electricity, water, and gas to domestic, commercial, or industrial consumers. Section 144.030.2(23), RSMo, exempts from tax sales for domestic use of these services, as well as wood, coal, and home heating oil. Section 144.032, RSMo, provides cities and counties the option to reimpose certain local sales taxes on sales for domestic use. This rule explains the taxation of electricity, water, and gas.

(1) In general, sales of electricity, water, and gas to commercial or industrial consumers are subject to tax. Sales of these services to domestic consumers are exempt from state sales tax but may be subject to certain local sales taxes if reimposed by a city or county. Sales of electricity, water, and gas for agricultural use are excluded from tax.

(2) Definition of Terms.

(A) Basic rate—the rate charged for utility services, including any advance or equalized payment, surcharge, minimum, or flat rate. It does not include such things as refundable deposits, or separately stated charges for any franchise, occupation, sales, license, excise, privilege, or similar tax or fee of any kind imposed upon the supplier of the utility service by any taxing body or authority whether by statute, ordinance, or otherwise.

The basic rate does include income taxes and other charges imposed on the seller even if the seller chooses to separately state such charges. The basic rate also includes any “payment in lieu of tax (PILOT)” imposed on municipal-owned utilities, even if separately stated.

(B) Domestic use—nonagricultural, nonindustrial, and noncommercial use. Sales made by regulated utilities pursuant to a “residential” rate classification are for domestic use. Sales through a single or master meter for residential nursing homes, apartments, or condominiums, including service for common areas and facilities and vacant units, but not including administrative and maintenance areas, are sales for domestic use.

(3) Basic Application of Tax.

(A) Sales or use taxes apply to all sales of electricity, water, and gas to commercial or industrial consumers.

(B) Sales tax does not apply to sales of electricity, metered water service, and gas if sold for domestic use. Certain local sales taxes apply if reimposed by a city or county.

(D) Sales of propane gas, wood, coal, or home heating oil for domestic use are exempt from sales tax. Certain local sales taxes apply if reimposed by a city or county.

(E) Sales of sewer service for either commercial or domestic use are not subject to tax if billed separately.

(F) Sales of unmetered water service for domestic use are subject to tax except in the City of St. Louis, where metered and unmetered water service for domestic use are exempt from state sales tax.

(G) Persons making domestic purchases of service exempt from sales tax that use a portion of the service for nondomestic purposes must file a return and pay sales tax by April 15 of the year following the year of purchase on that portion of service used for nondomestic purposes.

(H) Persons making commercial purchases of service subject to state tax that use a portion of the service for domestic purposes may file for a refund for that portion of the utility service. See 12 CSR 10-102.016.

(4) Examples.

(A) An apartment complex purchases electricity. To the extent the purchases are for residents of the complex or for common areas, the purchases are exempt. The complex may issue an exemption certificate to its utility supplier. The purchases are subject to local sales taxes if reimposed by the local taxing authorities. If some of the electricity is used for the complex office or other facilities related to the business of the complex owner, the complex must remit state tax on these purchases directly to the department.

(B) A farmer has a single meter that services both the farm and his home. If the local taxing authorities have reimposed local tax on domestic use, the farmer must file a return and pay local sales tax directly to the department on the portion of the service used for his home.

The supplier must collect vendor’s use tax on the sales price of the gas.

(D) A propane gas company located in City A delivers gas by commercial truck and meters the gas on the truck. The company delivers gas to a customer located in City B. The company should charge the local sales tax (if applicable) based on its business location in City A. If the meter is located on the customer’s tank, the local tax rate is based on the location of the meter.

American Healthcare Management, Inc. v. Director of Revenue, 984 S.W.2d 496 (Mo. banc 1999). The court found that nursing homes may purchase utility service exempt from sales tax for their residents under the domestic use provision.

Bert v. Director of Revenue, 935 S.W.2d 319 (Mo. banc 1996).

Section 144.190, RSMo, provides that only the taxpayer legally obligated to remit the tax has the right to request a refund directly from the state. However, Section 144.030.2(23)(c), RSMo, provides a limited exception: A person who purchases non-domestic utilities and uses any portion of those utilities for domestic use may seek a refund directly from the Department of Revenue.

Hyde Park Housing Partnership v. Director of Revenue, 850 S.W.2d 82 (Mo. banc 1993). The court held that utilities purchased for vacant units by apartment owners were for domestic use because the taxpayer’s tariff filed with the PSC was classified as residential.

(1/30/24) John R. Ashcroft Norwin G. Heimos Greenhouse, Inc. v. Director of Revenue, 724 S.W.2d 505 (Mo. banc 1987). The court held that agricultural purchases of utility service are excluded from taxation. It concluded that agricultural users of utilities are distinct from industrial or commercial users. The statute taxes only industrial or commercial users; therefore, agricultural consumers are excluded from tax.

Consolidated Fuel Corp. v. Director of Revenue (AHC 1993).

The Administrative Hearing Commission held that transportation charges incurred in conjunction with the purchase of natural gas from an out of state supplier were a part of the sale and subject to use tax. The commission noted that there was only one carrier, the pipeline, and the purchaser had no choice as to delivery.

History

AUTHORITY: sections 143.961, 144.032, and 144.046, RSMo 2016, and sections 144.010 and 144.030, RSMo Supp. 2021. Original rule filed May 1, 2006, effective Nov. 30, 2006. Amended: Filed Oct. 12, 2021, effective April 30, 2022. Original authority:143.961, RSMo 1972; 144.010, RSMo 1939, amended 1941, 1943, 1945, 1947, 1974, 1975, 1977, 1978, 1979, 1981, 1985, 1988, 1993, 1996, 1998, 1999, 2001, 2005, 2011, 2013, 2017, 2018; 144.030, RSMo 1939, amended 1941, 1943, 1945, 1949, 1961, 1965, 1967, 1969, 1977, 1979, 1980, 1982, 1983, 1985, 1986, 1988, 1989, 1991, 1994, 1995, 1996, 1997, 1998, 1999, 2003, 2004, 2005, 2007, 2008, 2012, 2013, 2014, 2015, 2016, 2018; 144.032, RSMo 1979, amended 1986, 1987; and 144.046, RSMo 1995.

12 CSR 10-108.600 Transportation Fares {#sec-12-csr-10-108.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-108.600}

PURPOSE: Section 144.020.1(7), RSMo, imposes a tax on certain intrastate transportation fares. This rule explains the application of this section to transportation fares.

(1) In general, sales of tickets by every person operating a railroad, boat, and such buses and trucks as are authorized by the Missouri Highways and Transportation Commission and engaged in the intrastate transportation of persons for hire are (2) Definition of Terms.

(A) Intrastate transportation—The transportation of a person from one location in Missouri to another location in Missouri.

(B) Commission—The Missouri Highways and Transportation Commission.

(3) Basic Application of Tax.

(A) Gross receipts from the sale of tickets for intrastate transportation of persons for hire by persons operating buses and trucks licensed by the division are subject to tax. The gross receipts from the sale of tickets for intrastate transportation of persons for hire by persons operating a railroad, sleeping car, dining car, express car, or boat are also subject to tax.

Federal law prohibits taxation of receipts from the intrastate transportation of persons for hire in air commerce.

(B) Transportation charges by taxicabs, limousine services, and buses that are not required to be licensed by the commission are not subject to tax.

(D) Passengers engaged in an interstate trip must pay tax on the intrastate portion of a ticket, if separately stated.

(4) Examples.

(A) A person purchases a bus ticket for travel from St. Louis, MO to Kansas City, MO. The gross receipts from the ticket sale are subject to tax.

(B) A person is traveling from Indianapolis, IN to Denver, CO.

The ticket separately states the charges between St. Louis, MO to Kansas City, MO. The separate charges for this journey are (C) A company charters a bus to take its employees to Sedalia, MO. No tax is due because there is no sale of tickets.

Aloha Airlines v. Director of Taxation of Hawaii, 104 S.Ct 291 (1983). 49 U.S.C. section 1513(a) preempts state statutes and expressly prohibits states from taxing directly or indirectly gross receipts from interstate and intrastate air transportation.

Ryder Student Transportation Services, Inc. v. Director of Revenue, 896 S.W.2d 633 (Mo. banc 1995). Taxpayer’s charter bus services were not subject to tax because the service was provided on a contract basis, and the contract did not provide for the issuance of any tickets.

History

AUTHORITY: section 144.020, RSMo Supp. 2023, and section 144.270, RSMo 2016. Original rule filed June 13, 2000, effective Dec. 30, 2000. Amended: Filed July 17, 2023, effective Feb. 29, 2024. Original authority: 144.020, RSMo 1939, amended 1941, 1943, 1945, 1947, 1963, 1965, 1972, 1975, 1979, 1982, 1985, 1996, 1998, 2001, 2011, 2013, 2015, 2016, 2019, 2021, 2023, and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-108.700 Lease or Rental of Tangible Personal Property {#sec-12-csr-10-108.700 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-108.700}

PURPOSE: This rule explains the application of tax to leases or rentals of tangible personal property (other than motor vehicles, trailers, boats or outboard motors) under section 144.020.1(8), RSMo.

(1) In general, payments for the lease of tangible personal property are subject to tax unless the lessor paid tax on the purchase of the property. Payments for the lease of tangible personal property are exempt from tax if the sale of the tangible personal property would be exempt.

(2) Definition of Terms.

(A) Lease—any transfer of the right to possess or use tangible personal property for a term in exchange for consideration.

This includes a rental. However, if tangible personal property is used to provide a service to a customer and the use of the property is a necessary or mandatory part of the service transaction, then any temporary transfer of the property to the customer as part of the service transaction is not a lease or rental of the property.

(B) Lessor—a person who transfers the right to possess or use tangible personal property under a lease.

(D) Sublease—a lease of tangible personal property by a person who acquired the right to possess or use the property through a lease.

(E) Sublessor—a person who acquires the right to possess or use tangible personal property under a lease and subsequently transfers the right to possess or use the tangible personal property to another person under a sublease.

(3) Basic Application of the Tax.

(A) When a lessor purchases tangible personal property for the purpose of leasing, the lessor may pay tax on the purchase price or claim a resale exemption based on the intended lease of the tangible personal property.

If the lessor pays tax on the purchase price, the subsequent lease of the tangible personal property is not 2. If the lessor claims a resale exemption on its purchase, the amount charged for lease of the tangible personal property is subject to tax.
The election to pay tax on the purchase price must be made at the time the tangible personal property is purchased by the lessor. If tax is not paid on the tangible personal property at the time of the purchase, the lease is subject to tax.
If the lessor acquires the property in some way other than a taxable purchase (e.g., through a repossession or foreclosure, or by self-manufacturing), the amount charged for lease of the tangible personal property is subject to tax.

(B) Subleases—When property is leased for the purpose of subleasing and the original lessor did not pay tax on its purchase, the sublessor has the option of either paying tax on its lease payments, or claiming a resale exemption and collecting tax on its subsequent sublease of the property.

If the sublessor pays tax on its lease or rental, the sublease of the property is not subject to tax.
If the sublessor makes a claim of exemption from tax based on resale, the amount charged for sublease of the tangible personal property is subject to tax.
The election to pay tax on the rental must be made at the time the property is first rented to the sublessor. If tax is not paid on the property at that time, the sublease payments are subject to tax.

(C) Exemptions—Tangible personal property that is exempt from tax for any reason upon a sale of such property is also exempt from tax upon the lease of such property.

(D) Sale and leaseback transactions—Transactions structured as sales and leasebacks will be treated as nontaxable financing transactions if: (i) the seller-lessee previously purchased the tangible personal property and paid tax on the purchase price; (ii) the “lease” transaction creates a security interest (see below) in the property; and (iii) the purchaser-lessor holds no ownership interest in the property, other than the security interest, and does not claim any deduction, credit or exemption with respect to the property for federal or state income tax purposes. All three (3) of these elements must be present, or the transaction will be treated as a sale and subsequent lease, and taxed as any other sale and lease.

Whether the transaction creates a security interest in the property depends on the intent of the parties. If the lessee becomes the owner of the property for no additional consideration or for nominal consideration after all of the agreed lease payments are made, then there is a presumption that the transaction creates a security interest. If the lessee must pay more than nominal consideration to acquire title and ownership to the property after all the agreed lease payments are made, then the agreement will be considered to create a security interest in the property only if four (4) or more of following factors are present:

A. The lessee is required to insure the property in favor of the lessor;

B. The lessee bears the risk of loss or damage;

C. The lessee is required to pay for taxes, repairs and maintenance;

D. The agreement establishes default provisions governing acceleration and resale;

E. The warranties that usually apply to true leases of such property are expressly disclaimed and excluded;

F. The lease term is equal to or exceeds the economic life of the property; or G. The lease payments equal or exceed the purchase price of the property plus interest.

(E) Leases with an option to purchase—leases that include an option to purchase the property are taxed like all other leases.

If the lessee exercises the option to purchase the property, the additional amount paid for the purchase of the property is also (F) Leases of property in places of amusement, entertainment and recreation are taxed as provided in 12 CSR 10-108.100.

(G) Interstate transactions—Leases of property in Missouri and taken outside the state by the lessee are subject to Missouri sales tax. If the lessor or a common carrier delivers the property to a location outside Missouri and the property remains outside Missouri, the lease or rental is not subject to Missouri tax. Property leased from a lessor outside Missouri and used in Missouri is subject to Missouri use tax.

(H) Local tax—the local taxes applicable to a lease of tangible personal property are determined in the same manner as if the lease or rental were a sale of the property. See 12 CSR 10-117.100.

(I) Repair parts for leased equipment—A lessor may not claim a resale exemption on repair or replacement parts used on leased tangible personal property unless:

The parts are provided to the lessee at no additional charge and the lessor collects tax on the lease payments; or 2. The lessor charges the lessee for the part and collects tax on the charge.

(4) Examples.

(A) A taxpayer purchases seven lawnmowers and pays tax on the purchase price. The subsequent rental of the lawnmowers is not subject to tax.

(B) A taxpayer purchases seven lawnmowers and provides the seller with a resale exemption certificate. The subsequent rental of the lawnmowers is subject to tax, however, the purchase is not subject to tax. The taxpayer must collect and remit tax on the rental payments for the lawnmowers. After renting the lawnmowers for three years, the taxpayer sells them. The taxpayer must collect and remit tax on the sale of the used lawnmowers.

(C) A taxpayer purchases three airplanes and provides the seller with a resale exemption certificate. Taxpayer then offers the airplanes for rental. Taxpayer must collect and remit tax on the rental payments for the airplanes. Subsequently, taxpayer begins offering private charter services in addition to airplane rental. Taxpayer uses the rental airplanes to perform the private charter services. Taxpayer owes tax on the original purchase price of any airplanes used in the private charter service and should continue to pay tax on any future rental payments for such airplanes. Taxpayer should also continue to collect tax on the rental payments paid for any airplanes that are not used for private charters.

(D) A financial services company provides stock prices and other financial data to subscribers for a fee. The information is transmitted to the subscribers electronically. To receive the information, subscribers are required to use equipment provided by the financial services company. The subscription fee includes the price charged for the use of the equipment.

Title to the equipment remains with the financial services company. The charges for the equipment do not constitute rental payments. The financial services company should pay tax on its purchase of the equipment.

(E) Same facts as subsection (4)(D) except the use of the equipment provided by the financial service company is not required or necessary to receive the data. The charges paid by the customers for the use of the equipment are rent, and are subject to tax, unless the company paid tax on its purchase of the equipment.

(F) A taxpayer leases twelve computers and provides the lessor with a resale exemption certificate. The taxpayer then subleases the computers to its customers. The sublease of the computers by the taxpayer is subject to tax, however, the original lease of the computers is not subject to tax.

(G) A charitable organization that has received a letter of exemption from the Department of Revenue leases a photocopier for use in its office. The lease payments are (1/30/24) John R. Ashcroft exempt from tax, provided the organization uses the copier in its charitable functions.

(H) A doctor purchases a medical device from a medical supply company and pays tax on the purchase price. Subsequently, the doctor enters into a sale and leaseback agreement with a leasing company. Pursuant to the agreement, the doctor transfers title to the medical device to the leasing company, and in return, the company pays the doctor the purchase price of the device. The agreement states that the leasing company will hold title to the medical device and lease it to the doctor.

The lease payments will cover the full purchase price of the device plus interest. Title to the device will transfer back to the doctor for no additional consideration after all of the lease payments are paid. The agreement also states that the leasing company has no right to control or possess the medical device, as long as the doctor complies with the agreement. The leasing company holds no ownership interest in the property and does not claim any deduction with respect to the property on its federal income tax returns. Based on these facts, the leasing company only has a security interest in the medical device. The sale and leaseback agreement will be treated as a financing transaction, and neither the sale price paid by the leasing company nor the lease payments are subject to tax.

(I) Same facts as subsection (4)(H) except the sale and leaseback agreement expressly provides that the leasing company is entitled to all deductions, credits, and other tax benefits provided under federal tax law to the owner of the property. The leasing company claims a depreciation deduction with respect to the medical device. The sale and leaseback agreement will be treated as a sale and a subsequent lease, and taxed as any other sale and lease.

(J) An appliance store purchases a washing machine from a manufacturer, and presents a resale exemption certificate to the manufacturer. The store subsequently leases the washing machine to a customer pursuant to a “lease-purchase” agreement. Under the agreement, the customer may purchase the washing machine at any time, by paying the agreed purchase price. Any lease payments paid by the customer will reduce the purchase price. The lease payments and the purchase option price are both subject to tax.

(K) A construction company leases a bulldozer from an equipment company that has its business office in Jefferson City, Cole County, Missouri. The construction company picks up the bulldozer from the leasing company’s warehouse in Cape Girardeau, Missouri. The construction company then transports the bulldozer to its jobsite in Illinois. The construction company owes sales tax on the lease payments at the rate applicable to Jefferson City, Cole County, Missouri.

(L) Same facts as subsection (4)(K) except the leasing company delivers the bulldozer to the Illinois jobsite. The lease payments are not subject to Missouri tax.

(M) A Missouri construction company leases a crane from an Iowa equipment company. The crane is delivered to the construction company at its office in Kirkwood, St. Louis County, Missouri and used on construction jobs in Rolla and Springfield, Missouri. The construction company should pay Missouri use tax and any local use tax at the rate applicable to Kirkwood, St. Louis County, Missouri.

(N) Same facts as (4)(M) except the construction company picks up the crane in Iowa and brings it to St. Louis County.

The construction company should pay Missouri use tax and any local use tax at the rate applicable to Kirkwood, St. Louis County, Missouri.

Original authority: 144.020, RSMo 1939, amended 1941, 1943, 1945, 1947, 1963, 1965, 1972, 1975, 1979, 1982, 1985, 1996, 1998, 2001.

Brambles Industries, Inc. v. Director of Revenue, 981 S.W.2d 568 (Mo. banc 1998). Taxpayer leased pallets to a manufacturer, who in turn, transferred the pallets along with its products to the manufacturer’s customers. The court found that the manufacturer transferred the right to use the pallets to the customers, and this transfer was sufficient to find that the taxpayer’s lease to the manufacturer was for resale. The lease payments were not subject to tax.

Commercial Credit Equipment Corp. v. Parsons, 820 S.W.2d 315 (Mo. App. 1991). Lists the factors for determining whether an agreement is a “true lease” or a “security agreement.”

CMW Equipment, Inc. v. Director of Revenue (AHC 1998). In a lease purchase transaction, where the lessor does not pay tax on its purchase price, the lessee/purchaser owes tax on both its lease payments and amount paid to exercise the purchase option.

John Fabick Tractor Co. v. Director of Revenue (AHC 1996).

State and local sales tax apply to equipment leased by a Missouri company and picked up by the lessees at the lessor’s Missouri location.

Rocky Mountain Helicopters, Inc. v. Director of Revenue (AHC 1992). Taxpayer entered into a lease agreement in Utah to lease a helicopter that was used in Missouri. The taxpayer took delivery of the helicopter in Utah. The Commission ruled that the lease payments were not subject to Missouri sales tax.

Pryor Executive Planes, Inc. v. Director of Revenue (AHC 1987).

Airplanes purchased for resale lost the resale exemption when the purchaser used the airplanes for charter services.

Hal Aviation, Inc. v. Director of Revenue (AHC 1982). Airplane used for flying lessons was not rented to the flying students. The flight school could not claim a resale exemption on the airplanes it used for flying lessons.

History

AUTHORITY: section 144.020, RSMo Supp. 2001. Original rule filed April 1, 2002, effective Oct. 30, 2002.

Chapter 109 Sales/Use Tax-Sale of Property vs. Sale of Service

12 CSR 10-109.050 Taxation of Software {#sec-12-csr-10-109.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-109.050}

PURPOSE: Section 144.020.1(1), RSMo, taxes the retail sale of “tangible personal property.” This rule explains when the sale of software is treated as a taxable sale of tangible personal property and when the sale is treated as a nontaxable sale of a service.

(1) In general, the sale of canned software is taxable as the sale of tangible personal property. The sale of customized software, where the true object or essence of the transaction is the provision of technical professional service, is treated as the sale of a nontaxable service.

(2) Definition of Terms.

(A) Canned software—software purchased “off the shelf” or of general application developed for sale to and use by many different customers with little or no modification. This may include software developed for in-house use and subsequently held or offered for sale or license. Software may be canned even if it requires some modification, adaptation, or testing to meet the customer’s particular needs.

(B) Customized software—software developed to the special order of a customer. The true object sought by a purchaser of customized software is the service of the seller and not the property produced by the service of the seller. Note that minor changes to canned software will not be sufficient to qualify as custom software. Further, software that is unique to a special industry will not be sufficient to qualify as custom software. Additionally, software that is sold in modules will not qualify as custom software.

(C) Software as a service—A model for enabling ubiquitous, convenient, and ondemand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. The term includes platform as a service model, infrastructure as a service model, and similar service models. It does not include any service model that gives the purchaser the right to use specifically identified tangible personal property.

(3) Basic Application of the Tax.

(A) Tax applies to the sale of canned software delivered in a tangible medium to the purchaser. Examples of canned software delivered in a tangible medium would include coding sheets, cards, magnetic tape, CD- ROM, or other tangible electronic distribution media on which or into which canned software has been coded, punched, or otherwise recorded.

(B) Tax applies to the entire amount charged to the customer for canned software.

If the consideration for the sale includes license or other fees present or future, whether for a period of minimum use or for extended periods, such fees are includable in the measure of the tax.

(C) Tax does not apply to the amount charged to the customer for customized software. The seller of the customized software is subject to tax on the purchase of any tangible personal property or taxable services used to provide the nontaxable service.

(D) Programming changes to canned software to adapt it to a customer’s equipment or business processes are in the nature of fabrication or production labor that are a part of the sale and are taxable.

(E) Charges for software included as part of a lease or purchase of a computer are subject to tax even if the charges are billed separately.

(F) The taxation of the purchase of software installation, training, and maintenance services shall be determined as follows:

Mandatory canned software maintenance agreements. Software maintenance agreements that are mandatory for canned software provided on a tangible medium are subject to tax, whether or not these charges are separately stated;
Optional canned software maintenance agreements. Software maintenance agreements that provide for canned software updates, upgrades, or enhancements delivered on a tangible medium are subject to tax. If the optional maintenance agreements do not provide for canned software updates, upgrades, or enhancements delivered on a tangible medium, then the separately stated cost of the maintenance agreement is not subject to tax;
Custom software maintenance agreements. Charges for custom software maintenance agreements that provide for software updates, upgrades, or enhancements delivered on a tangible medium are not subject to tax.

(G) A software seller may sell canned software on a tangible medium, and later sell to the same purchaser additional software licenses, that involve no additional transfer of tangible personal property. The sale of the additional licenses is not subject to tax, unless the sale was part of the original transaction.

(H) Any future periodic payments required to continue to use software purchased on a tangible format are subject to tax.

(I) The sale of software as a service is not subject to tax. The service provider must pay sales or use tax on any tangible personal property used to provide the service that is purchased or used in Missouri.

(4) Examples.

(A) A retailer sells video games on disk and by electronic download. The sale of video games on disk is subject to tax. The sale of video games by electronic download is not subject to tax.

(B) A retailer sells canned software. The retailer also provides programming services to modify the canned software for the customer’s equipment. Both the canned software and the programming services to modify the canned software are subject to tax.

(C) A software company creates custom software for a customer. The amount charged for the custom software is not subject to tax.

The software company must pay tax on its purchase of any materials or supplies used to provide the custom software.

(D) A retailer sells optional software maintenance agreements for taxable software that include periodic software updates delivered through a tangible format. If the sales price of the software maintenance agreement does not separately state the price of the software updates, the entire software maintenance amount is subject to tax. If the sales price of the software updates is separately stated from the maintenance services, and the price attributed to the software updates is fair market value, then only the separately stated amount of the software updates is subject to tax.

(E) A retailer sells software modules in a tangible format that are part of integrated canned accounting software. The customer selects the specific modules that it wants to purchase. The sale includes modules for the customer’s general ledger, accounts receivable, and accounts payable. The sale of the software modules and services are subject to tax.

(F) In addition to the sale of canned software, a retailer creates new interfaces and custom reports for the purchaser. The services of creating the interfaces with other software and custom reports not provided by the canned software are not subject to tax if separately stated.

(G) A software company sells canned software through a tangible format. The contract for the purchase of the software includes a license for up to fifty (50) users, requires the payment of annual maintenance for three (3)

JASONKANDER(6/30/14) years, and provides that upgrades will be provided at no additional cost as long as maintenance is paid. All of the amounts paid for the software under the contract are subject to tax.

(H) A software company sells canned software, such as tax management software in a tangible format. The software company charges one thousand dollars ($1,000) for the original copy of the software. At the time of sale, the software company also sells to the same purchaser a license for two thousand (2,000) users of the software for one million dollars ($1,000,000). The entire one million one thousand dollars ($1,001,000) is subject to tax. However, if the software company obtains written documentation from the customer that a certain number of those licenses will be used outside the state of Missouri, the number of out of state documented users’ times five hundred dollars ($500) will not be subject to tax.

(I) A software company sells canned software in a tangible format. The software company charges one thousand dollars ($1,000) for a copy of the original software and ten thousand dollars ($10,000) for a license for an additional one hundred (100) users. The purchaser subsequently purchases a license from a third party vendor for an additional twenty-five (25) users for three thousand dollars ($3,000). There is no tangible personal property delivered in connection with the purchase of the additional license for twentyfive (25) users. The eleven thousand dollar ($11,000) purchase price for the software and original one hundred (100)-user license is subject to tax. The three thousand dollars ($3,000) is not subject to tax.

(J) A software company sells canned software in a tangible format for five thousand dollars ($5,000). Eighteen (18) months later the software company sells to the same user an additional twenty (20) licenses for six thousand dollars ($6,000). No tangible personal property changes hands as a result of these twenty (20) additional licenses. The six thousand dollars ($6,000) is not subject to tax.

(K) A software company delivers canned software through an electronic transfer and also mails a copy of the software on a compact disk. The sale of the software is subject to tax.

(L) A software company sells canned software through an electronic transfer and also mails an instruction manual to the purchaser.

The sale of the software is not subject to tax.

Bridge Data Co. v. Director of Revenue, 794 S.W.2d 204 (Mo. banc 1990). The sale of canned software programs that were not custom programs was the sale of tangible personal property. They were considered canned programs because they were held for sale to those who might desire them and were not specially created to meet a particular customer’s specifications or requirements.

IBM v. Director of Revenue, 765 S.W.2d 611 (Mo. banc 1989). The sale of canned computer software programs that were provided through a catalog were considered the sale of tangible personal property. The court held that the sale of programs where the taxpayer, seller, had a stock of them on disk, diskette, tape and punched cards, was a sale of tangible personal property even though the programs were sometimes subjected to minor modifications to meet the particular purchaser’s needs.

James v. TRES Computer Service, Inc., 642 S.W.2d 347 (Mo. banc 1982). Computer data and programs sold by a Texas-based corporation to a Missouri customer were intangible personal property, and they did not become tangible personal property, subject to Missouri use tax, by reason of their presence on magnetic tape. The court ruled that the data and programs in this case should not be taxed as tangible personal property because the tapes were not the ultimate objects of the sale, and it was not necessary that the information be put on the tape.

4CODE OF STATE REGULATIONS

(6/30/14) JASONKANDER

History

AUTHORITY:section 144.270, RSMo Supp. 2013, and section 144.705, RSMo 2000. Original rule filed Nov. 4, 1999, effective May 30, 2000. Amended: Filed Jan. 15, 2014, effective July 30, 2014. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961; and 144.705, RSMo 1959.

Chapter 110 Sales/Use Tax-Exemptions

12 CSR 10-110.200 Ingredient or Component Part Exemption, as Defined in Section {#sec-12-csr-10-110.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.200}

12 CSR 10-110.201 Materials and Other Goods Used or Consumed in Manufacturing, {#sec-12-csr-10-110.201 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.201}

12 CSR 10-110.601 Electrical, Other Energy, Chemicals, Machinery, Equipment, Materials, and Water as Defined in Section 144.054, RSMo, Exempt From Sales {#sec-12-csr-10-110.601 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.601}

12 CSR 10-110.621 Application of Sales Tax Exemption as Defined in Section 144.054, {#sec-12-csr-10-110.621 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.621}

12 CSR 10-110.846 Taxability of Sales Made at Fund-Raising Events Conducted by Clubs and Organizations Not Otherwise Exempt From Sales Taxation {#sec-12-csr-10-110.846 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.846}

12 CSR 10-110.950 Letters of Exemption Issued by the Department of Revenue. . . . . . . . . . . .17 Denny Hoskins (1/29/26) {#sec-12-csr-10-110.950 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.950}

12 CSR 10-110.013 Drugs and Medical Equipment {#sec-12-csr-10-110.013 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.013}

PURPOSE: Section 144.030.2(18), RSMo, provides an exemption for prescription drugs, orthopedic and prosthetic devices, numerous dental items, hearing aids, hearing aid supplies, and certain sales of over-the-counter drugs. This rule explains the sales tax law as it applies to these exemptions.

(1) In general, sales of prescription drugs, orthopedic and prosthetic devices and certain qualifying health-related equipment, and certain sales of over-the-counter drugs, are exempt from Missouri sales tax.

(2) Definition of Terms.

(A) Orthopedic device—a rigid or semi-rigid leg, arm, back or neck brace and casting materials which are directly used for the purpose of supporting a weak or deformed body member or restricting or eliminating motion in a diseased or injured

part of the body.

(B) Over-the-counter drug—a drug product containing a drug facts label as required in 21 CFR 201.66 or its successor that may be purchased without a physician’s prescription.

(C) Prescription drug—a drug dispensed by a licensed pharmacist only upon a lawful prescription from a licensed practitioner.

(D) Prosthetic device—a device that replaces all or part of the function of a permanently inoperative or malfunctioning internal body organ and is medically required, or an artificial leg, arm, or eye.

(3) Basic Application of Tax.

(A) Sales of prescription drugs, insulin, medical grade oxygen, drug samples and materials used to manufacture samples, which may be dispensed by a licensed practitioner, are exempt from tax.

(B) Sales of prosthetic and orthopedic devices as defined by the federal Medicare program under Title XVIII of the Social Security Act of 1965 are exempt from tax.

(C) Also exempt from sales tax are items specified in section 1862(A)(12) of the Social Security Act of 1965. Exempt items included in this class are those used in connection with the treatment, removal, or replacement of teeth or structures directly supporting teeth. Dental equipment or supplies are not exempt. The exempt items include— 1. Dentures;

Inlays;
Bridge work;
Fillings;
Crowns;
Braces, aligners, dental straighteners; or 7. Artificial dentistry and dental reconstructions, which are made, manufactured, or fabricated from molds or impressions made by dentists of the mouths of their particular patients and sold to dentists for insertion in the patient’s mouth as the direct support of, substitution for, or part of the patient’s teeth.

(D) Sales of other specific health-related equipment and accessories are exempt from sales tax.

These specific items are— A. Ambulatory aides B. Braille writers C. Electronic Braille equipment D. Home respiratory equipment and accessories E. Hospital beds and accessories F. Stairway lifts G. Wheelchairs, manual and powered 2. If purchased by or on behalf of a person with one or more physical or mental disabilities to enable them to function more independently, the following items are also exempt:

A. Electronic print enlargers and magnifiers B. Electronic alternative and augmentative communication devices C. Items used solely to modify motor vehicles to permit the use of such motor vehicles by individuals with disabilities D. Reading machines E. Scooters (E) Sales of over-the-counter drugs when sold to an individual with a disability or to the individual’s agent are exempt from tax. When selling over-the-counter drugs to an individual with disability, the retailer should obtain a purchaser’s signed statement of disability. The retailer should retain these statements for three (3) years. The statement should include the purchaser’s name, type of purchase, and amount of purchase, and be signed by the purchaser or the purchaser’s agent. The retailer should request a form of identification, such as drivers license, credit card, etc., to verify the identity of the purchaser.

(F) Sales of over-the-counter drugs prescribed by a health care practitioner licensed to prescribe are exempt from tax.

The customer must provide the prescription at the time of purchase. The seller must retain an electronic or paper record documenting that an untaxed sale of an over-the-counter drug was prescribed by a health care practitioner licensed to prescribe.

(4) Examples.

(A) A retailer sells an over-the-counter drug to an individual claiming a disability. The sale is exempt if the retailer obtains from the purchaser or their agent a statement similar to the following:

Purchases of over-the-counter drugs by individuals with disabilities are exempt from sales tax. IT IS UNLAWFUL TO FRAUDULENTLY CLAIM AN EXEMPTION. I CERTIFY THAT I HAVE A DISABILITY AND AM ENTITLED TO CLAIM THIS EXEMPTION OR I AM CLAIMING THIS EXEMPTION ON BEHALF OF A PERSON OR PERSONS WITH A DISABILITY.

Type of Purchase ________________________________________ Amount ________________________________________________ Type of ID ______________________________________________ ID Number _____________________________________________ Name (print) ____________________________________________ Signature _______________________________________________ (B) Examples of exempt prosthetic devices include:

Breast prosthetics, including surgical brassieres for postmastectomy patients 2. Cardiac pacemakers 3. Colostomy and other ostomy bags and the necessary equipment required for attachment 4. Electronic speech aids if the patient has had a laryngectomy or his/her larynx is permanently inoperative 5. Hearing aids and hearing aid supplies 6. Hemodialysis equipment 7. Maxillofacial devices and devices which replace all or

part of the ear or nose 8. Prosthetic lenses which replace the lens of an eye (1/29/26) Denny Hoskins 9. Urinary collection systems, including Foley catheters, when replacing bladder function in cases of permanent urinary incontinence 10. Eyeglasses, contact lenses, bedpans and incontinent apparel are not considered prosthetic devices and are subject to sales tax (C) Examples of exempt orthopedic devices include:

Artificial legs, arms and eyes including terminal devices such as artificial hands 2. Hoods and space shoes which replace part of a foot 3. Orthotics 4. Stump stockings and harnesses when they are essential to the effective use of an artificial limb 5. Trusses 6. Elastic braces, elastic stockings, arm slings, elastic wraps and garter belts, are not considered orthopedic devices and are subject to sales tax (D) Examples of exempt orthopedic and prosthetic devices used in dentistry include:
Restorative materials.

A. Acrylics B. Aluminum crowns C. Amalgam D. Bases and liners E. Cements F. Chrome steel crowns G. Copper bands H. Crown forms I. Dentin enamel adhesives J. Denture anchors K. Denture repair materials L. Denture teeth M. Gold N. Mercury O. Pins P. Pit and fissure sealants Q. Porcelains R. Posts S. Temporary filling materials T. Zinc oxide (Eugenol)

Prosthetic devices and supportive materials.

A. Acrylics B. Bonding materials C. Chrome alloys D. Composed materials E. Denture anchors F. Denture repair materials G. Denture teeth H. Implant materials I. Metal alloys 3. Orthodontic devices and materials.

A. Arch bar splits B. Bone grafting materials C. Cresitine D. Endodontic materials E. Face bow head gear F. Gor-tex grafting materials G. Gutta percha points H. Muscosal grafts (natural and artificial)

I. Orthodontic appliances J. Orthodontic brackets K. Orthodontic elastics L. Orthodontic expansion screw M. Orthodontic resins N. Orthodontic separators O. Orthodontic waxes P. Orthodontic wires Q. Root canal sealants R. Silver points S. Surgical wires (E) Sales of other specific health-related equipment and accessories are exempt from sales tax.

These specific items are— A. Ambulatory aides, including parts;

B. Braille writers;

C. Electronic Braille equipment;

D. Hospital beds and accessories;

E. Home respiratory equipment and accessories, including parts;

F. Stairway lifts; and G. Wheelchairs, manual and powered, including parts.

If purchased by or on behalf of a person with one (1) or more physical or mental disabilities to enable them to function more independently, the following items are also exempt:

A. Electronic alternative and augmentative communication devices;

B. Electronic print enlargers and magnifiers;

C. Items used solely to modify motor vehicles to permit the use of such motor vehicles by individuals with disabilities;

D. Reading machines; and E. Scooters, including parts.

The devices provided small amounts of electrical current that stimulate the bone to promote growth and healing, and were available by prescription only. The taxpayer argued the stimulators were exempt from taxation under section 144.030.2(18), RSMo, using three alternative theories: (1) as a prosthetic device, (2) as an orthopedic device, and (3) as a prescription drug. The Commission found the stimulator was an orthopedic device, but not a prosthetic device nor a prescription drug. The stimulators qualified as orthopedic devices under Regulation 12 CSR 10- 3.852(3) that defines orthopedic devices to include orthotics. The Commission defined orthotics as “an orthopedic appliance or apparatus used to support, align, prevent, or correct deformities or to improve the function of movable parts of the body.” The Commission concluded the stimulator promotes bone growth to correct deformities, and therefore, was an orthotic and an orthopedic device. The Social Security Act of 1965, 42 U.S.C. Section 1395x(s)(8), defines prosthetic devices as devices “which replace all or part of an internal body organ.” Since the stimulators do not “replace all or part of the function of a permanently inoperative or malfunctioning internal body organ,” the stimulators were not prosthetic devices. The federal definition of “Prescription drug,” set forth in 21 U.S.C.A. Section 321(g)(1), specifically excludes devices or their component parts or accessories. The Commission found the stimulator was a device, and therefore, by definition, was not a prescription drug.

Red Line Medical Supply, Inc. v. Director of Revenue (AHC 1995). This case involved a taxpayer engaged in the business of selling medical supplies at retail. The taxpayer stated its belief that enteral nutrients were “prosthetic devices” under Title XVIII of the Social Security Act of 1965 and, therefore, its sales of the nutrients were exempt from Missouri sales/use tax. The Commission found that the federal statutes were interpreted in

part by the Carriers Manual and, therefore, could be utilized in determining whether enteral nutrients were prosthetic devices.

It further found, however, that the manual did not define enteral nutrients as prosthetic devices. The Commission also found that under Missouri case law, Medic House, Inc. v. Director of Revenue, 799 S.W.2d 81 (Mo. banc 1990), in order for enteral nutrients to qualify as “prosthetic devices,” they must “(1) ‘replace all or part of an internal body organ’ and (2) be ‘medically required.’” Applying the facts to the case, the Commission found that enteral nutrients were not prosthetic devices and, therefore, taxpayer should have collected and remitted Missouri sales taxes on its sales of enteral nutrients.

Four Rivers Home Health Care, Inc. v. Director of Revenue (AHC 1992). Taxpayer sold oxygen for medicinal use and also sold durable medical equipment. Taxpayer did not collect or remit sales tax on either oxygen or durable medical equipment because it considered both to be exempt pursuant to 144.030.2(18), RSMo.

Taxpayer sold oxygen only upon a physician’s prescription; but taxpayer did not have a licensed pharmacist on the premises.

Taxpayer also sold wheelchairs, motorized three-wheel vehicles, crutches, walkers, canes, commode chairs, pressure pads and cushions, seat lift chairs and patient lifts, arm slings, flow meters, oxygen regulators and intermittent partial pressure breathing apparatus. The Commission found that oxygen was a drug.

However, it is not designated as a prescription drug. The Missouri Supreme Court has ruled that the sales tax exemption does not apply to this oxygen since persons other than a licensed pharmacist dispense it. Medic House, Inc. v. Director of Revenue, 799 S.W.2d 81 (Mo. banc 1990). The Commission found that a prosthetic device physically replaces a missing organ. A device that accommodates the absence of an organ or supplements the impaired function of an organ is not a prosthetic device. The listed durable medical equipment did not replace a missing organ and were not prosthetic devices. The Commission also found that orthopedic devices are defined in 42 U.S.C.1395x(s)(9). Leg, arm, back, and neck braces, and artificial legs, arms, and eyes, including replacements, are exempt if required by a change in the patient’s physical condition. The durable medical equipment items sold by taxpayer were not artificial limbs or braces. These items are not exempt under section 144.030.2(18), RSMo.

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed Sept. 29, 1999, effective April 30, 2000. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, EBI Medical Systems, Inc. v. Director of Revenue (AHC 1997). The taxpayer manufactured and sold osteogenic (bone) stimulators.

12 CSR 10-110.016 Refunds and Credits {#sec-12-csr-10-110.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.016}

(Moved to 12 CSR 10-102.016)

12 CSR 10-110.200 Ingredient or Component Part Exemption, as Defined in Section 144.030, RSMo {#sec-12-csr-10-110.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.200}

PURPOSE: Section 144.030.2(2), RSMo exempts from taxation certain materials, goods, machinery and parts. This rule explains the requirements for this exemption.

(1) In general, purchases of ingredients or component parts are exempt from tax if they blend with the final product and are intended to and do become a part of the finished product. In addition, materials that are consumed in the manufacturing, processing, compounding, mining, producing or fabricating of products intended to be sold ultimately for final use or consumption are exempt from tax.

(2) Definition of Terms.

(A) Component part—a constituent element of a manufactured or fabricated product.

(B) Ingredient—an element in a mixture or compound.

(C) Interacting—means that the materials and component parts or ingredients act upon each other in manufacturing a steel product.

(D) Reacting—means that the materials cause a chemical change in the component parts or ingredients in manufacturing a steel product.

(E) Steel product—the product made entirely of steel resulting from:

Smelting and refining molten pig iron, scrap steel or other metals; or 2. Rolling, drawing, casting or alloying steel.

(3) Basic Application of Exemption.

(A) Materials, manufactured goods, machinery, and parts that become a component part or ingredient of new personal property to be sold ultimately for final use or consumption are not subject to tax. Purchases of ingredients or component parts are exempt from tax if they are intended to and do become a

part of the finished product. The exemption does not apply to materials that are totally consumed and are not intended to and do not become a part of the final product. In order to qualify for this exemption, the material in question must be intended to remain in the finished product in at least trace amounts for a specific purpose.

(B) Materials, including without limitation, slagging materials and firebrick, which are consumed in the manufacturing process by blending, reacting or interacting with or by becoming, in whole or in part, component parts or ingredients of steel products to be sold ultimately for final use or consumption are exempt from tax.

(C) If any portion of purchased material qualifies as an exempt ingredient or component part, the entire purchase is exempt from tax. The material is exempt even if a significant portion is consumed in the manufacturing process.

(D) Materials purchased to be used as an ingredient or component part to repair existing property does not qualify for these exemptions because the property produced from the repair work does not constitute “new personal property.”

(4) Examples.

(A) A toy manufacturer purchases wood, glue, and paint to use in the manufacturing of wooden rocking horses. The purchases of wood, glue and paint are exempt from tax.

(B) A restaurant purchases apple wood to use in the smoking of foods. The restaurant burns the wood in a closed chamber, called a smoker, in which it places the food. The burning wood releases compounds, and small but measurable quantities of the compounds enter and permeate the food. Because a part of the wood, in the form of smoke particles, blends with and remains as part of the finished product, the apple wood may be purchased tax exempt as an ingredient or component part.

(C) An automobile manufacturer purchases wax to wax all automobiles as they leave the manufacturing plant. The wax qualifies as a component part because it is intended to remain with the product.

(D) A steel mill purchases firebrick and various gases to be used in the production of steel. These purchases are exempt.

(E) A steel fabricator purchases welding rods for use in fabricating a product out of steel plates. The welding rods are exempt because they become a component part of new personal property.

Amended: Filed Aug. 14, 2007, effective Feb. 29, 2008. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

The Doe Run Resource Company, d/b/a/ Doe Run Company Smelting Division, et al., S.W.2d (Mo. banc 1998). The issue was the taxability of coke used in the processing of lead. The Missouri Supreme Court found the case to be analogous to the facts in Sipco, Inc v. Director of Revenue, 875 S.W.2d 539 (Mo. banc 1994). In that case the court held natural gas used in a singer to remove hair from hog carcasses before butchering did not qualify as an ingredient or component part, because no part of the natural gas used in Sipco’s singer remained as an essential or necessary element of a finished pork product. The Court in Sipco concluded that no part of the natural gas used in Sipco’s singer remained as an essential or necessary element of the finished pork product.

Accordingly, the purchase was not tax exempt.

Spacewalker, Inc., v. Director of Revenue (AHC 1997). The purchase of shielding gas used in welding was held taxable. The

purpose of the shielding gas was to shield the puddle (molten metal) from the atmosphere and not to become mixed with the metal. The AHC referenced the Al-Tom decision, which found that if any part of a material is intended and does remain as an essential or necessary element of the finished product, the entire purchase is exempt. Because the shielding gases were present in the finished product, incidentally or accidentally, they were not exempt as component parts. The Missouri Court of Appeals affirmed the decision by the AHC.

Concord Publishing House, Inc. d/b/a Cape Mississippi Development, Inc., d/b/a Southeast Missourian v. Director of Revenue (AHC 1995). The taxpayer, a newspaper publisher and printer, claimed an ingredient or component part exemption on its toner. The AHC held that the toner and toner cartridges did not qualify for exemption because the toner became a component

part of the layout from which the photonegative was developed.

The toner was not physically present in the newspaper sold to the public.

Robertson’s Creative Photography, (AHC 1994). The Commission held that the taxpayer as a commercial photographer was subject to sales tax on its purchases of film. The film was not a component

part or ingredient because it did not remain as an essential or necessary element of the finished product.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed Aug. 30, 2000, effective March 30, 2001. Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008.

12 CSR 10-110.201 Materials and Other Goods Used or Consumed in Manufacturing, as Defined in Section 144.054, RSMo {#sec-12-csr-10-110.201 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.201}

(Rescinded April 30, 2026)

Original rule filed Aug. 14, 2007, effective March 30, 2008.

Rescinded: Filed Oct. 9, 2025, effective April 30, 2026.

History

AUTHORITY: section 144.270, RSMo 2000. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008.

12 CSR 10-110.210 Television and Radio Broadcasters {#sec-12-csr-10-110.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.210}

PURPOSE: This rule explains the television and radio broadcasters sales tax exemption.

(1) In general, radio and television broadcasters are exempt from sales and use tax, both state and local, on purchases of utilities, machinery, and equipment used or consumed directly in the broadcasting of their programs.

(2) Definition of Terms.

(A) Broadcaster—An entity who transmits (a radio or television signal) over the airwaves for public or general use. A cable or satellite provider is not a broadcaster.

(3) Basic Application.

(A) A Missouri radio or television station purchases utilities, machinery and equipment for use directly in the broadcasting of their programming. The purchase of the utilities, machinery and equipment are not subject to state or local tax.

History

AUTHORITY: section 144.270, RSMo 2000 and section 144.054, RSMo Supp. 2007. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Original rule filed Aug. 14, 2007, effective Feb. 29, 2008. Original authority: 144.054, RSMo 2007 and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-110.220 Hotels and Motels {#sec-12-csr-10-110.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.220}

PURPOSE: This rule explains the taxability of rooms, meals and drinks provided by hotels, motels, and similar establishments in which these items are regularly provided to the public. It also covers purchases made by these establishments. The applicable sections are 144.010, 144.011, 144.020, 144.021, 144.030 and 144.080, (1) In general, sales or charges for rooms, meals or drinks at a place that regularly serves the public are taxable.

(2) Definitions. Permanent resident—An individual who contracts in advance for a room for a period of thirty consecutive days or more and who actually remains a guest for thirty consecutive days or more. Businesses do not qualify as permanent residents.

(3) Basic Application of the Tax.

(A) Charges for rooms, meals, and drinks furnished by hotels, restaurants, and other establishments, in which rooms, meals, or drinks are regularly served to the public, are taxable. Rooms for lodging as well as meeting, banquet and conference rooms are taxable.

(B) A permanent resident is not subject to tax on their lease or rental payments. A permanent reservation for any room is not synonymous with permanent resident.

(C) An educational institution, which furnishes room and board to students in pursuit of their educational objectives, is not subject to tax on the gross receipts.

(D) Persons engaged in providing rooms are subject to tax on the gross receipts from the sale of tangible personal property and taxable services:

Receipts for food or drink are taxable regardless of whether the charge is made per meal, daily, weekly, or monthly;
In room pay-per-view programs or movies are not subject to tax; and 3. All persons engaged in providing rooms must collect tax on all charges for telecommunication services, including intrastate and interstate calls.

(E) Rooms, meals and drinks are exempt from tax if sold to an exempt organization or a representative of that organization if the seller has documentation of the exemption. If the representative claims the exemption, even if the representative pays with his own funds and is reimbursed, and the hotel has a copy of a valid exemption letter issued by the Missouri Department of Revenue to the organization, the sale is exempt.

An agent of the United States government paying with a U.S. government credit card is also exempt.

(F) Persons providing complimentary meals and drinks or non-reusable tangible personal property as part of the room accommodation should not pay tax on the purchases. Nonreusable items include soap, shampoo, tissue, and food or confectionery items offered to the guests without charge.

(G) The purchaser must pay tax on the purchase of reusable items including furniture, curtains, linens, towels, pillows, mirrors, radios and televisions for room accommodation.

(4) Examples.

(A) A hotel rents a room to a guest for a night. The soap and shampoo are included in the price of the room and may be purchased tax exempt by the hotel under a resale exemption.

The complimentary breakfast provided to the guest is also included in the price of the room, and the hotel may purchase the food under a resale exemption. The towels, bed linens and furniture are subject to tax at the time of purchase.

(B) A hotel provides a complimentary room for a couple’s wedding night. The hotel includes a free bottle of champagne and a free breakfast. The hotel must pay tax on the cost of the champagne and the breakfast because the hotel did not charge for the room.

(C) An airline reserves rooms at a hotel under a long-term room contract. In exchange for room availability, the airline agrees to pay for all rooms on a guaranteed basis, whether or not it uses the rooms. The entire charge for the rooms is taxable, regardless of whether the rooms are actually used.

Drury Supply Co., et al v. Director of Revenue, (A.H.C. 1996).

The Commission found that the “sale for resale” exclusion applies to the sale of a taxable service and, therefore, the purchases of the tangible personal property used to provide “free” breakfasts and the guest consumables were not subject to Missouri taxes.

It further found that the guest room supplies (towels, bed linens, waste baskets and other items placed in the rooms for the guests’ use) were property used and consumed by the hotel/motel to provide the service to the guests and ownership of the property was not transferred to the guests. Therefore, the purchases of the guest room supplies were subject to tax. The Commission also found that the taxpayer had accepted exemption certificates from exempt entities in good faith. Therefore the sales of room services to persons representing the exempt entities were exempt from tax even though payment did not come directly from the exempt entities. Finally, the Commission found that the taxpayer’s charge to the customer for telecommunications services was taxable.

HBE Corp. v. Director of Revenue, (A.H.C. 1992). The hotel marked up the charges for guest phone calls over the rate paid to its supplier. The Commission ruled the hotel “sold” telephone services to “others,” its hotel guests. Where a retail sale occurs between a Missouri buyer and Missouri seller, the exemption for interstate commerce does not apply. See, Bratton Corp. v. Director of Revenue, 783 S.W.2d 891 (Mo banc 1990). Even though the sale involved the transmission of telephone message to a recipient located in another state, it was not exempt as a sale in commerce.

The Hotel Majestic (Majestic Associates) v. Director of Revenue, (A.H.C. 1989). A Missouri limited partnership that owned and operated a hotel was properly denied a sales tax refund on certain payments it received under a long-term room reservation rental agreement. The hotel agreed to reserve between 10 and 20 rooms per day for the use and convenience of a public utility. Any reserved room that was not taken by a guest of the utility prior to 6:00 p.m. daily could be let by the hotel to the general public for that night. In exchange for making reserved rooms available, the utility agreed to pay for all the rooms on a monthly basis, whether it used them or not, with the exception of reserved rooms let to other patrons.

National Land Management, Inc., v. Director of Revenue, (A.H.C. 1984). The Commission found that receipts from time sharing arrangements at resorts are not taxable. The payments in question did not constitute charges for rooms furnished in any hotel, motel, inn, tourist camp or tourist cabin. Because the timeshares include a thirty-year lease, the occupants are not transitory in the sense that travelers or tourists are. Rooms in taxpayer’s resort are not regularly rented because they are only open to the general public when they are not already reserved.

Chase Hotel, Inc, v. Director of Revenue, (A.H.C. 1982). The taxpayer’s purchase of furnishings for use in its hotel was not a “sale for resale” because the hotel was the ultimate consumer of the materials purchased for its renovation program.

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed June 13, 2000, effective Dec. 30, 2000. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-110.300 Common Carriers and 54,000 Pound Carriers {#sec-12-csr-10-110.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.300}

PURPOSE: Section 144.030, RSMo, exempts from taxation certain materials, parts, and equipment used by common carriers. This

rule explains what qualifies for the exemptions.

(1) In general, materials, replacement parts, and equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling stock or aircraft engaged as common carriers of persons or property are not subject to tax. Pumping machinery and equipment used to propel products delivered by pipelines engaged as common carriers are not subject to tax. Railroad rolling stock used in transporting persons or property in interstate commerce is not subject to tax.

Motor vehicles licensed for a gross weight of twenty-four thousand (24,000) pounds or trailers used by common carriers in the transportation of persons or property are not subject to tax. Also exempt are materials, replacement parts, and the equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles that are registered in excess of fifty-four thousand (54,000) pounds and the trailers pulled by the motor vehicle that are used in the normal course of business.

(2) Definition of Terms.

(A) Common carrier—any person that holds itself out to the public as engaging in the transportation of passengers or property for hire. A common carrier is required by law to transport passengers or property for others without refusal if the fare or charge is paid. To qualify as a common carrier, a carrier must be registered as a common carrier with all agencies that require such registration, such as the United States Department of Transportation.

(B) Contract carrier—any person under individual contracts or agreements that engages in transportation of passengers or property for hire or compensation. A contract carrier is a carrier that meets the special needs of certain customers to transport its passengers or property.

(D) Motor vehicle—any vehicle, truck, truck-tractor, motor bus, or any self-propelled vehicle and trailers or semi-trailers used upon the highways of the state in transportation of property or passengers.

(E) Private carrier—any person engaged in the transportation of passengers or its property, but not as a common carrier or a contract carrier.

(F) Watercraft—any boat or craft, including a vessel, used or capable of being used as a means of transport on waters.

(G) 54,000 pound carrier—motor vehicles registered in excess of fifty-four thousand (54,000) pounds used in the normal course of business.

(3) Basic Application of Exemption.

(A) Railroad Rolling Stock. Sales of railroad rolling stock are exempt provided that it is used in transporting persons or property in interstate commerce. The sale of flanged wheel equipment used to repair and maintain the railroad track used in interstate commerce is also exempt. Railroad rolling stock for use solely in intrastate commerce is not exempt.

(B) Aircraft. Sales of aircraft to common carriers for storage or for use in interstate commerce are not subject to sales tax.

(C) Pipeline Pumping Equipment. Sales of machinery and equipment used to propel products by pipelines engaged as common carriers are exempt. The exemption does not apply to contract carriers or to private carriers. All other machinery and equipment such as pipelines, connecting lines, communication equipment, monitoring equipment, accessory equipment, such as fuel tanks to provide fuel for pumping engines, and manifolds used to connect pumping equipment to the main lines are subject to tax.

(D) Power Take-Off Units. Equipment on motor vehicles used by common carriers which is exempt from tax includes power take-off (PTO) units which are attached to the transmission of the power unit of the vehicle and all materials and replacement parts for the power take-off units.

(E) Materials. Materials used by common carriers and 54,000 pound carriers directly upon and for the maintenance or repair of motor vehicles, watercraft, railroad rolling stock or aircraft which qualify for the exemption from tax include but are not limited to grease, motor oil, gear oil and lube, water additives, antifreeze, fuel additives, cleaners, and paint for body work.

(F) Replacement Parts. Replacement parts used by common carriers and 54,000 pound carriers directly upon and for the maintenance or repair of motor vehicles, watercraft, railroad rolling stock or aircraft which qualify for the exemption from tax include but are not limited to decals, permit pouches, tarpaulins and tiedowns, wind deflectors, winter fronts, and radio repair parts purchased for use on the vehicle.

(G) Barges. The purchase of barges used primarily in the transportation of property or cargo on interstate waterways is exempt from tax.

(H) Tools. Tools and equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling stock or aircraft engaged as common carriers and 54,000 pound carriers of persons or property are not subject to tax.

(4) Examples.

(A) A manufacturer registered as a common carrier maintains a fleet of trucks to transport finished products to various distribution centers throughout the United States. The manufacturer advertises that it will transport goods belonging to others on return trips from the distribution centers and advertises that service. The purchase of the manufacturer’s fleet of trucks and repair parts for the fleet are not taxable.

(B) A manufacturer maintains a fleet of trucks to transport finished products to various distribution centers throughout the United States. The manufacturer also negotiates with other companies to transport goods on return trips from the distribution centers. The purchase of the manufacturer’s fleet of trucks and repair parts for the fleet are taxable because the manufacturer is not a common carrier.

(C) A common carrier purchases a cab and chassis. The cab and chassis are licensed for a gross weight of 24,000 pounds and will be used only in intrastate commerce as a common carrier. The purchase of the cab and chassis is not taxable. The common carrier subsequently purchases a dump bed to add to the cab and chassis. The dump bed is exempt from tax because it is materials or equipment used in the manufacture of a motor vehicle to be used by a common carrier.

(D) The sale of a switch engine to be used to move railroad cars around a switching yard, if part of an interstate rail system, is not subject to tax.

(E) A common carrier purchases a trailer. The common carrier subsequently purchases a refrigeration unit to add to the trailer. The refrigeration unit is exempt from tax because it is materials or equipment used in the manufacture of a motor vehicle to be used by a common carrier.

(F) The sale of a switch engine to be used to move railroad cars around a switching yard, if part of an interstate rail system, is not subject to tax.

(G) An airline purchases equipment to test engine parts that have been removed from the plane and brought to their repair facility. The equipment purchased would be exempt from tax.

(H) The owner of a Missouri furniture store is registered as a common carrier, but does not hold itself out to the general public as a common carrier. The truck is registered less than 54,000 pounds as well. It uses its truck only to deliver furniture sold to customers residing in and outside Missouri. The owner installs new brakes on the truck. Even though the owner is registered as a common carrier, the brakes are taxable because the furniture store is operating as a private carrier and the motor vehicle is not registered in excess of 54,000 pounds.

(I) A charter company contracts with private groups for exclusive use of its bus and driver for transportation between Missouri and destinations in the Southeastern United States.

The company provides no other transportation services. The charter company purchases new tires. The tires are taxable because the business is a contract carrier.

(J) A railroad purchases a flanged wheel mechanized tie replacement machine for repairing broken rail segments on an interstate system. The purchase of the machine is exempt.

(K) A construction company purchases motor vehicle(s) that are in excess of 54,000 pounds to be used in their construction functions. The company does not haul for the general public.

The company’s motor vehicles in excess of 54,000 pounds are exempt from tax as they are used in the normal course of business.

Burlington Northern Railroad v. Director of Revenue, 785 S.W.2d 272 (Mo. banc 1990). Railroad rolling stock normally has flanged wheels. The equipment does not have to be used directly in transporting persons or property in interstate commerce. Thus, this flange wheeled equipment used to repair and maintain the track was held exempt.

Trailiner Corp. v. Director of Revenue, 783 S.W.2d 917 (Mo. banc 1990). The court held that the trailers constituted “motor vehicles” within the meaning of 144.030.2(3). The court relied on the definition of motor vehicle found in chapter 390, RSMo, rather than chapter 301, RSMo, as argued by the director.

Hogan Motor Leasing, Inc. v. Director of Revenue (AHC 1999), Hogan Transports, Inc. v. Director of Revenue (AHC 1999).

The taxpayer purchased equipment that allowed the taxpayer to monitor the maintenance needs of its trucks, which were used to transport goods in interstate commerce. The equipment also permitted certain communications functions between the truck and dispatchers. The communications functions were implemented first. The commission held that the maintenance functions of the equipment made it equipment that was purchased for use directly upon and for the repair and maintenance of the trucks and therefore, exempt. Furthermore, the original purchase was exempt because the evidence established that the taxpayer intended when it purchased the equipment to add the maintenance functions after implementation of the communications functions was complete.

Craftsmen Limousine, Inc. v. Director of Revenue (AHC 1997).

After providing definitions for common, contract and private carriers, the commission found that the taxpayer’s customers (limousine services) could be any of the three. Because the taxpayer did not prove that its customers were common carriers it was not entitled to the exemption.

Rocky Mountain Helicopters, Inc. v. Director of Revenue (AHC 1992). Pursuant to contracts with Missouri hospitals, taxpayer operated an air ambulance service which picked up and transported patients to the hospital. A common carrier must convey passengers or freight without refusal if the approved fare is paid. Assuming a carrier carries passengers or freight without refusal, the crucial test is whether the carrier holds itself out as a common carrier. Thus, a carrier may be a common carrier even if it limits its operations to special contract or charter flights.

Because the taxpayer held itself out as a common carrier, through promotional material and use of its insignia and placard on the aircraft, and carried, within the limits of its capacity, all persons desiring its services, it was found to be a common carrier.

St. Louis Refrigerator Car Co. v. Director of Revenue (AHC 1992).

Items purchased for either repair or maintenance may qualify for the exemption. Use of the phrase “directly upon” does not relate to the relationship between the item and the repair or maintenance process. In this way “directly upon” in section 144.030.2(3), RSMo, is distinguishable from “used directly for” in section 144.030.2(4), RSMo. “Directly upon” indicates the close physical relationship required between the item and the mode of transportation. While physical contact is not required, there must be a certain degree of physical immediacy.

Metro Crown International, Inc. v. Director of Revenue (AHC 1990). Exemption certificates must be provided as evidence for a common carrier’s claim of exemption.

Trans World Airlines, Inc. v. Director of Revenue (AHC 1988).

Cleaners, abrasives, solvents and test equipment qualified for the

section 144.030.2(3), RSMo, exemption even though they were used on parts of the aircraft that were removed for servicing. Cleaning soaps used to clean the floor of the repair facility were not used “directly upon” the aircraft and, therefore, not exempt.

Emerson Electric Co. v. Director of Revenue, 133 S.W.3d 31 (Mo. banc 2004). A common carrier does not have to use an aircraft as part of its common carrier operations to qualify to purchase the aircraft exempt from tax. “Mere storage or use of the plane in interstate commerce qualifies the common carrier for the exemption.”

History

AUTHORITY: section 144.270, RSMo 2016, and section 144.030, RSMo Supp. 2025. Original rule filed Jan. 24, 2001, effective Aug. 30, 2001. Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Amended: Filed Aug. 14, 2007, effective Feb. 29, 2008. Amended: Filed Aug. 28, 2025, effective Feb. 28, 2026. Original authority: 144.030, RSMo 1939, amended 1941, 1943, 1945, 1949, 1961, 1965, 1967, 1969, 1977, 1979, 1980, 1982, 1983, 1985, 1986, 1988, 1989, 1991, 1994, 1995, 1996, 1997, 1998, 1999, 2003, 2004, 2005, 2007, 2008, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2018, 2022, and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

12 CSR 10-110.400 Newspapers and Other Publications {#sec-12-csr-10-110.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.400}

PURPOSE: This rule explains the application of sales and use tax law to the publication and sale of newspapers and other publications. Additionally, section 144.030, RSMo, exempts from taxation newsprint, ink, computers, photosensitive paper and film, toner, printing plates, and other machinery, equipment, replacement parts, and supplies used in producing newspapers published for dissemination of news to the general public. This

rule explains what elements must be met in order to qualify for this exemption. The sale of publications that are not in tangible form is not subject to tax and is not addressed in this rule.

(1) In general, newspapers, magazines, newsletters, periodicals, trade journals, books and other publications are tangible personal property and their sale is subject to tax to the same extent as any other personal property. Sellers of printed materials are subject to all rules applicable to other sellers of tangible personal property, except as otherwise specifically provided in this rule. Machinery, equipment, replacement parts, and supplies used to produce newspapers for dissemination of news to the general public are exempt from tax. Publishers of other printed materials are not included within the same exemption as newspapers that disseminate news to the general public but may qualify for exemptions applicable to manufacturers to the same extent as any other manufacturer.

(2) Definition of Terms.

(A) Equipment—devices that have a degree of permanence to the business, contribute to multiple processing cycles over time and generally constitute fixed assets, other than land and buildings, that are capitalized and depreciated for purposes of business and accounting practices.

(B) Machinery—combinations of parts that work together as a functioning unit, even if they are subordinate elements of more complex machinery. Machinery may be simple or complex, but does not include the replacement of an individual

part, even if that part becomes an element of a functioning machine.

(C) Newspapers published for the dissemination of news to the general public—publications that are published at stated short intervals, usually daily or weekly, and contain news of current events available for distribution to anyone; that do not, when successive issues are put together, constitute a book; and that are generally in sheet form.

(D) Parts—articles of tangible personal property that are components of machinery or equipment, which can be separated from the machinery or equipment and replaced.

Like machinery and equipment, parts must have a degree of permanence and durability. Items that are consumed in a single processing and benefit only one (1) production cycle are materials and supplies, not parts. Items such as nuts, bolts, hoses, hose clamps, chains, belts, gears, drill bits, grinding heads, blades, and bearings, would ordinarily be considered parts. Substances such as fuels and coolants that are added to machinery and equipment for operation are not parts.

Substances such as lubricants, paint and adhesives that adhere to the surface of machinery and equipment but are not distinct articles of tangible personal property are not parts; these items would be considered materials or supplies within the meaning of the exemptions.

(E) Producing—for purposes of this rule only, the process of creating a newspaper.

(F) Publisher—a person who prepares and issues a publication for public distribution.

(G) Publication—any written material, such as newspapers, magazines, newsletters, periodicals, trade journals, and books, offered for sale or distribution.

(H) Supplies—for purposes of this rule only, tangible personal property consumed in the production of a newspaper. The term supplies does not include fuel.

(3) Basic Application of Exemption.

(A) If the retail purchaser buys a publication directly from the publisher or the publisher bears the risk of loss for noncollection, the publisher is the seller and must collect and remit the tax. If the retail purchaser buys the publication from someone other than the publisher and that person bears the risk of loss for noncollection, then that person is the seller and must collect and remit the tax.

(B) If the purchaser receives the publication in Missouri, the seller must collect and remit sales tax, unless the order for the publication is approved outside Missouri and delivered to the purchaser from outside Missouri by common or contract carrier, in which case the seller must collect and remit use tax.

(C) The sale of a publication subject to state sales tax is subject to the local sales tax at the rate in effect at the seller’s place of business in Missouri. A sale of a publication subject to state use tax is subject to the local use tax in effect where the publication is first delivered in Missouri.

(D) The sale by the publisher of a publication through a vending machine is subject to tax based on one hundred thirtyfive percent (135%) of the average price at which the publisher sells the publication to vendors or on actual gross receipts. The sale of a publication through a vending machine is subject to local sales tax at the rate in effect where the vending machine is located.

(E) If delivery or if the charge for delivery or similar service is not separately stated, the entire sale price is subject to tax.

(F) A publisher may set the individual copy price to a round amount including tax, provided that the publication states somewhere that the amount of the price includes tax. Any other seller must collect and remit tax on the sale price of the publication.

(G) A publisher may purchase an insert to its publication exempt from tax as an ingredient or component part. See 12 CSR 10-110.200.

(4) Examples.

(A) An individual in Missouri subscribes to the local newspaper by contracting with the publisher. The publisher contracts with a third party to deliver the newspaper and collect the entire cost of the newspaper, including delivery charges, which are not separately stated. The publisher bears the risk that the individual will not pay for the subscription.

The publisher is the seller and must collect and remit sales tax, including local sales tax at the rate in effect at the publisher’s place of business. Tax is imposed on the entire sale price, including delivery charges, because the delivery charges are not separately stated. The publisher may set the price at a round amount, including tax, as long as the publication states somewhere that the price includes tax.

(B) An individual in Missouri subscribes to an out-of-state newspaper by contracting with a Missouri newspaper carrier, which is the only way to obtain this newspaper in Missouri.

The carrier bears the risk that the individual will not pay for the subscription. The carrier is the seller and must collect and remit sales tax, including local sales tax at the rate in effect at the carrier’s place of business. Tax is imposed on the entire price of only the newspaper, excluding delivery charges, because delivery charges are not subject to tax.

(C) An individual in Missouri subscribes to an out-of-state newspaper by contracting with the out-of-state publisher that has nexus with Missouri. The publisher delivers the newspaper by mail, which is the only way to obtain the newspaper in Missouri. The publisher does not have a place of business in Missouri. The publisher is the seller and must collect and remit use tax, including local use tax at the rate in effect where the newspaper is delivered. Tax is imposed on the sale price of only the newspaper, excluding separately stated postage and handling charges.

(D) A retailer sells local and national publications. The retailer is the seller of the publications and must collect and remit sales tax, including local sales tax at the rate in effect at the retailer’s place of business. The retailer may claim a resale exemption when purchasing the publications from the publishers.

(E) A publisher prints a daily newspaper and occasionally prints extra copies for free distribution to nonsubscribers. The publisher should not remit tax on the copies distributed for free and the supplies used to produce the newspaper are exempt.

(F) Publisher A prints and sells a newspaper to publisher B. Publisher B distributes the newspaper for free. Publisher A should collect and remit tax on its sales to publisher B.

(G) Same facts as (4)(F), except publisher B sells the newspaper.

Publisher B must collect and remit tax on its sale of the newspaper, but may issue a resale exemption certificate and purchase the newspaper from publisher A exempt from tax.

(H) A publisher produces an advertising circular that it distributes for free. The publisher should pay tax on the machinery, equipment and supplies used to produce the circular.

(I) Same facts as (4)(H), except the publisher sells the circular.

The publisher must collect and remit tax on its sales of the circular. The machinery and equipment used to produce, and the ingredients or component parts incorporated in, the circular are exempt from tax when purchased because the publisher is manufacturing a product sold at retail.

rule filed Dec. 1, 2004, effective July 30, 2005. Amended: Filed Aug. 8, 2023, effective March 30, 2024. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

Hearst Corp. v. Director of Revenue, 779 S.W.2d 557 (Mo. banc 1990). Newpapers are tangible personal property subject to sales tax.

Daily Record Co. v. Ray James, 629 S.W.2d 348 (Mo. banc 1982).

Newspaper inserts are component parts of the newspaper and exempt from tax on the purchase.

In James v. Mars Enders, Inc., 629 S.W.2d 331 (Mo. banc 1982), the Supreme Court extended the holding in Daily Record to supplements printed by a third party printer and delivered to a newspaper publisher for distribution with the newspaper.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

12 CSR 10-110.404 Cafeterias and Dining Halls {#sec-12-csr-10-110.404 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.404}

PURPOSE: This rule interprets the sales tax law as it applies to cafeterias and dining halls.

(1) Tax exempt schools, charitable institutions, colleges and universities operating lunch rooms, cafeterias, dining rooms or any other facilities where meals are provided to students are not in the business of selling regularly to the public and are not subject to the sales tax. This exemption does not apply to food, drink and snacks sold at student unions and the like, where the items are equally available to and sold to the public.

regulation 040-14 was last filed Dec. 31, 1975, effective Jan. 10, 1976.

Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. This rule was previously filed as 12 CSR 10-3.404. Moved to 12 CSR 10-110.404, effective Aug. 31, 2023. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

History

AUTHORITY: section 144.270, RSMo 1994. This rule was previously filed as rule nos. 5 and 10 Jan. 22, 1973, effective Feb. 1, 1973. S.T.

12 CSR 10-110.600 Electrical Energy, as Defined in Section 144.030, RSMo {#sec-12-csr-10-110.600 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.600}

PURPOSE: Section 144.030.2(12), RSMo exempts from tax certain purchases of electrical energy used in primary or secondary manufacturing, processing, compounding, mining or producing a product, or processing of raw materials that contain recovered materials. Section 144.030.2(31), RSMo exempts from tax electricity used in connection with the manufacturing of cellular glass products or in any material recovery processing plant.

Section 144.030.2(33), RSMo exempts from tax utilities used or consumed directly or exclusively in the research and development of agricultural biotechnology products and plant genomics products and prescription pharmaceuticals consumed by humans or animals. This rule explains when these exemptions apply and how a taxpayer may claim the exemptions at the time of purchase of the electrical energy.

(1) In general, electrical energy used in facilities owned or leased by the taxpayer in the actual primary manufacturing, processing, compounding, mining or producing of a product is exempt from tax if the cost of the electrical energy used exceeds ten percent (10%) of the total cost of the primary manufacturing, processing, compounding, mining or producing, exclusive of the cost of electrical energy so used.

Electrical energy used in facilities owned or leased by the taxpayer in the actual secondary manufacturing, processing, compounding, mining or producing of a product is exempt from tax if the cost of the electrical energy used exceeds ten percent (10%) of the total cost of the secondary manufacturing, processing, compounding, mining or producing, exclusive of the cost of electrical energy so used. Electrical energy used in a material recovery processing plant owned or leased by the taxpayer or in manufacturing cellular glass products is exempt from tax. Utilities used or consumed directly or exclusively in the research and development of agricultural biotechnology products and plant genomics products and prescription pharmaceuticals consumed by humans or animals are exempt from tax. Electrical energy used in facilities owned or leased by the taxpayer in processing raw materials that contain at least twenty-five percent (25%) recovered materials is exempt from tax.

(2) Definition of Terms.

(A) Compounding—Producing a product by combining two (2) or more ingredients or parts.

(B) Fabrication—See 12 CSR 10-111.010.

(D) Material recovery processing plant—See 12 CSR 10-111.060.

(E) Mining—See 12 CSR 10-111.010.

(F) Primary processing—Manufacturing, processing, compounding, mining or producing that results in the first marketable product.

(G) Producing—See 12 CSR 10-111.010.

(H) Product—An item with a new identity, use and market value produced by the taxpayer’s efforts which is intended at the time of the production activity to be sold ultimately for final use or consumption. A product may be tangible personal property or a service, if the property or service is subject to state or local sales or use taxes, or any tax that is substantially equivalent thereto, in this state or any other state.

(I) Production activity—Manufacturing, processing, compounding, mining, producing or fabricating.

(J) Raw material—any ingredient or component that becomes

part of, or is made into a finished product.

(K) Recovered materials—See 12 CSR 10-111.060. In order for an item to be a recovered material, a facility must recover it from the solid waste stream. An item used in processing for its original intended purpose is not a recovered material.

(L) Secondary processing—Further processing or fabricating of a marketable product that results in another marketable product.

(M) Solid waste—See 12 CSR 10-111.060.

(N) Total cost—All allocated costs incurred in producing the product, including all elements of production cost in accordance with generally accepted accounting principles.

(3) Basic Application of Exemption.

(A) A taxpayer may claim this exemption at the time of purchase of the electrical energy by presenting the seller with a direct pay certificate issued by the department. In order to obtain a direct pay certificate, the taxpayer must submit an electrical energy direct pay authorization application. The application must demonstrate, by the use of the previous calendar year’s data, a probable entitlement to the electrical energy exemption for the coming year. The taxpayer must file and remit the appropriate tax on energy purchases that do not qualify for this exemption on its sales tax return.

(B) Every transformation of materials does not constitute a separate production activity. In order to be a separate production activity, the activity must create a new marketable product. If a taxpayer produces only one (1) marketable product, there can only be primary production activity. All production costs must be included in calculating the total cost of production. Secondary production activity can only exist when an already marketable product produced by the taxpayer undergoes subsequent production activity that produces a second marketable product. When there is secondary production activity, the production costs attributable to the primary production activity are not included in the total cost of production of the secondary production activity.

(4) Examples.

(A) A manufacturing firm produces extruded sheet plastic.

The automated production line is a closed system connected together by use of vacuum feed-pipe. When an order is received, the computer controlled production line first blends the necessary raw materials. After blending, the mix is conveyed through vacuum pipe to be dried, and then to the extruder, where the mix is heated to meltdown and rolled into sheets by the extruder rollers. These sheets are the end product. The cost of raw materials is 95% of the total cost of producing the end product. The cost of electrical energy is 99% of the cost of drying and extruding the blended raw materials.

The plastic sheet is the only marketable product produced by this continuous, indivisible operation. Because the cost of electricity does not exceed 10% of the total cost of producing the product, the purchase of the electricity does not qualify for the exemption.

(B ) A manufacturer produces glass bottles to be used as packaging. The manufacturer combines ra w materials, including recycled glass obtained from recyclers, which is then melted under extreme heat. The molten glass is then formed into bottles, which are the manufacturer’s only product.

The electrical energy costs exceed 10% of the total cost of production; therefore the manufacturer qualifies for the exemption. If the manufacturer’s raw materials include at least 25% recovered material, the manufacturer may avoid the time and cost involved in the calculations necessary to support the exemption under the 10% threshold and claim the exemption based on its use of recovered materials.

(C) A business contracts with manufacturers of frozen food products to receive fresh or partially frozen food products, reduce the temperature to zero degrees or below, and release the fully frozen food product back to the manufacturer for distribution. The frozen food products that the business produces have a new and different identity from the fresh or partially frozen products that it receives. Frozen foods have a longer shelf life and a broader distribution system than refrigerated foods. The business qualifies for the exemption if the electricity used in the freezing process exceeds 10% of the cost of producing the fully frozen food products from the fresh or partially frozen food products. The business does not have to include the cost of its customer’s production of the fresh or partially frozen products because the fresh or partially frozen food is a separate marketable product from the frozen food.

(D) A frozen food manufacturer uses $100,000 of electricity in manufacturing its products. The manufacturer also uses $150,000 of electricity in its on-premises, refrigerated warehouse to maintain its products at the necessary temperature prior to shipping. Total cost of producing the products, excluding electricity, is $2,000,000. The combined electricity cost of $250,000 exceeds 10% of the $2,000,000 cost of production. The manufacturer qualifies for the exemption because processing includes any treatment by the producer at the production facility that is necessary to maintain the product.

(E) A paper manufacturer uses recycled paper in its primary processing of producing rolls of newsprint. The newsprint includes 50% recovered paper, qualifying the manufacturer for the electrical energy exemption from state and local taxes. The newsprint is subsequently cut into sheets during secondary processing for sale to a book printer. The cost of electricity used during the secondary processing does not exceed 10% of the total cost of producing the cut sheets. However, the electrical energy used to produce the final product is also exempt because the secondary process uses at least 25% recovered materials.

Filed Aug. 14, 2007, effective Feb. 29, 2008.

Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

Mid America Dairymen, Inc. v. Director of Revenue, 924 S.W.2d 280 (Mo. banc 1996). Processing consists of the alteration or physical change of an object or material that produces an article with a use, identity and market value different from the use, identity and market value of the original. The primary product need not actually be marketed, as long as it is marketable. It is incumbent on the taxpayer to prove the existence of a market.

If there is not a market for all of the output, the taxpayer may not claim secondary processing exists for the portion of the output for which there is no market. When a taxpayer produces only one marketable product, there can only be primary processing. Secondary processing exists only when there is a second marketable product that results from further processing of an already marketable product. Assuming production stages can properly be split into primary and secondary, a taxpayer may allocate its total production costs accordingly.

Hudson Foods, Inc. v. Director of Revenue, 924 S.W.2d 277 (Mo. banc 1996). The taxpayer received live poultry. After the poultry was killed and dressed it was chilled (temperature reduced to 40°), crusted (temperature reduced to 28°) or frozen solid. The court held that chilling, crusting and freezing were all processing. The taxpayer did not merely maintain a temperature, but actually reduced the temperature to decrease spoilage and extend shelf life.

McKinley Iron v. Director of Revenue, 888 S.W.2d 705 (Mo. banc 1994). The taxpayer operated a scrap metal processing plant that processed raw scrap metal into densified scrap metal.

Approximately 10-20% of the raw scrap metal was marketable after the initial processing. The remainder was processed further before sale. The court found that densified scrap metal was the only product produced by the taxpayer. Even though the initial processing enhanced the value and marketability of the scrap metal, it was not a separate process. The court also held that “total cost of production” is all-inclusive and the cost of materials must be included. [Note: In 1998, the exemption was expanded to include a material recovery processing plant that uses more than 25% recovered materials.]

Wetterau, Inc. v. Director of Revenue, 843 S.W.2d 365 (Mo. banc 1992). The taxpayer stored and maintained frozen and refrigerated foods as a business. The court held maintaining food in a frozen state is not processing.

Union Electric Co. v. Goldberg, 578 S.W.2d 921 (Mo. banc 1979).

The taxpayer mined and processed ore. The total cost of electricity used in the combined operations did not exceed 10% of the total cost of production. However, the total cost of electricity used in the processing did exceed 10% of the total cost of the processing. The court held that the taxpayer was engaged in primary mining and secondary processing, and was entitled to the exemption for the electricity used in the processing.

Bridgeton Refrigerated Warehouse v. Director of Revenue (AHC 1998). The taxpayer contracted with manufacturers of frozen food products to receive the products, reduce the temperature to zero degrees or below, and releases the product back to the manufacturer for distribution. The Commission held that freezing the food constituted secondary processing.

NF Properties L.P. v. Director of Revenue (AHC 1997). The taxpayer leased a refrigerated warehouse to a meat distributor.

The distributor processed the meat into frozen meat patties. The Commission held that the refrigeration provided by the taxpayer to the distributor was not a marketable product and the taxpayer was not entitled to the exemption.

Hazelwood Farms Bakeries, Inc. v. Director of Revenue (AHC 1994). The taxpayer was a commercial baker. Typically, the taxpayer mixed the ingredients of products and froze the mixture.

The taxpayer would ship the products to its customers, which baked and sold them. The Commission found that the products were marketable before freezing and that the frozen product had a use, identity and market value different from the unfrozen products. Therefore, the taxpayer was entitled to the exemption for electricity used in the secondary process of freezing the products, which exceeded 10% of the total cost of the freezing process.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed July 25, 2001, effective Feb. 28, 2002. Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Amended:

12 CSR 10-110.601 Electrical, Other Energy, Chemicals, Machinery, Equipment, Materials, and Water as Defined in {#sec-12-csr-10-110.601 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.601}

Section 144.054, RSMo, Exempt From Sales Tax When Used in Manufacturing

PURPOSE: Section 144.054, RSMo, exempts from state and local sales and use tax certain equipment, materials, goods, machinery, electricity, gas (natural, artificial, or propane), water, coal, and energy sources used or consumed in manufacturing, processing, compounding, mining, or producing any product or used in research and development related to manufacturing, processing, compounding, mining, or producing any product or in the processing of recovered materials. This rule explains when this exemption applies and how a taxpayer may claim the exemption at the time of purchase.

(1) In general, purchases of electricity, gas (natural, artificial, or propane), water, coal, energy sources, chemicals, machinery, equipment, and materials used or consumed in manufacturing, processing, compounding, mining, or producing any product, or used or consumed in the processing of recovered materials, or used in research and development related to manufacturing, processing, compounding, mining, or producing any product are exempt from state and local sales and use tax.

(2) Definition of Terms.

(A) Compounding—Producing a product by combining two (2) or more ingredients or parts.

(B) Energy source—Those resources, such as petroleum, coal, gas, wind, steam, nuclear fuel and sunlight, from which energy is produced.

(D) Manufacturing—See 12 CSR 10-111.010.

(E) Material recovery processing plant—See 12 CSR 10-111.060.

(F) Mining—See 12 CSR 10-111.010.

(G) Producing—See 12 CSR 10-111.010.

(H) Recovered materials—See 12 CSR 10-111.060.

(3) Basic Application of Exemption.

(A) A taxpayer may claim the exemption for state and local sales and use tax at the time of purchase.

(B) Purchases reported to the department under direct pay and Electrical Energy Direct Pay (EEDP) are exempt from the application of subsection (3)(A) of this rule.

(C) The energy source and water that is subject to this exemption is not required to be directly used in the process for which the exemption is being claimed. There is also no requirement that the energy source and water comprise ten percent (10%) of the cost of a primary or secondary production process in order to qualify for this exemption. There is also no requirement that twenty-five percent (25%) of the raw materials be recycled in order for the purchaser to claim this exemption.

(4) Method of Collection and Apportionment (A) Energy and water vendors are responsible for remitting tax to the department. Purchasers are responsible for informing energy vendors on the Form 149 (Sales/Use Tax Exemption Certificate) of the percentage of energy used for activities exempt under section 144.054, RSMo. The purchaser should use a square footage analysis to calculate the percentage of energy used. The exemption will be applied as follows:

Purchaser’s Calculated Exempt Percentage Percentage Exempt 76–100 100 51–75 75 26–50 50 1–25 25 0 0 (5) Exempt Examples.

(A) A manufacturer purchases propane to operate forklifts that move works-in-process between production steps. The fuel is exempt from state and local sales and use tax.

(B) A manufacturer uses coal to fuel boilers that generate steam used to manufacture a product. The purchase of the coal is exempt from state and local sales and use tax because it is used or consumed in producing a product.

(C) A manufacturer purchases compressed gas used for weld ing a pr oduct. The purchase of the compressed gas is exempt from state and local sales and use tax because it is used or consumed in manufacturing a product.

(D) A manufacturer uses water to cool a product during the manufacturing process. The manufacturer’s purchase of water is exempt from state and local sales and use tax.

(E) A manufacturer preserves its final product in a warehouse located at the production facility while awaiting shipment. The purchase of energy to maintain the desired environment is exempt from state and local sales and use tax.

(F) A construction company that has been deemed a man ufactur er purchases fuel to be used in a concrete ready-mix truck. The fuel is subject to motor fuel tax; however, if a refund claim is made, the refund is exempt from state and local sales and use tax because the fuel is used in producing a product.

(G) A manufacturer builds manufactured homes in its factory.

The manufacturer’s purchases of energy sources, chemicals, machinery, equipment, and materials used or consumed in the manufacturing process are exempt from state and local sales and use tax.

(H) A company uses energy to test manufacturing equipment as it is installed. This energy is exempt from state and local sales and use tax.

(I) A telecommunication company produces a wireless or landline-based telephone call. The energy sources, chemicals, machinery, equipment, and materials used by the telecommu nication company to manufacture the phone call are exempt from state and local sales and use tax.

(J) A factory purchases safety equipment such as earplugs and goggles for use by the employees on the manufacturing floor.

These items used by the employees who are manufacturing a product are exempt from state and local sales and use tax.

(K) A toy manufacturer purchases sandpaper to use in the manufacturing of wooden rocking horses. The purchase of sandpaper is exempt from state and local sales and use tax be c ause it is a material that is consumed in producing a product.

(L) A photographer purchases chemicals and other supplies used to develop photographs. These chemicals and supplies are not intended to remain with the photograph. These purchases are exempt from state and local sales and use tax because they are consumed in the developing process.

(6) Taxable Examples.

(A) A restaurant preparing food for immediate consumption is not exempt as a manufacturer. Therefore, all state and local taxes apply.

(B) A wireless company operates a customer support call cen ter to assist it s customers with questions. The call center is not exempt. Therefore, all state and local taxes apply.

(C) The construction of a road, building, or other fixed struc tur e is not exempt. Therefore, all state and local taxes apply.

(D) An auto repair facility repairs vehicles by installing or replacing parts. This is not exempt because they are not creating a new or distinct item. Therefore, all state and local taxes apply.

(E) A cable television provider’s purchase of energy is not exempt if the energy is used solely to provide cable television service. Therefore, all state and local taxes apply.

History

AUTHORITY: section 144.270, RSMo 2016, and section 144.054, RSMo Supp. 2025. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Original rule filed Aug. 14, 2007, effective March 30, 2008. Amended: Filed Oct. 9, 2025, effective May 30, 2026. Original authority: 144.054, RSMo 2007, amended 2009, 2015, 2018, 2021, 2024, and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

12 CSR 10-110.621 Application of Sales Tax Exemption as Defined in Section 144.054, RSMo {#sec-12-csr-10-110.621 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.621}

(Rescinded April 30, 2026)

History

AUTHORITY: section 144.270, RSMo 2000, and section 144.054, RSMo Supp. 2007. Emergency rule filed Oct. 10, 2007, effective Oct. 20, 2007, expired April 16, 2008. Original rule filed Oct. 10, 2007, effective April 30, 2008. Rescinded: Filed Oct. 9, 2025, effective April 30, 2026.

12 CSR 10-110.846 Taxability of Sales Made at Fund-Raising Events Conducted by Clubs and Organizations Not Otherwise Exempt From Sales Taxation {#sec-12-csr-10-110.846 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.846}

(Rescinded February 28, 2026)

Rescinded: Filed Aug. 28, 2025, effective Feb. 28, 2026.

History

AUTHORITY: section 144.270, RSMo 1994. This rule originally filed as 12 CSR 10-3.846. Original rule filed Dec. 15, 1987, effective April 28, 1988. Moved to 12 CSR 10-110.846, effective Aug. 31, 2023.

12 CSR 10-110.858 Purchases by State Senators or Representatives {#sec-12-csr-10-110.858 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.858}

PURPOSE: This rule clarifies the treatment of the tax liability on purchases by a Missouri state senator or representative.

(1) In general, purchases of tangible personal property made by or on behalf of a Missouri state senator or representative are exempt from all taxes imposed by Chapters 66, 67, 92, 94, and 144, RSMo and Article IV, sections 43A and 47A of the Missouri Constitution providing these purchases are made from funds in the senator’s or representative’s state expense account.

(2) Basic Application of Rule. Exempt items include:

(A) Purchases of meals, lodging, and other travel expenses itemized on the state senator’s or state representative’s monthly expenses account (form C-12); and (B) Purchases or rental of office furniture, supplies, and equipment which are itemized to the house or senate accounting office for reimbursement.

(3) Purchases and personal living expenses reimbursed by the per diem for state senators and state representatives authorized under section 21.145, RSMo are not exempt from state sales and use taxes.

(4) A copy of a valid letter of exemption must be furnished to the seller when purchasing or leasing property. The letter of exemption represents evidence of a claim of exemption by the purchaser to the seller that the sale was to a state senator or state representative and purchased from funds in his/her state expense account. Letters of exemption, issued by the Department of Revenue, are valid for the state senator’s or representative’s term of office.

History

AUTHORITY: section 144.270, RSMo 2016. This rule originally filed as 12 CSR 10-3.858. Original rule filed Jan. 26, 1989, effective May 11, 1989. Moved to 12 CSR 10-110.858 and amended: Filed Oct. 2, 2018, effective April 30, 2019. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961,

PURPOSE: Sections 144.030.2, 144.045.1, 144.047, and 144.063, RSMo, exempt certain farm machinery, equipment, repair parts, supplies, lubricants, and fuels from taxation. This rule explains which items qualify for these exemptions.

(1) In general, the purchase of farm machinery, equipment, and repair and replacement parts used for producing crops, raising and feeding livestock, fish, or poultry, or producing milk for ultimate sale at retail, and motor fuel, supplies, and lubricants used exclusively for agricultural purposes is exempt from tax.

(2) Definition of Terms.

(A) Equipment—Devices that have a degree of permanence to the business, contribute to multiple processing cycles over time, and generally constitute fixed assets, other than land and buildings, that are capitalized and depreciated for purposes of business and accounting practices.

(B) Farm machinery, equipment, and parts—Machinery, equipment, and parts used in any agricultural production process.

(C) Machinery—Combinations of parts that work together as a functioning unit, even if they are subordinate elements of more complex machinery. Machinery may be simple or complex, but does not include the replacement of an individual

part, even if that part becomes an element of a functioning machine.

(D) Motor fuel—Gasoline, diesel fuel, kerosene, and blended fuel, as defined in section 142.800, RSMo.

(E) Repair and replacement parts—Articles of tangible personal property that are components of machinery and equipment, which can be separated from the machinery or equipment and replaced. Like machinery and equipment, parts must have a degree of permanence and durability. Included in the repair and replacement part category are batteries, tires, fan belts, mufflers, spark plugs, oil filters, plow points, standard type motors, and cutting parts. Substances such as coolants that are added to machinery and equipment for operation are not parts. Substances such as paints or adhesives that adhere to the surface of machinery and equipment, but are not distinct articles of tangible personal property, are not parts.

(F) For the purposes of this rule, supplies shall mean— Tangible personal property consumed in producing crops or milk, or raising and feeding livestock, fish, poultry, pheasants, chukar, or quail for ultimate sale at retail.

(3) Basic Application of Exemption.

(A) To qualify for exemption pursuant to section 144.030.2, RSMo, for new or used farm tractors and such other new or used farm machinery and equipment, items purchased must be— 1. Used for any agricultural purposes.

(B) To qualify for exemption of supplies, lubricants, and motor fuel, items purchased must be— 1. Used exclusively for agricultural purposes.

(C) Pursuant to section 144.045.1, RSMo, farm machinery or equipment that would otherwise qualify as exempt farm machinery and equipment will not lose its exempt status merely because the machinery or equipment is attached to a vehicle or real property. Such equipment includes, but is not limited to, a grinder mixer mounted on a vehicle or special livestock flooring. When exempt farm machinery or equipment attached to a motor vehicle is sold with the motor vehicle, the

part of the total sales price attributable to the farm machinery or equipment is exempt from tax if the farm machinery or equipment is separately invoiced. If not separately invoiced, the total sales price is subject to tax as a motor vehicle.

(D) Pursuant to section 144.047, RSMo, farm machinery includes aircraft used solely for aerial application of agricultural chemicals.

(E) Pursuant to section 144.030.2(34), RSMo, all sales of grain bins for storage of grain for resale are exempt; pursuant to this section, parts purchased separately for these bins are not exempt. However, grain bins, including all parts, that are used in production of a farm product and qualify as farm machinery and equipment are exempt pursuant to section 144.030.2, (F) Pursuant to section 144.063, RSMo, fencing and motor fuel used for agricultural purposes are exempt.

(G) The fact that particular items may be considered to be essential or necessary will not automatically entitle them to exemption. The following categories of items are excluded from the meaning of the term farm machinery and farm equipment, including supplies, and are subject to tax:

A motor vehicle and parts for a motor vehicle do not qualify as exempt farm machinery or equipment. A trailer and parts for a trailer generally do not qualify as tax-exempt farm machinery or equipment. The terms motor vehicle and trailer are defined by Chapter 301, RSMo;
Containers and storage devices such as oil and gas storage tanks, pails, buckets, and cans;
Hand tools and hand-operated items such as wheelbarrows, hoes, rakes, pitchforks, shovels, brooms, wrenches, pliers, and grease guns;
Attachments and accessories not essential to the operation of the machinery itself (except when sold as part of the assembled unit), such as cigarette lighters, radios, canopies, air-conditioning units, cabs, deluxe seats, tool or utility boxes, and lubricators;
Equipment used in farm management such as communications and office equipment, repair, service, security, or fire protection equipment; and 6. Building materials and general heating, lighting, and ventilation equipment for nonproduction areas.

(4) Examples.

(A) A farmer takes his tractor to the implement dealer for routine maintenance, which includes changing the oil, filters, and antifreeze. The sale of the oil, filters, and antifreeze are exempt.

(B) A farmer buys a bale spike to be installed on his pickup truck. The bale spike is not subject to tax.

(C) A farm supply store sells commercial rabbitry equipment, such as feeders, nest boxes, and wire hanging cages used for rabbit cages and feeders, to a farmer who raises rabbits in confinement for human consumption. These items are not

rule filed Nov. 18, 1999, effective June 30, 2000. Amended: Filed Oct. 2, 2009, effective May 30, 2010. Amended: Filed Oct. 2, 2025, effective April 30, 2026. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

Charles A. Johnson, Jr. v. Director of Revenue (AHC 1986). A seed cleaner was purchased under a claim of exception to process soybeans. The Commission ruled that although the taxpayer bought the seed cleaner to process his own soybeans, he used the equipment to process other farmers’ seed as well. Processing the seed of others failed to meet the requirement that the equipment be used directly and exclusively for the production of farm products.

Crystal Lake Fisheries v. Director of Revenue (AHC 1989). A nearby creek could flood raceways used to raise rainbow trout. A dike prevents the creek from flooding the raceways. A bulldozer was purchased, which was used to repair and maintain the dike.

The bulldozer is also used to prevent flooding of pasture, hay, and land containing hardwood and softwood trees, all of which are harvested as required. The court found that the bulldozer in question met the three requirements of the exemption statute.

The bulldozer was used exclusively for agricultural purposes, on land owned or leased for the purpose of farming, and directly in producing farm products.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

12 CSR 10-110.910 Livestock {#sec-12-csr-10-110.910 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.910}

PURPOSE: Sections 144.030.2(1), 144.030.2(7), 144.030.2(22), 144.030.2(29) and 144.030.2(32), RSMo, exempt from taxation certain livestock, feed and feed additives, medicines and vaccines, and pesticides and herbicides. This rule explains the requirements that must be met to qualify for these exemptions.

(1) In general, the sale of livestock, animals or poultry used for breeding or feeding purposes, feed for livestock or poultry, feed additives, medications or vaccines administered to livestock or poultry in the production of food or fiber, and sales of pesticides and herbicides used in the production of aquaculture, livestock or poultry are exempt from tax.

(2) Definition of Term.

(A) Aquaculture—The controlled propagation, growth and harvest of aquatic organisms as defined in section 277.024, (B) Commercial breeder—A person, other than a hobby or show breeder, engaged in the business of breeding animals for sale or exchange in return for consideration and who harbors more than three (3) intact females for the primary purpose of breeding animals for sale.

(D) Feed additives—Tangible personal property, including medicine or medical additives added to feed.

(E ) Livestock—Cattle, calves, sheep, swine, ratite birds, including but not limited to ostrich and emu, aquatic products as defined in section 277.024, RSMo, llamas, alpaca, buffalo, bison, elk documented as obtained from a legal source and not from the wild, goats, horses, other equine, honey bees, or rabbits raised in confinement for human consumption.

(F) Poultry—Any domesticated bird, such as adult or baby chickens, turkeys, ducks, guinea fowl or geese.

(3) Basic Application of Exemptions.

(A) Pursuant to section 144.030.2(1), RSMo, sales of feed for livestock or poultry are not subject to tax.

(B) Pursuant to section 144.030.2(22), RSMo, sales of feed additives, medications or vaccines administered to livestock or poultry in the production of food or fiber, and sales of pesticides used in the production of livestock or poultry for food or fiber are not subject to tax. Examples include hormones, digestive aids, antibiotics, hog wormers, tonics, medical preparations.

(C) Pursuant to section 144.030.2(7), RSMo, sales of animals used for breeding or feeding purposes are exempt. Unlike the exemptions for feed and feed additives, which are limited to livestock or poultry, this exemption applies to all animals.

(D) Pursuant to section 144.030.2(22), RSMo, sales of bedding used in the production of livestock or poultry for food or fiber are exempt. Examples of bedding may include, but are not limited to, wood shavings, straw and shredded paper.

(E) Pursuant to section 144.030.2(29), RSMo, livestock sales are exempt when the seller is engaged either in the growing, producing or feeding of such livestock, or in the business of buying and selling, bartering or leasing of such livestock.

(F) Pursuant to section 144.030.2(32), RSMo, sales of pesticides or herbicides used in the production of aquaculture, livestock or poultry are exempt.

(G) Pursuant to section 144.030.2(35), RSMo, sales of feed which are developed for and used in the feeding of pets owned by a commercial breeder when such sales are made to a commercial breeder, licensed pursuant to sections 273.325 to 273.357, RSMo are exempt.

(H) Sales of poultry to persons to produce eggs for the sole

purpose of the person’s consumption are subject to tax.

(I) Sellers of poultry are not subject to tax when— 1. The poultry is sold for breeding purposes; or 2. The poultry is sold to persons who raise the poultry for subsequent sale in dressed or processed form; or 3. The poultry is used to produce eggs to be ultimately sold in processed form or otherwise at retail; or 4. The poultry are purchased for resale.

(J) Sales of animals for the purchaser’s personal enjoyment or use only are subject to tax. Sales of animals for breeding or feeding purposes as part of a business enterprise are not (4) Examples.

(A) An individual purchases feed, nonprescription vaccines, and bedding for show horses. The purchase of the feed is not subject to tax, however the purchase of the vaccines and the bedding is subject to tax.

(B) A farmer purchases feed, vaccines and bedding for use in his swine operation. The purchases of the feed, vaccines and bedding are exempt.

(D) A rabbit farmer raises rabbits, which are sold for processing as food for human consumption. Feed for the rabbits is not subject to tax because rabbits raised in confinement for human consumption are livestock.

(E) A person sells feed to a pet shop which raises and sells rabbits to the general public as pets. The sale of the feed is (F) A fish farmer purchases fish for use in his aquacultural operation. The purchase of the fish is exempt from tax.

(G) An individual decides to construct and stock a lake on his farm for recreational fishing by his family, neighbors and friends. The purchase of the fish is subject to tax.

(H) A breeder of parakeets purchases feed for breeding stock.

The bird feed is subject to tax, because a parakeet breeder does not fit the definition of a commercial breeder.

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed Jan. 3, 2000, effective July 30, 2000. Amended: Filed July 16, 2025, effective Jan. 30, 2026. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961,

12 CSR 10-110.920 Sales of Grains, Seed, Pesticides, Herbicides and Fertilizers {#sec-12-csr-10-110.920 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.920}

PURPOSE: Sections 144.030.2(1), (22), and (32), RSMo, exempt the sales of certain grains, seed, pesticides, limestone, fertilizer and herbicides. This rule explains the requirements that must be met in order to qualify for these exemptions. Section 144.020.1(3), RSMo, taxes certain utility services. This rule explains the application of this taxing provision for sales to agricultural consumers.

(1) In general, the sale of grains to be converted into foodstuffs or seed, and limestone, fertilizer, and herbicides used in connection with the growth or production of crops, livestock or poultry is exempt from tax.

(2) Definition of Terms.

(A) Herbicides—Chemical substances used to destroy or inhibit the growth of plants, especially weeds.

(B) Livestock—See 12 CSR 10-110.900.

Pesticides include adjuvants such as crop oils, surfactants, wetting agents and other pesticide carriers used to improve or enhance the effect of a pesticide and the foam used to mark the application of pesticides and herbicides for the production of crops, livestock or poultry.

(3) Basic Application of Tax.

(A) The sale of grain to be converted into foodstuffs ultimately sold in processed form at retail is exempt.

(B) The sale of seed, lime or fertilizer used in producing crops that will be sold at retail or will be fed to livestock or poultry to be sold ultimately in processed form at retail is exempt.

(C) Sales of pesticides or herbicides used in the production of crops, orchards, aquaculture, livestock or poultry are exempt.

(D) Seed, pesticides and fertilizers sold for nonagricultural use are subject to tax. Sales of fertilizer for lawns, shrubbery and similar ornamental uses and seeds for ornamental purposes are examples of sales subject to tax.

(E) The sale of electricity, water, and gas used for agricultural production is exempt.

(4) Examples.

(A) A pesticide dealer sells pesticides to an orchard to spray on the fruit trees to kill insects. The sale of the pesticide is not (B) An agricultural chemical dealer sells foam marker to a farmer to aid in determining where herbicides have been sprayed on crops. The sale of the foam marker is not subject to tax.

(C) A seed dealer sells seed, pesticides and fertilizer to a construction company for use on a construction site. These sales are subject to tax.

(D) A pesticide dealer sells fly spray for dairy cattle and rat and mouse poison for use in the dairy barn. The sale of the fly spray is not subject to tax. The sale of the rat and mouse poison is not subject to tax because it is used in the production of an agriculture product.

Conagra Poultry Co. v. Director of Revenue, 862 S.W.2d 915 (Mo. banc 1993). Wood shavings were sold by the taxpayer, a turkey processor, to its contractors as part of the contractors’ compensation for raising the turkeys. The contractors expected to use as fertilizer all the litter that the turkey-raising operation would produce in their own farming. The court ruled that at the time the wood shavings passed to the contractors, the wood shavings had no value as fertilizer. The wood shaving become fertilizer upon absorbing nutrients in the turkey droppings. The wood shavings were not exempt as materials used in processing because even though the wood shavings became a component

part of the fertilizer, the contractors used the fertilizer for their own farming and did not sell any products for final use or consumption.

Norwin G. Heimos Greenhouse, Inc. v. Director of Revenue, 724 S.W.2d 505 (Mo. banc 1987). Gas, water and electricity were used for the operation of greenhouses. A refund was requested on tax paid on utilities used in the greenhouse’s production of flower and vegetable plants for sale to retailers. The court found that the greenhouse’s use of utilities constituted agricultural consumption and was not subject to sales tax under Section 144.020.1(3), RSMo. The legislatures distinguished between agricultural and commercial in the property tax statutes and the Employment Security Law. The court concluded that the legislature also intended that agricultural consumers be considered as a class separate from commercial consumers for sales tax purposes.

History

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Jan. 3, 2000, effective July 30, 2000. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-110.950 Letters of Exemption Issued by the Department of Revenue {#sec-12-csr-10-110.950 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.950}

PURPOSE: Chapter 144, RSMo provides that certain organizations are exempt. This rule sets out the steps necessary to obtain a letter of exemption from the department.

(1) In general, the department issues letters of exemption to qualifying exempt entities. Documentation verifying the exempt status of the organization must be filed with the department to obtain a letter of exemption.

(2) Application of the Rule.

(A) The seller is responsible for collecting tax unless the exempt entity provides proof that it is exempt. One form of proof of exemption is a letter of exemption issued by the department.

(B) An organization seeking a letter of exemption certif icate must complete a Missouri Sales/Use Tax—Exemption Application—Form 1746. If the documentation establishes that the entity qualifies as an exempt entity, the department issues a letter of exemption. Once a letter of exemption is issued by the department, it will continue in effect unless there are changes in the structure or operation of the organization caus ing the exemption to be invalid.

A copy of the Articles of Incorporation, Bylaws or both;
A copy of the Section 501 tax exemption letter or ruling issued by the United States Department of Treasury, Internal Revenue Service;
A copy of the tax exemption ruling issued by the assess ing offic ers in each county in which the applicant’s property is or will be located for property tax purposes;
Financial statements of the organization for the previous three (3) years, indicating sources and amount of revenue, and a breakdown of the disbursements, or if just beginning the organization, an estimated budget for one (1) year;
A copy of the not-for-profit certificate, registration or charter issued by the Missouri secretary of state’s office, if registered or incorporated within Missouri; and 6. Any other documents, statements and information as may reasonably be requested by the Department of Revenue.

(D) If any of the documents requested above are not submitted with the application, a letter of explanation must accompany the application. Federal agencies and instrumentalities, Missouri state agencies and Missouri political subdivisions are not required to send supporting documentation. Out-of-state political subdivisions do not qualify.

(E) Foreign diplomatic and consular personnel exempt from Missouri sales by treaty need not obtain a letter of exemption.

The United States Department of State will issue an exemption card for use.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed Aug. 1, 2000, effective Jan. 30, 2001. Amended: Filed Oct. 15, 2002, effective April 30, 2003. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-110.955 Sales and Purchases—Exempt Organizations {#sec-12-csr-10-110.955 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.955}

PURPOSE: Sections 144.030 and 144.062, RSMo, exempt certain types of organizations from tax on certain transactions. This

rule clarifies which transactions are exempt for each type of organization.

(1) In general, some organizations are exempt from tax on all or certain sales and purchases, while other organizations are only exempt on all or certain purchases. Note that this exemption should never be used for employees’ or members’ personal purchases. Rather, it is to be used only for purchases made in the organization’s exempt functions. Further, an exemption from federal income tax does not necessarily exempt an organization from state sales or use tax.

(2) Definition of Terms.

(A) Exempt organization—one (1) of the following types of organizations:

United States government or agency;
Political subdivisions of the state of Missouri;
Missouri Department of Transportation;
Rural water districts;
Religious organizations and institutions;
Charitable organizations and institutions;
Public elementary and secondary schools;
Not-for-profit civic, social, service, or fraternal organizations;
Eleemosynary, penal institutions, and industries of the state of Missouri;
Public and private not-for-profit post-secondary educational institutions;
State of Missouri relief agencies;
Benevolent, scientific, and educational agricultural associations;
Nonprofit summer theater organizations;
Missouri state fair and county agricultural and mechanical societies;
Private not-for-profit elementary and secondary schools; and 16. Interstate compact agencies.

(B) Charitable—to benefit the common good and welfare of the people of a community while relieving government of a financial burden that it would otherwise be required to meet.

(C) Civic—concerned with and related to the citizenry at large and benefiting the community it serves on an unrestricted basis.

(D) Direct sales—sales of tangible personal property or taxable services to an organization for use in its exempt functions and activities or sales by an organization where the net proceeds from such sales are for its charitable purpose.

(E) Direct costs—costs directly incurred in making direct sales. Direct costs do not include indirect costs such as overhead costs.

(F) Educational—to provide with knowledge or training.

(G) Net proceeds—the proceeds remaining from direct sales after deducting direct costs.

(H) Exemption letter—a document issued by the Department of Revenue recognizing an organization’s exemption from sales or purchases or both.

(3) Basic Application of Rule.

(A) All sales of tangible personal property or taxable services to the United States government or its agencies and all sales of tangible personal property used exclusively in the manufacturing, processing, modification, or assembling of products that are sold to the United States government or its agencies are exempt from tax. See 12 CSR 10-112.300.

(B) All sales of tangible personal property or taxable services to the state of Missouri or its political subdivisions are exempt from tax. Except for school districts and the Missouri Department of Transportation, sales by the state of Missouri and its political subdivisions are subject to tax. Sales by school districts and the Missouri Department of Transportation are exempt from tax.

Amounts paid in or for any place of amusement, entertainment or recreation, games or athletic events, including museums, fairs, zoos, and planetariums, owned or operated by a political subdivision are exempt from tax, if all the proceeds benefit the political subdivision. Sales to other states and their political subdivisions are not exempt from tax.

(C) All sales of tangible personal property to Missouri rural water districts are exempt from tax. Sales by such organizations are subject to tax, unless otherwise exempt.

(D) All sales made to or by any religious and charitable organizations and institutions in their religious, charitable or educational functions and activities are exempt from tax.

All sales by the same type of organizations and institutions of other states are exempt from tax providing such organizations and institutions are exempt from a similar tax in their own states.

(E) All direct sales made to or by Missouri not-for-profit civic, social, service or fraternal organizations, including qualified fraternal organizations exempt under Internal Revenue Code

Section 501(c)(8) and (10), solely in their civic or charitable functions and activities are exempt from tax providing the net proceeds are designated for civic or charitable functions and activities. Sales to or by not-for-profit civic, social, service or fraternal organizations of other states are exempt from tax if such organizations are exempt from a similar tax in their own states and otherwise qualify for the exemption in Missouri.

(F) All sales made to or by public elementary and secondary schools in their educational functions and activities are exempt from tax. School districts are also exempt from all sales by or to the district. All sales to or by public elementary and secondary schools of other states are exempt from tax providing such public elementary and secondary schools are exempt from a similar tax in their own states.

(G) All sales to eleemosynary, penal institutions, and industries of the state of Missouri are exempt from tax. Sales by such organizations are subject to tax, unless otherwise exempt.

(H) All sales to public and private not-for-profit postsecondary education institutions are exempt from tax. Sales by such organizations are subject to tax, unless otherwise exempt.

Sales made to or by public and private not-for-profit postsecondary education institutions of other states are exempt from tax if such organizations are exempt from a similar tax in their own states.

(I) All sales to state of Missouri relief agencies are exempt from tax. Sales by such organizations are subject to tax, unless otherwise exempt.

(J) All ticket sales by benevolent, scientific, and educational agricultural associations which are formed to foster, encourage, and promote progress and improvement in the science of agriculture and in the raising and breeding of animals are exempt from tax. All ticket sales by the same type of associations of other states are exempt from tax providing such associations are exempt from a similar tax in their own states.

(K) All ticket sales by nonprofit summer theater organizations exempt from federal income tax under the provisions of the Internal Revenue Code are exempt from tax. All ticket sales by the same type of organizations of other states are exempt from tax providing such organizations are exempt from a similar tax in their own states.

(L) All admission charges and entry fees to the Missouri state fair and any fair conducted by a county agricultural and mechanical society organized and operated pursuant to sections 262.290 to 262.530, RSMo are exempt from tax.

(M) All sales to private not-for-profit elementary and secondary schools are exempt from tax. All sales to private not-for-profit elementary and secondary schools of other states are exempt from tax if such organizations are exempt from a similar tax in their own states.

(N) All sales to an interstate compact agency created pursuant to sections 70.370 to 70.430, RSMo (“Bi-State Development Agency”) and sections 238.010 to 238.100, RSMo (“Kansas City Area Transportation Authority”) in the exercise of the functions and activities of such agencies as provided by compact are exempt from tax.

(O) For exempt entities listed in 144.062, RSMo, all sales of tangible personal property and materials, for the purpose of constructing, repairing, or remodeling facilities that are related to the entity’s exempt functions and activities, to a contractor or other entity purchasing for the exempt entity pursuant to the requirements of section 144.062, RSMo, are exempt from tax. To claim the exemption, the exempt entity must provide a project exemption certificate to all contractors, subcontractors or other entities. Such contractors, subcontractors and other entities must provide a copy of the project exemption certificate to sellers when purchasing tangible personal property or materials for such facilities. See 12 CSR 10-112.010.

(4) Examples.

(A) A nonprofit, fraternal benefit organization supports several local youth activities. An Exemption Letter for the organization was obtained from the Department of Revenue.

The organization operates a lounge that is open to the public. A substantial amount of its revenue is derived from beverage sales in its lounge. All revenue from the lounge is deposited into the organization’s general account and is not separately accounted for. All operational expenses, as well as costs of the local youth activities, are paid from the general account. Although the organization has an Exemption Letter, all beverage sales are subject to tax as the net proceeds from beverage sales are not separately accounted for and used solely for the organization’s civic activity of supporting local youth activities.

(B) A nonprofit fraternal benefit organization will hold a chili feed to buy public park playground equipment. All net proceeds of the direct sales of chili will go to the purchase of the playground equipment. The organization may purchase the chili ingredients and serving equipment exempt from tax and should not charge a sales tax on the chili sales.

(C) A nonprofit charitable organization operates a gift shop located within a nonprofit hospital. The hospital serves both paying and indigent patients. All profits remaining after paying for expenses of the gift shop go to benefit the hospital.

Customers of the gift shop are primarily the hospital’s patients and visitors and not the general public. All sales to and by the organization are exempt from tax because its sales are limited to hospital patients and visitors and all profits are for the charitable purpose of the hospital, to provide medical care for all who may seek its services.

(D) A Missouri contractor purchases materials and supplies in Missouri to perform a construction contract in a neighboring state for a public secondary school. The purchases are exempt providing the public secondary school in the other state is exempt from a similar tax in its own state.

(E) A Missouri contractor purchases materials and supplies in Missouri to perform a construction contract for a Missouri school district. The school district is an exempt entity listed in section 144.062, RSMo. Prior to making its purchases, the contractor obtains an authorized exemption certificate from the district. The contractor’s purchases are exempt from tax because it obtained a copy of the authorized exemption certificate prior to making its purchases.

(F) A Missouri charitable organization is authorized and operates a Missouri fee office for the Department of Revenue.

The profits of the organization are used to purchase clothing and books for indigent families. Purchases of equipment and supplies for operating its fee office are not exempt from tax as these purchases are not for its charitable purpose. Purchases of clothing and books for indigent families are exempt from tax as these purchases are for its charitable purpose.

(G) Several of an exempt organization’s employees go to a restaurant to eat lunch. If the employees are paying the restaurant using cash or a personal credit card, then the employees should not present the organization’s taxexempt letter. In this instance, the employees, rather than the organization, are the legal purchaser. Therefore, the purchase of the meal is subject to sales tax.

(H) Same facts as in subsection (G) above, except that the meal is billed to and paid for directly by the exempt organization.

The charges for this meal are exempt from sales tax, because the exempt organization is the legal purchaser. In this instance, it would be correct for the organization to present a copy of its exempt letter to the restaurant.

(I) A state university books a block of rooms for the university’s teaching staff. The teaching staff will be required to pay for their own rooms. Because the staff members are the legal purchasers of the rooms, the university should not present the hotel with the university’s tax-exempt letter. The hotel should charge the guests sales tax on their bill.

(J) Same facts as subsection (I) above, except that the hotel rooms are billed to and paid for by the university. Because the university is the legal purchaser, the university should present the hotel with its tax-exempt letter. The hotel should not charge the university sales tax on the hotel bill.

Anheuser-Busch Employees’ Credit Union v. Director of Revenue, Case No. 90-001646 RS (A.H.C. 1992). A credit union that was a member-owned and controlled not-for-profit Missouri credit union organized with the purpose to encourage thrift and to educate its members in the prudent and responsible use of money was not exempt from tax as a charitable or educational organization as its activities were not charitable or educational in nature. The credit union was also not exempt as a civic, social or service organization as sales made by or to the credit union were not within its civic or charitable functions and activities.

Benevolent and Protective Order of the Elks v. Director of Revenue, Case No. 92-000138 RV (A.H.C. 1992). The Elks Club was a not-for-profit fraternal organization that received an Exemption Letter from the department of revenue. The Elks operated a bar and sold soft drinks, alcoholic drinks and snack foods to its members and guests and used these revenues to pay for its costs of operation, and to make charitable and civic donations.

The revenues from the bar were not exempt from tax as the profits were not used solely for exempt purposes and the bar was primarily operated for fraternal and social reasons and not solely to raise money for charitable and civic purposes.

Godwin v. Director of Revenue (AHC 1991). A city contracted with taxpayer to manage and operate a golf course owned and maintained by the city. The taxpayer deposited all receipts from fees for use of golf carts and the course and fees for separate driving range and pro shop owned and operated by the taxpayer in a single bank account controlled by the taxpayer. Each week, the taxpayer remitted the contractual percentage of the cart and course fees to the city. The taxpayer retained all the other fees.

The Commission held that all proceeds of the cart and course fees were exempt from tax under section 144.030.2(17), RSMo because the course was owned by the city and operated through a contract with the taxpayer. The Commission also held the fees from the pro shop and driving range were not exempt because these activities were the taxpayer’s own enterprise and all proceeds were retained by the taxpayer.

Zoological Park v. Director of Revenue (AHC 1991). The AHC held that the exemption provided by section 144.020.2(17), RSMo for charges in or for a place of amusement owned or operated by a municipality includes all sales made by the municipal place of amusement, including sales of tangible personal property.

National Organization of Black Law Enforcement Executives, St. Louis Chapter v. Director of Revenue, Case No. RV-85-1244 (A.H.C. 1988). The organization was a Missouri not for profit corporation exempt from federal tax under Internal Revenue Code Section 501(c)(3). Its membership criteria was very general with the only requirement that a member have an interest in the goals of the organization. Its primary purposes were to evaluate legislation, form a network of support for minorities in law enforcement, discourage racism in the field of criminal justice and give financial assistance to the less fortunate. Its purposes were accomplished by monitoring legislation, donating funds to local community service projects and providing a social forum for those interested in the area of law enforcement. All of its activities were open to the public. It derived its funds through dues and fundraisers. The organization qualified as a charitable organization exempt from tax.

St. John’s Regional Medical Health Center v. Director of Revenue, Case No. RS-88-0054 (A.H.C. 1988). Sales made by and to a hospital’s fitness center were exempt as sales to a service organization in its educational function. The fitness center’s various exercise programs and exercise instructors assigned to each member taught and motivated individuals to think and act properly as it relates to healthy lifestyles.

St. Louis Calligraphy Guild v. Director of Revenue, Case No.

RS-86-1517 (A.H.C. 1987). The Guild was a Missouri not for profit chartered organization. Its purposes were to encourage cooperation and free intercourse among calligraphers, calligraphy teachers, calligraphy students, craftsmen, publishers and other in calligraphic activities, to hold competitions and exhibitions, to further the education and appreciation of calligraphy and to promote the improvement, advancement and excellence of calligraphy. Membership in the Guild was open to the public and only limited by one’s interest in calligraphy. The Guild did not qualify to be exempt from tax, as it did not relieve government of the burden of providing a service that would otherwise be a governmental responsibility.

Humanalysis, Inc. v. Director of Revenue, Case No. RS-85-2289 (A.H.C. 1987). Humanalysis was a not for profit corporation qualified as a tax-exempt organization under Internal Revenue Code Section 501(c)(3). Humanalysis was created to conduct research studies for federal, state and local governments with an emphasis on social welfare. Humanalysis is fully compensated on a cost basis by the agency that grants it money for its research. Humanalysis did not qualify as a charitable organization exempt from tax as it did not relieve government of the burden of providing a service which would otherwise be a governmental responsibility because it was paid for by its research service. However, Humanalysis qualified as a not for profit civic organization exempt from tax as its research was conducted on a not for profit basis, was available to the public and served the public as it was conducted with a special emphasis on problems regarding social welfare.

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed July 31, 2001, effective Feb. 28, 2002. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, St. John’s Medical Center, Inc. v. Spradling, 510 S.W.2d 417 (Mo. 1974). Nonprofit hospitals and a county hospital served paying and indigent patients. The hospital operated cafeterias and other nonprofit charitable organizations operated gift shop within each hospital. The cafeterias and gift shops served primarily staff, patients and visitors, as there was no intent to serve the general public. All profits from the cafeterias and gift shops were given to the hospitals. The primary purpose of operating the cafeterias and gift shops was not to make profits, but to use any income from those operations for the operation of the hospitals for benefit of each hospital's patients whether paying or indigent. Sales by the cafeterias and gift shops were exempt from tax.

12 CSR 10-110.990 Tax—Sales of Food {#sec-12-csr-10-110.990 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-110.990}

PURPOSE: Section 144.014, RSMo provides for a reduced tax rate for certain sales of food. This rule explains when the reduced rate applies.

(1) In general, qualified sales of food by a qualified business are taxed at a reduced state rate of 1.225% plus any applicable local tax. All other sales of food are taxed at the full state rate of 4.225% plus any applicable local tax.

(2) Basic Application of Rule.

(A) Sales of food subject to the reduced rate include food that qualifies under the Federal Food Stamp Program. This includes food or food products for home consumption and seeds and plants for use in gardens to produce foods for personal consumption. Alcoholic beverages, tobacco, and hot food items ready for immediate consumption do not qualify for the reduced rate. Food items qualify for the reduced rate, even if the purchaser elects to heat the item on the business’ premises. Bakery items, even if still warm from baking, are qualified foods.

(B) A business whose gross receipts from sales of food and drink prepared by the business for immediate consumption, either on or off premises, are 80% or less of its total gross receipts must remit tax on its qualifying food sales at a reduced state tax rate of 1.225% plus any applicable local tax.

(D) Sales of food at places of amusement, entertainment, or recreation are subject to the full sales tax rate. The only food items subject to the reduced food tax rate would be sales of qualifying food items sold through vending machines and qualifying food items sold in general stores located within campgrounds.

(3) Examples.

(A) A grocery store sells nonfood items and qualifying food items. The store will charge the regular tax rate on the nonfood items and the reduced tax rate on the qualifying food items.

(B) A vending machine company provides two (2) vending machines to a business. One (1) machine is for cold items and one (1) machine keeps items hot. Only the cold items are eligi ble for the r educed tax rate. The hot items are subject to the regular tax rate.

(C) A convenience store sells burritos from its freezer. The convenience store provides a microwave so the purchaser can heat it. The sale of the burrito is taxed at the reduced rate because it is a qualifying food item.

(D) A vending machine company sells popcorn and soup in microwave pouches and containers. These items are sold at room temperature and are heated by the purchaser in a microwave provided in the vending area. These items are eligible for the reduced tax rate.

(E) A movie theater sells popcorn and other prepared snacks. As the popcorn and snacks are prepared for immediate consumption, the sales of the snacks are subject to the full rate even if consumed outside the theater.

(F) A doughnut store sells doughnuts and other prepared snacks. As the doughnuts and snacks are prepared for immedi a te consumption, and the restaurant’s total food sales of items prepared for immediate consumption are more than eighty percent (80%) of the total sales, the sales of the snacks are subject to the full r ate even if consumed outside the store.

(G) An airline provides meals to its travelers on longer flights.

The meals are prepared and frozen prior to the flight. The flight attendants heat the food prior to serving. As the food was prepared for immediate consumption, and not for home consumption, the meals are subject to the full rate.

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed June 29, 2000, effective Jan. 30, 2001. Amended: Filed Oct. 9, 2025, effective May 30, 2026. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961,

Chapter 111 Sales/Use Tax-Machinery and Equipment Exemptions

12 CSR 10-111.010 Manufacturing Machinery and Equipment Exemptions, as Defined {#sec-12-csr-10-111.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.010}

12 CSR 10-111.011 Machinery, Equipment, Materials, and Chemicals Used or {#sec-12-csr-10-111.011 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.011}

12 CSR 10-111.060 Material Recovery Processing Plant Exemption, as Defined in {#sec-12-csr-10-111.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.060}

12 CSR 10-111.061 Exempt Items Used or Consumed in Material Recovery Processing {#sec-12-csr-10-111.061 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.061}

12 CSR 10-111.101 Items Used or Consumed by Commercial Printers, as Defined in Equipment Exemptions {#sec-12-csr-10-111.101 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.101}

12 CSR 10-111.010 Manufacturing Machinery and Equipment Exemptions, as Defined in Section 144.030, RSMo {#sec-12-csr-10-111.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.010}

PURPOSE: Section 144.030.2(4) and (5), RSMo, exempts from taxation certain machinery, equipment, parts, materials and supplies. This rule explains what elements must be met in order to qualify for these exemptions.

(1) In general, the purchase of machinery, equipment, parts, and the materials and supplies solely required for the installation or construction of such machinery, equipment and parts, are exempt from sales tax if they are for replacement or for a new or expanded plant and they are directly used in manufacturing, mining, fabricating or producing a product which is intended to be sold ultimately for final use or consumption.

(2) Definition of Terms.

(A) Establish a new manufacturing plant—The complete and final construction of a facility and all of its component parts.

Construction shall be deemed completed within a reasonable period of time after production begins.

(B) Expand existing manufacturing plant—The purchase of additional machinery, equipment and parts as a result of the physical enlargement of an existing manufacturing, fabricating or mining facility; or the addition of machinery, equipment and parts constituting improvements that result in an actual or potential: i) increase in production volume at the plant, ii) increase in employment at the plant, or iii) increase in the number of types or models of products produced at the plant. This actual or potential increase is measured in relation to the actual or potential production volume, employment or types or models of products produced at the plant before the machinery, equipment and parts were originally put into use at the plant. Documentation which may be provided to establish the requisite intent for potential increase in production include, but are not limited to, the following: capital expenditure authorization requests, production records, production plans, purchase invoices, work authorizations, plant equipment cost savings analysis or reports and asset justification reports.

(C) Fabrication—The process of transforming an item into a higher stage of development. It does not imply or signify manufacturing, but the meaning of the term is limited to cutting, carving, dressing, shaping; advancing an elementary shape to a higher stage of development; reworking and cutting shapes to required length.

(D) Machinery and equipment—Devices that have a degree of permanence to the business, contribute to multiple processing cycles over time and generally constitute fixed assets other than land and buildings for purposes of business and accounting practices.

(E) Manufacturing—i) the alteration or physical change of an object or material to produce an article with a use, identity and value different from the use, identity and value of the original; or ii) a process which changes and adapts something practically unsuitable for any common use into something suitable for common use; or iii) the production of new and different articles, by the use of machinery, labor and skill, in forms suitable for new applications; or iv) a process that makes more than a superficial transformation in quality and adaptability and creates an end product quite different from the original; or v) requires the manipulation of an item in such a way as to create a new and distinct item, with a value and identity completely different from the original. Manufacturing does not include processes that restore articles to their original condition (e.g., cleaning, repairing); processes that maintain a product (e.g., refrigeration); or processes that do not result in a change in the articles being processed (e.g., inspecting, sorting).

(F) Mining—The process of extracting from the earth precious or valuable metals, minerals or ores. This process includes quarrying, but does not include equipment used for water-well drilling or reclamation performed to restore previously mined land to its original state.

(G) Parts—Articles of tangible personal property that are components of machinery or equipment, which can be separated from the machinery or equipment and replaced.

Like machinery and equipment, parts must have a degree of permanence and durability. Items that are consumed in a single processing and benefit only one production cycle are materials and supplies, not parts. Items such as: nuts, bolts, hoses, hose clamps, chains, belts, gears, drill bits, grinding heads, blades, and bearings, would ordinarily be considered as parts. Substances such as fuels and coolants that are added to machinery and equipment for operation are not parts.

Substances such as lubricants, paint and adhesives that adhere to the surface of machinery and equipment but are not distinct articles of tangible personal property, are not parts. These items would be considered as materials and supplies within the meaning of the exemptions.

(H) Producing—Includes the meanings of “manufacturing” and “fabricating,” and is used in connection with the creation of intangibles that are taxable but which are not manufactured or fabricated in the sense those terms are commonly understood, e.g., information organized by computer and then sold on tangible media.

(I) Product which is intended to be sold ultimately for final use or consumption—Tangible personal property, or any service that is subject to state or local sales or use taxes, or any tax that is substantially equivalent thereto, in this state or any other state, which is intended at the time of manufacturing, mining or fabrication to be sold at retail. Property or services cannot be considered to be “subject to” the tax of a state unless the property or services are actually to be sold at retail in that state or delivered to a retail customer in that state.

(J) Used directly in manufacturing, mining, fabricating or producing a product—substantially used in, essential to, and comprising an integral part of the manufacturing, mining, fabricating or producing process. Under the integrated plant theory, adopted by Missouri, it is not sufficient to meet only one (1) of these requirements. For example, items used in material storage or handling before the manufacturing process begins may be essential to the process, but generally are not an integral part of the manufacturing process and are therefore not used directly in manufacturing. Similarly, items used for storing the finished product are generally not an integral

part of the manufacturing process. The factors that determine whether an article is directly used are: whether the item is essential or necessary to the process; how close, causally, is the item to the production process; and whether the item operates harmoniously with other machinery to make an integrated and synchronized system. The direct use requirement is not limited to those items of machinery, equipment and parts that produce a direct physical change in the composition of the raw materials or work in process. As long as there is a continuous progression from raw materials to finished product and there are no extended interruptions in the manufacturing process, the integrated and synchronized system begins when raw materials enter the production process and ends when the product is finished.

(3) Basic Application of Exemption.

(A) Direct use—In determining whether machinery, equipment and parts are used directly in producing a product, Missouri has adopted the integrated plant theory that permits a broad construction of the machinery, equipment and parts exemptions. The language “used directly in” exempts purchases of articles that are both essential and comprise an integral part of the manufacturing process. It is not sufficient to meet only one of these requirements. For example, items used in material storage or handling before the manufacturing process begins may be essential to the process, but are not an integral part of the manufacturing process and are therefore not used “directly” in manufacturing. The factors which determine whether an article is directly used are: whether the item is essential or necessary to the process; how close, causally, is the item to the production process; and whether the item operates harmoniously with other machinery to make an integrated and synchronized system. The direct use requirement is not limited to those items of machinery, equipment and parts that produce a direct physical change in the composition of the raw materials or work in process.

(B) New or expanded plant exemption—Pursuant to section 144.030.2(5), RSMo, purchases of machinery, equipment and parts to establish a new or to expand an existing manufacturing, mining or fabricating plant in Missouri which are used directly in manufacturing, mining or fabricating a product that is intended to be sold ultimately for final use or consumption are not subject to tax. Purchases of the materials and supplies solely required for the installation or construction of such machinery and equipment are not subject to tax.

(C) Purchase by other than end user—The exemptions for machinery, equipment and parts in section 144.030.2(4) and (5), RSMo, do not require that the owner of the facility be the purchaser to qualify for the exemption or that the purchaser be the one who uses the machinery, equipment and parts in an exempt fashion. All that is required is that the machinery, equipment and parts are used in a tax-exempt manner. These exemptions “flow through” to the owner. For example, a real property improvement contractor may purchase exempt from tax the machinery, equipment, parts, materials and supplies solely required for installation or construction of such replacement items, if such items are to be used in a tax-exempt manner by the owner.

(D) Replacement—To be exempt under section 144.030.2(4), RSMo, the machinery, equipment and parts must replace an existing piece of machinery, equipment or parts. This can include machinery, equipment, or repair and maintenance parts that are identical to the items they replace, as well as items that are different from the ones they replace, such as replacement machinery, equipment or parts added for the

purpose of improving or modifying the existing devices. The replacement machinery, equipment and parts must be used in a process that produces a product intended to be sold ultimately for final use or consumption.

(E) Replacement machinery, equipment and parts—Pursuant to section 144.030.2(4), RSMo, purchases of replacement machinery, equipment and parts which are used directly in manufacturing, mining, fabricating or producing a product that is intended to be sold ultimately for final use or consumption are not subject to tax. Purchases of the materials and supplies solely required for the installation or construction of such replacement machinery, equipment and parts are not subject to tax.

(F) Use for nonexempt purposes—In order for the machinery and equipment to be exempt from tax it need not be used exclusively or primarily for an exempt purpose. The purchaser must intend at the time of purchase to use and actually make material use of the machinery and equipment in an exempt capacity to qualify. The fact that it may also be used for nonexempt purposes will not prevent the purchase of the item from qualifying for the exemption. If several like items are purchased, some for exempt purposes and some for nonexempt purposes, only the number of items essential for the exempt use qualify for the exemption.

(4) Examples.

(A) A manufacturing company builds a physical addition to its existing building. It purchases new machinery to set up another assembly line to be located in the new addition. The new machinery may be purchased under the expanded plant exemption.

(B) A fabricating company purchases additional machinery to establish a second assembly line but it does not physically expand its existing building. Production capability is increased from five thousand (5,000) units a day to seven thousand five hundred (7,500) units per day. The machinery may be purchased under the expanded plant exemption.

(C) A manufacturing company purchases additional machinery to establish a second assembly line. It does not increase its existing building nor does it increase its production volume.

The additional machinery does result in the hiring of three (3) additional employees. The machinery may be purchased under the expanded plant exemption.

(D) A manufacturing company purchases various parts including replacement parts, new parts for the purpose of modifying existing equipment to make it more efficient, and related materials and supplies to install the parts. The replacement parts, the new parts for modifying the equipment and the materials and supplies for the installation of these parts may be purchased under the replacement machinery, equipment and parts exemption.

(E) A fabricating company intends to build a new plant and have it up and running within a year. Some of the equipment that was originally intended to be part of the new plant does not arrive until three (3) months after the plant is completed.

This equipment would be covered by the new plant exemption, because it was originally intended to be part of the new plant.

(F) A manufacturing company purchases various pieces of testing equipment for different purposes, including: i) to ensure that the seller’s product meets the tolerances claimed in its marketing literature, ii) to meet the customers’ specification requirements mandated by the sales agreement, and iii) to perform research and development on potential future products. The testing equipment for the first two (2) situations are directly used to manufacture a product intended to be sold ultimately for final use or consumption and would qualify for exemption. The testing equipment for research and development is not directly used in manufacturing a product intended to be sold ultimately at retail and, therefore, would not qualify for exemption.

(G) A ceramic greenware manufacturer purchases six (6) initial greenware mug molds, which it is going to use to manufacture greenware mugs to be resold. All six (6) greenware mug molds would be exempt.

(H) A rock quarry purchases equipment to remove earth and overburden to expose the rock and to remove rock from the ground. It purchased separate equipment to crush the rock into gravel as a marketable product to be sold at retail. The equipment used to remove the overburden and rock from the ground would qualify as exempt mining equipment and the equipment used to crush the rock into gravel would qualify as exempt manufacturing equipment.

(I) A taxpayer operates a concrete manufacturing plant.

It purchases three (3) replacement concrete mixing trucks and also adds four (4) additional concrete mixing trucks to expand its fleet. Taxpayer also purchased dump trucks to haul concrete slabs that had been manufactured in its plant.

The replacement and new additional concrete mixing trucks are directly used in manufacturing and would qualify for the replacement machinery and equipment exemption in

section 144.030.2(4), RSMo, and the expanded plant exemption in section 144.030.2(5), RSMo, respectively. The dump trucks would not qualify for exemption because they are not directly used in the manufacturing process. However, if the dump trucks were used in the plant to transport the slabs during the manufacturing process from one processing area to another within the manufacturing plant, these exemptions would apply.

(J) A taxpayer creates and sells a nontaxable information service product. To develop its product, taxpayer purchases computer hardware and software. Because taxpayer produces a nontaxable service product, it is not manufacturing a product intended to be sold ultimately for final use or consumption and, therefore its purchases of computer equipment are not exempt from tax.

(K) A taxpayer has exempt machinery and equipment used directly in manufacturing a taxable product. Taxpayer purchases: i) fuels, lubricants, and coolants for operation of the machinery and equipment; ii) paint and adhesives which will adhere to the surface of the machinery and equipment; and iii) replacement hoses and belts for the machinery and equipment. The fuels, lubricants, coolants, paint and adhesives added to the machinery and equipment for operation are not parts within the meaning of the exemptions. These items are materials and supplies. They are exempt only if used for installation or construction of exempt machinery, equipment and parts. The hoses and belts may be purchased exempt from tax because they qualify as replacement parts.

(L) A manufacturing company has two (2) sets of storage devices. The first set stores work in process between two (2) separate production areas. The second set stores the finished goods after the manufacturing process has been completed.

The first set of storage devices is used directly in manufacturing and thus falls within the exemption. The second set of devices is not directly used in manufacturing and is subject to tax.

(M) A manufacturing company uses pneumatic powered tools directly on its assembly line. It also has hand tools used to repair or adjust the machines throughout the plant.

The pneumatic powered tools are exempt as machinery and equipment directly used in manufacturing. The hand tools do not qualify as machinery and equipment directly used in manufacturing and are taxable.

(N) A commercial photo developer uses “crop cards” to hold individual negatives in the film developing process which are discarded after a single use. The developer also uses tape to connect negative strips so that the negatives may be fed through its automatic film developing machinery and equipment. The crop cards and tape are consumable supplies, not parts or equipment, and therefore are subject to tax.

(O) A steel company manufactures steel products. It purchases train carloads of steel beams that are used in the plant to produce the products. The crane used to unload the steel beams at the plant is part of the integrated and synchronized system and is used directly in the manufacturing process. As long as there is a continuous progression from raw materials to finished product and there are no extended interruptions in the manufacturing process, the integrated and synchronized system begins when raw materials enter the plant site and ends when the finished product leaves the plant site.

(P) A taxpayer sells and installs computer hardware and software and provides information technology services to its customers. The hardware and software are tangible personal property subject to sales tax. The technology services are not subject to tax in Missouri but are subject to tax and the taxpayer remits sales tax to Texas. The taxpayer’s purchase of machinery and equipment to develop its products and services is intended to manufacture a taxable product or a taxable service intended to be sold ultimately for final use or consumption. The purchase of machinery and equipment is exempt from tax.

(Q) A manufacturer purchases four (4) forklifts for use in its plant. The manufacturer intends to use two (2) forklifts to move work in process between two (2) manufacturing steps and the other two (2) for loading the finished product from its warehouse onto trucks. Even though all four (4) forklifts may be rotated between the functions, only the two (2) forklifts essential to the manufacturing process are exempt.

International Business Machines v. Director of Revenue, 958 S.W.2d 554 (Mo. banc 1997). In order for a product to be “intended to be sold ultimately for final use or consumption,” the product produced must be tangible personal property or a taxable service.

Taxpayer sold computer equipment to DST, which provided financial and ownership data for the mutual fund industry.

The court held that DST’s output was a nontaxable service and, therefore, denied its claim of exemption on its machinery and equipment purchases.

Concord Pub. House, Inc. v. Director of Revenue, 916 S.W.2d 186 (Mo. banc 1996). Use of computer system by newspaper publishing company to store, process and arrange information in computer system to be used in publishing newspapers was held to be manufacturing and the machinery and equipment was directly used in manufacturing taxable products.

Unitog Rental Services, Inc. v. Director of Revenue, 779 S.W.2d 568 (Mo. banc 1989). Taxpayer was in the business of furnishing industrial grade uniform clothing to various businesses pursuant to written rental agreement contracts. The court held that equipment used to launder garments was not “used in manufacturing,” and thus the taxpayer was not entitled to an exemption from sales and use tax.

L & R Egg Co. v. Director of Revenue, 796 S.W.2d (Mo. banc 1990). Taxpayer purchased eggs from farmers, then processed and sold the eggs to retailers. The issue before the court was whether equipment used to clean, oil, inspect, weigh, grade, pack and mark chicken eggs was “manufacturing” equipment within the meaning of Section 144.030.2(5). The court held that the taxpayer’s processing operation did not constitute manufacturing.

West Lake Quarry and Material Co. v. Schaffner, 451 S.W.2d 140 (Mo. banc 1970). This case defined manufacturing as a process that changes and adapts something practically unsuitable for any common use into something suitable for common use. The court found that rock-crushing equipment qualified for the manufacturing equipment exemption. Heidelberg Central, Inc.

v. Director of Revenue, 476 S.W.2d 502 (Mo. banc 1972). Defined manufacturing as producing of new and different articles, by the use of machinery, labor and skill, into forms suitable for new applications. Commercial printing qualified as manufacturing.

Jackson Excavating Co. v. Admin. Hearing Comm., 646 S.W.2d 48 (Mo banc 1983). Defined manufacturing as a process that makes more than a superficial change in the original substance; it causes a substantial transformation in quality and adaptability and creates an end product quite different from the original.

Processing raw water into potable water was manufacturing.

House of Lloyd , Inc. v. Director of Revenue, 824 S.W.2d 914 (Mo. banc 1992). Defined the manufacturing process as one requiring the manipulation of an item in such a way as to create a new and distinctive item, with a value and identity completely different from the original. Galamet, Inc. v. Director of Revenue, 915 S.W.2d 331 (Mo. banc 1996). Manufacturing consists of the alternation or physical change of an object or material in such a way that produces an article with a use, identity, and value different from the use, identity, and value of the original.

Capitol Con Crete, Inc. v. Director of Revenue, (A.H.C. 1987). Concrete mixing trucks purchased for use in a concrete manufacturing business qualified under Section 144.030.2(5) for exemption as machinery and equipment used to establish a new manufacturing plant and were held to be used directly in manufacturing a product to be sold for final use or consumption.

Empire District Electric Co. v. Director of Revenue, (A.H.C. 1983).

The issue was the taxability of a transformer, concrete, oil and antifreeze used in an electric generating facility. The Commission applied the “integrated plant” theory adopted by the Missouri Supreme Court in Floyd Charcoal Co. v. Director of Revenue, 599 S.W.2d 173 (Mo. banc 1980) and Noranda Aluminum v.

Missouri Department of Revenue, 599 S.W.2d 1 (Mo. banc 1980). The Commission found that while Missouri had adopted the integrated plant theory, it is apparent from the limiting language of the statute that not all items used in the manufacture of a product are exempt from tax. The oil and antifreeze did not qualify as a “device” and thus could not be considered machinery or equipment. Also, the oil and antifreeze were not used solely for installation or construction of the machinery and equipment.

The concrete used to construct duct banks to protect the electrical systems and manhole covers for access to the electrical systems were not used as an integral part of the manufacturing process and were not exempt. With respect to the step-up transformers, they had two functions. The function of transmission as contrasted with generation of electricity was considered to be nonexempt.

The Commission held that transmission of electricity was not manufacturing, only the generation of the electricity. However, the transformer had a second function of starting the generator several times a year. Because the starting function was part of the manufacturing process, the transformer was exempt. The fact that it was also used for nonexempt purposes did not prevent it from qualifying for the exemption.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed Aug. 31, 1999, effective March 30, 2000. Amended: Filed Aug. 14, 2007, effective March 30, 2008. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-111.011 Machinery, Equipment, Materials, and Chemicals Used or Consumed in Manufacturing, as Defined in Section 144.054, RSMo {#sec-12-csr-10-111.011 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.011}

PURPOSE: Section 144.054.2, RSMo, exempts machinery, equipment, materials, and chemicals used or consumed in manufacturing, processing, compounding, mining or producing any product, or used in research and development related to manufacturing, processing, compounding, mining or producing any product from state tax and local use tax, but not local sales tax. This rule explains what elements must be met in order to qualify for these exemptions.

(1) In general, the purchase of machinery, equipment and materials used or consumed in manufacturing, processing, compounding, mining or producing any product or used in research and development related to manufacturing, processing, compounding, mining or producing any product is exempt from state tax and local use tax, but not local sales tax.

(2) Definition of Terms.

(A) Equipment—See 12 CSR 10-111.010.

(B) Fabrication—See 12 CSR 10-111.010.

(D) Manufacturing—See 12 CSR 10-111.010.

(E) Mining—See 12 CSR 10-111.010.

(F) Producing—See 12 CSR 10-111.010.

(3) Basic Application of Exemption.

(A) Pursuant to section 144.054.2, RSMo, purchases of machinery, equipment, materials and chemicals used or consumed in manufacturing, processing, compounding, mining or producing any product or used in research and development related to manufacturing, processing, compounding, mining or producing any product is exempt from state tax and local use tax, but not local sales tax.

(B) The exemptions do not require that the owner of the facility be the purchaser to qualify for the exemption or that the purchaser be the one who uses the machinery, equipment and materials in an exempt fashion. All that is required is that the machinery, equipment and materials are used in a taxexempt manner.

(4) Exempt Examples.

(A) A manufacturing company purchases various pieces of equipment to perform research and development on potential future products. The equipment for research and development is exempt from state tax and local use tax, but not local sales tax, because it is used or consumed in research and development related to manufacturing a product.

(B) A commercial photo developer uses “crop cards” to hold individual negatives in the film developing process; they are discarded after a single use. The developer also uses tape to connect negative strips so that the negatives may be fed through its automatic film developing machinery and equipment. The crop cards and tape are exempt from state tax and local use tax, but not local sales tax, as materials used and consumed in producing a product.

(C) A manufacturer purchases materials to develop models for research and development for use in designing a new product. The manufacturer may purchase the materials exempt from state tax and local use tax, but not local sales tax, because they are used in research and development related to manufacturing.

(D) Workers in a manufacturing plant are required to wear safety equipment while producing a product. The safety equipment is exempt from state tax and local use tax, but not local sales tax, because it is used to produce a product.

(5) Nonexempt Examples.

(A) A taxpayer operates a concrete manufacturing plant.

The taxpayer purchases dump trucks to haul, to customers, concrete slabs that had been manufactured in its plant. The dump trucks would not qualify for exemption because they are not used in the manufacturing process, but rather in the shipping process.

(B) A taxpayer creates and sells a nontaxable information service. To develop its service, the taxpayer purchases computer hardware and software. The computer hardware and software do not qualify for the state tax exemption pursuant to section 144.054.2, RSMo, because they are machinery and equipment used in producing a service and not a product.

History

AUTHORITY: section 144.270, RSMo 2000 and 144.054, RSMo Supp. 2007. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Original rule filed Aug. 14, 2007, effective March 30, 2008. Original authority: 144.054, RSMo 2007 and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

12 CSR 10-111.060 Material Recovery Processing Plant Exemption, as Defined in Section 144.030, RSMo {#sec-12-csr-10-111.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.060}

PURPOSE: Sections 144.030.2(4) and 144.030.2(5), RSMo, exempt from taxation machinery and equipment and certain materials and supplies used to establish new, or to replace or expand existing, material recovery processing plants in this state. This

rule explains the elements that must be met in order to qualify for the exemption.

(1) In general, the purchase of machinery and equipment, and the materials and supplies required solely for the operation, installation, or construction of such machinery and equipment is exempt from tax if used to establish new, or to replace or expand existing, material recovery processing plants in this state. Motor vehicles used on highways, as defined in section 301.010, RSMo, and materials and supplies used or consumed in the construction of a building or structure do not qualify for this exemption.

(2) Definition of Terms.

(A) Material recovery processing plant—A facility that has as its primary purpose the recovery of materials into a useable product or a different form that is used in producing a new product. A facility that uses a product made from recovered materials to manufacture another product is not a material recovery processing plant.

(B) New product—An item made from recovered materials that has a distinct identity, use, and market value separate from the recovered materials.

(C) Recovered materials—Items that have been diverted or removed from the solid waste stream for sale, use, reuse, or recycling, whether or not the items require subsequent separation and processing.

(D) Solid waste—Garbage, refuse, and other discarded materials including, but not limited to, solid and semisolid waste materials resulting from industrial, commercial, agricultural, governmental, and domestic activities, but does not include hazardous waste, recovered materials, overburden, rock, tailings, matte, slag, or other waste material resulting from mining, milling, or smelting.

(E) Useable product—An item converted from recovered materials that has a market value.

(3) Basic Application of Exemption.

(A) The purchase of machinery and equipment used to establish new, or to expand existing, material recovery processing plants in this state is not subject to tax. The purchase of materials and supplies required solely for the operation, installation, or construction of such machinery and equipment is not subject to tax.

(B) Materials and supplies used or consumed in the construction of a building or structure do not qualify for this exemption. Supplies do not include fuel.

(C) Recovery of materials does not include the reuse of materials within a manufacturing process or the use of a product previously recovered. A facility or equipment can also qualify if it is used exclusively for the collection of recovered materials for delivery to a material recovery processing plant.

Equipment does not include motor vehicles used on highways.

(4) Examples.

(A) A new company purchases machinery and equipment to retread old tires. The company purchases old tires and produces retread tires for sale with the use of the new machinery and equipment. The machinery and equipment is not used for any other purpose. The machinery and equipment may be purchased under the material recovery processing plant exemption because the primary purpose of the facility is to convert the old tires into a useable product.

(B) A taxpayer acquires and processes solid waste for use as a fuel in its manufacturing operation. The taxpayer has a separate facility that uses shredders and pulverizers to grind the solid waste into sizes appropriate for use in the manufacturing operation. The separate facility, but not the manufacturing operation, qualifies for the material recovery processing plant exemption because the primary purpose of the separate facility is to convert solid waste into a useable product.

(C) A taxpayer has a facility that uses shredders and pulverizers to grind solid waste into sizes appropriate to use for fuel and qualifies as a material recovery processing plant. The taxpayer purchases lubricants to operate the shredders and pulverizers.

Because the lubricants are required solely for the operation of the shredders and pulverizers in a material recovery processing plant, the purchase of the lubricants qualifies for the material recovery processing plant exemption.

(D) A taxpayer operates a recycling business that purchases aluminum, paper, and other used consumer products to be bundled and then sold to facilities that use them as raw materials to produce new and different products. The taxpayer purchases loaders, baling machines, and crushing equipment to prepare the materials for sale and shipping. The loaders push the materials into the balers, which compress the recovered materials to be bailed for shipping. Because the taxpayer is collecting recovered materials, the purchase of the loaders, baling machines, and crushing equipment qualify for the material recovery processing plant exemption.

(E) A taxpayer operates a facility used exclusively for the collection of used motor oil for delivery to a material recovery processing plant. The taxpayer purchases storage tanks, pumps, and a truck for hauling the oil to and from its facility. The purchase of the storage tanks and pumps is exempt from tax.

The truck is a motor vehicle used on highways and does not qualify for the material recovery processing plant exemption.

(F) A manufacturer makes metal pipe. The manufacturing process creates metal scrap, which the taxpayer collects and reuses in its manufacturing process. The pipe manufacturer is not a material recovery processing plant because the metal scrap is reused in the pipe manufacturer’s manufacturing process.

(G) A manufacturer makes polyvinyl chloride (PVC) pipe.

The manufacturing process creates scrap that the pipe manufacturer collects and sells to a recycling company. The recycling company grinds and pulverizes the scrap for sale to others that use the processed scrap to make other products.

The pipe manufacturer’s facility is not a material recovery processing plant because the primary purpose of the plant is not the recovery of materials. The recycling company is a material recovery processing plant because its primary

purpose is to convert solid waste into a different form for use in making new products. The plants that use recovered materials purchased from the recycling company are not material recovery processing plants.

(H) A manufacturer makes PVC pipe. To keep its plant clean, the manufacturer uses equipment to collect all scrap. After the scrap is collected in the plant, it is separated, crushed, bundled, and delivered to a recycler. The equipment used to clean the plant floor by collecting the scrap is subject to tax because it is not used exclusively for preparing the scrap for delivery to the recycler. The purchase of the equipment used to separate, crush, and bundle the scrap qualifies for the material recovery processing plant exemption because it is used exclusively to prepare the scrap for delivery to the recycler.

(I) A pressboard manufacturer acquires sawdust from a sawmill to use in its manufacturing process. The sawdust has not been previously altered or recycled. The pressboard manufacturer converts the sawdust into pressboard. The pressboard manufacturer is a material recovery processing plant because the plant is recovering sawdust into a new usable product.

Plants that use pressboard purchased from the pressboard manufacturer are not material recovery processing plants.

(J) A window manufacturer purchases aluminum sheets for use in its manufacturing process. The aluminum sheets are made from one hundred percent (100%) recycled aluminum.

The window manufacturer is not a material recovery processing plant because it is only using materials that were previously recovered.

(K) A manufacturer uses charcoal to purify water as part of its manufacturing process. The manufacturer must change the charcoal periodically because the charcoal no longer purifies the water once it is used for a while. The manufacturer contracts with a third party to revitalize the used charcoal using a chemical process. The third party returns the revitalized charcoal to the manufacturer, which then reuses it. The third party is a material recovery processing plant because the charcoal was diverted from the solid waste stream.

(L) A chicken processor processes live chickens into chicken parts for retail sale. The chicken processor has another facility that uses the entrails and other remaining parts to make dog food. The processor’s other facility is a material recovery processing plant because the plant is recovering chicken entrails and other remaining parts into dog food.

(M) A manufacturing plant uses chemicals and solvents in its production processes to make chemical products used in various herbicides and pesticides. At the end of the manufacturing process, the plant isolates and recovers portions of the component parts, ingredients, and other chemicals from the chemical products to reuse them in subsequent manufacturing operations. The plant is not a material recovery processing plant because it is recovering materials to maintain an intended loop of reuse in a manufacturing process and not recovering materials to divert them from being discarded into the solid waste stream.

rule filed Nov. 18, 1999, effective June 30, 2000. Amended: Filed Oct. 12, 2021, effective April 30, 2022. Amended: Filed Oct. 2, 2025, effective April 30, 2026. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

Galamet, Inc. v. Director of Revenue, 915 S.W.2d 331 (Mo. banc 1996). The Missouri Supreme Court held that a scrap metal reprocessor was engaged in manufacturing, not recycling.

Manufacturing consists of the alteration or physical change of an object or material in such a way that produces an article with a use, identity, and value different from the use, identity, and value of the original.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

12 CSR 10-111.061 Exempt Items Used or Consumed in Material Recovery Processing as Defined in Section 144.054, RSMo {#sec-12-csr-10-111.061 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.061}

(Rescinded April 30, 2026)

Galamet, Inc. v. Director of Revenue, 915 S.W.2d 331 (Mo. banc 1996). The Missouri Supreme Court held that a scrap metal reprocessor was engaged in manufacturing, not recycling.

History

AUTHORITY: sections 144.270, RSMo 2000, and 144.054, RSMo Supp. 2007. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Original rule filed Aug. 14, 2007, effective March 30, 2008. Rescinded: Filed Oct. 2, 2025, effective April 30, 2026.

12 CSR 10-111.100 Commercial Printers, as Defined in Section 144.030, RSMo {#sec-12-csr-10-111.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.100}

PURPOSE: Section 144.020.1(1), RSMo, taxes the retail sale of tangible personal property. Section 144.030.2(2), RSMo, exempts materials that become a component part or ingredient of new personal property which is intended to be sold ultimately at retail.

Sections 144.030.2(4) and (5), RSMo, exempt certain machinery, equipment, and parts for replacement or for a new or expanded plant. This rule explains the taxation rules for commercial printers and what elements must be met to qualify for these exemptions. This rule does not address the exemption relating to newspaper publishing contained in section 144.030.2(8), RSMo, or the exemption relating to advertising contained in section 144.034, RSMo.

(1) In general, sales of printed product by commercial printers are subject to tax. Purchases of materials and supplies, such as paper and ink, which become a component part or ingredient of the printed product are exempt. Other materials used by the printer may be exempt if title or ownership to the materials transfers to the customer. Purchases of machinery, equipment and parts for replacement or for a new or expanded plant are exempt if directly used in the manufacturing process. This includes printing presses and plates.

(2) Definition of Terms. See Definition of Terms in 12 CSR 10- 111.010 Machinery and Equipment Exemptions.

(3) Basic Application of Tax.

(A) Sales of printed products—A business engaged in printing publications, pamphlets, catalogues, leaflets, advertising circulars, stationery and other similar products, is creating new tangible personal property and is subject to tax on the total gross receipts from its sales. No deductions are allowed for preparing copy, artwork, compositions, phototypesetting or any other services or labor that are included in the charge to produce the final product.

(B) Ingredients and component parts—Purchases of material and supplies such as paper and ink may be purchased tax exempt by printers as ingredients or component parts under

section 144.030.2(2), RSMo.

Chemicals that blend with and become part of the ink mixture are exempt, including:

A. The fountain solution that blends with the ink at the press to keep the non-image area clean of ink while printing;

B. Chemicals used on the rollers to keep the ink from drying out;

C. Isopropyl alcohol to keep the ink wet on the rollers; and D. Ink anti-stain used to keep the ink from bleeding onto other printed material.

(C) Purchases of materials, including film, used by the printer in its manufacturing process do not qualify for the sale for resale exclusion unless title or ownership to such materials is transferred to the customer. Whether title passes is based on the intent of the parties, as evidenced by all relevant facts, including written agreements, course of dealing or usage of trade and availability of the materials for future use by the customer.

(D) Chemicals—Chemicals to develop the film and plates are exempt if they become an ingredient or component part of materials resold to the customer.

(E) Supplies and Parts.

Perforation devices consumed in a single production cycle are not exempt as machinery and equipment or parts.
Perforation devices benefiting more than one production cycle are exempt as parts of machinery and equipment.
Blankets and necessary attachments are exempt as parts of machinery and equipment.
Proof paper and phototypesetting paper are not exempt as machinery and equipment or parts.
Mineral spirits used as a solvent to clean brushes, overspray and equipment are not exempt as ingredients or component parts if used as a cleaning solvent separate from the ink. If mixed with the ink, then the mineral spirits are exempt as ingredients or component parts.

(4) Examples.

(A) A commercial printer replaces an old printing press due to obsolescence, replaces a second press due to design change and then purchases a third press to expand its production. All three printing presses may be purchased tax exempt under the machinery or equipment exemptions for replacement or expanded plant.

(B) A commercial printer purchases plates and film. The plate is exempt machinery and equipment. The printer’s contract with the customer states the negatives become the property of the customer. The film is exempt as a component part of the negative.

(C) A commercial printer states on its sales invoice its production labor charges for artwork, layout and design services separate from the charges for the printed product. The printer is subject to tax on total gross receipts including the separately stated production labor charges.

Filed Aug. 14, 2007, effective Feb. 29, 2008. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

Ovid Bell Press, Inc. v. Director of Revenue, 45 S.W.3d 880 (Mo. banc 2001). The court held that materials used by a printer, including film used to produce plates, are exempt as materials purchased for resale if title to the materials passes to the customer as part of the printing contract. The key to determining the passage of title is the intent of the parties, as evidenced by all relevant facts, including custom or usage of trade.

Walsworth Publishing Co., Inc. v. Director of Revenue, 935 S.W.2d 39 (Mo. banc 1996). The taxpayer used phototypesetting paper to produce yearbooks for schools and commercial customers.

The issue was whether the phototypesetting paper qualified as equipment under section 144.030.2(4), RSMo. The court ruled that “equipment” must be a fixed asset other than land and buildings for purposes of business and accounting practices that has some degree of permanence to the business and contributes to multiple processing cycles over time. The phototypesetting paper was not equipment because it benefited only one production cycle over time.

K & A Litho Process, Inc. v. Dept. of Revenue, 653 S.W.2d 195 (Mo. banc 1983). The issue was whether the sale of lithographic work was the sale of nontaxable service or the taxable sale of tangible personal property. The court found that the lithographic process was the nontaxable sale of technical professional service and that the transfer of ownership to tangible personal property was only incidental to the provision of service. The taxpayer received a color transparency from an outside source such as a printer, advertising agency or publishing house and then created a film separation and a color key that could then be used to print the transparency on paper for distribution. The color separation and the color key were merely the means of conveying the nontaxable professional technical service.

Heidelberg Central, Inc. v. Director Dept. of Revenue, 476 S.W.2d 502 (Mo. 1972). The taxpayer was a commercial printer that purchased printing presses to print business forms, stationery, advertising, postcards, bulletins, calendars etc. The court held that the taxpayer’s purchases qualified for the machinery and equipment exemption in section 144.030.2(4), RSMo. The court stated that the taxpayer’s process qualified as “manufacturing.”

The printer produced new and different articles from raw materials by the use of machinery, labor and skill, and it produced products for sale that had an intrinsic and merchantable value and were in forms suitable for new uses.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed Oct. 11, 2001, effective April 30, 2002. Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Amended:

12 CSR 10-111.101 Items Used or Consumed by Commercial Printers, as Defined in Section 144.054, RSMo {#sec-12-csr-10-111.101 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-111.101}

PURPOSE: Section 144.054.2, RSMo exempts from state tax, but not local tax, machinery, equipment, materials and chemicals used or consumed in manufacturing, processing, compounding, mining or producing any product or used in research and development related to manufacturing. This rule explains the taxation rules for commercial printers and what elements must be met to qualify for these exemptions.

(1) In general, purchases of machinery, equipment, materials and chemicals used or consumed by a printer in the production process are exempt from state tax and local use tax, but not local sales tax.

(2) Definition of Terms. See definition of terms in 12 CSR 10- 111.010 Machinery and Equipment Exemptions.

(3) Basic Application of Tax.

(A) Purchases of material and supplies used in the printing process that do not blend with the ink are exempt from state tax and local use tax, but not local sales tax, including antistatic products used to reduce static on the printed product, chemicals used to clean the presses and color wax used for layout purposes.

(B) Chemicals to develop the film and plates are exempt from state tax and local use tax, but not local sales tax. Chemicals exempt from state, but not local tax include chemicals used on plates to desensitize the plates and to prevent them from oxidizing, developers, replenishers, finishers, fixers, store gum and plating solution.

(C) Perforation devices consumed in a single production cycle are exempt from state tax, but not local tax as machinery and equipment used or consumed in the printing process.

Proof paper and phototypesetting paper are also exempt from state tax, but not local tax as machinery and equipment used or consumed in the printing process. Mineral spirits used as a solvent to clean brushes, overspray and equipment are exempt from state tax and local use tax, but not local sales tax even when used as a cleaning solvent separate from the ink.

(4) Example.

(A) A commercial printer purchases phototypesetting paper, developer chemical for plates, film (which does not become the property of the customer) and press cleaning solvent that is not mixed with ink. All these items are exempt from state tax and local use tax, but not local sales tax as materials used or consumed in producing a product.

History

AUTHORITY: section 144.270, RSMo 2000 and section 144.054, RSMo Supp. 2007. Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Original rule filed Aug. 14, 2007, effective Feb. 29, 2008. Original authority: 144.054, RSMo 2007 and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

Chapter 112 Sales/Use Tax-Contractors

12 CSR 10-112.010 Contractors {#sec-12-csr-10-112.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-112.010}

PURPOSE: This rule interprets sections 144.010, 144.020, 144.030 and 144.062, RSMo as they relate to taxation of sales and purchases by contractors.

(1) In general, a contractor is the final user and consumer of the materials and supplies used and consumed in fulfilling a construction contract and which become part of a completed real property improvement. Consequently, persons selling materials and supplies to a contractor are subject to tax on the gross receipts from all such sales because the purchase is not for resale as tangible personal property.

(2) Definition of Terms.

(A) Contractor—Any person entering into an agreement to improve, repair, replace, erect or alter real property.

(B) Dual operator—A taxpayer who purchases materials and supplies for both consumption, as a contractor, and resale, as a retailer.

(3) Basic Application of Tax.

(A) Title Transfer—If title passes from the contractor to the purchaser before attachment of the tangible personal property to real property, the contractor does not pay tax on its purchase, but must collect tax on the sale price of the item.

If title passes after the attachment, the contractor is subject to tax on its purchase of the tangible personal property and does not collect tax on its transfer of ownership or title of the item.

In general, title passes after installation is complete, unless the contractor and purchaser expressly agree otherwise.

(B) Dual Operator—When a dual operator purchases materials that are specifically identified for use in a contracting job, it should pay tax on the purchase of the materials. Dual operators should present a resale exemption certificate when purchasing materials for inventory that may be used either for resale or contract jobs. When materials are removed from inventory for use in a contracting job, the dual operator should pay sales tax if purchased in-state or use tax if purchased out-of-state based on the original purchase price of the material.

(C) Flow Through Exemptions—Certain exemptions that are based on the ultimate owner’s use of an item (such as the exemption for manufacturing machinery) may flow through to the contractor selling and installing the item. To claim an exemption under these circumstances, the contractor must obtain a signed exemption certificate from the ultimate owner and provide a copy to its supplier.

(D) Flow Through Project Exemptions—A contractor, including subcontractors working for the contractor, constructing, repairing or remodeling facilities for a specific exempt entity, may purchase tax exempt tangible personal property and materials incorporated into or consumed in the project if the exempt entity furnishes to the contractor a project exemption certificate. Tangible personal property and materials that can only be used for one (1) construction, repair or remodeling job which are actually used up in performing the contract are consumed. Examples include sandpaper, fuel to run equipment and drill bits that are actually used up in the performance of the exempt contract. Items that are not consumed are hand tools, drinking water coolers, hardhats and bulldozers. For purposes of this flow through exemption an exempt entity is limited to:

Political subdivisions exempt under Article III section 39(10) of the Missouri Constitution;
Federal government and its instrumentalities;
Religious organizations;
Charitable organizations;
Elementary and secondary schools, public and private;
Higher education institutions, public and private;
Missouri Department of Transportation;
Jackson County Sports Complex Authority; or 9. Missouri Highways and Transportation Commission.

(E) No specific form is required for the “Project Exemption Certificate,” per section 144.062, RSMo, but the following information must be included:

Name and address of exempt entity;
Missouri tax identification number of the exempt entity;
Signature of an authorized representative;
Location of the project;
Description of the project;
Unique identification number for the project;
Beginning and estimated ending date of the project; and 8. Expiration date of the project exemption certificate.

(F) Out-of-State Construction Job—Con-tractors purchasing tangible personal property in Missouri for use out-of-state are subject to tax on the purchase. However, contractors may purchase tangible personal property exempt from Missouri tax for use out-of-state on a construction contract with an entity authorized to issue an exemption certificate under that state’s law per section 144.030.2(36), RSMo.

(4) Examples.

(A) A company that fabricates windows, doors and siding markets its product in a showroom making direct sales to consumers, and also uses its product as the contractor on construction projects nationwide. The company is a dual operator. It should issue vendors an exemption certificate for all material purchases that are fabricated into their products.

All direct sales through the product showroom are subject to tax on the total price of the products sold. If the company purchases materials specifically intended for the manufacture of products to be used on a particular construction project, it should pay tax on its material purchases. However, when the company removes products from inventory and uses them on construction projects, it should accrue tax on the original cost of the materials used to manufacture the product. If the company cannot determine where it purchased the original materials, it may accrue tax at the rate where the company is located.

(B) A Missouri-based company has expanded its operations.

It now fabricates for sale the manufacturing machinery to produce its products. It has also developed an earthquake proof structure that it is contracting with municipalities nationwide to erect. The company should charge tax on the sale of the production machinery. It may sell the machinery tax exempt if the purchaser issues a valid exemption certificate.

The purchaser need not be the entity using the machinery.

The company may accept a “flow through” exemption from a contractor.

(C) A company should accrue tax on the original purchase cost of items taken out of inventory to be consumed in the fulfillment of its construction contracts. The company does not have to self-accrue tax on materials consumed in construction contracts if the exempt entity issues a project exemption (11/30/23) John R. Ashcroft certificate (as authorized by section 144.062, RSMo). If the contract is for an out-of-state project and the out-of-state entity is authorized to issue a certificate of exemption for purchases to a contractor under the provisions of that state’s laws, the company may accept an exemption certificate and not selfaccrue tax.

Filed Aug. 14, 2007, effective March 30, 2008. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

Blevins Asphalt Construction Co. v. Director of Revenue, 938 S.W.2d 899 (Mo. banc 1997). The Court ruled that an asphalt construction company was liable for sales tax on its purchases of paving materials and equipment used in the company’s installation contracts. The company’s purchases of paving materials used in the company’s manufacture of asphalt, which in turn was used to fulfill its installation contracts, were not exempt as a manufacturing material that becomes a component part of new personal property intended for sale for consumption. The company did not create new personal property to be sold, because title to the asphalt passed after the asphalt was installed.

Bratton Corp. v. Director of Revenue, 783 S.W.2d 891 (Mo. banc 1990). The Court ruled that sales tax was properly imposed on a Missouri contractor for building materials that were purchased from Missouri vendors for use in out-of-state projects. The taxpayer argued that the sales were exempt from taxation because the materials were intended for use in projects in other states. The contractor contended that the sales should have been treated as integral parts of interstate commerce and therefore held immune from sales tax as a retail sale in interstate commerce. The Court held that the sales were complete when the materials were delivered to the taxpayer in Missouri. The fact that the ultimate destination of the goods was to points outside the state was not a factor in determining whether the interstate commerce exemption should have applied. In this case, the Missouri vendors transferred title or ownership to the goods to the taxpayer upon delivery in Missouri.

Overland Steel Inc. v. Director of Revenue, 647 S.W.2d 535 (Mo. banc 1983). The Court ruled that a seller of steel products that also acted as a construction contractor was not allowed to claim an interstate sales tax exemption on materials purchased within the state under a resale exemption certificate and used in construction projects located outside the state. The materials were not, as the taxpayer had argued, resold in interstate commerce, but were consumed by the taxpayer prior to their out-of-state use.

There was no evidence to indicate that the materials were either purchased in contemplation of a construction project outside the state or delivered out of state as an integral part of a sales contract.

Marsh v. Spradling, 537 S.W.2d 402 (Mo. banc 1976). The Court ruled that a taxpayer that designed and installed custom-made cabinets in houses under construction was not liable for tax on receipts from the job. The Court found that because the cabinets became fixtures of the house upon installation, there was no transfer of personal property to which the sales tax could apply.

Dravo Corp. v. Spradling, 515 S.W.2d 512 (Mo. banc 1974). The Court ruled that a company that establishes a new plant by contracting with another company to purchase the machinery and build the plant is entitled to the sales tax exemption for machinery and equipment used to establish a new plant. Further, the installing contractor does not use or consume the machinery in a way that would make the contractor liable for tax. The contractor merely has temporary possession for a specific purpose.

The machinery itself is exempted, not any particular person, if the machinery is used to establish a new plant.

New York Carpet World of St. Louis, Inc. v. Director of Revenue (AHC 1996). The Commission ruled that a carpet company’s sales of floor coverings combined with installation, were not sales of tangible personal property subject to tax. The company’s sales contracts provided that title to and ownership of the floor covering materials did not pass until they were permanently and completely installed. No taxable sale of tangible personal property occurred because the materials were already part of the real property when title and ownership passed.

Morton Buildings, Inc. v. Director of Revenue (AHC 1989). An Illinois company purchased raw materials and manufactured prefabricated building components outside Missouri. The company used the components to construct buildings in Missouri. The Commission ruled that the sales of the buildings in Missouri were not subject to tax because title to and ownership of the buildings did not transfer until they were attached to real property. The company did not owe sales tax on the purchase of materials because they were not purchased in Missouri. Finally, the company did not owe tax on its use of the materials in Missouri because the materials were used outside Missouri to manufacture the prefabricated building components. The company’s manufacturing process so altered the raw materials that they could no longer be identified as taxable articles of tangible personal property when used in Missouri. The components themselves were made by the company, not purchased, and therefore, were not subject to tax when the company used the components.

History

AUTHORITY: section 144.270, RSMo 2000. Original rule filed June 13, 2000, effective Dec. 30, 2000. Emergency amendment filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Amended:

12 CSR 10-112.020 Solar Photovoltaic Energy Systems Sales Tax Exemption {#sec-12-csr-10-112.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-112.020}

PURPOSE: This rule interprets sections 144.010, 144.020, and 144.030, RSMo, as they relate to taxation of sales and purchases of solar photovoltaic energy systems.

(1) In general, the purchase of components, materials, and supplies by a company used directly to construct or make improvements to a solar photovoltaic energy system are exempt from sales or use tax provided the system is either sold or leased to an end user or is used to produce, collect, and transmit electricity for resale or retail sale.

(2) Definition of Terms.

(A)

Company—Any commercial business, including contractors, who construct, maintain, or install solar photovoltaic energy systems.

(B) Solar photovoltaic energy systems—A power system designed to create and maintain usable solar power by means of photovoltaics, a method of converting solar energy into direct current electricity using semiconducting materials that create voltage or electric current in a material upon exposure to light. It consists of an arrangement of several components, including but not limited to solar panels to absorb and convert sunlight into electricity, a solar inverter to change the electric current from DC to AC, as well as mounting, cabling, metering systems, and other electrical accessories to set up a working system.

(3) Basic Application of Tax.

(A) Any company that purchases components, materials, or supplies used directly to construct or make improvements to a solar photovoltaic energy system are exempt from sales and use tax. In order to qualify, the system must be either sold to an end user or used to produce, collect, and transmit electricity for resale or retail sale.

(4) Examples.

(A) A company purchases all of the components necessary to construct a solar photovoltaic energy system which it installs on a residential house for the homeowner. The company can purchase the components exempt from sales and use tax.

(B) A company purchases all of the components necessary to construct a solar photovoltaic energy system, which they install for a utility company, which uses the system to produce, collect, and transmit electricity for resale or retail sale. The company can purchase the components exempt from sales and use tax.

(C) A homeowner purchases all of the components necessary to construct a solar photovoltaic energy system and installs it on his home. The homeowner cannot purchase the components exempt from sales and use tax as he is not a company.

History

AUTHORITY: section 144.270, RSMo 2016. Original rule filed May 2, 2023, effective Dec. 30, 2023. Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008.

12 CSR 10-112.300 Sales to the United States Government and Government Contractors {#sec-12-csr-10-112.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-112.300}

PURPOSE: This rule explains the tax consequences of transactions involving the United States government and government contractors, including the exemptions and exclusions provided by sections 144.030 and 144.054, RSMo.

(1) In general, sales to the United States government are exempt from tax. Tax does not apply to items purchased by government contractors for resale to the United States government. In addition, tangible personal property used exclusively in the manufacturing, modification or assembling of products sold to the United Sates government is exempt from tax.

(2) Definition of Terms.

(A) Government contractor—a business or individual which enters into an agreement with the United States government to provide products or services to the government in exchange for payment. This includes businesses or individuals that contract with the United States government to operate facilities owned by the United States government. As used in this regulation, this term is not limited to businesses that perform improvements to real property (i.e., construction or defense contractors).

(B) Ownership—the right to exercise dominion and control over property. A person who has the right to designate who is to receive title to the property has an ownership interest in the property.

(D) United States government—any entity comprising a part of the government of the United States of America, including but not limited to, any United States government agency and any branch of the armed forces of the United States. Federal savings and loan associations and national banks are not included in this definition.

(3) Basic Application of the Tax.

(A) Sales to the United States government are exempt from tax under the doctrine of intergovernmental immunity and

section 144.030.1, RSMo, which provides an exemption from tax for any transaction which the state of Missouri is prohibited from taxing under the Constitution or laws of the United States.

This exemption applies only to sales in which the United States government is the purchaser.

If a government contractor receives title or ownership to property to be used in the performance of a government contract, the government contractor (not the United States government) is the purchaser of the property. The sale is not exempt from tax under the doctrine of intergovernmental immunity.
When property is purchased pursuant to a government contract or purchase order that provides that title to the property will pass directly from the seller to the United States government, and the United States government also controls the disposition and use of the property so that the contractor does not obtain ownership to the property, then the United States government is the purchaser of the property for sales tax purposes. The sale is exempt from tax. The exemption applies in these circumstances, even if the government contractor remits payment to the seller for the property.

(B) The resale exclusion applies to property purchased by government contractors and resold to the United States government. The purchase of property for resale is not subject to tax, and the resale of property by a government contractor to the United States government is also not subject to tax.

Some United States government contracts incorporate standard contract clauses from the federal acquisition regulations or similar contract clauses that state that title to property purchased by the government contractor pursuant to the contract shall vest in the United States government. The transfer of title under these title vesting clauses can result in a resale of the property by the government contractor to the United States government.
In some cases the cost of the property purchased by a government contractor is allocated among a number of different contracts. Under these circumstances, the resale exclusion would apply only to that portion of the cost that is allocated to contracts that include the title vesting clauses. Under the title vesting clauses, the United States government does not receive title to property that is leased by a government contractor for use in a government contract, since the government contractor does not receive title to the leased property. The resale exclusion also applies to property leased for use in the performance of a government contract.

(C) Tangible personal property which is used exclusively in the manufacturing, processing, modification or assembling of products to be sold to the United States government is exempt from tax pursuant to section 144.030.2(6), RSMo.

This exemption does not apply to property used for any functions other than manufacturing, processing, modification or assembling, even if such use is minor. Nor does it apply to property used, even partially, for functions relating to the production of products for customers other than the United States government.
This exemption applies to any item of tangible personal property that otherwise qualifies for the exemption, including machinery, equipment, parts, materials, and supplies.

(1/29/26) Denny Hoskins (D) Tangible personal property, utilities, services, or any other taxable sale made for use in fulfillment of any obligation under a defense contract with the United States government are not subject to tax.

(4) Examples.

(A) The U.S. Department of Agriculture purchases desks and office supplies for use in its offices. The sale is exempt from tax under the doctrine of intergovernmental tax immunity.

(B) A corporation enters into a contract with the U.S. Army to operate a plant where ammunition will be produced.

The contract gives the Army the right to control the use and disposition of any property purchased in connection with the contract. The contract incorporates a title vesting clause found in Federal Acquisition Regulation 52.245-5. The corporation orders bins that will be used for storing inventory in a warehouse that is part of the facility. The corporation orders the bins using purchase orders that state the U.S. Army will receive title to the bins directly from the seller. The corporation pays the seller for the bins, and is later reimbursed for this expense by the Army. Under these facts, the Army is the purchaser of the bins, and the transaction is exempt from tax.

(C) A corporation enters into a contract with the U.S. Air Force requiring the corporation to build and deliver six (6) airplanes.

The contract incorporates the title vesting clause found in Federal Acquisition Regulation 52.232-16. The corporation also manufactures airplanes for commercial airlines. After it signs the Air Force contract, the corporation purchases office supplies that cost ten thousand dollars ($10,000). Based on allocation formulas that the Air Force reviews and approves, one-tenth (1/10) of this expense ($1,000) is charged to the Air Force contract. The remaining costs are not charged to government contracts. The corporation has purchased onetenth (1/10) of the office supplies for resale to the Air Force, and owes no tax on one thousand dollars ($1,000). The corporation owes tax on the remaining nine thousand dollars ($9,000) of this purchase.

(D) The same corporation leases forklifts for use in its plant. Some of the forklifts are used from time to time in connection with the United States Air Force contract. Based on allocation formulas that the United States Air Force reviews and approves, one-twentieth (1/20) of the charges for leasing the forklifts is charged to the United States Air Force contract.

The resale exclusion also applies to one-twentieth (1/20) of these payments.

(E) The same corporation purchases special paints and adhesives that are used in the manufacture of the Air Force airplanes, and for no other purpose. These supplies are exempt from tax under section 144.030.2(6), RSMo.

rule filed Nov. 10, 1999, effective May 30, 2000. Amended: Filed July 17, 2023, effective Feb. 29, 2024. Amended: Filed Aug. 18, 2025, effective Feb. 28, 2026. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

United States v. Lohman, 74 F.2d 863 (8th Cir. 1996). Sale of electricity used in an Army ammunition plant was an exempt sale to the United States government where the government entered into the sales contract with the power company, and title to the electricity passed directly from the power company to the government. Although a corporation operated the plant and paid the power company for the electricity, the court ruled that the government, not the corporation, was the purchaser of the electricity.

Olin Corp. v. Director of Revenue, 945 S.W.2d 442 (Mo. banc 1997). Government contractor that paid sales and use tax on tangible personal property used in its performance of a contract with the United States government was entitled to a refund of the tax, because the government was the purchaser of the property.

Under the contract and purchase orders, title to the property passed directly from the sellers to the government. The contract gave the corporation no discretion in designating who was to receive title to the property. In addition, the corporation’s use of the property was “severely limited” by the contract’s specifications.

Under these facts, the court found that the corporation did not receive ownership or title to the property, and was not the purchaser of the property.

McDonnell Douglas Corp. v. Director of Revenue, 945 S.W. 437 (Mo. banc 1997). Overhead materials and supplies purchased by government contractor, the cost of which were allocated to government contracts that included title vesting clauses, were resold to the government by the contractor. Accordingly, the government contractor’s purchase of these items was for resale, and exempt from tax.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

Chapter 113 Sales/Use Tax-Use Tax

12 CSR 10-113.200 Determining Whether a Transaction is Subject to Sales Tax or {#sec-12-csr-10-113.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-113.200}

12 CSR 10-113.200 Determining Whether a Transaction is Subject to Sales Tax or Use Tax {#sec-12-csr-10-113.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-113.200}

PURPOSE: Chapter 144, RSMo, contains the statutory provisions governing application of sales and use tax. This rule explains how to determine whether a transaction is subject to sales tax or use tax. This rule also explains what transactions are exempt from sales tax under the interstate commerce exemption in section 144.030.1, RSMo.

(1) In general, a sale of tangible personal property is subject to sales tax if title to or ownership of the property transfers in Missouri unless the transaction is in commerce. The seller must collect and remit the sales tax. If a sale is not subject to Missouri sales tax but the property is stored, used, or consumed in Missouri, the transaction is subject to use tax. If the transaction is subject to use tax and the seller has nexus with Missouri, the seller must collect the tax at the time of the sale and remit it to the department. If the seller does not collect the tax, the buyer must pay use tax directly to the department. If a sale of tangible personal property is not subject to Missouri sales tax and the property is not stored, used, or consumed in this state, no Missouri tax is due. A sale of a taxable service is subject to sales tax if the service is performed in Missouri. If the service is not performed in Missouri, the sale is not subject to tax.

(2) Definition of Terms.

(A) Nexus—contact with the state.

(B) In commerce—a transaction is in commerce if the order is approved outside Missouri and the tangible personal property is shipped from outside Missouri directly to the buyer in Missouri.

(3) Basic Application of Taxes.

(A) Title transfers when the seller completes its obligations regarding physical delivery of the property, unless the seller and buyer expressly agree that title transfers at a different time.

A recital by the seller and buyer regarding transfer of title is not the only evidence of when title passes. The key is the intent of the parties, as evidenced by all relevant facts, including custom or usage of trade.

(B) Unless otherwise agreed by the parties, when a Missouri seller delivers tangible personal property to a third-party common or contract carrier for delivery to an out-of-state location, title does not transfer in Missouri and the sale is not subject to Missouri sales tax. A buyer that carries its own goods is not acting as a common or contract carrier.

(C) When an out-of-state seller delivers tangible personal property to a third-party common or contract carrier for delivery to Missouri, title transfers in Missouri. If delivery is made to seller or an agent of seller (other than a third-party common or contract carrier) in Missouri and subsequently delivered to the buyer in Missouri, the sale is subject to Missouri sales tax. If delivery is made directly from the outof-state seller to the buyer in Missouri, the sale is subject to sales tax if the order was approved in Missouri. If the order was approved outside Missouri, the sale is not subject to sales tax, but the transaction is subject to use tax unless otherwise exempt.

(D) Leases of tangible personal property generally follow the same taxing guidelines as sales of tangible personal property.

Leases of tangible personal property by Missouri lessors are subject to sales tax if the lessee obtains possession in Missouri.

Leases of tangible personal property by non-Missouri lessors are subject to Missouri sales tax if the tangible personal property is located in Missouri prior to entering the lease and the lessee obtains possession in Missouri. Leases of tangible personal property that are not subject to sales tax are subject to use tax if the lessee stores, uses, or consumes the tangible personal property in Missouri.

(4) Examples.

(A) A seller accepts orders in Missouri. The seller fills orders from its warehouses located both within and without Missouri.

A customer orders goods from the seller in Missouri. The order is filled from an out-of-state warehouse and shipped directly to the customer. The transactions are subject to sales tax because the order is accepted in Missouri.

(B) A customer purchases custom fabricated goods from a Missouri seller. The order for the goods must be approved at the seller’s out-of-state headquarters. The goods will be shipped by the seller directly from the out-of-state facility to the customer’s Missouri location. The sale is subject to use tax because the order was approved out-of-state and the goods were shipped from out-of-state directly to the customer in Missouri. The seller must collect and remit the use tax.

(C) A Missouri seller sells pens, calendars, cups and similar items with the customer’s logo printed on them. The seller sends the orders to an out-of-state supplier to custom print the items that are drop shipped directly to the customer in Missouri. The sale is subject to sales tax because the customer’s order taken by the seller is approved in Missouri.

(D) While visiting Missouri, an Illinois resident purchases a set of luggage at a Missouri department store. The buyer requests the seller to ship the luggage to an Illinois address.

The sale is not subject to Missouri sales or use tax because title does not transfer in Missouri.

(E) An out-of-state customer purchases a kitchen table set from a Missouri seller. Under the terms of the sale, the seller is to ship the set to a Missouri location for storage until the customer is able to arrange to pick up the set with its truck or by third-party carrier. The sale is subject to sales tax.

(F) An Illinois construction contractor leases a backhoe from an Illinois lessor. Prior to entering the lease, the backhoe was located in Missouri. The contractor takes possession of the backhoe at the Missouri location. The lease is subject to sales tax.

(G) A seller has no place of business in Missouri. A sales representative who works from a non-Missouri location visits Missouri customers. All orders are accepted outside Missouri and goods are shipped to Missouri customers from outside the state. The seller must collect and remit use tax.

(H) A seller has a location in Missouri. A Missouri customer places an order directly with the seller’s non-Missouri location via email. The goods are shipped directly to the Missouri customer from the non-Missouri location. The Missouri office does not participate in the sale. The seller must collect and remit use tax.

(I) An out-of-state vendor markets tangible personal property to Missouri residents via online and televised advertisements.

The vendor does not own the items it markets. Instead, the vendor contracts with a third-party supplier to maintain and ship items purchased from its online and televised advertisements. A Missouri resident purchases a marketed item. Vendor instructs the third-party supplier to ship the purchased item to the Missouri resident. The third-party (3/31/26) Denny Hoskins supplier ships the item via common carrier to the Missouri resident. Title transfers from the third-party supplier to vendor in Missouri at the Missouri resident’s home. Title then transfers from the vendor to the Missouri resident. The vendor must collect and remit sales tax.

rule filed Jan. 10, 2002, effective July 30, 2002. Amended: Filed Jan. 10, 2023, effective July 30, 2023. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

12 CSR 10-113.300 Temporary Storage {#sec-12-csr-10-113.300 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-113.300}

PURPOSE: section 144.610, RSMo, imposes use tax on the sale of tangible personal property that is purchased for use, storage, or consumption in this state. Section 144.620, RSMo, creates a presumption that tangible personal property sold for delivery in or transportation to Missouri is for use, storage, or consumption in Missouri unless otherwise excluded. Sections 144.605(10) and (13), RSMo, define the incidence of “storage” and “use.” These sections provide an exclusion from use tax for property that is purchased for temporary storage in Missouri with the intent to subsequently use the property outside Missouri. This rule interprets this exclusion.

(1) In general, the temporary storage of property in this state with the intent to subsequently use the property outside the state is not subject to use tax.

(2) Definition of Terms.

(A) Storage—Any keeping or retention in this state of tangible personal property purchased from an out-of-state vendor, except property for sale or property that is temporarily kept or retained in this state for subsequent use outside the state.

To be “for subsequent use outside the state,” the purchaser must intend at the time the property is delivered to a Missouri location to subsequently use the property outside the state.

(B) Temporary—Generally, property kept or retained for less than a year may be considered temporary.

(C) Use—The exercise of any right or power over tangible personal property incident to the ownership or control of that property, except temporary storage of property in this state for subsequent use outside the state, or for sale of the property in the regular course of business.

(3) Basic Application of Exclusion.

(A) The purchase of tangible personal property from an out-of-state vendor that is temporarily kept or retained in this state for subsequent use outside the state is not subject to use tax. Any use of the property involving the exercise of any right, dominion, control, or power over the tangible personal property, other than temporarily keeping or retaining the property in this state for subsequent use outside the state, constitutes a taxable use.

(B) Keeping or retaining tangible personal property in this state for longer than a temporary period subjects the purchase of the property to use tax, even if the property will be used subsequently outside the state.

(C) The purchaser need not designate at the time of purchase which specific property is for subsequent use outside the state, provided the purchaser can otherwise establish that some of the property is intended for subsequent use out-of-state.

Intent can be shown by demonstrating the normal practices of the business or specific circumstances of the transaction.

The commingling of property on which tax has already been paid with property on which tax has not already been paid does not disqualify the property from the exclusion but makes it difficult for the taxpayer to document which property was intended for use outside the state.

(D) The exclusion will not apply if any further processing, fabrication, or other modifications are performed on or to the property while in this state.

(4) Examples.

(A) A Missouri contractor purchases from an out-of-state vendor materials and supplies for an out-of-state job. The items purchased are specifically ordered for the out-of-state job, are earmarked as such on the purchase orders, and are delivered to the contractor temporarily in Missouri. No further processing, fabricating, or other modifications are performed on the items.

The materials and supplies purchased are not stock items that may be used in other ongoing jobs either within or without the state. The purchase of the materials and supplies would not be subject to use tax in Missouri.

(B) Same facts as in Example A, however the Missouri contractor performs fabrication labor on the materials in preparation for the out-of-state job at its location in Missouri.

The purchase of the materials would then be subject to Missouri use tax.

(C) A Missouri law firm that has an office in Kansas orders ten computers from an out-of-state vendor for use in its Kansas office. The purchase orders are specifically earmarked accordingly. The computers will only be in Missouri for a few days in order to load the firm’s network software. The purchase of the computers would be subject to Missouri use tax because loading the firm’s software constitutes a taxable use.

(D) A taxpayer purchases equipment from an out-of-state vendor for storage in Missouri that it intends at the time of purchase to transfer the equipment to an out-of-state facility in eighteen months. The purchase is subject to use tax.

(E) Taxpayer is a wholesaler of goods. It purchased samples from an out-of-state vendor, which were delivered directly to its Missouri warehouse. The taxpayer at the time of purchase intended that twenty percent (20%) of the samples would go to its Missouri sales force and the other eighty percent (80%) would go to its out-of-state salespersons. All the samples were commingled and were only in Missouri for three (3) months.

Because the wholesaler intended to send eighty percent (80%) of the samples out-of-state, the purchase of the eighty percent (80%) is exempt from use tax. However, the wholesaler should pay state and local use tax on any portion of the eighty percent (80%) used in Missouri at the time the samples are removed from the warehouse. Local use tax applies based on the location of the warehouse.

(F) A Missouri wholesaler purchases brochures from non-Missouri suppliers. The brochures are shipped to the wholesaler’s warehouse in Missouri for later shipment to facilities both in-state and out-of-state. The wholesaler does not know at the time of purchase exactly when and where the brochures will be shipped. On average the brochures are stored for six (6) months. As brochures are needed for in-state and outof-state customers, they are removed from storage and shipped to customers free of charge. Because the wholesaler intended to send some of the brochures out-of-state, the purchase is exempt from use tax. However, the wholesaler should pay state and local use tax on all items used in Missouri at the time the brochures are removed from the warehouse. Local use tax applies based on the location of the warehouse.

(G) Same facts as in Example F except all of the brochures are intended for use in Missouri. The wholesaler should pay tax on the entire purchase price at the time of purchase. Because the intent was for the brochures to be used in Missouri, any occasional out-of-state use does not qualify for the temporary storage exemption.

(H) Same facts as in Example F except some brochures are purchased from an in-state vendor and sales tax is paid at the time of purchase. The wholesaler commingles the taxed brochures purchased in-state with the untaxed brochures purchased from out-of-state. Unless the wholesaler maintains specific documentation of which brochures will be used instate and out-of-state the use tax is due on the commingling of the brochures.

Custom Hardware Engineering & Consulting, Inc. v. Director of Revenue, 358 S.W.3d 54 (Mo. banc 2012). Custom Hardware Engineering, Inc. (CHE) performed computer hardware maintenance and repair on enterprise-class machines, and purchased parts from vendors outside Missouri. These parts were shipped to CHE’s Missouri headquarters, where they were tested and certified for use by customers. CHE retained title to the parts until they were utilized by the customer. The Supreme Court of Missouri held that CHE did not qualify for the temporary storage exemption because the testing and certification process went beyond mere temporary storage and constituted a taxable use. The court also held that CHE did not qualify for the resale exemption because the parts were not purchased for a subsequent taxable sale but were instead used to fulfill maintenance contracts. Additionally, the fact that some of CHE’s customers were public entities exempt from taxation did not render CHE exempt from use tax. Finally, the court held that the Administrative Hearing Commission had the authority to increase CHE’s tax liability beyond the amount initially determined by the director of revenue.

History

AUTHORITY: section 144.705, RSMo 2016. Original rule filed June 8, 2000, effective Dec. 30, 2000. Amended: Filed Oct. 9, 2025, effective April 30, 2026. Original authority: 144.705, RSMo 1959.

12 CSR 10-113.320 Sales Tax Rules Apply {#sec-12-csr-10-113.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-113.320}

PURPOSE: This rule provides that rules issued under certain sections of the sales tax law apply to use taxes and interprets and applies section 144.720, RSMo.

In general, all sales tax rules pertaining to the state sales tax sections 144.170, 144.220, and 144.230, RSMo apply to the use tax.

History

AUTHORITY: section 144.705, RSMo 2016. This rule originally filed as 12 CSR 10-4.320. U.T. regulation 720-1 originally filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Moved to

12 CSR 10-113.320 and amended: Filed Oct. 2, 2018, effective April 30, 2019. *Original authority: 144.705, RSMo 1959. {#sec-12-csr-10-113.320 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-113.320}

12 CSR 10-113.400 Marketplace Facilitator {#sec-12-csr-10-113.400 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-113.400}

PURPOSE: Chapter 144, RSMo, contains the statutory provisions governing application of use tax. This rule explains who qualifies as a marketplace facilitator and how a seller should report their use tax transactions.

(1) In general, a marketplace facilitator must collect and remit use tax on behalf of sellers that utilize the marketplace facilitator’s service or services to list tangible personal property or services for sale regardless of the forum. A marketplace facilitator who also has their own tangible personal property or services for retail sale must remit tax for those sales separately.

(2) Definition of Terms.

(A) Nexus—contact with the state.

(B) Economic Nexus—selling tangible personal property for delivery into this state, provided the seller’s gross receipts from taxable sales from delivery of tangible personal property into this state in the previous calendar year or current calendar year exceeds one hundred thousand dollars ($100,000).

(C) Marketplace Facilitator—a person that facilitates a retail sale by a marketplace seller by listing or advertising for sale by the marketplace seller, in any forum, tangible personal property or services that are subject to tax under Chapter 144, RSMo, and either directly or indirectly through agreements or arrangements with third parties collects payment from the purchaser and transmits all or part of the payment to the marketplace seller.

(D) Marketplace Seller—a seller that makes sales through any electronic marketplace operated by a marketplace facilitator.

(3) Basic Application of Taxes.

(A) A marketplace facilitator that facilitates a retail sale of tangible personal property or taxable services that are delivered into the state for a marketplace seller should collect and remit use tax on behalf of the marketplace seller.

(B) A marketplace seller should not report any sales made through a marketplace facilitator where the marketplace facilitator reported and remitted the tax. A marketplace seller must keep records of all sales made through a marketplace facilitator.

(C) If a marketplace facilitator has a physical presence in the state then it should continue to remit sales tax on those sales even if it is also remitting use tax on behalf of marketplace (D) A marketplace facilitator is engaging in business in this state if the sales it facilitates and its own sales combined are more than one hundred thousand dollars ($100,000) annually.

(4) Examples.

(A) A seller sells its own tangible personal property or services in the state and also sells tangible personal property or services for other sellers. The seller has sales of sixty thousand dollars ($60,000) and facilitates sales of seventy thousand dollars ($70,000). Because the total sales are in excess of one hundred thousand dollars ($100,000), the seller is a marketplace facilitator and should collect and remit on behalf of the other (B) A seller sells its own tangible personal property or services in the state and also sells tangible personal property or services for other sellers. The seller has sales of forty thousand dollars ($40,000) and facilitates sales of thirty thousand dollars ($30,000). Because the total sales are less than one hundred thousand dollars ($100,000), the seller does not have economic nexus and should not collect and remit on behalf of the other (C) A marketplace facilitator has a physical presence in the state and makes its own sales of tangible personal property or (3/31/26) Denny Hoskins services. It should collect and remit sales tax on its own sales.

It should collect and remit use tax on the sales it facilitates for other sellers.

(D) A seller has no physical presence in the state and sells less than one hundred thousand dollars ($100,000) of its own tangible personal property through its website to addresses in the state of Missouri. The seller does not facilitate sales for others. The seller is not a marketplace facilitator or marketplace seller.

rule filed Jan. 10, 2023, effective July 30, 2023. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

Chapter 114 Sales/Use Tax-Constitutional Issues

12 CSR 10-114.100 Determining When a Vendor Has Substantial Nexus for Use Tax {#sec-12-csr-10-114.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-114.100}

PURPOSE: Chapter 144, RSMo, contains the statutory provisions governing application of use tax. The legal responsibility for paying use tax may fall upon either the vendor or the purchaser.

The vendor must register with the department and collect and remit use tax if it has substantial nexus with the state. Unless the purchaser pays use tax to a vendor registered with the department to collect use tax, the purchaser must remit use tax to the state. This rule explains when a vendor must register with the department and collect and remit use tax on sales to Missouri purchasers.

(1) In general, an out-of-state vendor must register with the department and collect and remit use tax when the vendor has substantial nexus with Missouri. Substantial nexus exists when the vendor has a physical presence or economic nexus in Missouri.

(2) Definition of Terms.

(A) Nexus—contact with the state.

(B) Physical presence—owning or leasing real or tangible personal property within this state; or having employees, agents, representatives, independent contractors, brokers or others that reside in, or regularly and systematically enter into, this state on behalf of the vendor.

(C) Economic nexus—selling tangible personal property for delivery into this state, provided the seller’s gross receipts from taxable sales from delivery of tangible personal property into this state in the previous calendar year or current calendar year exceeds one hundred thousand dollars ($100,000).

(D) Vendor—an out-of-state person who makes sales of tangible personal property for use, storage, or consumption in the state.

(3) Basic Application of Tax.

(A) A vendor with substantial nexus with Missouri must collect and remit use tax on sales, rentals, or leases of tangible personal property purchased for use, storage, or consumption in Missouri if the transaction is not subject to Missouri sales tax. The vendor has substantial nexus when the vendor has a physical presence or economic nexus in the state.

(B) A vendor does not have substantial nexus if the vendor has less than one hundred thousand dollars ($100,000) in taxable sales and the only contact with the state is delivery of goods by common carrier or mail, advertising in the state through media, or occasionally attending trade shows at which no orders for goods are taken and no sales are made.

(C) Occasional deliveries into the state by the vendor’s delivery vehicles with no other contacts do not constitute physical presence to establish substantial nexus.

(D) Once substantial nexus has been established, the vendor is liable for use tax on all sales of tangible personal property made in the state.

(E) The fact that a vendor has substantial nexus does not relieve the purchaser from liability for use tax. The liability for use tax is joint and several for the vendor and purchaser.

The purchaser is relieved from the liability for the tax if the purchaser pays a separately stated Missouri tax to a vendor who is registered with the department to collect the tax.

(F) A taxpayer must allow the department to review the taxpayer’s records even if the taxpayer believes that it does not have nexus with the state.

(4) Examples.

(A) A taxpayer is located in Alabama. The taxpayer makes taxable sales of over one hundred thousand dollars ($100,000) into Missouri. The taxpayer has economic nexus and should register with the department and collect and remit use tax.

(B) A taxpayer is located in Indiana. The taxpayer makes less than one hundred thousand dollars ($100,000) of taxable sales into Missouri. The taxpayer has no other contacts with the state. The taxpayer is not required to collect Missouri tax.

Subsequently, the taxpayer acquires a warehouse in Missouri to store inventory for another part of its business. By acquiring the warehouse, the taxpayer has established a physical presence in the state and must collect and remit tax on all sales to Missouri purchasers.

(C) An out-of-state company hires sales representatives to cover a five- (5-) state territory including Missouri. The sales representatives reside in Illinois but regularly travel to Missouri to solicit retail sales. The out-of-state company must collect tax on all sales to Missouri purchasers, regardless whether the sales representatives are employees or independent contractors.

(D) An out-of-state company that lacks substantial nexus voluntarily registers to collect use tax. The company should collect and remit the appropriate tax to Missouri.

(E) An out-of-state taxpayer leases machinery to various customers in Missouri. The taxpayer also sells tools and supplies over the Internet to customers in Missouri. The taxpayer must collect use tax on all of its sales and leases in Missouri because its leased property located in Missouri creates substantial nexus with the state.

(F) Same facts as (4)(E) above, except the taxpayer has received valid exemption certificates for the leases. The taxpayer must still collect use tax on its sales.

(G) An out-of-state company accepts an order from a Missouri customer. The out-of-state company orders the merchandise from a wholesaler in Missouri for drop shipment directly to the customer. The out-of-state company must collect sales tax on the transaction because its ownership of the tangible personal property in the state creates substantial nexus.

Quill Corp. v. North Dakota, 112 S. Ct. 1904 (1992). The U.S.

Supreme Court reaffirmed the physical presence test for nexus.

The out of state vendor whose only contact with the taxing state was by mail order did not have physical presence to establish taxable nexus.

Burke & Sons Oil Co. v. Director of Revenue, 757 S.W.2d 278 (Mo.

App. 1988). Occasional deliveries into the state by the vendor’s own vehicles with no other contacts with the state are not sufficient presence to create taxable nexus.

ATD International v. Director of Revenue, (AHC 1997). Taxpayer sold, installed and serviced telephone equipment. Taxpayer solicited business through advertising in Missouri. Its employees negotiated contracts at Missouri businesses and it installed and (6/30/23) John R. Ashcroft maintained equipment in Missouri. Taxpayer had sufficient physical presence in Missouri to have taxable nexus.

Rembrandt Restaurant, Inc. v. Director of Revenue, (AHC 1995).

The fact that an out of state vendor has nexus does not prohibit the director from holding the purchaser liable for use tax.

South Dakota. v. Wayfair, Inc., et al., 138 S.Ct. 2080 (2018).

Out-of-state seller’s physical presence in taxing state is not necessary for state to require seller to collect and remit its sales tax, overruling Quill and National Bellas Hess.

History

AUTHORITY: section 144.705, RSMo 2016. Original rule filed Dec. 1, 2004, effective June 30, 2005. Amended: Filed Dec. 8, 2022, effective July 30, 2023. Original authority: 144.705, RSMo 1959.

Chapter 115 Sales/Use Tax-Statute of Limitations

12 CSR 10-115.100 Bad Debts Credit or Refund {#sec-12-csr-10-115.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-115.100}

(Moved to 12 CSR 10-102.100)

Rebecca McDowell Cook (12/31/00)

Chapter 117 Sales/Use Tax-Local Taxes

12 CSR 10-117.100 Determining the Applicable Local Sales or Use Tax {#sec-12-csr-10-117.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-117.100}

PURPOSE: Sections 32.085 and 32.087, RSMo, authorize political subdivisions to adopt a local sales tax. Section 144.757, RSMo, authorizes any county or municipality to adopt a local use tax at a rate equal to the rate of the local sales tax in effect in that jurisdiction. This rule explains which local jurisdiction’s tax applies to a transaction subject to state sales or use tax. This rule does not address the sale or lease of motor vehicles, trailers, boats, and outboard motors.

(1) In general, taxing entities may impose a local sales tax on transactions that are subject to state sales tax. Counties and municipalities may also impose a local use tax at a rate no higher than the rate of the local sales tax in effect in that jurisdiction. When a transaction is subject to state sales tax, the transaction is also subject to the local sales tax adopted by the political subdivision where the seller’s place of business is located. When a transaction is subject to state use tax, the transaction is also subject to the local use tax adopted by the county or municipality where the tangible personal property is first delivered in Missouri.

(2) Definition of Term.

(A) Place of business—a place where business is transacted in Missouri and that is maintained, occupied, or used, directly or indirectly, by a seller or agent of the seller. A place that is temporarily maintained, occupied, or used may be a place of business if all orders that are received at the temporary location are immediately filled from that location.

(3) Basic Application of Taxes.

(A) Sales Tax.

All sales of tangible personal property subject to state sales tax in which the order is taken at a Missouri place of business are subject to the local sales tax in effect at that place of business.
If an outside sales employee or agent who works out of a Missouri place of business takes an order for a sale of tangible personal property subject to state sales tax, the sale is subject to the local sales tax in effect at the place of business from which the employee or agent works.
If an outside sales employee or agent who does not work out of a Missouri place of business takes an order in Missouri for a sale of tangible personal property subject to sales tax, the sale is subject to the local sales tax in effect where the order is taken.
If the order is taken outside Missouri for a sale of tangible personal property subject to Missouri sales tax, the sale is subject to the local sales tax in effect where title to the item transfers to the purchaser. An exception would exist if the merchandise is shipped from one (1) of the seller’s Missouri locations to the Missouri customer. In that instance, the sale is subject to the local sales tax at the location of the Missouri seller from where the merchandise was shipped.
A sale of services subject to state sales tax is subject to the local sales tax in effect where the service is rendered or delivered.
Metered sales (e.g., natural gas and utilities) subject to state sales tax are subject to the local sales tax in effect where the meter is located.
Sales made entirely at a temporary location, such as a food truck, will be subject to the local sales tax in effect at that location.

(B) Use Tax—A sale of tangible personal property subject to state use tax is subject to the local use tax in effect where the item is first delivered in Missouri.

Sales of metered water services, electricity, electrical current, and natural, artificial, and propane gas, wood, coal, or home heating oil for domestic use may be subject to local tax at the meter’s location even though they are exempt from state tax. This would apply if the local government has imposed a local sales tax.
When goods otherwise subject to state sales or use tax are purchased under a resale exemption certificate and later withdrawn from inventory for the purchaser’s own use, the goods are subject to the local sales or use tax that would have been due if the original purchase had not been exempt. If the goods are commingled so that the purchaser cannot determine where the goods withdrawn from inventory were originally purchased, the goods are subject to the local sales tax in effect at the location of the purchaser.
All provisions of the state sales and use tax law apply to local tax. The tax permits, exemption certificates, and retail licenses required for the administration and collection of state sales and use tax also satisfy the requirements for local sales and use tax.

(4) Examples.

(A) A seller has a place of business in Missouri. The seller’s outside sales people work out of seller’s place of business in Missouri. These sales people accept orders at customer locations. Goods are shipped from plants and warehouses located throughout Missouri and in other states. Sales to customers located in Missouri are subject to the local sales tax in effect at the seller’s place of business.

(B) An outside sales person takes an order in Missouri. The salesperson works out of an office located in a neighboring state. The salesperson fills the order from inventory, the salesperson carries and receives payment. The sale is subject to the local sales tax in effect where the order was taken. The result is the same even if the seller also has a place of business in Missouri because the salesperson does not work out of the Missouri location.

(C) A manufacturer accepts an order at its office outside Missouri from a customer in Missouri. As part of the sale, the manufacturer delivers and assembles the goods in Missouri.

The parties agree that title to the goods transfers after assembly. The sale is subject to the local sales tax in effect where title to the goods transfers. The result is the same even if the seller also has a place of business in Missouri.

(D) A sign manufacturer accepts an order at its office outside Missouri from a customer in Missouri. The customer takes title and possession of the sign at the manufacturer’s location outside Missouri and has the sign delivered to the customer’s Missouri location. The purchase is subject to the local use tax in effect where the sign is first delivered in Missouri.

(E) A refinery located outside Missouri sells fuel to Missouri customers through an agent located in Missouri. The customers are billed for fuel usage indicated on a meter located at the agent’s Missouri facility. The sales are subject to the local sales tax in effect where the meter is located.

(F) A lumberyard purchases lumber exempt from tax because the lumber is purchased for resale. The lumberyard removes (2/29/24) John R. Ashcroft lumber from its inventory to build a storage shed at the lumberyard. The lumberyard should accrue tax on the lumber removed from inventory based on the type (sales or use) and rate of tax that would have been paid if the original purchase had not been exempt. If the lumber is commingled with lumber from other suppliers so that the lumberyard cannot determine where the lumber used was purchased, the lumber is subject to the local sales tax in effect at the lumberyard.

(G) A taxpayer operates a mobile food service business. It sells sandwiches and drinks from its trucks. Local sales tax is due based upon the location where the trucks are parked because all orders are taken and filled and all payments are made at that location.

(H) A water company provides service to residents of a community. Local sales tax is due based upon the location of the customers’ residence.

(I) Taxpayer has four (4) places of business in Missouri, which participate in a sale. Location A takes the initial order.

Location B approves the application for credit. Location C ships the goods from inventory contained in the warehouse to the customer instate. Location D bills the customer. The applicable local sales tax is the tax in effect at Location A, where the initial order is taken.

(J) A seller located in Kirkwood, Missouri, which is located in St. Louis County, receives an order from a buyer located in Macon, Missouri. The merchandise is shipped to Columbia, Missouri. The sale is subject to Kirkwood city and St. Louis County sales taxes.

rule filed Jan. 10, 2002, effective July 30, 2002. Amended: Filed Aug. 7, 2023, effective March 30, 2024. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961, 2008, and 144.705, RSMo 1959.

Associated Industries of Missouri v. Lohman, 114 S. Ct. 1815 (1994). The U.S. Supreme Court ruled that a local use tax rate greater than the local sales tax rate is unconstitutional.

Shell Oil Co. v. Director of Revenue, 732 S.W.2d 178 (Mo. 1987).

Shell Oil Company purchased aviation fuel from another oil company and then arranged for the delivery and sale of the fuel in Missouri. The title to the fuel passed by contract from the other oil company to Shell Oil, and then from Shell Oil to the airlines, at the time the fuel passed through metering devices located in Missouri.

The sale was consummated and was subject to the local sales tax in effect at the Missouri airport.

Mobil-Teria Catering Co. v. Spradling, 576 S.W.2d 282 (Mo. banc 1978). For the purpose of public mass transportation tax and transportation sales tax, “place of business” of mobile food service business referred to place where trucks were parked, wares displayed, initial orders taken and filled, payments made and sales consummated. Orders were taken and the sales were consummated at the sites where the trucks were parked. These sites were outside the taxing jurisdiction and were not subject to the local tax.

Fabick & Co. v. Schaffner, 492 S.W.2d 737 (1973). Salesman working from and out of the taxpayer’s place of business in Jefferson City took all orders. The orders were all accepted in Jefferson City. Even though the purchasers were not always in Jefferson City and some orders were shipped from locations outside Jefferson City, all orders were subject to the local sales tax. All orders were consummated at the place of business of the taxpayer in Jefferson City because that is where the orders were taken and accepted.

John Fabick Tractor Co. v. Director of Revenue (AHC 1996).

When possession of leased equipment is transferred in Missouri, the lease is consummated at the place of business of the lessor.

The monthly lease payments are subject to state and local sales tax regardless of whether the lessee subsequently moves the leased property to another taxing jurisdiction or even out of state.

History

AUTHORITY: sections 144.270 and 144.705, RSMo 2016. Original

Chapter 400 Individual Income Tax

12 CSR 10-400.250 Computation of an Individual’s Missouri Adjusted Gross Income on a {#sec-12-csr-10-400.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-400.250}

12 CSR 10-400.200 Special Needs Adoption Tax Credit {#sec-12-csr-10-400.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-400.200}

(Rescinded September 30, 2024)

Emergency rule filed Jan. 7, 2005, effective Jan. 17, 2005, expired July 15, 2005. Original rule filed Jan. 7, 2005, effective July 30, 2005. Amended: Filed Oct. 31, 2006, effective May 30, 2007.

Rescinded: Filed Jan. 25, 2024, effective Sept. 30, 2024.

History

AUTHORITY: section 143.961, RSMo 2000, and 135.327, RSMo Supp.

12 CSR 10-400.210 Children in Crisis Tax Credit {#sec-12-csr-10-400.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-400.210}

(Rescinded July 30, 2018)

History

AUTHORITY: section 135.327, RSMo Supp. 2006. Original rule filed Oct. 26, 2006, effective May 30, 2007. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-400.250 Computation of an Individual’s Missouri Adjusted Gross Income on a Combined Income Tax Return {#sec-12-csr-10-400.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-400.250}

(Rescinded March 30, 2024)

Rescinded: Filed Aug. 15, 2023, effective March 30, 2024.

History

AUTHORITY: section 143.961, RSMo 2000, and section 135.647, RSMo Supp. 2007. Original rule filed Dec. 1, 2004, effective July 30, 2005. Amended: Filed Aug. 14, 2007, effective Feb. 29, 2008.

Chapter 405 Homestead Preservation Credit

12 CSR 10-405.100 Homestead Preservation Credit—Procedures (2005) {#sec-12-csr-10-405.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-405.100}

Emergency rule filed March 10, 2005, effective March 20, 2005, expired Sept. 16, 2005. Original rule filed March 10, 2005, effective Sept. 30, 2005. Amended: Filed Oct. 17, 2005, effective April 30, 2006. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-405.105 Homestead Preservation Credit—Procedures 2006. Original rule filed Oct. 17, 2005, effective April 30, 2006. Amended: Filed Oct. 25, 2006, effective May 30, 2007. Rescinded: {#sec-12-csr-10-405.105 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-405.105}

Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-405.200 Homestead Preservation Credit—Qualifications and Amount of Credit (2005) {#sec-12-csr-10-405.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-405.200}

Emergency rule filed March 10, 2005, effective March 20, 2005, expired Sept. 16, 2005. Original rule filed March 10, 2005, effective Sept. 30, 2005. Amended: Filed Oct. 17, 2005, effective April 30, 2006. Rescinded: Filed Jan. 26, 2018, effective July 30, 2018.

12 CSR 10-405.205 Homestead Preservation Credit—Qualifications and Amount of Credit 2006. Original rule filed Oct. 17, 2005, effective April 30, 2006. Amended: Filed Oct. 25, 2006, effective May 30, 2007. Rescinded: {#sec-12-csr-10-405.205 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-405.205}

Filed Jan. 26, 2018, effective July 30, 2018.

JOHNR. ASHCROFT(6/30/18)

Division 20 Highway Reciprocity Commission

Chapter 1 Organization and Description

12 CSR 20-1.010 General Organization {#sec-12-csr-20-1.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-1.010}

(Rescinded February 29, 2008)

Filed Oct. 15, 1986, effective Jan. 30, 1987.

Amended: Filed Nov. 1, 1991, effective March 9, 1992. Rescinded: Filed Aug. 9, 2007, effective Feb. 29, 2008.

ROBINCARNAHAN(1/30/08)

History

AUTHORITY: sections 32.050 and 536.023, RSMo 1986. Original rule filed Dec. 31, 1975, effective Jan. 10, 1976. Amended:

Chapter 2 Reciprocity in Registration With Other States - Registration of Trailers

12 CSR 20-2.010 Reciprocity with Other States—Registration of Trailers {#sec-12-csr-20-2.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-2.010}

(Moved to 7 CSR 10-25.050)

ROBINCARNAHAN(1/30/08)

States—Registration of Trailers12 CSR 20-2

Chapter 3 Apportion Registration (moved to 7 CSR 10-25)

12 CSR 20-3.010 Apportion Registration {#sec-12-csr-20-3.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-3.010}

(Moved to 7 CSR 10-25.030)

ROBINCARNAHAN(7/31/07)

Chapter 4 Multistate Agreement

12 CSR 20-4.010 Bilateral Basing Point— Multistate Agreement {#sec-12-csr-20-4.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-4.010}

(Rescinded February 29, 2008)

Original rule filed July 22, 1965, effective Aug. 1, 1965. Amended: Filed Oct. 28, 1974, effective Nov. 7, 1974. Amended: Filed Oct. 15, 1986, effective Jan. 30, 1987. Amended:

Filed Nov. 1, 1991, effective March 9, 1992.

Rescinded: Filed Aug. 9, 2007, effective Feb. 29, 2008.

ROBINCARNAHAN(1/30/08)

History

AUTHORITY: sections 142.621 and 301.275, RSMo 1986 and 142.617, RSMo Supp. 1990.

Chapter 5 Investigation

12 CSR 20-5.010 Investigation and Audits {#sec-12-csr-20-5.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-5.010}

(Moved to 7 CSR 10-25.080)

ROBINCARNAHAN(1/30/08)

Chapter 6 Trip Permits

12 CSR 20-6.010 Trip Permits {#sec-12-csr-20-6.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-6.010}

(Moved to 7 CSR 10-25.060)

ROBINCARNAHAN(1/30/08)

Chapter 7 International Fuel Tax Agreement

12 CSR 20-7.010 Definitions {#sec-12-csr-20-7.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-7.010}

(Moved to 7 CSR 10-25.070)

12 CSR 20-7.020 Application for International Fuel Tax Agreement License {#sec-12-csr-20-7.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-7.020}

(Moved to 7 CSR 10-25.071)

12 CSR 20-7.030 Fuel Tax Reports {#sec-12-csr-20-7.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-7.030}

(Moved to 7 CSR 10-25.072)

12 CSR 20-7.040 Record Keeping Requirements {#sec-12-csr-20-7.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-7.040}

(Moved to 7 CSR 10-25.073)

12 CSR 20-7.050 Good Cause {#sec-12-csr-20-7.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-7.050}

(Rescinded February 29, 2008)

Original rule filed Nov. 1, 1991, effective March 9, 1992. Rescinded: Filed Aug. 9, 2007, effective Feb. 29, 2008.

History

AUTHORITY: sections 142.621 and 301.275, RSMo 1986 and 142.617, RSMo Supp. 1990.

12 CSR 20-7.060 Appeals {#sec-12-csr-20-7.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 20-7.060}

(Moved to 7 CSR 10-25.090)

ROBINCARNAHAN(1/30/08)

Division 30 State Tax Commission

Chapter 1 General Organization

12 CSR 30-1.010 General Organization {#sec-12-csr-30-1.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-1.010}

PURPOSE: This rule is to comply with the requirements of section 536.023(3), RSMo which requires each state agency to adopt as a rule a description of its organization and general courses and methods of its operation and the methods and procedures where the public may obtain information or make submissions or requests.

(1) The State Tax Commission supervises and directs assessment and taxation laws.

(A) The commission has the duty to exercise general supervision over all assessing officers of the state and over county boards of equalization. In the execution of its duties and powers, the commission shall call upon the attorney general or any prosecuting or circuit attorney in the state for assistance in the enforcement of all laws relating to the general property tax.

(B) The commission has the power to call an annual meeting of assessors. The commission has the duty each year to have one (1) member or a duly authorized representative visit officially the several counties of the state to inquire into the methods of assessment and taxation to ascertain whether assessment and revenue officers are faithfully discharging their duties as required by law.

(C) The commission has the duty to prescribe the form of all blanks and books that are used in the assessment and collection of the general property tax, except as otherwise provided by law.

(D) The commission has the duty to require from any officer in the state, on forms prescribed by the commission, (see 12 CSR 30-1.030) reports as shall enable the commission to ascertain the assessed and equalized value of all real and tangible personal property.

(E) The commission has the duty to raise or lower the assessed valuation of any real or tangible personal property of any individual, partnership, company or corporation in compliance with the laws of this state.

(F) The commission has the power to cause to be placed upon the assessment rolls, at any time during the year, property omitted from the tax rolls for any reason, and to correct errors on the assessment rolls.

(G) The commission has the duty to equalize the valuation of real and tangible personal property among the several counties of the state.

(2) The commission has the exclusive power of original assessment of railroads, bridges, telegraph, telephone, express companies and other similar public utility companies and firms.

(3) The commission has the duty to investigate and hear taxpayer appeals from the local boards of equalization and to correct any assessment which is shown to be unlawful, unfair, improper, arbitrary or capricious.

(4) The commission has the duty to publish and distribute an annual report of the proceedings and decisions of the commission.

(5) The commission has the duty to certify the ratio of assessment to value in each county each year to the State Board of Education for utilization in the school aid formula.

(6) The commission has the power to appoint, by an order, agents and hearing officers whose duties shall be prescribed in the order, for the purpose of making any investigations, or the performance of other duties regarding any matters relating to taxation.

(7) The commission has the duty to investigate companies which have tangible personal property for lease, to cause the property to be properly taxed.

(8) The State Tax Commission is located at 421 East Dunklin Street, Jefferson City, Missouri. The mailing address for the State Tax Commission is PO Box 146, Jefferson City, MO 65102- 0146. The phone number is (573) 751-2414.

Filed April 17, 1979, effective July 16, 1979. Rescinded and readopted:

Filed Dec. 13, 1983, effective March 12, 1984. Amended: Filed April 13, 2006, effective Oct. 30, 2006. Amended: Filed Dec. 21, 2007, effective June 30, 2008. Non-substantive change filed April 21, 2023, published June 30, 2023. *Original Authority: 138.290, RSMo 1939, amended 1945, 1951, 1957, 1973, 1980; 138.380, RSMo 1939, amended 1945, 1947; 138.390, RSMo 1939, amended 1945, 1947; 138.395, RSMo 1980, amended 1994, 1995; 138.410, RSMo 1939, amended 1945, 1947, 1951; 138.415, RSMo 1951; 138.420, RSMo 1939, amended 1945, 1947, 1986; 138.430, RSMo 1939, amended 1945, 1947, 1978, 1983, 1989, 1999; 138.440, RSMo 1939, amended 1945, 1947, 1965, 1980, 1984; and 138.450, RSMo 1939, amended 1945, 1947, 1957, 1961, 1981, 1983.

History

AUTHORITY: sections 138.290, 138.380, 138.390, 138.395, 138.410, 138.415, 138.420, 138.430, 138.440 and 138.450, RSMo 2000. Original rule filed Sept. 15, 1976, effective Jan. 13, 1977. Amended:

12 CSR 30-1.016 Allocation of Unit Value {#sec-12-csr-30-1.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-1.016}

(Moved to 12 CSR 30-2.016)

12 CSR 30-1.020 Meetings and Hearings {#sec-12-csr-30-1.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-1.020}

PURPOSE: The purpose of this rule is to announce the time and place of meetings and hearings of the State Tax Commission.

(1) The principal office of the State Tax Commission is located in the Harry S Truman State Office Building, 301 West High Street, Jefferson City, Missouri. The mailing address for the State Tax Commission is PO Box 146, Jefferson City, MO 65102- 0146. The phone number is (573) 751-2414. All general inquiries to the commission, cover letters, motions and other pleadings should be addressed to the Administrative Secretary, State Tax Commission of Missouri, PO Box 146, Jefferson City, MO 65102-0146. All documents filed with the commission must be on eight and one-half by eleven inch (8 1/2" x 11") (letter size) paper.

(2) Regular meetings of the commission will generally be held in the hearing room of the commission during regular business hours, Monday through Friday, except legal holidays, for the purpose of conducting public business before the commission, and for the purpose of adopting or rejecting, by public vote, proposed decisions and orders in appeals taken under section 138.430, RSMo.

(3) Formal hearings before the commission will generally be (6/30/23) John R. Ashcroft held between 9:00 a.m. and 4:30 p.m., Monday through Friday, except legal holidays, in the county of which venue is located for the purpose of appellate review.

(4) Two (2) commissioners constitute a quorum for the transaction of business, the performance of any duty or the exercise of any duty or the exercise of any power of the commission.

Amended: Filed April 23, 1984, effective Sept. 14, 1984. Amended:

Filed April 13, 2006, effective Oct. 30, 2006. Amended: Filed Dec. 21, 2007, effective June 30, 2008. *Original authority: 138.430, RSMo 1939, amended 1945, 1947, 1978, 1983, 1989, 1999.

History

AUTHORITY: section 138.430, RSMo 2000. Original rule filed Dec. 13, 1976, effective June 11, 1977. Amended: Filed Jan. 30, 1978, effective May 11, 1978. Amended: Filed April 12, 1979, effective July 16, 1979. Amended: Filed Dec. 13, 1983, effective March 12, 1984.

12 CSR 30-1.030 Forms {#sec-12-csr-30-1.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-1.030}

PURPOSE: This rule sets forth the forms utilized by the State Tax Commission in the assessment and collection of the general property tax.

(1) The forms prescribed by the commission to be used in an appeal to the State Tax Commission from the local board of equalization (12 CSR 30-3.010) are: STC Form 103 (5-86)

(Complaint for Review of Assessment—Real Property); STC Form 104 (5-86) (Complaint for Review of Assessment—Personal Property); and STC Form 106 (6-86) (Complaint for Review of Assessment—Manufacturers).

(2) The forms to be used in the reporting and collection of taxes on railroads and street railroads pursuant to Chapter 151, RSMo, include the following: Form 20A (10-89) (Railroad Aggregate Statement of Taxable Property); Form 20 (9-87) (Railroad Aggregate Statement of Taxable Property); Form 20, Schedule 1 (10-87) (Company Organization—General Information);

Form 30, Schedule 2 (10-89) (Taxation by States); Form 20, Schedule 3 (10-89) (Mileage of Road and Railway Statistics);

Form 20, Schedule 3T (10-87) (Mileage of Road and Railway Statistics—Terminals); Form 20, Schedule 4 (10-88) (Main Track Mileage); Form 20, Schedule 5 (10-85) (Leased Equipment);

Form 20, Schedule 6 (10-85) (Real/Personal Allocation); Form 20, Schedule 7 (10-85) (Comparative Balance Sheet); Form 20, Schedule 8 (10-85) (Comparative Income Statement); Form 30, Schedule 9 (10-85) (Capital Stock); Form 30, Schedule 10 (10-88) (Long Term Debt); Form 30, Schedule 11 (10-85) (Non- Operating Property in Missouri); Form 30, Schedule 12 (10- 87) (Total of County’s Locally Assessed Property); Form 30, Schedule 13 (11-86) (County Apportionment); Form 30, Schedule 14 (11-86) (Local Assessments); Form 30, Schedule 15 (9-87)

(Real Estate Information); Form 30, Schedule 16 (11-85) (Motor Vehicle Information); Form 20, Schedule 17 (10-89) (Freight Line Company Mileage); Form 20, Schedule 18 (10-89) (Freight Line Company Credits); Form 20, Schedule 19 (9-99) (Previous Year’s Assessment and Taxes); Form 50 (10-89) (Freight Line Company Aggregate Statement of Taxable Property); Form 50, Schedule 1 (10-89) (Company Organization—General Information); Form 50, Schedule 2 (9-97) (Freight Line Company Inventory of Rail Cars); and Form 50, Schedule 4 (9-97) (Freight Line Company Allocation).

(3) The forms to be used for the reporting and collection of the private car tax pursuant to Chapter 152, RSMo, include the following: Form 10 (10-87) (Freight Line Company Report of Car Rental); Form 20, Schedule 4 (10-88) (Main Track Mileage); and Form 15 (10-87) (Railroad Company Report of Car Rentals).

(4) The forms to be used for the reporting and collection of taxes on bridge, express and public utility companies pursuant to Chapter 153, RSMo, include the following:

(A) Bridge Companies. Form 13 (10-85) (Bridge Company Aggregate Statement of Taxable Property); and Form 13, Schedule 1 (10-85) (Company Organization—General Information);

(B) Telephone, Telecommunication and Telegraph Companies. Form 30 (11-86) (Aggregate Statement of Taxable Property); Form 30, Schedule 1 (9-87) (Company Organization— General Information); Form 30, Schedule 2 (10-89) (Taxation by States); Form 30, Schedule 3 (9-87) (Allocation Factors); Form 30, Schedule 3T (10-89) (Supplemental Information); Form 30, Schedule 4 (10-85) (Mileage by Line); Form 30, Schedule 5 (10- 85) (Leased Equipment); Form 30, Schedule 6T (10-89) (Real/ Personal Allocation); Form 30, Schedule 7 (10-85) (Comparative Balance Sheet); Form 30, Schedule 8 (10-85) (Comparative Income Statement); Form 30, Schedule 9 (10-85) (Capital Stock); Form 30, Schedule 10 (10-88) (Long Term Debt); Form 30, Schedule 11 (10-85) (Non-Operating Property in Missouri);

Form 30, Schedule 12 (10-87) (Total of County’s Locally Assessed Property); Form 30, Schedule 13 (11-86) (County Apportionment);

Form 30, Schedule 14 (11-86) (Local Assessments); Form 30, Schedule 15 (9-87) (Real Estate Information); Form 30, Schedule 16 (11-85) (Motor Vehicle Information); and Form 30, Schedule 17 (10-85) (Distributable Real Property Owned in Fee);

(C) Electric Companies. Form 30 (11-86) (Aggregate Statement of Taxable Property); Form 30, Schedule 1 (9-87) (Company Organization—General Information); Form 30, Schedule 2 (10- 89) (Taxation by States); Form 30, Schedule 3 (9-87) (Allocation Factors); Form 30, Schedule 3E (10-88) (Supplemental Information); Form 30, Schedule 4 (10-85) (Mileage by Line);

Form 30, Schedule 5 (10-85) (Leased Equipment); Form 30, Schedule 6E (10-89) (Real/Personal Allocation—Page 1 of 2);

Form 30, Schedule 6E (10-89) (Real/Personal Allocation—Page 2 of 2); Form 30, Schedule 7 (10-85) (Comparative Balance Sheet);

Form 30, Schedule 8 (10-85) (Comparative Income Statement);

Form 30, Schedule 9 (10-85) (Capital Stock); Form 30, Schedule 10 (10-88) (Long Term Debt); Form 30, Schedule 11 (10-85) (Non- Operating Property in Missouri); Form 30, Schedule 12 (10-87)

(Total of County’s Locally Assessed Property); Form 30, Schedule 13 (11-86) (County Apportionment); Form 30, Schedule 14 (11-86)

(Local Assessments); Form 30, Schedule 15 (9-87) (Real Estate Information); Form 30, Schedule 16 (11-85) (Motor Vehicle Information); and Form 30, Schedule 17 (10-85) (Distributable Real Property Owned in Fee);

(D) Natural Gas Pipeline Companies. Form 30, (11-86)

(Aggregate Statement of Taxable Property); Form 30, Schedule 1 (9-87) (Company Organization—General Information);

Form 30, Schedule 2 (10-89) (Taxation by States); Form 30, Schedule 3 (9-87) (Allocation Factors); Form 30, Schedule 3NG (9-87) (Supplemental Information); Form 30, Schedule 4 (10-85) (Mileage by Line); Form 30, Schedule 5 (10-85) (Leased Equipment); Form 30, Schedule 6NG (10-89) (Real/Personal Allocation—Page 1 of 3); Form 30, Schedule 6NG (10-89) (Real/ Personal Allocation—Page 2 of 3); Form 30, Schedule 6NG (10- 89) (Real/Personal Al-location—Page 3 of 3); Form 30, Schedule 7 (10-85) (Comparative Balance Sheet); Form 30, Schedule 8 (10-85) (Comparative Income Statement); Form 30, Schedule 9 (10-85) (Capital Stock); Form 30, Schedule 10 (10-88) (Long Term Debt); Form 30, Schedule 11 (10-85) (Non-Operating Property in Missouri); Form 30, Schedule 12 (10-87) (Total of County’s Locally Assessed Property); Form 30, Schedule 13 (11-86) (County Apportionment); Form 30, Schedule 14 (11-86)

(Local Assessments); Form 30, Schedule 15 (9-87) (Real Estate Information); Form 30, Schedule 16 (11-85) (Motor Vehicle Information); and Form 30, Schedule 18 (10-85) (Pipe Statistics); and (E) Fluid Pipeline Companies. Form 30 (11-86) (Aggregate Statement of Taxable Property); Form 30, Schedule 1 (9-87)

(Company Organization—General Information); Form 30, Schedule 2 (10-89) (Taxation by States); Form 30, Schedule 3 (9-87) (Allocation Factors); Form 30, Schedule 3FP (9- 87) (Supplemental Information); Form 30, Schedule 4 (10- 85) (Mileage by Line); Form 30, Schedule 5 (10-85) (Leased Equipment); Form 30, Schedule 6FP (10-89) (Real/Personal Allocation); Form 30, Schedule 7 (10-85) (Comparative Balance Sheet); Form 30, Schedule 8 (10-85) (Comparative Income Statement); Form 30, Schedule 9 (10-85) (Capital Stock); Form 30, Schedule 10 (10-88) (Long Term Debt); Form 30, Schedule 11 (10-85) (Non-Operating Property in Missouri); Form 30, Schedule 12 (10-87) (Total of County’s Locally Assessed Property); Form 30, Schedule 13 (11-86) (County Apportionment); Form 30, Schedule 14 (11-86) (Local Assessments); Form 30, Schedule 15 (9-87) (Real Estate Information); Form 30, Schedule 16 (11-85) (Motor Vehicle Information); and Form 30, Schedule 18 (10-85) (Pipe Statistics).

(5) The forms to be used for the reporting and collection of taxes on aircraft pursuant to Chapter 155, RSMo, include the following: Form 12 (10-85) (Aggregate Statement of Taxable Property); Form 12, Schedule 1 (10-85) (Aircraft Inventory Information); and Form 12, Schedule 2 (10-85) (Aircraft Allocation).

Filed Nov. 3, 1999, effective May 30, 2000. *Original authority: 137.930, RSMo 1982; 138.430, RSMo 1939, amended 1945, 1947, 1978, 1983, 1989, 1999; 151.020, RSMo 1939, amended 1945, 1957, 1965, 1973, 1974, 1986; 153.030, RSMo 1939, amended 1945, 1986; and 155.020, RSMo 1959, amended 1990.

History

AUTHORITY: sections 137.930, 138.430, 151.020, 153.030 and 155.020, RSMo 1994. Original rule filed Feb. 8, 1983, effective May 12, 1983. Emergency amendment filed Dec. 13, 1983, effective Dec. 24, 1983, expired March 15, 1984. Amended: Filed Dec. 13, 1983, effective March 12, 1984. Emergency rule and rescission filed Nov. 15, 1989, effective Dec. 31, 1989, expired Feb. 2, 1990. Rescinded and readopted: Filed Nov. 15, 1989, effective Feb. 25, 1990. Amended:

Chapter 2 Original Assessment

12 CSR 30-2.010 Appeals from the Department of Revenue or State Collector of Revenue {#sec-12-csr-30-2.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.010}

12 CSR 30-2.011 Completion of Forms by Assessors to be Used in Original Assessment {#sec-12-csr-30-2.011 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.011}

12 CSR 30-2.015 Utility Property to be Assessed Locally and by the State Tax Commission {#sec-12-csr-30-2.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.015}

12 CSR 30-2.017 De MinimisLevels of Assessed Valuation of Private Car Companies {#sec-12-csr-30-2.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.017}

12 CSR 30-2.018 Method of Administrating the Ad ValoremTaxation of the Private Railcar {#sec-12-csr-30-2.018 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.018}

12 CSR 30-2.020 Original Assessment by State Tax Commission and Appeals REVENUE {#sec-12-csr-30-2.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.020}

12 CSR 30-2.010 Appeals from the Department of Revenue or State Collector of Revenue {#sec-12-csr-30-2.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.010}

(Rescinded July 16, 1979)

Ellsworth Freight Lines, Inc. v. Missouri Highway Reciprocity Commission, 568 SW2d 521 (Mo. banc 1978). Trucking companies seeking refund of motor vehicle registration fees must exhaust administrative remedies before seeking judicial review, despite assertion by companies of “federal rights” violation.

John Calvin Manor Inc. v. Aylward, 517 SW2d 59 (1974). While the decisions of the tax commission are subject to judicial review, the circuit court does not have the authority to substitute its opinion as to value for the opinion of the administrative agency upon record evidence under which different conclusion might be drawn in the exercise of administrative discretion.

St. Louis County v. State Tax Commission, 515 SW2d 446 (1974). Court here adhered to the general rule that technical rules of pleading are not applied to applications for relief filed with the State Tax Commission and if a petition fairly presents the claimed error or illegality it will be deemed sufficient for the

purpose.

State ex rel. Wilson Chevrolet, Inc. v.

Wilson, 332 SW2d 867 (1966). Upon appeal from a decision of a local board of equalization to the State Tax Commission, the hearing is de novo as a contested case with a record necessarily made of the evidence adduced and of which decision of the State Tax Commission upon such appeal, a judicial review may be had.

Op. Atty. Gen. No. 33, Otto (4-20-78). The State Tax Commission has the statutory

History

AUTHORITY: section 138.430(1), RSMo 1969, as amended by Laws of Mo. 1978, S.B. 661, section 1, effective Aug. 13, 1978. This version of rule filed Aug. 7, 1975, effective Aug. 17, 1975. Rescinded: Filed April 13, 1979, effective July 16, 1979.
authority to appoint hearing examiners for conducting initial investigations and making advisory recommendations in appeals taken under section 138.430(2), RSMo (1969).

12 CSR 30-2.011 Completion of Forms by Assessors to be Used in Original Assessment by the State Tax Commission {#sec-12-csr-30-2.011 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.011}

PURPOSE: This rule sets forth procedures to be used by assessors in the completion of forms for original assessment by the commission.

(1) Unless otherwise provided, each assessor in the state shall estimate on Form 30, Schedule 14 the market value of property owned by each railroad, telegraph, telephone, express company and other similar public utility corporations, companies and firms (afterwards referred to as company) doing business within his/her jurisdiction.

(2) Each assessor in the state shall provide a breakdown of the market value and assessment of real estate held by each company within his/her jurisdiction on Form 30, Schedule 15.

(3) Each assessor in the state shall provide a breakdown of the market value and assessment of motor vehicles held by each company within his/her jurisdiction on Form 30, Schedule 16.

(4) These forms shall be completed by each assessor per the attendant instructions and returned to the respective company, county clerk and state tax commission on, or before April 20 of each year.

Emergency amendment filed Nov. 14, 1989, effective Dec. 31, 1989, expired Feb. 2, 1990.

Amended: Filed Nov. 14, 1989, effective Feb. 25, 1990. *Original authority: 138.320, RSMo 1939, amended 1945 and 138.420(1) and (2), RSMo 1939, amended 1945, 1947, 1978, 1983, 1989.

History

AUTHORITY: sections 138.320, 138.420(1) and (2), RSMo 1994. Original rule filed Dec. 13, 1983, effective March 12, 1984.

12 CSR 30-2.015 Utility Property to be Assessed Locally and by the State Tax Commission {#sec-12-csr-30-2.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.015}

(Rescinded July 30, 2018)

rule filed Dec. 16, 1985, effective May 11, 1986. Amended: Filed Aug. 16, 2012, effective Feb. 28, 2013. Rescinded: Filed Nov. 29, 2017, effective July 30, 2018.

History

AUTHORITY: sections 138.410, 138.420, and Chapters 151 and 153, RSMo 2000. Original

12 CSR 30-2.016 Allocation of Unit Value {#sec-12-csr-30-2.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.016}

PURPOSE: This rule sets forth a precise method for the allocation of the unit value of all originally assessable companies operating in Missouri.

(1) The unit value of the following originally assessable companies operating in Missouri will be allocated to Missouri using the schedule of accounts as prescribed on the commissions’ Aggregate Statement of Taxable Property in accordance with the factors set forth in this rule:

(A) Bridge Companies. The valuation allocated to Missouri should be based on the following factor:

The ratio of linear feet of the bridge and its approaches within the state to the entire length of the bridge and its approaches;

(B) Electric Companies. The valuation following factors and percentage weights:

The ratios of total gross plant in service, total net plant in service, total operating revenues and net operating income within the state to the aggregate amounts of these factors of the electric company. These factors are assigned the following percentage weights:

A. Gross plant in service 30%;

B. Net plant in service 30%;

C. Total operating revenues 20%;

D. Net operating income 20%;

(C) Natural Gas Pipeline Companies. The valuation allocated to Missouri should be based on the following factors and percentage 1. The ratios of gross plant in service, net plant in service and miles of pipe (inch equivalent) within the state to the aggregate amount of these factors of the natural gas pipeline company. These factors are assigned the following percentage weights for the 1998 tax year:

A. Gross plant in service 43%;

B. Net plant in service 43%;

C. Miles of pipe (inch equivalent) 14%.

Beginning in the 1999 tax year, the factors will be assigned the following percentage A. Gross plant in service 45%;

B. Net plant in service 45%;

C. Miles of pipe (inch equivalent) 10%.

(D) Products and Liquid Pipeline Companies. The valuation allocated to Missouri should be based on the following factors and percentage weights:

Ratios of gross plant in service and miles of pipe (inch equivalent) and barrel miles within the state to the aggregate amount of these factors of the company. These factors are assigned the following percentage weights for the 1998 tax year:

A. Gross plant in service 60%;

B. Miles of pipe (inch equivalent 15%;

C. Barrel Miles 25%.

Beginning in the 1999 tax year, the factors will be assigned the following percentage A. Gross plant in service 60%;

B. Miles of pipe (inch equivalent) 10%;

C. Barrel Miles 30%.

(E) Railroad Companies. The valuation allocated to Missouri should be based on an arithmetic mean of the following ratios:

Ratio of operated mileage (excluding trackage rights) within the state to the total operated mileage of the railroad company;
Ratio of locomotive and car miles within the state to the total locomotive and car miles of the railroad company;
Ratio of railway operating revenue within the state to the total railway operating revenue of the railroad company;
Ratio of ton miles of revenue freight within the state to the total ton miles of revenue freight of the railroad company;
Ratio of revenue freight tons originating and terminating within the state to the total revenue freight tons originating and terminating of the railroad company; and 6. Ratio of undepreciated investment in road within the state to the total amount of undepreciated investment in road of the railroad company;

(F) Terminal Railroad Companies. The value allocated to Missouri should be based on an arithmetic mean of the following ratios:

Ratio of operated mileage (excluding trackage rights) within the state to the total operated mileage of the terminal railroad company; and 2. Ratio of undepreciated investment in road within the state to the total amount of undepreciated investment in road of the terminal railroad company;

(G) Telecommunications Companies. The valuation allocated to Missouri should be based on the following factors and percentage 1. The ratios of gross plant in service, total operating revenues and net operating income within the state to the aggregate amounts of these factors for the telecommunications company. The factors are assigned the following percentage weights:

A. Gross plant in service 60%;

B. Total operating revenues 20%;

C. Net operating income 20%.

(H) Telephone Companies. The valuation following factors and percentage weights:

The ratios of gross plant in service, total operating revenues and net operating income within the state to the aggregate amount of these factors for the telephone company. These factors are assigned the following percentage weights:

A. Gross plant in service 60%;

B. Total operating revenues 20%;

C. Net operating income 20%.

(I) Private Car Companies. The valuation following ratios:

Ratio of total mileage within the state to the total mileage of the private car company;
Ratio of total loaded mileage within the state to the total loaded mileage of the private car company; and 3. Ratio of time spent within the state to the total annual time of the private car company.

Amended: Filed Sept. 15, 1987, effective Dec. 31, 1987. Emergency amendment filed Nov. 14, 1989, effective Dec. 31, 1989, expired Feb. 2, 1990. Amended: Filed Nov. 14, 1989, effective Feb. 25, 1990. Amended:

Filed May 14, 1993, effective Jan. 13, 1994.

Amended: Filed May 13, 1997, effective Nov. 30, 1997. *Original authority: 138.420, RSMo 1939, amended 1945, 1947, 1986; 151.030, RSMo 1939, amended 1945, 1986; and 151.060, RSMo 1939, amended 1945, 1986, 1989.

History

AUTHORITY: sections 138.420, 151.030 and 151.060, RSMo 1994. This rule was previously filed as 12 CSR 30-1.016. Original rule filed Dec. 2, 1986, effective June 11, 1987.

12 CSR 30-2.017 De MinimisLevels of Assessed Valuation of Private Car Companies {#sec-12-csr-30-2.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.017}

(Rescinded May 30, 2000)

Filed Sept. 20, 1999, effective May 30, 2000.

History

AUTHORITY: sections 137.022 and 137.023, RSMo 1994. Original rule filed May 17, 1994, effective Sept. 30, 1994. Rescinded:

12 CSR 30-2.018 Method of Administrating the Ad ValoremTaxation of the Private Railcar Industry and Applying for the Freight Line Company Tax Credit {#sec-12-csr-30-2.018 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.018}

PURPOSE: This rule sets forth the precise method of administrating the ad valoremtax for the private railcar industry and the procedure for applying for the tax credit for eligible expenses.

(1) The commission will determine the statewide average rate of property taxes levied for the preceding year from reports filed by the railroad and street railway companies operating within the state. This information will be filed with the Director of Revenue along with the current year’s taxable distributable assessed valuation of each freight line company on or before the first of October. In addition, this report shall include the current total main line track mileage of the railroad and street railway companies within each county to the aggregate total of the state. This report will also include the following information:

(A) Name and mailing address of each freight line company;

(B) Assessed valuation of the distributable property for each freight line company;

(C) Statewide average rate of property taxes levied the preceding year; and (D) Amount of ad valoremtax due from each freight line company.

(2) Each freight line company applying for the tax credit authorized in subsection 137.1018.4, RSMo, shall submit a completed Form 50, Schedule 1, Schedule 3PC, and Schedule 20PC to the State Tax Commission on or before May 1 of the tax year for which the credit is sought, and no such credit shall be given to any company filing the form after that date. The method for determining whether the form is submitted within the time prescribed by this rule will be the same method used for determining the timeliness of complaints filed with the State Tax Commission as set out in 12 CSR 30- 3.010(1)(C).

(3) In any year in which the general assembly appropriates insufficient funds to fully finance the tax credit authorized in subsection 137.1018.4, RSMo, the State Tax Commission, based upon the funds appropriated, shall allocate the credit proportionately among the freight lines timely requesting the 4CODE OF STATE REGULATIONS (6/30/18) JOHNR. ASHCROFT tax credit for that year. The tax credit each individual freight line company will receive shall be calculated by multiplying the percentage that each company’s claim (not to exceed their tax liability) represents of the total credit claims of all freight line companies (who timely submitted the required form and schedule for that tax year) multiplied by the amount of funds actually appropriated for that tax year.

Original rule filed Sept. 20, 1999, effective May 30, 2000. Amended: Filed April 28, 2009, effective Nov. 30, 2009. *Original authority: 137.1018, RSMo 1999, amended 2008 and 137.1021, RSMo 1999.

History

AUTHORITY: section 137.1018, RSMo Supp. 2008 and section 137.1021, RSMo 2000.

12 CSR 30-2.020 Original Assessment by State Tax Commission and Appeals {#sec-12-csr-30-2.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.020}

(Rescinded September 14, 1984)

Original rule filed Aug. 7, 1975. Amended:

Filed Aug. 15, 1983, effective Nov. 14, 1983.

Rescinded: Filed April 23, 1984, effective Sept. 14, 1984.

Op. Atty. Gen. No. 88 Lehr (2-28-75).The State Tax Commission has the authority and is obligated to equalize the assessments of property among the various counties and the City of St. Louis pursuant to section 138.090, RSMo, and has the duty to order any county in which valuations of property are below 33 1/3% of true value to raise the valuations of property to 33 1/3% of true value and to order any county in which valuations of property are above 33 1/3% of true value to lower the valuation of such property to 33 1/3% of true value. The State Tax Commission has no

History

AUTHORITY: section 138.420, RSMo 1978.
authority to equalize the assessments among various parcels of property within a county as such, but individual assessments can be raised or lowered pursuant to sections 138.380, 138.460, and 138.470, RSMo. The state auditor has no authority to compel the State Tax Commission to require the equalization of assessments among the various counties of the City of St. Louis at 33 1/3% of true value.

12 CSR 30-2.021 Original Assessment by State Tax Commission and Appeals {#sec-12-csr-30-2.021 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.021}

PURPOSE: This rule sets a precise method for appealing final decisions of the State Tax Commission as regards public utilities and those taxpayers coming under the original assessment of the commission.

(1) Every railroad, telegraph, telephone, express company and other and similar public utility corporations, companies and firms (afterwards referred to as company) doing business in Missouri, unless otherwise provided, shall proceed before the State Tax Commission as follows:

(A) Each company shall file its report with the State Tax Commission on or before April 1 of each year. Upon receipt of the report, the commission shall certify a tentative assessment to the company. The commission shall set a date upon which an informal hearing will be conducted for the company. At the hearing, the company shall be permitted to submit to the commission evidence and exhibits indicative of the value of the subject property;

(B) Subsequent to the proceedings set out in subsection (1)(A), the commission shall certify a final assessment to the company.

The commission shall have the authority to amend a certified final assessment which it deems to be erroneous, or pursuant to section 155.040.3, RSMo, certify the value of commercial aircraft not owned by an airline company, but no such amendment or certification shall be made after September 1 of the tax year in question. Such erroneous assessments shall not include disagreements over valuation, classification, or exemption, which must be addressed through the appeal process. Upon receipt of the final assessment, the company, if dissatisfied, shall file a petition for a rehearing, which shall be decided as a contested case, after hearing on the record;

(C) The petition shall be directed to the State Tax Commission. It shall state that the appeal is from the original assessment entered by the commission; the date of the assessment; the name of the taxpayer appealing; the business address of the taxpayer to which notice of hearing may be mailed; a brief statement of why the commission should change or modify the original assessment; and a brief statement of the relief to which complainant may feel entitled. The petition shall be sworn to by the complainant or his/her attorney;

(D) The petition for rehearing shall be filed not more than thirty (30) days after the company receives notice of the original assessment. The petition shall be served upon the commission by delivery, personally, to any commissioner or to the secretary of the commission or by registered mail, postage prepaid, addressed to the State Tax Commission at Jefferson City, Missouri. If personal service is made, it may be proven by the affidavit of any person competent to testify or by the official certificate of any officer authorized under the laws of Missouri to execute process. If the petition is served by mail, it shall be filed as of the date of its delivery by the postal authorities, to the office of the State Tax Commission in Jefferson City, Missouri;

(E) Discovery in appeals shall be as in other contested cases pursuant to 12 CSR 30- 3.040;

(F) An assistant attorney general will assist the commission at the hearing and in preparing the decision. The commission’s staff attorneys will assist commission staff in presentation of the case; and (G) The State Tax Commission shall set the matter for hearing at the office of the State Tax Commission, Jefferson City, Missouri, within a reasonable time after that, and notify the complainant and the proper state officer of the date. The notice shall be given to the complainant by first-class mail, postage prepaid, addressed to the complainant’s place of business as given the petition filed.

History

AUTHORITY: section 138.420, RSMo 2000. Original rule filed Dec. 13, 1983, effective March 12, 1984. Amended: Filed Dec. 21, 2007, effective June 30, 2008. Original authority: 138.420, RSMo 1939, amended 1945, 1947, 1986.

12 CSR 30-2.030 Appeals from the Local Board of Equalization {#sec-12-csr-30-2.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.030}

This version of rule filed Aug. 7, 1975, effective Aug. 17, 1975. Amended: Filed June 10, 1976, effective Sept. 11, 1976. Amended:

Filed Jan. 30, 1978, effective May 11, 1978.

Amended: Filed April 12, 1979, effective July 16, 1979. Amended: Filed Oct. 11, 1979, effective Jan. 12, 1980. Amended: Filed Jan. 14, 1980, effective April 14, 1980. Amended:

Filed April 10, 1981, effective July 13, 1981.

Amended: Filed May 13, 1982, effective Aug. 13, 1982. Rescinded: Filed Dec. 13, 1983, effective March 12, 1984.

Richmond Heights v. Board of Equalization of St. Louis County, 586 SW2d 338 (Mo. banc 1979). Property owner on appeal to the board of equalization received a reduction in assessment. City attempted to appeal to the State Tax Commission and sought circuit court appeal from the board’s reassessment and from State Tax Commission’s refusal to accept appeal of board reassessment. Held, proceedings before boards of equalization are not Chapter 536 “contested cases,” and so are not appealable by the city to circuit court under section 536.100, RSMo. Since there is no express statutory provision to allow city’s appeal to the State Tax Commission from board’s reassessment, city is bound by board’s determination.

Op. Atty. Gen. No. 292, State Tax Commission of Missouri (9-16-64). Neither a county, an officer of the court nor a school district has a right to appeal to the State Tax Commission from a decision of a county board of equalization, determining the assessed valuation of an individual property.

Op. Atty. Gen. No. 27, Evans (11-21-50). A taxpayer may appeal from the assessment of a county assessor to the county board of equalization and from their decision to the State Tax Commission. A taxpayer has no right of appeal from the assessment of county assessor directly to the State Tax Commission.

History

AUTHORITY: section 138.430, RSMo 1978.

12 CSR 30-2.040 Prehearing Procedures {#sec-12-csr-30-2.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.040}

Original rule filed April 12, 1979, effective July 16, 1979. Rescinded and readopted:

Filed March 12, 1980, effective April 14, 1980. Amended: Filed April 10, 1981, effective July 13, 1981. Rescinded: Filed Dec. 13, 1983, effective March 12, 1984.

History

AUTHORITY: section 138.430, RSMo 1978.

12 CSR 30-2.050 Intervention {#sec-12-csr-30-2.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.050}

Const. 1945; sections 138.430 and 536.062(1), RSMo 1978; W.L.B. Holding Company v. State Tax Commission, Cause No. 28,985, Cole County Circuit Court 1977.

Original rule filed July 14, 1977, effective Oct. 13, 1977. Amended: Filed April 10, 1981, effective July 13, 1981. Rescinded:

History

AUTHORITY: Article X, section 14, Mo.

12 CSR 30-2.060 Discovery {#sec-12-csr-30-2.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.060}

Const. 1945. Original rule filed April 12, 1979, effective July 16, 1979. Rescinded:

History

AUTHORITY: sections 138.430 and 536.073, RSMo 1978, Article X, section 14, Mo.

12 CSR 30-2.065 Subpoenas {#sec-12-csr-30-2.065 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.065}

Filed April 10, 1981, effective July 13, 1981.

Rescinded: Filed Dec. 13, 1983, effective March 12, 1984.

History

AUTHORITY: sections 138.360 and 536.077, RSMo 1978. Original rule filed Jan. 14, 1980, effective April 14, 1980. Amended:

12 CSR 30-2.070 Procedure: Motions and Stipulations {#sec-12-csr-30-2.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.070}

Article X, section 14, Mo. Const. 1945.

Original rule filed April 12, 1979, effective July 16, 1979. Amended: Filed April 10, 1981, effective July 13, 1981. Rescinded:

6CODE OF STATE REGULATIONS

(6/30/18) JOHNR. ASHCROFT

History

AUTHORITY: section 138.430, RSMo 1978,

Chapter 3 Local Assessment of Property and Appeals From Local Boards of Equalization

12 CSR 30-3.005 Appeals of the Assessment of Real Property to the Local Board of {#sec-12-csr-30-3.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.005}

12 CSR 30-3.060 Exchange of Exhibits, Prefiled Direct Testimony and Objections {#sec-12-csr-30-3.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.060}

12 CSR 30-3.075 Receipt of Evidence Indicating Value Greater than Assessor or Board— REVENUE Property and Appeals From Local Boards of Equalization {#sec-12-csr-30-3.075 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.075}

12 CSR 30-3.001 Two-Year Assessment Cycle {#sec-12-csr-30-3.001 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.001}

PURPOSE: This rule establishes the method assessors shall use to determine assessed value of real property under the two-year assessment cycle.

(1) The assessed value of real property shall be calculated by determining its true value in money on January 1 of each odd-numbered year. The value shall remain the same for the subsequent even-numbered year unless there has been new construction or property improvements between January 1 of the odd-numbered year and January 1 of the following even-numbered year.

(2) In those instances in which new construction or property improvements have occurred between January 1 of an odd-numbered year and January 1 of an even-numbered year, the true value in money of the property as newly constructed or improved shall be determined as of January 1 of the odd-numbered year.

(A) The valuation of the property shall take into consideration the new construction or property improvements and shall assign to that new construction or property improvements the value which would have been attributed to new construction or improvements on January 1 of the odd-numbered year as though they had existed on that date.

(B) Examples.

On January 1, 1991, the subject property is a five (5)-acre vacant lot. On December 1, 1991, construction of a strip shopping center is completed. For the 1992 tax year, the assessed value is calculated by determining the true value in money of a shopping center of the same size, construction, location and use as the subject property as of January 1, 1991, and multiplying that amount by the appropriate statutory assessed value percentage.
On January 1, 1991, the subject propwith thirteen hundred (1,300) square feet. On August 1, 1991, the addition of a second story and seven hundred (700) square feet is completed. For the 1992 tax year, the assessed value is calculated by determining the true value in money of a two (2)-story, two-thousand (2,000) square foot residence of the same construction and location as the subject as of January 1, 1991, and multiplying that amount by the appropriate statutory assessed value percentage.

(3) A property improvement consists of any change to the physical characteristics of the property, whether that change is one that causes an increase or a reduction in value.

Changes in zoning, neighborhood conditions or economic conditions which directly or indirectly affect the property will not warrant a change in the assessed value for the even-numbered year.

(A) Examples.

Assuming value is affected, a change in the assessed value for the 1992 tax year is warranted (see paragraph (2)(B)2.)
On January 1, 1991, the subject propwith thirteen hundred (1,300) square feet. On December 1, 1991, the house burns to the ground. A change in the assessed value for the 1992 tax year is warranted.
On January 1, 1991, the subject property is a five (5)-acre vacant lot zoned agricultural. On December 1, 1991, the property is rezoned commercial. No new construction is added to the property. A change in the assessed value for the 1992 tax year is not warranted.
On January 1, 1991, the subject proplocated on ten (10) acres of land in the rural area of the county. On December 1, 1991, the county began operation of a landfill on property adjacent to the subject property. The location and operation of the landfill negatively affect the value of the subject property.

A change in the value for the 1992 tax year is not warranted.

On January 1, 1991, the subject propwith thirteen hundred (1,300) square feet which is twenty (20) years old. On January 1, 1992, the subject property is twenty-one (21) years old. It is generally recognized in the appraisal of property that as property ages it physically deteriorates and it may be necessary to make a deduction for physical depreciation under the cost approach for value. A change in value for the 1992 tax year is not warranted.

(4) The examples used in this rule are by way of illustration only and not to be deemed to be the only instances to which this rule applies.

rule filed May 14, 1991, effective Oct. 31, 1991. *Original authority: 137.115, RSMo 1939, amended 1945, 1951, 1959, 1972, 1973, 1981, 1983, 1985, 1985, 1986, 1987, 1989, 1990, 1991, 1992 and 138.320, RSMo 1939, amended 1945.

History

AUTHORITY: sections 137.115, RSMo Supp. 1992 and 138.320, RSMo 1986. Original

12 CSR 30-3.005 Appeals of the Assessment of Real Property to the Local Board of Equalization Under the Two-Year Assessed Value Cycle {#sec-12-csr-30-3.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.005}

PURPOSE: This rule establishes how appeals of the assessment of real property to the local boards of equalization are to be accomplished under the two-year assessed value cycle and to ensure that the commission’s authority to render decisions and orders in appeals from local boards of equalization is not compromised at the local level.

(1) Appeals to the Local Board of Equalization in Odd-Numbered Years. Appeals to the local board of equalization in odd-numbered years from assessment placed on real property by the county assessor shall be made by the aggrieved taxpayer in the manner required by law.

(2) Appeals to the Local Board of Equalization in Even-Numbered Years.

(A) If a taxpayer did not file an appeal of an assessment of real property from the local board of equalization to the State Tax Commission in the odd-numbered year, the appeal to the local board of equalization in the even-numbered year shall be made by the aggrieved taxpayer in the manner required by law.

(B) If a taxpayer did file an appeal of an assessment of real property from the local board of equalization to the State Tax Commission in the odd-numbered year, the local board of equalization shall accept as duly filed appeal of the assessment in the even-numbered year, a notice from the State Tax Commission to the county clerk that an appeal of the odd-numbered year’s assessment is presently pending before the State Tax Commission. This notice shall constitute the filing of an appeal in writing to the local board of equalization on behalf of the taxpayer. The local board of equalization shall hear and decide an appeal in the same manner it would hear and decide other appeals to it.

The notice filed by the State Tax Commission on behalf of the taxpayer shall be filed before April 1 of the even-numbered year.

(3) Nothing in this rule shall prevent a taxpayer from filing an appeal of the assessment of real property on his/her own behalf in the even-numbered year from dismissing an appeal before the local board of equalization JASON KANDER (1/29/13) filed on his/her behalf by the State Tax Commission, or from appearing and presenting evidence at a hearing on his/her appeal at the local board of equalization.

History

AUTHORITY: section 137.115.1., 138.060.1., 138.431.3. RSMo Supp. 1992 and 137.275 and 137.385, RSMo 1986. Original rule filed May 14, 1991, effective Oct. 31, 1991. Original authority: 137.115.1. RSMo 1939, amended 1945, 1951, 1959, 1972, 1973, 1981, 1983, 1985, 1985, 1986, 1987, 1989, 1990, 1991, 1992; 137.275, RSMo 1939, amended 1945; 137.385, RSMo 1945; 138.060.1., RSMo 1939, amended 1945, 1992; and 138.431.3., RSMo 1983, amended 1986, 1992.

12 CSR 30-3.010 Appeals From the Local Board of Equalization {#sec-12-csr-30-3.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.010}

PURPOSE: This rule informs the local taxpayer of his/her right to protest by complaint or appeal an assessed value which s/he feels is unlawful, unfair, improper, arbitrary, or capricious and the procedure for filing these complaints or appeals.

(1) Every owner of real property or tangible personal property shall have the right to appeal from the decision of the local board of equalization, upon compliance with the following rules:

(A) This appeal shall be initiated by filing a complaint on forms prescribed by this commission and directed to the State Tax Commission. No complaint will be accepted unless on forms prescribed by this commission; provided, that any complainant may attach to commission forms any additional written pleading deemed appropriate by complainant. The complaint shall specify the name of the complainant; the business address of the complainant or an attorney to whom notice of hearing may be mailed; the legal description of the real property or the complete description of the tangible personal property at issue; a brief statement of the grounds upon which the assessment of the property is claimed to be unlawful, unfair, improper, arbitrary, or capricious; a statement that the complainant had appealed to the proper local board of equalization; a statement of the relief to which complainant may feel entitled; if required under 12 CSR 30- 3.025(3), a verified statement which states facts tending to demonstrate that the commission should reconsider the appropriateness of the value in the even-numbered year; and other information as shall be requested upon the commission forms;

(B) A complaint appealing a property assessment shall be filed not later than September 30 or within thirty (30) days of the decision of the board of equalization, whichever is later.

In any county or the City of St.

Louis, the owner may appeal directly to the State Tax Commission (a) where the assessor fails to notify the current owner of the property of an initial assessment or an increase in assessment from the previous year, prior to thirty (30) days before the deadline for filing an appeal to the board of equalization, including instances in which real property was transferred and the prior owner was notified, or (b) where a new owner purchased real property less than thirty (30) days before the deadline for filing an appeal to the board of equalization or later in the tax year, regardless if the assessment is an initial assessment, an increase or decrease in assessment, or an assessment established in the prior year.

Appeals under this paragraph shall be filed within thirty (30) days after a county official mailed a tax statement or otherwise first communicated the assessment or the amount of taxes to the owner or on or before December 31 of the tax year in question, whichever is later. Proof of late notice, the date of purchase, and/or notice sent to the prior owner shall be attached to, or set forth in, the complaint.

A property owner who, due to lack of notice, files an appeal directly with the State Tax Commission after tax statements are mailed should pay his or her taxes under protest pursuant to the requirements of section 139.031, RSMo, and the county collector shall upon receiving either the payment under protest or the notice specified in section 138.430, RSMo, impound all portions of taxes which are in dispute;

(C) Any complaint shall be served upon the State Tax Commission personally to any commissioner or to the administrative secretary of the commission, by certified, registered, regular, private carrier service mail or electronic transmission addressed to the State Tax Commission in Jefferson City. For purposes of this rule, electronic transmission shall mean facsimile transmission or email.

If personal service is made, it may be proven by the affidavit of any person competent to testify, or by the official certificate of any officer authorized under the laws of Missouri to execute process. In determining whether complaints personally served are filed within the time prescribed by law, the date on which personal service is obtained shall be deemed to be the date the complaint is filed with the commission.
In determining whether complaints are filed within the time prescribed by law, the complaints may be transmitted to the commission by registered, certified, or regular mail or by private carrier service. Complaints filed by registered or certified mail shall be deemed filed with the commission as of the date deposited with the United States Postal Service. Complaints filed by private carrier service shall be deemed filed as of the date shown by the record of the mailing.

Complaints filed by regular or metered mail shall be deemed filed on the date of post office cancellation; or three (3) days before the date the commission receives the complaints if there is no dated post office cancellation.

In determining whether complaints filed by electronic transmission are filed within the time prescribed by law, complaints so filed shall be deemed filed with the commission as of the date the electronic transmission is received by the commission. A complaint filed by electronic transmission shall have the same effect as the filing of an original document and an electronic signature shall have the same effect as an original signature;

(D) Two (2) copies of the complaint shall be filed with the commission, one (1) copy of which will be forwarded to the assessor with notice of institution of the proceedings to review assessment; and (E) The State Tax Commission shall set appeals for conferences and hearings in the county of assessment or in any other location in the state as the commission deems necessary for the efficient management of the appeal docket. Conferences and hearings may be conducted by electronic means where practicable.

(2) On any appeal taken to the commission from the local board of equalization, a natural person may represent him/herself in the proceedings before the commission. The county assessor, but not a deputy, may represent his/her office in such proceedings. All others must appear through an attorney licensed to practice law in Missouri or in another jurisdiction.

(A) Any person who signs a pleading or brief, or who enters an appearance at a hearing for an entity or another person, by an act expressly represents that s/he is authorized to so act and that s/he is a licensed attorney-atlaw in this state or his/her state of residence.

(B) Any attorney not licensed in this state but who is a member in good standing of the bar of any court of record may be permitted to appear and participate in a particular appeal(s) before the commission under the following conditions: The visiting attorney shall file with his/her initial pleading a receipt for his/her pro hac vice authorization from the clerk of the Missouri Supreme (1/29/13) JASON KANDER Court to appear before the commission on the designated appeal or appeals along with a statement identifying each court of which s/he is a member of the bar and certifying that neither s/he nor any member of his/her firm is disqualified from appearing in any such court. Also, the statement shall designate some member of the Missouri Bar having an office in Missouri as associate counsel. This designated attorney shall enter his/her appearance as an attorney of record.

(3) When a lawyer is a witness for his/her client, except as to merely formal matters, s/he should leave the trial of the case to other counsel. Except when essential to the ends of justice, a lawyer should avoid testifying before this commission in behalf of his/her client.

(4) The commission shall make arrangements to have all appeal hearings suitably recorded and preserved. Upon a motion of a party filed at least seven (7) days prior to the hearing, the commission may approve the recording and transcription of any hearing by a court reporter hired by a party provided that such party shall furnish the commission and the opposing party a copy of the transcript at no cost and the party supplying the court reporter and the court reporter agree that such transcript retained by the commission shall be available for inspection and copying by the public pursuant to Chapter 610, RSMo.

The commission may adopt the resulting transcript as the official record of the proceeding.

(5) The fundamental rules of evidence will apply at hearings before the commission.

(6) In computing any period of time prescribed or allowed by these rules, by order of the commission, or by any applicable statute, the day of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included, unless it is a Saturday, Sunday, or a legal holiday, in which event the period runs until the end of the next day which is neither a Saturday, Sunday, nor a legal holiday. When the period of time prescribed or allowed is less than seven (7) days, intermediate Saturdays, Sundays, and legal holidays shall be excluded in the computation.

(7) When by these rules or by a notice given thereunder or by order of the commission an act is required or allowed to be done at or within a specified time, the commission for cause shown may at any time in its discretion 1) with or without motion or notice order the period enlarged if request is made before the expiration of the period originally prescribed or as extended by previous order or 2) upon notice and motion made after the expiration of the specified period permit the act to be done where the failure to act was the result of excusable neglect; but the commission may not extend the time for taking any action under rules 12 CSR 30-2.021(1)(A); 12 CSR 30-3.021(1)(C); 12 CSR 30-3.005—Appeals of the Assessment of Real Property to the Local Board of Equalization Under the Two- Year Assessed Value Cycle; 12 CSR 30- 3.010—Appeals from the Local Board of Equalization; 12 CSR 30-3.020—Intervention; or 12 CSR 30-3.025—Collateral Estoppel.

(8) Any complaint, correspondence, routine motion, or application for review shall be accepted for filing by electronic transmission.

Electronic filings received by the commission before 5:00 p.m. of a regular workday are deemed filed as of that day. Filings received after 5:00 p.m. are deemed filed on the next regular commission workday. Time of receipt is determined by the commission’s facsimile machine or computer. The time when transmission began shall be used to determine if transmission occurred prior to 5:00 p.m. If a document is not received by the commission or if it is illegible, it is deemed not filed. Risk of loss in transmission, receipt, or illegibility is upon the party transmitting and filing by electronic transmission. The person filing a complaint, correspondence, motion, application for review, or other filing by electronic transmission shall retain the signed filing and make it available upon order of the commission.

(9) No cameras, lights, or mechanical recording devices shall be operated in the hearing room while the hearing is in progress, other than by personnel of the commission or by a court reporter with the permission of the commission.

Filed April 21, 1988, effective Sept. 11, 1988.

Rescinded and readopted: Filed May 14, 1991, effective Oct. 31, 1991. Amended: Filed Aug. 23, 1995, effective Jan. 30, 1996.

Rescinded and readopted: Filed June 12, 2002, effective Nov. 30, 2002. Amended:

Filed Oct. 7, 2004, effective May 30, 2005.

Amended: Filed Dec. 21, 2007, effective June 30, 2008. Amended: Filed Oct. 2, 2008, effective May 30, 2009. Amended: Filed April 28, 2009, effective Nov. 30, 2009. Amended:

Filed Dec. 21, 2009, effective June 30, 2010.

Amended: Filed Jan. 27, 2011, effective July 30, 2011. Amended: Filed Aug. 16, 2012, effective Feb. 28, 2013. 1945, 1947, 1978, 1983, 1989, 1999, 2008.

History

AUTHORITY: section 138.430, RSMo Supp. 2012. This rule was previously filed as 12 CSR 30-2.030. Original rule filed Dec. 13, 1983, effective March 12, 1984. Amended:

12 CSR 30-3.015 Orders of the Commission Under the Two-Year Assessed Value Cycle {#sec-12-csr-30-3.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.015}

PURPOSE: This rule establishes the procedure for implementing commission decisions under the two-year assessed value cycle for real property.

(1) In an appeal to the commission from the local board of equalization, the decision and order issued by the commission shall set the assessed value of the real property which is the subject of the appeal for both the first year of the two (2)-year cycle (odd-numbered year) and the second year of the two (2)-year cycle (even-numbered year), unless one (1) of the following conditions are met:

(A) The taxpayer did not file an appeal of his/her assessment to the commission in the odd-numbered year; or (B) At the hearing before the commission or one (1) of its hearing officers on the appeal of the odd-numbered year’s assessment, the assessor or the taxpayer presents evidence which shows that there has been new construction or property improvements to the subject property as defined in 12 CSR 30-3.001 during the odd-numbered year.

(2) A decision and order issued by the commission which sets the assessed value of a property for both years of the two (2)-year cycle shall be implemented for the even-numbered year as follows:

(A) If the decision and order is issued and becomes final prior to the assessor returning the assessor’s book for the even-numbered year to the county governing body, the assessor shall enter the assessed value as determined by the commission into the assessor’s book;

(B) If the decision and order is issued and becomes final after the assessor returns the assessor’s book for the even-numbered year to the county governing body but before the local board of equalization issues a decision on an appeal of the assessment to it in the even-numbered year, the local board of equalization shall issue its decision based on the assessed value as determined by the commission; and (C) If the decision and order is issued and becomes final after the local board of equalization issues a decision on an appeal of an assessment to it in the even-numbered year, if the assessed value is changed by the commission, the county clerk shall enter the assessed value as determined by the commission in the supplemental tax book of the county for the even-numbered year.

rule filed May 14, 1991, effective Oct. 31, 1991. *Original authority: 137.115.1., RSMo 1939, amended 1945, 1951, 1959, 1972, 1973, 1981, 1983, 1985, 1985, 1986, 1987, 1989, 1990, 1991, 1992 and 138.431.3., RSMo 1983, 1986, 1992.

History

AUTHORITY: sections 137.115.1. and 138.431.3., RSMo Supp. 1992. Original

12 CSR 30-3.020 Intervention {#sec-12-csr-30-3.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.020}

PURPOSE: This rule establishes the procedure for nonparties to appear and be heard and for intervention.

(1) All persons affected or liable to be affected by review by the commission of any assessment, whether or not they are made parties to the appeal by intervention, may submit a memorandum setting forth their position on the issue(s) in the given appeal, and serve a copy of same upon counsel for the parties or upon the parties if there is no counsel. However, nonparties are not entitled to notice of hearings and decisions, except as provided generally by section 610.020, RSMo, unless they are made designated persons by the complainants as provided by section 536.067(3), RSMo. Nonparties are not entitled to take depositions, nor entitled to the issuance of subpoenas nor to introduce exhibits, testify, or cross-examine witnesses.

(2) Any person may apply for leave to intervene in any contested case before the commission by serving a motion for leave to intervene upon all then existing parties and upon the commission. The motion shall state the grounds for it and whether the applicant is seeking to intervene on behalf of the complainant or the respondent. The motion shall be filed within sixty (60) days of the time of the notice of institution of the case. Oral argument will be scheduled by the commission on the motion only if there is a written objection to the intervention filed by any party not later than fifteen (15) days after the filing of the motion to intervene. Upon its own motion, the commission, in any case, may order that oral argument be had on the issue of the proposed intervention. A separate motion must be filed for each contested case in which an applicant seeks to intervene.

(3) An applicant may be granted permission to become an intervenor based upon a balancing of the nature and the extent of the interest of all of the complainants, respondents, intervenors and applicants in the appeal. For example, in the case of an appeal filed pursuant to section 138.430, RSMo, the commission may grant an applicant the status of intervenor based upon the following five (5) interests if they are found to weigh in balance in favor of the applicant:

(A) Substantially all of the applicant’s operating revenues are derived from ad valorem tax revenues;

(B) If the decreases in assessed valuation paid by the complainants and against which the tax rate established by the applicant will be applied are granted by the commission, then decreases in assessed valuation will reduce the tax revenues available for distribution to the applicant;

(D) The respondent, an existing party, may not adequately represent the interests of the applicant; and (E) The complainants will not be prejudiced by intervention nor will they be precluded from protecting or asserting their interest in decreases in assessed valuation.

(4) For the purpose of this rule, person is defined as provided by section 1.020, RSMo.

rule filed Dec. 13, 1983, effective March 12, 1984. Amended: Filed Oct. 7, 2004, effective May 30, 2005. 1945, 1947, 1978, 1983, 1999; and 536.063, RSMo 1957.

State ex rel. Brentwood School District v.

State Tax Commission 588 SW2d 613 (Mo. banc 1979). State Tax Commission rule on intervention cannot violate school district’s due process rights, since the district is not a “person” within the contemplation of the due process clause and so has no such rights.

History

AUTHORITY: sections 138.430 and 536.063(1), RSMo 2000 and Article X, section 14, Mo. Const. 1945. This rule was previously filed as 12 CSR 30-2.050. Original

12 CSR 30-3.025 Collateral Estoppel {#sec-12-csr-30-3.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.025}

Original rule filed May 14, 1991, effective Oct. 31, 1991. Amended: Filed July 19, 2000, effective Feb. 28, 2001. Amended: Filed Dec. 21, 2009, effective June 30, 2010. Rescinded:

History

AUTHORITY: sections 138.320, 138.431, and 138.432, RSMo 2000 and sections 137.115 and 138.430, RSMo Supp. 2009.

12 CSR 30-3.030 Discovery {#sec-12-csr-30-3.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.030}

PURPOSE: This rule establishes the methods to be used by a party to a proceeding before the commission to obtain discovery and enforcement of discovery.

(1) Parties may obtain all available discovery in the same manner as the Missouri Supreme Court rules provide for civil actions in circuit court. The Commission and its Hearing Officers may, by order, enforce discovery for cause shown by the same methods, terms, and conditions as provided by the Missouri Supreme Court rule in civil actions in the circuit court, except as may otherwise be required by law.

Const. 1945. Original rule filed Sept. 12, 2019, effective April 30, 2020. 1945, 1947, 1978, 1983, 1989, 1999, 2008 and 536.073, RSMo 1957, amended 1985, 1989, 1995.

History

AUTHORITY: sections 138.430 and 536.073, RSMo 2016 and Article X, section 14, Mo.

12 CSR 30-3.040 Subpoenas and Discovery {#sec-12-csr-30-3.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.040}

History

AUTHORITY: sections 138.360, 138.430, 536.073 and 536.077, RSMo 1994 and Article X, section 14, Mo. Const. 1945. This rule was previously filed as 12 CSR 30-2.060 and

12 CSR 30-2.065. Original rule filed Dec. 13, 1983, effective March 12, 1984. Amended: Filed Aug. 23, 1995, effective Jan. 30, 1996. Rescinded: Filed Nov. 29, 2017, effective July 30, 2018. {#sec-12-csr-30-2.065. omnilex-key=us-mo-regs-official--title-12--12 CSR 30-2.065.}

12 CSR 30-3.050 Procedure: Motions and Stipulations {#sec-12-csr-30-3.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.050}

This rule was previously filed as 12 CSR 30- 2.070. Original rule filed Dec. 13, 1983, effective March 12, 1984. Amended: Filed April 21, 1988, effective Sept. 11, 1988.

Amended: Filed May 14, 1993, effective Jan. 13, 1994. Amended: Filed Aug. 23, 1995, (3/31/20) JOHN R. ASHCROFT effective Jan. 30, 1996. Amended: Filed Oct. 7, 2004, effective May 30, 2005. Rescinded:

History

AUTHORITY: section 138.430, RSMo 2000 and Article X, section 14, Mo. Const. 1945.

12 CSR 30-3.060 Exchange of Exhibits, Prefiled Direct Testimony and Objections {#sec-12-csr-30-3.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.060}

Original rule filed Dec. 13, 1983, effective March 12, 1984. Amended: Filed Nov. 4, 1993, effective July 10, 1994. Rescinded and readopted: Filed Aug. 23, 1995, effective Jan. 30, 1996. Amended: Filed Dec. 29, 2005, effective Aug. 30, 2006. Rescinded:

History

AUTHORITY: section 138.430, RSMo 2000.

12 CSR 30-3.065 Appraisal Evidence {#sec-12-csr-30-3.065 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.065}

rule filed Aug. 23, 1995, effective Jan. 30, 1996. Amended: Filed March 30, 1999, effective Oct. 30, 1999. Amended: Filed Dec. 29, 2005, effective Aug. 30, 2006. Amended:

Filed Jan. 17, 2013, effective July 30, 2013.

Rescinded: Filed Nov. 29, 2017, effective July 30, 2018.

History

AUTHORITY: sections 137.122.4, 138.430, and 138.431, RSMo Supp. 2012. Original

12 CSR 30-3.070 Prehearing Procedures {#sec-12-csr-30-3.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.070}

This rule was previously filed as 12 CSR 30- 2.040. Original rule filed Dec. 13, 1983, effective March 12, 1984. Amended: Filed Nov. 4, 1993, effective July 10, 1994. Amended: Filed Aug. 23, 1995, effective Jan. 30, 1996. Rescinded: Filed Nov. 29, 2017, effective July 30, 2018.

History

AUTHORITY: section 138.430, RSMo 1994.

12 CSR 30-3.075 Receipt of Evidence Indicating Value Greater than Assessor or Board—First Class Charter Counties {#sec-12-csr-30-3.075 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.075}

PURPOSE: This rule explains the procedures which hearing officers are to follow relative to evidence offered by assessors in first class charter counties which indicates a property value greater than the value that has been determined by the board of equalization or the assessor previously.

(1) In any case in a first class charter county or a city not within a county, where the assessor presents evidence which indicates a valuation higher than the value finally determined by the assessor or the value determined by the board of equalization, whichever is higher, for that assessment period, such evidence will only be received for the purpose of sustaining the assessor’s or board’s valuation, and not for increasing the valuation of the property under appeal.

History

AUTHORITY: sections 138.060 and 138.430, RSMo 2000. Original rule filed Oct. 24, 2000, effective June 30, 2001. Original authority: 138.060, RSMo 1939, amended 1945, 1992, 1993; 138.430, RSMo 1939, amended 1945, 1947, 1978, 1983, 1989, 1999.

12 CSR 30-3.080 Hearing and Disposition of Appeals {#sec-12-csr-30-3.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.080}

Amended: Filed Aug. 23, 1995, effective Jan. 30, 1996. Rescinded: Filed Nov. 29, 2017, effective July 30, 2018.

History

AUTHORITY: sections 138.430, 138.431 and 138.432, RSMo 1994. Original rule filed Dec. 13, 1983, effective March 12, 1984.

12 CSR 30-3.085 Mediation of Appeals {#sec-12-csr-30-3.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.085}

History

AUTHORITY: sections 138.430 and 138.431, RSMo 1994. Original rule filed July 15, 1999, effective Jan. 30, 2000. Rescinded:

12 CSR 30-3.090 Determining Class Life for Tangible Personal Property {#sec-12-csr-30-3.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-3.090}

PURPOSE: This rule sets out the publication assessors are to use when estimating value for depreciable tangible personal property for mass appraisal purposes.

(1) For purposes of assessors estimating the value of depreciable tangible personal property for mass appraisal purposes in accordance with section 137.122, RSMo, class life and recovery periods shall be determined by reference to Internal Revenue Service Publication 946—How to Depreciate Property or successor publications thereto. Specifically, class lives and recovery periods shall be determined by reference to Appendix B— Table of Class Lives and Recovery Periods.

Class life shall be determined under Table B- 1 and Table B-2 under the column—Class Life (in years). Recovery period shall be determined by the number corresponding to the Class Life number for given items of machinery, tools, appliances and equipment under the column—GDS (MACRS).

History

AUTHORITY: section 138.430, RSMo 2000. Original rule filed April 13, 2006, effective Oct. 30, 2006. 1945, 1947, 1978, 1983, 1989, 1999.

Chapter 4 Agricultural Land Productive Values

12 CSR 30-4.010 Agricultural Land Productive Values {#sec-12-csr-30-4.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 30-4.010}

PURPOSE: This rule complies with the requirement of section 137.021, RSMo, to publish a range of productive values for agricultural and horticultural land for the ensuing tax year.

(1) Agricultural Land Grades and Values. The following are definitions of agricultural land grades and the productive values of each:

(A) Grade #1. This is prime agricultural land. Condition of soils is highly favorable with no limitations that restrict their use. Soils are deep, nearly level (zero to two percent (0–2%) slope) or gently sloping with low erosion hazard and not subject to damaging overflow. Soils that are consistently wet and poorly drained are not placed in Grade #1. They are easily worked and produce dependable crop yields with ordinary management practices to maintain productivity—both soil fertility and soil structure. They are adapted to a wide variety of crops and suited for intensive cropping. Use value: one thousand thirty-five dollars ($1,035);

(B) Grade #2. These soils are less desirable in one (1) or more respects than Grade #1 and require careful soil management, including some conservation practices on upland to prevent deterioration. This grade has a wide range of soils and minimum slopes (mostly zero to five percent (0–5%)) that result in less choice of either crops or management practices.

Primarily bottomland and best upland soils. Limitations— 1. Low to moderate susceptibility to erosion;

Rare damaging overflows (once in five to ten (5–10) years); and 3. Wetness correctable by drainage. Use value: eight hundred fifty dollars ($850);

They require good management for best results. Conservation practices are generally more difficult to apply and maintain.

Primarily good upland and some bottomland with medium productivity. Limitations— 1. Gentle slope (two to seven percent (2–7%));

Moderate susceptibility to erosion;
Occasional damaging overflow (once in three to five (3–5) years) of Grades #1 and #2 bottomland; and 4. Some bottomland soils have slow permeability, poor drainage, or both. Use value: six hundred forty-five dollars ($645);

(D) Grade #4. Soils have moderate limitations to cropping that generally require good conservation practices. Crop rotation normally includes some small grain (for example, wheat or oats), hay, or both. Soils have moderately rolling slopes and show evidence of serious erosion. Limitations— 1. Moderate slope (four to ten percent (4–10%));

Grade #1 bottomland subject to frequent damaging flooding (more often than once in two (2) years), or Grades #2 and #3 bottomland subject to occasional damaging flooding (once every three to five (3–5) years);
Poor drainage in some cases; and 4. Shallow soils, possibly with claypan or hardpan. Use value: four hundred five dollars ($405);

(E) Grade #5. Soils are not suited to continuous cultivation.

Crop rotations contain increasing proportions of small grain (for example, wheat or oats), hay, or both. Upland soils have moderate to steep slopes and require conservation practices.

Limitations— 1. Moderate to steep slopes (eight to twenty percent (8–20%));

Grades #2 and #3 bottomland subject to frequent damaging flooding (more than once in two (2) years) and Grade #4 bottomland subject to occasional damaging flooding; and 3. Serious drainage problems for some soils. Use value: one hundred and ninety-one dollars ($191);

(F) Grade #6. Soils are generally unsuited for cultivation and are limited largely to pasture and sparse woodland.

Limitations— 1. Moderate to steep slopes (eight to twenty percent (8–20%));

Severe erosion hazards present;
Grades #3 and #4 bottomland subject to frequent damaging flooding (more than once in two (2) years), and Grade #5 bottomland subject to occasional damaging flooding (once every three to five (3–5) years); and 4. Intensive management required for crops. Use value: one hundred and forty-seven dollars ($147);

(G) Grade #7. These soils are generally unsuited for cultivation and may have other severe limitations for grazing and forestry that cannot be corrected. Limitations— 1. Very steep slopes (over fifteen percent (15%));

Severe erosion potential;
Grades #5 and #6 bottomland subject to frequent damaging flooding (more than once in two (2) years);
Intensive management required to achieve grass or timber productions; and 5. Very shallow topsoil. Use value: seventy-three dollars ($73);

(H) Grade #8. Land capable of only limited production of plant growth. It may be extremely dry, rough, steep, stony, sandy, wet, or severely eroded. Includes rivers, running branches, dry creek, and swamp areas. The lands do provide areas of benefit for wildlife or recreational purposes. Use value: thirty dollars ($30); and (I) Definitions. The following are definitions of flooding for purposes of this rule:

Damaging flooding. A damaging flood is one that limits or affects crop production in one (1) or more of the following ways:

A. Erosion of the soil;

B. Reduced yields due to plant damage caused by standing or flowing water;

C. Reduced crop selection due to extended delays in planting and harvesting; and D. Soil damage caused by sand and rock being deposited on the land by flood waters;

Frequent damaging flooding. Flooding of bottomlands that is so frequent that normal row cropping is affected (reduces row crop selection); and 3. Occasional damaging flooding. Flooding of bottomland that is so infrequent that producing normal row crops is not compromised in most years.

(2) Forest Land and Horticultural Land. The following prescribes the treatment of forest land and horticultural land:

(A) Forest land, whose cover is predominantly trees and other woody vegetation, should not be assigned to a land classification grade based on its productivity for agricultural crops. Forest land of two (2) or more acres in area, which if cleared and used for agricultural crops, would fall into land grades #1–#5 should be placed in land grade #6; or if land would fall into land grades #6 or #7 should be placed in land (5/31/24) John R. Ashcroft grade #7. Forest land may or may not be in use for timber production, wildlife management, hunting, other outdoor recreation, or similar uses; and (B) Land utilized for the production of horticultural crops should be assigned to a land classification grade based on productivity of the land if used for agricultural crops.

Horticultural crops include fruits, ornamental trees and shrubs, flowers, vegetables, nuts, Christmas trees, and similar crops which are produced in orchards, nurseries, gardens, or cleared fields.

Filed Oct. 17, 1984, effective April 11, 1985. Amended: Filed Nov. 15, 1985, effective May 11, 1986. Amended: Filed Sept. 3, 1986, effective Dec. 1, 1986. Emergency amendment filed Nov. 8, 1988, effective Dec. 31, 1988, expired Feb. 28, 1989. Amended: Filed Nov. 8, 1988, effective Jan. 27, 1989. Amended: Filed Sept. 17, 1990, effective Feb. 14, 1991. Amended: Filed Oct. 13, 1992, effective June 7, 1993.

Amended: Filed Sept. 15, 1994, effective March 30, 1995. Amended:

Filed Nov. 15, 1996, effective June 30, 1997. Amended: Filed Dec. 28, 1999, effective July 30, 2000. Amended: Filed Dec. 29, 2003, effective June 30, 2004. Amended: Filed Dec. 29, 2005, effective Aug. 30, 2006. Amended: Filed Dec. 21, 2007, effective June 30, 2008. Amended: Filed Dec. 19, 2013, effective June 30, 2014.

Amended: Filed Dec. 20, 2017, effective June 30, 2018. Amended:

Filed Dec. 18, 2019, effective July 30, 2020. Amended: Filed Dec. 29, 2021, effective June 30, 2022. Amended: Filed Dec. 29, 2023, effective June 30, 2024. *Original authority: 137.021, RSMo 1975, amended 1983, 1986, 1989, 1994, 1997, 2018.

Legislative action. The State Tax Commission filed a proposed amendment with the Secretary of State on December 21, 2009. This proposed amendment, relating to agricultural land productive values, was published in the February 1, 2010, issue of the Missouri Register (35 MoReg 221–223). The commission received numerous comments regarding this proposed amendment. Section 137.021, RSMo, provides that the General Assembly, within sixty (60) days of convening, may disapprove such a rulemaking. On February 18, 2010, Senate Committee Substitute for Senate Concurrent Resolutions Nos. 35 and 32 disapproving the proposed amendment was passed by the Missouri House of Representatives and the Missouri Senate. As a result of this action, an order of withdrawal was published in the May 17, 2010, issue of the Missouri Register (35 MoReg 822).

Legislative action. The State Tax Commission filed a proposed amendment with the Secretary of State on December 23, 2011. This proposed amendment, relating to agricultural land productive values, was published in the February 1, 2012, issue of the Missouri Register (37 MoReg 157–159). The commission received one (1) comment regarding this proposed amendment. Section 137.021, RSMo, provides that the General Assembly, within sixty (60) days of convening, may disapprove such a rulemaking.

House Concurrent Resolution No. 8 disapproving the proposed amendment was passed by the Missouri House of Representatives on February 21, 2012, and by the Missouri Senate on March 1, 2012.

As a result of this action, an order of withdrawal was published in the May 15, 2012, issue of the Missouri Register (37 MoReg 857).

History

AUTHORITY: section 137.021, RSMo Supp. 2023. Original rule filed Dec. 13, 1983, effective March 12, 1984. Rescinded and readopted:

Division 40 State Lottery

Chapter 10 General Considerations

12 CSR 40-10.010 Definitions {#sec-12-csr-40-10.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-10.010}

PURPOSE: This rule defines the terms used throughout all Lottery Commission rules.

(1) Person. Any natural person, individual, firm, corporation, partnership, trust, limited liability company (LLC), or unincorporated association.

(2) Vendor. Any person who contracts with the commission to supply goods or services which will be used directly in the operation of lottery games. Vendor does not include parent corporations of, holding companies of or subsidiary corporations of a corporation contracting with the commission.

(3) Licensee. Any person licensed to sell lottery tickets at one (1) or more locations.

(4) Director or Executive Director. The director or his/her designee.

History

AUTHORITY: section 313.220, RSMo 2016. Original rule filed Oct. 7, 1985, effective Oct. 17, 1985. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Amended: Filed Dec. 27, 2017, effective June 30, 2018. 1993, 1995, 2003.

12 CSR 40-10.020 Sovereign Immunity {#sec-12-csr-40-10.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-10.020}

PURPOSE: This rule provides that sovereign immunity applies to the lottery operations except as it is waived by the legislature.

The Missouri State Lottery Commission, its staff and employees and the state of Missouri shall not be liable to any licensee or vendor for any damage arising in connection with the operation or conduct of the lottery except as may be provided by statute.

Original rule filed Oct. 7, 1985, effective Oct. 17, 1985.

12 CSR 40-10.030 Use of Certain Terms Prohibited {#sec-12-csr-40-10.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-10.030}

PURPOSE: This rule restricts the use of “Missouri Lottery,” “State Lottery” or “Missouri State Lottery” without authorization of the director.

(1) No person shall use the terms “State Lottery,” “Missouri Lottery” or “Missouri State Lottery” without the approval of the commission.

(2) The director is delegated to approve requests for use of the terms set forth in section (1).

(3) The director shall inform the commission of approvals under this rule at its next regular meeting.

Original rule filed Nov. 12, 1985, effective Nov. 22, 1985.

12 CSR 40-10.040 Commission Meetings {#sec-12-csr-40-10.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-10.040}

PURPOSE: This rule informs the commission’s meeting frequency and procedures.

(1) The commission shall meet at least quarterly, whether in person or via electronic media, with such meetings presided over by the chairman or, in the chairman’s absence or at the chairman’s request, by the vice chairman, if any.

(2) The commission shall elect officers from its membership as it determines.

(3) Interim meetings shall be convened at the request of the chairman or upon written request received by the chairman from a majority of the commission.

(4) The commission shall conduct its meetings in accordance with the current edition of Robert’s Rules of Order Newly Revisedin all cases in which they are applicable and not inconsistent with applicable law.

Rescinded: Filed Dec. 27, 2017, effective June 30, 2018. Readopted: Filed Dec. 5, 2018, effective June 30, 2019. 1993, 1995, 2003 and 313.225, RSMo 1985, amended 1988.

History

AUTHORITY: sections 313.220 and 313.225, RSMo 2016 . Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015.

12 CSR 40-10.050 Personal Pecuniary Interest define personal pecuniary interest as that term is used in section 313.275. {#sec-12-csr-40-10.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-10.050}

(1) The Missouri State Lottery Commission interprets the term personal pecuniary interest as that term is used in section 313.275 to mean— (A) Pecuniary interest means— 1. An ownership interest in the corporation, association or firm referred to in section 313.275; and 2. The ownership interest must exceed five percent (5%) of the total ownership; and (B) A personal interest shall mean the exercise of any business or management decision, including the signing of a proxy voting requests by the individual involved. The term shall not include blind trusts or other arrangements in which trustees or other individuals execute management decisions without consultation with the individual and the individual owns only a beneficial interest.

Original rule filed May 5, 1986, effective May 15, 1986.

12 CSR 40-10.060 Moneys Received define moneys received from the sale of lottery tickets as that term is used in section 313.321. {#sec-12-csr-40-10.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-10.060}

(1) The Missouri State Lottery Commission interprets the term moneys received from the sale of Missouri State Lottery tickets, as that term is used in section 313.321, to mean moneys received by the retailer for the sale of Missouri Lottery products to the public.

Original rule filed Oct. 20, 1986, effective Oct. 30, 1986.

12 CSR 40-10.070 Alternative Distribution Channels define alternative distribution channels. {#sec-12-csr-40-10.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-10.070}

JOHNR. ASHCROFT(5/31/19)

(l) The lottery commission reserves the right to sell wagers through alternative distribution channels in order to ensure that the Missouri Lottery has the necessary products to sustain revenue growth and to remain competitive.

These channels may be used to distribute lottery games, products, or promotions. Rules will be developed and established per channel and will adhere to existing rules of that particular game, product, or promotion. The lottery will report and settle retailer transactions in the same manner as the traditional retail distribution channel.

4CODE OF STATE REGULATIONS

(5/31/19) JOHNR. ASHCROFT

History

AUTHORITY: section 313.205, RSMo 2000, and section 313.220, RSMo Supp. 2014. Original rule filed July 15, 2014, effective Feb. 28, 2015. Original authority: 313.205, RSMo 1985 and 313.220, RSMo 1985, amended 1988, 1993, 1995, 2003.

Chapter 15 Employees

12 CSR 40-15.010 All Employees to be Fingerprinted {#sec-12-csr-40-15.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-15.010}

(Rescinded June 30, 2018)

Original rule filed Oct. 7, 1985, effective Oct. 17, 1985. Amended: Filed July 16, 2014, effective Feb. 28, 2015. Rescinded:

Filed Dec. 27, 2017, effective June 30, 2018.

JOHNR. ASHCROFT(5/31/18)

History

AUTHORITY: section 313.220, RSMo Supp.

Chapter 20 Fiscal

12 CSR 40-20.010 Licensees to Authorize Electronic Funds Transfer (EFT) require licensed retailers to authorize transfer by electronic funds from their bank account. {#sec-12-csr-40-20.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-20.010}

(1) Licensees shall authorize the debiting of an account in their names for the purpose of electronic funds transfer to a collection account.

(A) The licensee shall execute all forms required by his/her bank and any forms required by the transferring bank.

(B) The licensee, at his/her option, may establish a separate account for the purpose of transferring funds electronically to the Missouri State Lottery Fund.

(2) For persons applying for a retail license, the documents required by this rule shall be executed prior to the issuance of a license.

Filed Dec. 27, 2017, effective June 30, 2018.

History

AUTHORITY: section 313.220, RSMo 2016. Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed May 5, 1986, effective May 15, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Amended:

12 CSR 40-20.020 Electronic Funds Transfer System (EFT) {#sec-12-csr-40-20.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-20.020}

(Rescinded June 30, 2018)

Original rule filed May 5, 1986, effective May 15, 1986. Amended: Filed Dec. 5, 1988, effective April 27, 1989. Amended:

Filed July 15, 2014, effective Feb. 28, 2015.

Rescinded: Filed Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-20.030 Nonsufficient Funds establish policy for the treatment of nonsufficient funds submitted by the licensees. {#sec-12-csr-40-20.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-20.030}

(1) Any licensee whose account does not contain sufficient funds for debiting by electronics funds transfer (EFT) for any and all payments shall be subject to changes in credit limits or establishment of special payment arrangements as may be required by the Missouri Lottery.

(2) After the Missouri Lottery notifies a licensee of a non-transfer of funds (NTF), the retailer shall pay the amount of the NTF by re-sweep, certified check, cashier’s check, or money order immediately upon notification of an NTF as directed by the Missouri Lottery.

(3) The lottery may charge an additional fee for each NTF returned.

(4) Any licensee who fails to comply with the conditions established by the Missouri Lottery shall be subject to suspension or revocation under section 313.255.7(3).

(5) If the director is satisfied that a debit was returned NTF as a result of the Missouri Lottery or of mistakes by any banking institution, s/he may waive the requirements of this

rule. 2014.* Original rule filed May 5, 1986, effective May 15, 1986. Amended: Filed Aug. 23, 2000, effective March 30, 2001. Amended: Filed July 15, 2014, effective Feb. 28, 2015.

12 CSR 40-20.040 Return of Tickets for Scratchers Game establish a period of time for the return of game tickets at the end of a Scratchers game. {#sec-12-csr-40-20.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-20.040}

(1) Scratchers game tickets may be returned to the Missouri Lottery at any time prior to the end of an Scratchers game and up to ninety (90) days following the last day on which prizes may be claimed for that game for full credit.

(2) Any Scratchers game tickets returned within the time period set forth in section (1) of this rule will receive a full credit in the amount of money invoiced based on verification of the tickets returned.

(3) Returned Scratchers game tickets will not be given credit if returned after the time period set forth in section (1), unless the director is satisfied that a return after the period set forth in section (1) of this rule is the result of the Missouri Lottery or other conditions beyond the control of the licensee, s/he may waive the time period restriction set forth in

section (1). Returned Scratchers will not be credited if they cannot be verified. 2014.* Original rule filed May 5, 1986, effective May 15, 1986. Amended: Filed June 3, 1999, effective Dec. 30, 1999. Amended:

Filed July 15, 2014, effective Feb. 28, 2015.

JOHNR. ASHCROFT(5/31/18)

Chapter 30 Lottery Vendors

12 CSR 40-30.120 Information Which May be Requested of All Vendors {#sec-12-csr-40-30.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.120}

12 CSR 40-30.130 Information Which May be Requested of Corporate Vendors {#sec-12-csr-40-30.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.130}

12 CSR 40-30.140 Information Which May be Requested of Partnership Vendors {#sec-12-csr-40-30.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.140}

12 CSR 40-30.150 Information Which May be Requested of Sole Proprietorships {#sec-12-csr-40-30.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.150}

12 CSR 40-30.160 Information to be Provided about Certain Employees {#sec-12-csr-40-30.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.160}

12 CSR 40-30.170 Contracting With Minority and Women Business Enterprises 2CODE OF STATE REGULATIONS (1/29/15) JASONKANDER REVENUE {#sec-12-csr-40-30.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.170}

12 CSR 40-30.010 Use of State Purchasing Procedure 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.010}

12 CSR 40-30.020 Exceptions to State Purchasing Procedures 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.020}

12 CSR 40-30.030 Bid Procedure 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.030}

12 CSR 40-30.040 Bid Procedure for Less than Three Vendors 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.040}

12 CSR 40-30.050 Emergency Bid Procedures 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.050}

12 CSR 40-30.060 Confidentiality of Bids 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.060}

12 CSR 40-30.070 Documentation for Bid Procedure 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.070}

12 CSR 40-30.080 Documentation for Emergency Procedure 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.080}

12 CSR 40-30.090 Documentation for Less than Three Vendors 1985. Rescinded: Filed June 25, 1998, effec- {#sec-12-csr-40-30.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.090}

12 CSR 40-30.100 Performance Bonds Oct. 17, 1985. Rescinded: Filed June 25, {#sec-12-csr-40-30.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.100}

12 CSR 40-30.110 Information to be Provided by All Vendors Oct. 17, 1985. Rescinded: Filed June 25, {#sec-12-csr-40-30.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.110}

12 CSR 40-30.120 Information Which May be Requested of All Vendors Oct. 17, 1985. Rescinded: Filed June 25, {#sec-12-csr-40-30.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.120}

12 CSR 40-30.130 Information Which May be Requested of Corporate Vendors Oct. 17, 1985. Rescinded: Filed June 25, {#sec-12-csr-40-30.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.130}

12 CSR 40-30.140 Information Which May be Requested of Partnership Vendors Oct. 17, 1985. Rescinded: Filed June 25, {#sec-12-csr-40-30.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.140}

12 CSR 40-30.150 Information Which May be Requested of Sole Proprietorships Oct. 17, 1985. Rescinded: Filed June 25, {#sec-12-csr-40-30.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.150}

12 CSR 40-30.160 Information to be Provided about Certain Employees Oct. 17, 1985. Rescinded: Filed June 25, {#sec-12-csr-40-30.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.160}

12 CSR 40-30.170 Contracting With Minority and Women Business Enterprises Original rule filed Dec. 5, 1988, effective April 27, 1989. Rescinded: Filed June 25, JASONKANDER(1/29/15) {#sec-12-csr-40-30.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.170}

12 CSR 40-30.180 Adoption of State Purchasing Rules {#sec-12-csr-40-30.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-30.180}

PURPOSE: This rule establishes purchasing guidelines for the Missouri Lottery that mirror Office of Administration rules with several exceptions.

(1) The Missouri Lottery shall adopt the purchasing rules established for the Office of Administration (OA) in 1 CSR 40 with the exception of 1 CSR 40-1.010, 1 CSR 40- 1.040, 1 CSR 10-17.040, 1 CSR 10-17.050, and 1 CSR 40-1.090.

(A) In 1 CSR 40-1.030 Definitions:

Where applicable, job titles and organization references to Office of Administration titles shall be construed to refer to corresponding Missouri Lottery titles.

(B) Future changes, revisions or modifications of the Office of Administration’s purchasing rules will be accepted or rejected at the discretion of the Missouri Lottery executive director. Unless expressly rejected or modified by the executive director, such change, revision or modification shall be deemed accepted by the Missouri Lottery executive director.

(2) Exceptions to OA Purchasing Rules and Regulations.

(A) The executive director may utilize exceptions to the Office of Administration purchasing rules as follows:

The executive director shall have the ability to designate a preference for minority business enterprises and/or women business enterprises in the evaluation of bids. The executive director shall have the ability to designate the type or amount of the preference;
The executive director shall have the ability to designate particular purchases for which bids will be accepted only from minority business enterprises and/or women business enterprises;
The executive director shall have the ability to limit bidders on Missouri Lottery contracts to vendors located within the state of Missouri; and 4. The executive director shall have the ability to limit purchases to only Missourimade goods and/or USA-made goods.

4CODE OF STATE REGULATIONS

(1/29/15) JASONKANDER

History

AUTHORITY: section 313.270, RSMo 2000. Original rule filed June 25, 1998, effective Jan. 30, 1999. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Original authority: 313.270, RSMo 1985, amended 1988, 2000.

Chapter 40 Retail Sales Licenses

12 CSR 40-40.100 Certain Employees Prohibited From Participating in Lottery Operation 2CODE OF STATE REGULATIONS (5/31/19) JOHNR. ASHCROFT REVENUE {#sec-12-csr-40-40.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.100}

12 CSR 40-40.010 Application {#sec-12-csr-40-40.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.010}

PURPOSE: This rule requires persons desiring to be a licensed agent for the sale of lottery tickets to apply for a license as agent on a form provided by the director and may require a fee.

(1) Any person interested in obtaining a license as an agent for the sale of lottery tickets shall first file an application for a lottery sales agent’s license with the commission on application forms provided by the director.

(2) The application form shall provide sufficient information for the director to determine the eligibility for licenses as set forth in the statute and these rules and to perform sufficient background checks to insure that licensees conform to the provisions of these rules. Licensees shall submit fingerprints to the director on his/her request.

(3) The application may be accompanied by a processing fee as may be established by the commission.

Dec. 5, 1988, effective Jan. 27, 1989.

Amended: Filed Sept. 15, 1997, effective March 30, 1998. Amended: Filed July 15,

12 CSR 40-40.011 Renewal Application for Retail License {#sec-12-csr-40-40.011 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.011}

(Rescinded July 10, 1994)

Amended: Filed Aug. 28, 1987, effective Nov. 23, 1987. Amended: Filed Dec. 5, 1988, effective Jan. 27, 1989. Rescinded: Filed Jan. 4, 1994, effective July 10, 1994.

History

AUTHORITY: sections 313.220 and 313.230(1)(i)(2), RSMo 1986. Original rule filed Nov. 14, 1986, effective Nov. 24, 1986.

12 CSR 40-40.012 Residency {#sec-12-csr-40-40.012 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.012}

PURPOSE: This rule requires licensees to be residents of Missouri and provides for residency of corporations and partnerships.

(1) Each person applying for a license shall either— (A) Be a resident of this state;

(B) If a corporation, limited liability company (LLC) or partnership, be licensed to do business in this state; or (C) If a partnership, have at least one (1) partner residing in this state. effective Sept. 14, 1985. Amended: Filed July

12 CSR 40-40.015 Issuance and Length of Licenses {#sec-12-csr-40-40.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.015}

PURPOSE: This rule provides for licenses of one (1) year in length and allows the director to stagger the expiration by issuing longer or shorter licenses.

(1) The lottery shall issue a license to an applicant who qualifies for licensure and the license shall authorize the retailer to conduct the routine sale of tickets only at the location specified on the license.

(2) The license shall be valid for approximately one (1) year or until terminated by the lottery.

(3) The retailer shall provide periodic updates of license information as may be required by the director.

Filed Aug. 28, 1987, effective Nov. 23, 1987.

Amended: Filed Jan. 4, 1994, effective July 10, 1994. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Amended: Filed Dec. 1993, 1995, 2003 and 313.230, RSMo 1985, amended 1988, 1990, 1993.

History

AUTHORITY: sections 313.220 and 313.230, RSMo 2016. Original rule filed Sept. 4, 1985, effective Sept. 14, 1985. Amended:

12 CSR 40-40.020 Factors to be Considered {#sec-12-csr-40-40.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.020}

PURPOSE: This rule sets forth the factors the director shall consider in determining whether to issue a license.

(1) In determining whether to license any person as a retail sales agent, the director shall consider the following factors:

(A) The financial responsibility and security of the person and his/her business or activity;

(B) The accessibility of the proposed license location;

(D) The volume of expected sales at the location;

(E) The provisions for security of the lottery operation on the license premises;

(F) The effect the proposed licensee will have on the overall security and efficiency of operation of the state lottery; and (G) The veracity of the information supplied in the application.

Sept. 14, 1985. Amended: Filed July 15,

12 CSR 40-40.030 Minority Businesses {#sec-12-csr-40-40.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.030}

PURPOSE: This rule requires ten percent (10%) of the businesses in the City of St.

Louis and the City of Kansas City to be minority-owned or-controlled.

(1) The director shall select licensees to ensure that ten percent (10%) of the licensees in the City of St. Louis and the City of Kansas City are minority-owned or minority-controlled business enterprises.

Amended: Filed Dec. 27, 2017, effective June 30, 2018.

History

AUTHORITY: sections 313.220 and 313.255, RSMo 2016. Original rule filed Sept. 4, 1985, effective Sept. 14, 1985. Amended:

12 CSR 40-40.040 License Locations {#sec-12-csr-40-40.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.040}

PURPOSE: This rule requires a separate application and license for each location, the address of the location be on the license and the location to be fixed.

(1) Licenses shall be issued only for the location specified in the application.

JOHNR. ASHCROFT(5/31/18)

(2) Each person shall submit a separate application for each location at which s/he intends to sell lottery tickets.

(3) Each location for which an application is submitted must be a location as defined and approved by the Missouri Lottery.

(4) The address of the licensed premises shall appear on the license. effective Sept. 14, 1985. Amended: Filed July

12 CSR 40-40.050 Bond/License Fee Requirements {#sec-12-csr-40-40.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.050}

PURPOSE: This rule requires a bond and license fee for each licensee.

Each licensee shall post a bond and license fee in an amount to be determined by the director depending upon the actual or projected licensee’s sales and payment history, credit record, or both, for each license obtained. 2014, and sections 313.230(1)(i)(2) and 313.255, RSMo 2000.* Original rule filed Sept. 4, 1985, effective Sept. 14, 1985.

Amended: Filed Aug. 28, 1987, effective Nov. 23, 1987. Amended: Filed July 15, 2014, effective Feb. 28, 2015. 1993, 1995, 2003; 313.230(1)(i)(2), RSMo 1985, amended 1988, 1990, 1993; and 313.255, RSMo 1985, amended

12 CSR 40-40.060 Display of License {#sec-12-csr-40-40.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.060}

PURPOSE: This rule requires the licensee to display the license.

Each licensee shall prominently display his/her license or a copy.

Sept. 14, 1985. Amended: Filed July 15,

12 CSR 40-40.070 Assignment or Transfer of License Prohibited 2014, and section 313.255, RSMo 2000. {#sec-12-csr-40-40.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.070}

Sept. 14, 1985. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded:

Filed Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-40.071 Change of Business Location {#sec-12-csr-40-40.071 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.071}

PURPOSE: This rule clarifies when a change of location is allowed and when the change is an assignment or transfer in violation of section 313.255.4., RSMo.

(1) The change of a business address for any retail licensee will not be considered the assignment or transfer of the license if all of the following criteria are met:

(A) The licensee informs the director in writing, of the change of address including the old address, the new address and the reasons for the change of address;

(B) The old location ceases all business activity by this licensee, and not merely the sale of lottery tickets, no later than thirty (30) days after beginning any business activity at the new business location; and (C) The director is satisfied that the change in location— 1. Is accessible to the public;

Is in the public interest, both as to the sufficiency of existing licenses and to protect the public interest and trust in the lottery;
Has sufficient security at the new location;
Has a sufficient expected sales volume at the new location; and 5. Meets all the requirements for the initial issuance of licenses in 12 CSR 40, Chapter 40.

(2) In the event that all the criteria in section (1) of this rule are met, the director shall authorize the issuance of a license bearing the location of the new premises. The new license may bear the same identification number as the previous license premises.

Original rule filed May 5, 1986, effective May 15, 1986. Amended: Filed Jan. 4, 1994, effective July 10, 1994. Amended: Filed July

12 CSR 40-40.080 Ticket Sales as Primary Business Prohibited {#sec-12-csr-40-40.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.080}

PURPOSE: This rule prohibits licensees from engaging in business primarily as a lottery game retailer and establishes the factors for determining whether a licensee is so engaged.

(1) No license shall be issued to any person to engage in business primarily as a lottery game retailer.

(2) The director in determining whether a licensee is engaging in business primarily as a lottery game retailer shall consider the following factors:

(A) The length of time the business has existed;

(B) The percent of business that lottery tickets constitute of sales, in both dollar amount and number of items sold;

(C) The nature of the business, other than lottery game tickets, in which the licensee is engaged; and (D) The total volume of sales. 2014, and section 313.260, RSMo 2000.* Sept. 14, 1985. Amended: Filed July 15, 1993, 1995, 2003 and 313.260, RSMo 1985.

12 CSR 40-40.090 Eligibility for Licenses {#sec-12-csr-40-40.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.090}

PURPOSE: This rule establishes which persons are not eligible for licenses.

(1) No person shall be licensed as a lottery game retailer who— (A) Has been convicted of a felony;

(B) Is or has been a professional gambler or gambling promoter;

(D) Has been convicted of a crime involving fraud or misrepresentation;

(E) Has purchased a federal tax stamp for wagering or gambling activity;

(F) Has been convicted of or pleaded nolo contendereto any illegal gambling activity;

(G) Has had a retail license to sell lottery tickets revoked by the commission;

(H) Is an employee of the commission or a spouse, child, brother, sister or parent of an employee of the commission or a commissioner;

(I) Is under the age of twenty-one (21);

4CODE OF STATE REGULATIONS

(5/31/18) JOHNR. ASHCROFT

(J) Is a lottery contractor or a lottery vendor or has a direct interest in any lottery contractor or lottery vendor. For purpose of this subsection a direct interest shall mean a ten percent (10%) or greater interest by shares or percentage of partnership in any lottery contractor or vendor; and (K) Owes any debt to the state of Missouri.

For purposes of this subsection, the state of Missouri shall not include any city or county.

(2) Person is defined as any natural person, firm, corporation, or other legal entity possessing a Department of Revenue retail sales license, as provided by law.

(3) For purposes of licensing “person” refers to the principal owner of a sole proprietorship, principal partner(s) of a partnership, manager of the lottery account within a corporation, or limited liability company, and top two (2) officers of a nonprofit organization.

Amended: Filed Jan. 12, 2000, effective Aug. 30, 2000. Amended: Filed July 15, 2014, effective Feb. 28, 2015. *Original authority: 313.220(2), RSMo 1985, amended 1988, 1993, 1995, 2003 and 313.260, RSMo 1985.

History

AUTHORITY: section 313.220(2), RSMo Supp. 2014, and section 313.260, RSMo 2000. Original rule filed Sept. 4, 1985, March 17, 1987, effective June 11, 1987.

12 CSR 40-40.100 Certain Employees Prohibited From Participating in Lottery Operation 1988. Original rule filed Sept. 4, 1985, effective Sept. 14, 1985. Rescinded: Filed Dec. {#sec-12-csr-40-40.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.100}

12 CSR 40-40.110 Revocation of Licenses {#sec-12-csr-40-40.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.110}

PURPOSE: This rule establishes when the director shall revoke the licenses of a licensee.

(1) The director shall revoke the license of any person who has— (A) Knowingly provided false or misleading information to the commission, its employees, members of the Missouri State Highway Patrol while in the course of conducting an investigation on behalf of the commission or members of the staff of the attorney general while in the course of conducting investigations for the commission;

(B) Been convicted of any felony;

(C) Endangered the security and integrity of the lottery; and (D) Sold any ticket or share at a price other than that set by a rule of the commission.

(2) The licensee shall have the right to present evidence pursuant to 12 CSR 40-70.010.

(3) The director shall revoke all licenses held by any licensee violating subsections (1)(A)– (D) of this rule.

Sept. 14, 1985. Amended: Filed Jan. 4,

12 CSR 40-40.120 Suspension and Revocation of Licenses—When Effective Immediately {#sec-12-csr-40-40.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.120}

PURPOSE: This rule establishes when the director may suspend, revoke or decline to renew the license of any licensee and when a suspension or revocation is effective immediately.

(1) At the director’s sole discretion, the director may immediately suspend or revoke a retailer license for reasons including, but not limited to, the following:

(A) A change of business location;

(B) An insufficient sales volume;

(C) An electronic funds transfer (EFT) payment is rejected for non-transfer of funds (NTF) or failure to provide timely information to the lottery regarding any change on the retailer’s EFT bank account;

(D) Any violation of any rule adopted by the commission;

(E) Knowingly selling any ticket to a person under the age of eighteen (18) years old;

(F) The person is ineligible for obtaining a license under 12 CSR 40-40.090 and the facts giving rise to ineligibility occurred or were discovered subsequent to the issuance of the license or the license was issued through inadvertence or mistake to an unqualified licensee;

(G) The refusal to acquire any equipment or material required by the director;

(H) The manager or owner purposefully paid the player an amount less than the actual prize amount of the ticket, or the manager or owner retained the player’s winning ticket without paying the prize due the player;

(I) The failure or refusal to properly use and/or display any equipment or material required by the director;

(J) The retailer provided false or misleading information to, or concealed any material fact from, the lottery during the application process or thereafter;

(K) The retailer or any key person is arrested or convicted of a felony or a violation of any provision of Chapter 572, RSMo (Gambling), while a licensed retailer;

(L) Any contractual reason that provides a

basis for suspension or revocation of a retailer contract;

(M) The failure to remit any sales proceeds required to be remitted to the lottery;

(N) Knowingly either— 1. Canceling any draw game ticket without being requested to do so by the player owning that ticket; or 2. Failing to enter a draw game play requested by a player; and (O) When the director concludes that the retailer has endangered the security of the lottery or any of its games or that continuing to contract with the retailer may pose a threat to the fairness, honesty, integrity, or security of the lottery and its games.

(2) The director may suspend or revoke any number or all of the licenses held by any licensee.

Amended: Filed March 17, 1987, effective March 27, 1987. Amended: Filed Jan. 4, Amended: Filed Dec. 27, 2017, effective June 30, 2018. 1993, 1995, 2003; 313.255, RSMo 1985, amended 1988; and 313.260, RSMo 1985.

History

AUTHORITY: sections 313.220, 313.255, and 313.260, RSMo 2016. Original rule filed Sept. 4, 1985, effective Sept. 14, 1985.

12 CSR 40-40.130 Written Notice of Revocation, Suspension or Denial Required {#sec-12-csr-40-40.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.130}

PURPOSE: This rule requires the director to notify applicants or licensees in writing of the action s/he intends to take or has taken and the reasons for the action.

The director, on any revocation, suspension or denial of any license, shall inform in writing, the person applying for or holding license(s) of the action the director intends to take or has taken and the reason for the action.

JOHNR. ASHCROFT(5/31/18)

Sept. 14, 1985. Amended: Filed Jan. 4, Filed Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-40.140 Redemption of Prizes Required {#sec-12-csr-40-40.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.140}

(Rescinded January 20, 1986)

Sept. 14, 1985. Rescinded: Filed Jan. 10, 1985, effective Jan. 20, 1986.

History

AUTHORITY: section 313.220, RSMo 1985.

12 CSR 40-40.150 Change of Information notify the director of certain changes in their businesses. {#sec-12-csr-40-40.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.150}

(1) The licensee must notify the director of any of the following changes in his/her business:

(A) Any change of business structure;

(B) Changes of ownership for corporations (sale of ten percent (10%) or more of the equity);

(2) The director shall require additional information when it is necessary to conduct background information on any persons added to the business. The director may require a payment for any required investigation under this

rule.

(3) The director may require a new contract on the basis of the factors set forth in 12 CSR 40-40.090.

Sept. 14, 1985. Amended: Filed July 15, Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-40.160 Prohibitions on Sale of Tickets {#sec-12-csr-40-40.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.160}

PURPOSE: This rule prohibits the sale of tickets to persons under the age of 18 and from a nonlicensed location. It also prohibits revoked, suspended or non-renewed licensees from holding themselves out as a licensee.

(1) No licensee shall— (A) Sell any lottery ticket to a person under the age of eighteen (18) years;

(B) Sell any lottery ticket from any location or place other than the licensed premises; and (C) Hold him/herself out as a licensee if his/her license is revoked or suspended. 2014, and section 313.280, RSMo 2000.* Sept. 14, 1985. Amended: Filed Jan. 4, 1993, 1995, 2003 and 313.280, RSMo 1985.

12 CSR 40-40.170 Sale During Normal Business Hours sell tickets during normal business hours. {#sec-12-csr-40-40.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.170}

(1) Licensees shall sell tickets during their business hours for the location licensed.

(2) Retailers must give prompt service to lottery customers present and waiting to purchase lottery tickets.

Sept. 14, 1985. Amended: Filed Sept. 17, 1992, effective June 7, 1993. Amended: Filed Aug. 24, 2004, effective March 30, 2005.

Amended: Filed July 15, 2014, effective Feb. 28, 2015. Amended: Filed Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-40.180 Notification of Lost, Damaged or Stolen Tickets or Equipment notify the director and certain law enforcement agencies of the loss, damage or theft of lottery tickets or equipment. {#sec-12-csr-40-40.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.180}

Licensees shall immediately report the theft, loss, or damage of any lottery tickets or equipment to the director of the state lottery and either the Missouri State Highway Patrol or local law enforcement authorities. The licensee shall cooperate in any investigation conducted by the commission, its employees, the Missouri State Highway Patrol, the Missouri attorney general, or local law enforcement authorities.

Sept. 14, 1985. Amended: Filed July 15, Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-40.190 Marking of Tickets {#sec-12-csr-40-40.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.190}

(Rescinded February 28, 2015)

Original rule filed Sept. 4, 1985, effective Sept. 14, 1985. Amended: Filed Jan. 4, 1994, effective July 10, 1994. Rescinded:

12 CSR 40-40.200 Political Subdivisions Prohibited from Obtaining Licenses {#sec-12-csr-40-40.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.200}

PURPOSE: This rule prohibits political subdivisions from selling tickets.

(1) No political subdivision shall be licensed to sell lottery tickets.

(2) Nothing in this rule shall prohibit any person, holding a retail sales license to sell on public property, from being licensed to sell lottery tickets. 1988.* Original rule filed Sept. 4, 1985, effective Sept. 14, 1985. *Original authority 1985, amended 1988.

12 CSR 40-40.210 Loss of License {#sec-12-csr-40-40.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.210}

PURPOSE: This rule provides for obtaining a duplicate license.

Upon the loss, mutilation, or destruction of any license issued by the director, the person holding the license may apply to the director for a duplicate. effective Sept. 14, 1985. Amended: Filed Jan. 4, 1994, effective July 10, 1994. Amended:

6CODE OF STATE REGULATIONS

(5/31/18) JOHNR. ASHCROFT

JOHNR. ASHCROFT(5/31/19)

12 CSR 40-40.220 Incapacity of Licensee {#sec-12-csr-40-40.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.220}

PURPOSE: This rule provides for suspension of licenses for any licensee who becomes incapacitated in some way. The rule provides for reinstatement on application and the criteria for reinstatement.

(1) In the event any licensee is proven to be incapacitated, dies, is adjudicated bankrupt, makes any assignment for the benefit of creditors, or is placed in any receivership, guardianship, conservatorship or trusteeship, the director may suspend the license for all locations licensed to the person.

(2) The licensee, his/her agent, executor, guardian, conservator or trustee shall immediately inform the director of the occurrence of any circumstances set forth in section (1) of this rule. The executor, trustee in bankruptcy, receiver or any other officer or any court taking charge of the assets of any licensee may apply to the director for reinstatement of the license to sell lottery tickets.

(3) If the director is satisfied that the person applying for the reinstatement of the license is qualified under these rules and the director determines that it is in the best interest of both the lottery and the applicant that the license should be reinstated, s/he shall promptly reinstate the license on the terms as s/he, in writing, may set forth.

(4) In no event shall any license reinstated under this section be for a longer period than the time remaining on the original license.

Sept. 14, 1985. Amended: Filed July 15, Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-40.230 Licensees Required to Read Rules {#sec-12-csr-40-40.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.230}

PURPOSE: This rule requires licensees and their employees to read the commission’s rules concerning retail licenses and certify that they have read the rules and agree not to violate the rules.

Each licensee and any employee of the licensee who will be involved in the sale, bookkeeping or any other aspect of the state lottery shall read the rules of the commission concerning retail licenses and be familiar with the rules. 1999.* Original rule filed Sept. 4, 1985, Aug. 23, 2000, effective March 30, 2001. *Original authority: 313.220 RSMo 1985, amended 1988, 1993, 1995.

12 CSR 40-40.240 Retail Sales Tax License Required {#sec-12-csr-40-40.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.240}

PURPOSE: This rule requires retail licensees to have either a retail sales tax license, be organized for civic, fraternal, charitable, or labor purposes or be exempted by the director.

(1) All persons licensed to sell lottery tickets at retail shall either— (A) Have a retail sales tax license issued by the Missouri Department of Revenue, unless exempted by the director;

(B) Be organized for civic, fraternal, charitable, or labor purposes; or (C) Be a corporation organized under

Chapter 355, RSMo and be exempted from this rule under section (2).

(2) The director shall have the discretion to exempt from this rule any corporation organized under Chapter 355, RSMo if the corporation is otherwise qualified under these rules and it is in the best interest of the lottery to license the corporation to sell lottery tickets at retail. 2014.* Original rule filed Nov. 12, 1985, effective Nov. 22, 1985. Amended: Filed July

12 CSR 40-40.250 Special Event Licenses 2014. Original rule filed May 5, 1986, effective May 15, 1986. Amended: Filed Sept. 15, 1997, effective March 30, 1998. Amended: {#sec-12-csr-40-40.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.250}

Filed Aug. 23, 2000, effective March 30, 2001. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: Filed Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-40.260 Retailer Compensation {#sec-12-csr-40-40.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.260}

PURPOSE: This rule authorizes the director to make commission or incentive payments to retailers.

(1) The director may authorize a retailer compensation program.

(2) The director, at any time, may authorize a retailer incentive program. The incentive may be paid to retailers in either cash or its equivalent or merchandise.

(3) To be eligible to receive compensation or participate in the incentive program for the sale of lottery tickets, a retailer must meet the following criteria:

(A) Be a licensed and active lottery retailer selling lottery tickets at the incentive program’s end;

(B) Be current on payment for tickets at time incentive payment or award is made; and (C) Be in compliance with the retailer agreement, all aspects of the rules of the commission, and rules of the incentive program for which compensation is offered.

(4) In setting incentives for each participating retailer, the formulas used to determine individual incentives in any lottery games shall be consistent for all retailers who participate.

Filed Oct. 20, 1986, effective Oct. 30, 1986.

Amended: Filed April 27, 1987, effective July 11, 1987. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Amended: Filed Dec. 1993, 1995, 2003 and 313.230, RSMo 1985, amended 1988, 1990, 1993.

History

AUTHORITY: sections 313.220 and 313.230, RSMo 2016. Original rule filed July 15, 1986, effective July 25, 1986. Amended:

12 CSR 40-40.270 Ticket Transactions in Excess of $5,000 2014. Original rule filed Sept. 17, 1992, effective June 7, 1993. Amended: Filed Aug. 24, 2004, effective March 30, 2005. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: Filed Dec. 27, 2017, effective June 30, 2018. {#sec-12-csr-40-40.270 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.270}

12 CSR 40-40.280 Retailer Contract Provisions {#sec-12-csr-40-40.280 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-40.280}

PURPOSE: This rule establishes certain provisions that may be included, but are not required, in retailer contracts.

8CODE OF STATE REGULATIONS

(5/31/19) JOHNR. ASHCROFT

(1) In addition to any contractual provisions unique to a retailer, retailer contracts may provide the following provisions:

(A) A discount commission of a percentage set by the director of tickets sold by the retailer;

(B) An installation fee and a weekly communications fee as may be established by the director;

(C) If the retailer has purchased a business where a terminal has previously been installed, reconnection fees may be charged as may be established by the director;

(D) Requirements that the retailer— 1. Sell all games as required by the lottery;

Furnish players with proper claim forms provided by the lottery;
Provide winning numbers;
Attend training provided by the lottery;
Allow only trained personnel to operate terminals;
Report malfunctions as soon as practicable; and 7. Prominently display point-of-sale and other game-related materials and equipment; and (E) Retailer liability for negligent or intentional damage to or loss of lottery or vendor equipment.

Original rule filed Dec. 27, 2017, effective June 30, 2018. Amended: Filed Dec. 5, 2018, effective June 30, 2019.

Chapter 50 Tickets and Prizes

12 CSR 40-50.030 Redemption of Winning Tickets—Licensee and Play Responsibility REVENUE {#sec-12-csr-40-50.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-50.030}

12 CSR 40-50.010 Tickets and Prizes {#sec-12-csr-40-50.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-50.010}

PURPOSE: This rule provides that licensees own Scratchers tickets after they are delivered and bear the burden of any loss. Licensees must sell Scratchers tickets in order and cannot play or sell games in a manner that provides an advantage. The director has discretion to halt sales to limit liability.

(1) The licensee shall be responsible for all Scratchers tickets upon delivery to the retailer and shall bear the burden of any loss, including theft, damage, or loss. The director of the lottery may establish policies which, after consideration of the circumstances of the licensee’s loss, relieve the licensee of some or all of the burden of loss. The policies established by the director shall be made with the overall functionality of the lottery and the

purpose of maximizing the funds available for appropriation as set forth in the Missouri Constitution, Article III, Section 39(b).

(2) Licensees must sell their tickets in ticket order number within each pack.

(3) Licensees or their employees are prohibited from— (A) Playing lottery games using any method which gives the licensee or his/her employees an advantage in terms of odds of winning over the public at large; and (B) Knowingly selling a ticket or combination of tickets to any person or entity that would guarantee such a purchaser a prize in a draw game or draw game promotion.

(4) The lottery reserves the right to immediately halt ticket sales or redemptions at any retail location to limit the liability to the lottery and its retailer. Sales may resume at the discretion of the lottery.

Filed July 15, 2014, effective Feb. 28, 2015.

Amended: Filed Dec. 27, 2017, effective June 30, 2018.

History

AUTHORITY: section 313.220, RSMo 2016. Original rule filed Sept. 4, 1985, effective Sept. 14, 1985. Amended: Filed Aug. 28, 2002, effective March 30, 2003. Amended:

12 CSR 40-50.020 Price of Tickets {#sec-12-csr-40-50.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-50.020}

PURPOSE: This rule states how lottery tickets are priced.

(1) The price of lottery tickets to retail licensees shall be established by the executive director.

(2) Retail licensees must sell lottery tickets to the public at the price printed on the ticket.

Supp. 1997).* Original rule filed Sept. 4, 1985, effective Sept. 14, 1985. Amended:

Filed Nov. 12, 1985, effective Nov. 22, 1985.

Amended: Filed Sept. 15, 1997, effective March 30, 1998. 1993, 1995.

History

AUTHORITY: section 313.220, RSMo (Cum.

12 CSR 40-50.030 Redemption of Winning Tickets—Licensee and Player Responsibility and Disputes {#sec-12-csr-40-50.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-50.030}

PURPOSE:

This rule addresses redemption amounts for winning tickets.

(1) Licensees shall redeem winning lottery tickets of six hundred dollars ($600) or less.

The executive director may allow exceptions to the criterion in this paragraph.

(2) Licensees shall follow the procedures for validation of the tickets issued by the lottery before paying any prizes.

(3) Winning tickets over six hundred dollars ($600) shall be processed at a lottery office, the location(s) of which shall be published on the lottery’s website.

(4) A Scratchers or draw games ticket is a bearer instrument until signed on the back by the owner(s).

(5) The owner(s) of a winning ticket must declare all other owners and the percentage of ownership for a winning ticket at the time of filing a claim with the lottery or presenting the ticket for validation to a retailer.

(6) The player, and not the lottery, shall be responsible for lost or stolen lottery tickets.

(7) The lottery shall not be responsible for tickets or game plays claimed by a player in error for a lower prize— (A) Unless a specific game rule provides otherwise, a draw games game play may only be claimed for the highest prize category won;

(B) For purposes of calculation of a prize to be paid with respect to any prize in any game, the winning prize amount shall be rounded down to the nearest dollar.

(8) In the event of a dispute between the lottery and the owner(s) or bearer(s) of a lottery ticket as to whether the ticket is a winning ticket, and if the claimed prize is not paid, the director, solely at his/her option, may replace the disputed ticket with an unplayed ticket(s) of equivalent price from any current respective game. All decisions of the director as to winning tickets or any other disputes concerning the operation of the games are final and no administrative appeal shall be allowed.

Filed May 3, 1988, effective July 28, 1988.

Amended: Filed Sept. 15, 1997, effective March 30, 1998. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Amended: Filed Dec. 27, 2017, effective June 30, 2018. 1993, 1995, 2003 and 313.255, RSMo 1985, amended 1988.

History

AUTHORITY: sections 313.220 and 313.255, RSMo 2016. Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended:

12 CSR 40-50.040 Game/Promotion Changes—Cancellation {#sec-12-csr-40-50.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-50.040}

PURPOSE: This rule gives the executive director of the Missouri lottery the authority to revise or cancel any game or promotion that is found to impugn the security or integrity of the lottery.

(1) The Missouri lottery reserves the right to revise or cancel any game or game related promotion if in the opinion of the executive director such action is necessary to protect the security and/or the integrity of the lottery.

History

AUTHORITY: section 313.220, RSMo Supp. 2004. Original rule filed Aug. 24, 2004, effective March 30, 2005.

12 CSR 40-50.050 Claim Period {#sec-12-csr-40-50.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-50.050}

PURPOSE: The purpose of this rule is to set the period in which prizes may be claimed.

(1) All winning tickets for any Scratchers game must be claimed, as defined in lottery policy, within one hundred eighty (180) days of the announced end of the game. The announced end of the game may be obtained from any Missouri Lottery office or www.molottery.com.

(2) All winning tickets for any draw games must be claimed, as defined in lottery policy, within one hundred eighty (180) days of the last winning draw date on that ticket.

History

AUTHORITY: section 313.220, RSMo Supp. 2014. Original rule filed Oct. 6, 2006, effective April 30, 2007. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Pursuant to Executive Orders 20-04, 20-10, and 20-12, 12 CSR 40-50.050 was suspended from June 17, 2020 through September 13, 2020.

12 CSR 40-50.060 Player Agreement {#sec-12-csr-40-50.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-50.060}

PURPOSE: This rule addresses player compliance with lottery law, rules, instructions, and agreements.

(1) In purchasing a lottery ticket, submitting a ticket for validation, or claiming a prize, a player or claimant agrees to comply with state lottery law and any regulations, rules, instructions, or agreements pertaining to the lottery or its games.

(2) There may not be any failure to comply in relation to the ticket or prize that, in the opinion of the executive director, justifies disqualification.

Filed Dec. 5, 2018, effective June 30, 2019. 1993, 1995, 2003 and 313.230, RSMo 1985, amended 1988, 1990, 1993.

(10/31/20) JOHN R. ASHCROFT

History

AUTHORITY: sections 313.220 and 313.230, RSMo 2016. Original rule filed Dec. 27, 2017, effective June 30, 2018. Amended:

Chapter 60 Payment of Prizes

12 CSR 40-60.050 Requirements for Companies Providing Insurance for Annuity Contracts REVENUE {#sec-12-csr-40-60.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-60.050}

12 CSR 40-60.010 Prizes Other than Cash or its Equivalent Authorized authorize the awarding of prizes other than cash or its equivalent such as cars, trips and other merchandise. {#sec-12-csr-40-60.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-60.010}

(1) The Missouri Lottery may award any of the following prizes: cash or its equivalent, when such goods are made in the United States and sold by a Missouri business.

(2) For purposes of this rule the term “goods made in the United States” is defined as a good, product or service where no less than the final stages of production occur in the United States and which is purchased from an individual, partnership, company or corporation licensed to do business in Missouri. 1999 and 313.270.1, RSMo 1994.* Original

rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed Aug. 11, 1995, effective April 30, 1996. Amended: Filed Aug. 23, 2000, effective March 30, 2001. 1993, 1995 and 313.270, RSMo 1985, amended 1988, 2000.

12 CSR 40-60.020 Cash Prizes authorize the payment of cash or its equivalent by cash, check, annuity or other investment vehicle. {#sec-12-csr-40-60.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-60.020}

(1) The director shall have the authority to designate any game prize to be paid in periodic payments as set forth in this rule. Any prize not designated to be paid in periodic payments by the player or the director will be paid in a lump sum.

(2) Lump sum payments may be paid out as follows:

(A) Checks drawn upon the state treasury; or (B) Payments by retailers up to a maximum of six hundred dollars ($600) per prize.

(3) Periodic payments shall be made as follows:

(A) The director shall designate the length of periodic payment period;

(B) The first payment shall be in the first periodic payment period in which the prize is won; thereafter, there shall be one (1) payment per periodic payment period;

(C) The director may purchase annuities from annuity sellers to provide periodic prize payments under this section. Annuity sellers shall meet the requirements of 12 CSR 40- 60.040. Funds held by an annuity seller under this section are the property of the prize winner or beneficiary and shall not be considered state funds; and (D) The director may purchase U.S. government securities or other instruments provided for by law for the purpose of funding periodic prize payments. These instruments are held for the benefit of the prize winner or beneficiary and shall not be considered state funds. 2014, and section 313.230(2), RSMo 2000.* Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed Jan. 23, 1986, effective Feb. 1, 1986. Amended: Filed April 27, 1987, effective July 11, 1987.

Amended: Filed Jan. 12, 2000, effective Aug. 30, 2000. Amended: Filed July 15, 2014, effective Feb. 28, 2015. 1993, 1995, 2003 and 313.230, RSMo 1985, amended 1988, 1990, 1993.

12 CSR 40-60.030 Manner of Claiming Prizes from the Missouri Lottery require claiming of prizes from the commission by the filing of forms designated by the director. {#sec-12-csr-40-60.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-60.030}

(1) The claiming of any prize from the Missouri Lottery, which is subject to tax withholding or reporting requirements shall be on claim forms designated by the director for this purpose.

(2) The forms so designated shall request the information as may be necessary to validate the prize claimed and assure the authenticity of the winning ticket or share. The director may require the surrender of the ticket for some or all prizes claimed under this rule.

(3) The director shall make generally available to the public detailed rules for claiming prizes and so much as may be practicable on the reverse side of Scratchers and draw games tickets. 2014.* Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed Aug. 23, 2000, effective March 30, 2001. Amended: Filed July 15, 2014, effective Feb. 28, 2015. 1993, 1995, 2003.

12 CSR 40-60.040 Requirements for Annuity Sellers {#sec-12-csr-40-60.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-60.040}

PURPOSE: The purpose of this rule is to set out the requirements for annuity sellers who may bid to provide periodic prize payments to lottery winners.

(1) To be eligible to contract with the director to provide periodic payments of a prize to a lottery winner through an annuity, the annuity company must meet the following requirements:

(A) A policyholder or general rating of A+ as rated by A.M. Best;

(B) A financial size rating of VIII or higher as rated by A.M. Best;

(D) A minimum of seventy-five percent (75%) of the annuity company's gross revenues must be derived from the business of providing life, health and related products (not from the property and casualty business); and (E) The company must be headquartered in the United States.

(F) The company must possess a current certificate of authority from the director of the Department of Insurance, Financial Institutions and Professional Registration to transact the business of insurance which authorizes the company to issue annuities.

Filed July 15, 2014, effective Feb. 28, 2015.

Amended: Filed Dec. 27, 2017, effective June 30, 2018. *Original authority: 313.230, RSMo 1985, amended 1988, 1990, 1993.

History

AUTHORITY: section 313.230, RSMo 2016. Original rule filed Jan. 23, 1986, effective Feb. 1, 1986. Amended: Filed March 17, 1987, effective June 11, 1987. Amended:

12 CSR 40-60.050 Requirements for Companies Providing Insurance for Annuity Contracts {#sec-12-csr-40-60.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-60.050}

(Rescinded June 30, 2018)

Filed Dec. 27, 2017, effective June 30, 2018.

JOHNR. ASHCROFT(5/31/18)

History

AUTHORITY: section 313.230(1)(l), RSMo 2000. Original rule filed March 17, 1987, effective June 11, 1987. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded:

Chapter 70 Suspension, Revocation and Denial of Licenses

12 CSR 40-70.010 Right to Present Evidence {#sec-12-csr-40-70.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.010}

PURPOSE: This rule provides for submission of evidence by licensees whenever the director suspends, revokes, or denies a retail license or terminates a contract with any lottery vendor.

(1) Whenever the director suspends, revokes or denies a retail license or terminates the contract of any lottery vendor, the licensee or vendor (hereafter licensee) who is aggrieved by the action shall have a right to present anything bearing upon the suspension, revocation, denial or termination as provided in this

chapter.

(2) Any proceeding under this chapter shall be a noncontested case and reviewable under

section 536.150, RSMo (2000).

(3) For purposes of this chapter, the denial of a license shall include the refusal to renew a license after application by any licensee.

Denial of a license shall not mean the failure to exercise any option contained in a contract for goods or services. 2014.* Original rule filed April 9, 1986, effective April 19, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015.

12 CSR 40-70.020 Director to Give Detailed Reason for Action {#sec-12-csr-40-70.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.020}

PURPOSE: This rule provides for the director to give detail reasons for suspension, revocation or denial of a license.

(1) The director shall give reasons for the suspension, revocation or denial of any license, including the nonrenewal of any license as provided in section 313.265.

(2) The notice of action shall contain— (A) The detailed facts on which the director relies in suspending, revoking or denying any license; and (B) The statutory authority on which the director relies. 2014, and section 313.265, RSMo 2000.* 2014, effective Feb. 28, 2015. 1993, 1995, 2003 and 313.265, RSMo 1985.

12 CSR 40-70.030 Time and Manner for Submitting Evidence {#sec-12-csr-40-70.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.030}

PURPOSE: This rule provides the time limit for submitting evidence or statements and the form for submissions and provides for one extension.

(1) All evidence or statements submitted under 12 CSR 40-70.010 shall be in written or documentary form and shall be delivered to the Missouri Lottery within thirty (30) days of the receipt of the notice provided in 12 CSR 40-70.020.

(A) Documents may be submitted in paper or electronic form.

(B) Witness testimony may be by sworn affidavit and must contain the name, address, and telephone number of the witness. If the name, address, and telephone number are unknown, the sworn affidavit shall state the fact together with how the facts became known to the licensee.

(2) Upon receipt of the request of the licensee, the director may grant one (1) extension of an additional thirty (30) days for the submission of evidence.

(A) A request for extension shall contain the reason for the extension.

(B) Within five (5) business days of the request for extension, the director shall notify the licensee within five (5) days of his/her decision.

(3) For purposes of this rule, any submission will be considered received by the director at the earlier of— (A) The actual receipt of the submission; or (B) The postmark date appearing on any submission. 2014.* Original rule filed April 9, 1986, effective April 19, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015.

12 CSR 40-70.040 Effect of Action and Submission of Evidence {#sec-12-csr-40-70.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.040}

PURPOSE: This rule provides for the effect of a request for a hearing.

(1) Except when the notice of action indicates it is immediately effective, any action which the director proposes to take shall not take effect until the expiration of the thirty- (30-) day period in which the licensee may file evidence under 12 CSR 40-70.030 including any extension granted under 12 CSR 40-70.030.

(2) Except when the notice of action indicates it is immediately effective, any submission under 12 CSR 40-70.010 shall stay any action until the final decision of the director.

History

AUTHORITY: section 313.220, RSMo 2016. April 19, 1986. Amended: Filed Dec. 5, 2018, effective June 30, 2019.

12 CSR 40-70.050 When Action Effective Immediately {#sec-12-csr-40-70.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.050}

(Rescinded June 30, 2018) 2014, and section 313.260, RSMo 2000. 2014, effective Feb. 28, 2015. Rescinded:

Filed Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-70.060 Right to Review Evidence of Director {#sec-12-csr-40-70.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.060}

PURPOSE: The purpose of this rule provides for a request by the licensee to review evidence upon which the director’s proposed action is based.

(1) Upon request of any licensee aggrieved by a notice of action of the director, the licensee shall have the right to inspect or obtain any copies of documentary evidence of reports relied on by the director.

(2) A request under this rule must be made within the time provided in 12 CSR 40- 70.040(1).

(A) If the request is received by the director within fifteen (15) days of the mailing of the notice of action, the time for submission by the licensee shall be twenty-five (25) days from the date of mailing of the documents or summary provided under section (1).

JOHNR. ASHCROFT(5/31/19)

(B) If the request is received by the director between fifteen and thirty (15–30) days of the mailing of notice of action, the time for submission by the licensee shall be ten (10) days from the date of mailing of the documents or summary provided under section (1).

Original rule filed May 5, 1986, effective May 15, 1986.

12 CSR 40-70.070 Additional Evidence— Right to Respond {#sec-12-csr-40-70.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.070}

PURPOSE: This rule provides under what circumstances the director may consider additional evidence and provides a right to review and respond to evidence.

(1) If any additional evidence comes to the attention of the director after the notice of action has been mailed, s/he may not consider that evidence unless— (A) The licensee is given written notice of the director’s intention to rely on the evidence; and (B) The licensee is given an opportunity to review and respond to the evidence.

(2) Written notice under section (1) of this

rule shall contain copies of any documents or summaries of any witness testimony on which the director intends to rely.

(3) The licensee shall have fifteen (15) days from receipt of the notice provided in this

rule to respond to any additional evidence.

The fifteen (15)-day period shall be independent of any other time limit in this chapter.

April 19, 1986.

12 CSR 40-70.080 Decision of the Director {#sec-12-csr-40-70.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.080}

PURPOSE: This rule describes the decision of the director.

(1) The director shall issue his/her decision in writing. The decision shall include findings of fact and conclusions of law.

(2) The decision shall be sent by certified mail to the licensee and to his/her attorney, if any.

(3) Unless the director indicates the suspension or revocation under 12 CSR 40-40.120 is immediate, the suspension, revocation or denial shall be effective on the date the director renders his/her decision.

(4) In the case of an immediately effective suspension or revocation under 12 CSR 40- 40.120, if the decision is favorable, the licensee shall be reinstated on the date the director renders his/her decision. If the decision is a suspension for a period of time, the time between the notice of action and the decision shall be counted as part of the suspension period.

History

AUTHORITY: section 313.220, RSMo 2016. 2014, effective Feb. 28, 2015. Amended: Filed Dec. 27, 2017, effective June 30, 2018.

12 CSR 40-70.090 Record of the Director {#sec-12-csr-40-70.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-70.090}

PURPOSE: This rule describes the record of the director.

(1) The official record of the proceedings shall be the notice of action, all documents and witness summaries relied on by the director, all documents, affidavits and witness summaries submitted by the licensee, if any, notice of additional evidence sent under 12 CSR 40-70.070, and the decision.

(2) In the event that judicial review of the director’s decision is sought, the director shall certify the record to the reviewing court.

April 19, 1986.

4CODE OF STATE REGULATIONS

(5/31/19) JOHNR. ASHCROFT

Chapter 80 General Rules - Scratchers Game

12 CSR 40-80.010 Definitions for All Scratchers Games define certain terms for the Scratchers games. {#sec-12-csr-40-80.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.010}

(1) The following definitions shall apply to

12 CSR 40-80 and 12 CSR 40-90: {#sec-12-csr-40-80 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80}

(A) Scratchers ticket means a Missouri Lottery Scratchers game ticket ;

(B) Play symbols are the symbols printed on Scratchers game tickets. One (1) of these play symbols appears under each rub-off spot of the Scratchers ticket;

(D) Pack means a pack of Scratchers game tickets. A pack shall consist of Scratchers game tickets, bearing a common pack number and having ticket numbers sequentially through the pack;

(E) Scratchers game is the Missouri Lottery game in which a preprinted ticket is purchased and upon removal of a scratch-off coating on the ticket, the ticket bearer determines his/her winnings, if any;

(F) Game identification number-pack-ticket number is the unique number printed on the Scratchers game ticket which designates game identification number, pack number, and ticket number;

(G) Play symbol caption means the small printed captions appearing below each play symbol which identifies the play symbol. One (1) and only one (1) of these play symbol captions appears under each play symbol;

(H) Encrypted validation code consists of a bar code found under the scratch-off coating on the Scratchers game ticket;

(I) Valid ticket is a Scratchers game ticket which meets all of the lottery’s validation requirements;

(J) Rub-off spot is an area of a Scratchers ticket covered with a scratch-off coating. The player removes the scratch-off coating to reveal a play symbol, play symbol caption, or other validation number, or validation code beneath; and (K) Instant prize is the prize revealed on a Scratchers game ticket.

Filed March 17, 1987, effective July 3, 1987.

Amended: Filed Dec. 5, 1988, effective April 27, 1989. Amended: Filed June 3, 1999, *Original authority: 313.230, RSMo 1985, amended 1988, 1990, 1993.

History

AUTHORITY: section 313.230, RSMo 2016. Jan. 20, 1986. Amended: Filed April 9, 1986, effective April 19, 1986. Amended:

12 CSR 40-80.020 Manner of Selecting Winning Scratchers Tickets—Publication and Retention require the lottery to publish and retain records setting forth the manner of determining Scratchers prize winners for specific Scratchers games. {#sec-12-csr-40-80.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.020}

(1) The director shall publish and provide to retailers the specifics for each Scratchers game at least one (1) week prior to the start of that game, including:

(A) The theme of the game;

(B) The method of play to determine winning tickets; and (C) The value and odds of each prize level.

(2) The director shall retain the specifics for each Scratchers game at the lottery’s Jefferson City office for one (1) year following the last day on which prizes may be claimed for that game.

(3) Scratchers games may also include random drawings for prizes.

(4) Multiple prize amounts won in accordance with a Scratchers game’s specifics may be paid on any given Scratchers ticket.

History

AUTHORITY: section 313.220, RSMo 2016. Jan. 20, 1986. Amended: Filed June 3, 1999, 1990, 1993, 1995, 2003.

12 CSR 40-80.030 Limitation on Awarding Instant Prizes 2014. Original rule filed Jan. 10, 1986, effec- {#sec-12-csr-40-80.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.030}

12 CSR 40-80.040 Value of Prizes in Instant Grand Prize Drawing {#sec-12-csr-40-80.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.040}

History

AUTHORITY: section 313.203(2), RSMo 1986. Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Rescinded: Filed March 17, 1987, effective July 3, 1987.

12 CSR 40-80.050 Scratchers Validation Requirements {#sec-12-csr-40-80.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.050}

PURPOSE: The purpose of this rule is to set forth the validation requirements for validating a Scratchers winning ticket.

(1) All of the following requirements must be met for a Scratchers ticket to be a valid Scratchers winning ticket:

(A) Exactly one (1) play symbol must appear under each rub-off spot on the ticket;

(B) When play symbol captions are used, each of the play symbols must have a play symbol caption underneath and each play symbol must agree with its play symbol caption;

(D) When play symbol captions are used, each of the play symbol captions must be present in its entirety and be fully legible;

(E) Each of the play symbols and play symbol captions must be printed in ink;

(F) The ticket shall be intact;

(G) The pack-ticket number, the ticket validation number and the encrypted validation code must be present in their entirety and be fully legible. The validation number shall correspond, using the lottery’s codes, to play symbols on the ticket;

(H) The ticket must not be reconstituted or tampered with in any manner;

(I) The ticket must not be counterfeit in whole or in part;

(J) The ticket validation number, the packticket number and the encrypted validation code shall be printed in ink;

(K) The ticket must have been issued by the lottery in an authorized manner;

(L) The ticket must not be stolen nor appear on any list of omitted tickets on file at the lottery;

(M) The play symbols, the play symbol captions, the ticket validation number, the encrypted validation code and the pack-ticket number must be rightside up and not reversed in any manner;

JOHNR. ASHCROFT(5/31/18)

(N) The ticket must have exactly one (1) play symbol caption under each rub-off spot, when play symbol captions are used, exactly one (1) pack-ticket number, exactly one (1) encrypted validation code and exactly one (1) validation number;

(O) The validation number of an apparent winning ticket shall appear on the lottery’s official file of validation numbers of winning tickets and the ticket with that validation number shall not have been paid previously according to the records of the lottery;

(P) The ticket must not be blank or partially blank, misregistered, defective or printed or produced in error;

(Q) Each of the play symbols on the ticket must correspond precisely to the game specifications on file at the lottery. When play symbol captions are used, each of the play symbol captions must correspond precisely to the game specifications on file at the lottery;

(R) The pack-ticket number must correspond precisely to the game specifications on file at the lottery;

(S) The encrypted validation code must correspond precisely to the game specifications on file at the lottery;

(T) The validation number must correspond precisely to the game specifications on file at the lottery;

(U) The display printing must be regular in every respect and correspond precisely with the game specifications on file at the lottery;

(V) The ticket must pass all additional confidential validation tests prescribed by the lottery; and (W) The ticket must be a Scratchers ticket offered for sale by the lottery during the period announced by the director for that Scratchers game.

(2) No portion of the display printing on the Scratchers ticket nor any extraneous matter whatsoever shall be usable or playable as part of the Scratchers ticket.

(3) At the direction of the director, the lottery may pay a winning claim on a damaged or mutilated ticket. This is dependent on the lottery being able to identify the game-pack-ticket number or validation number, and a sufficient amount of the ticket play area, in order to have the ability to reconstruct the ticket, as directed by lottery procedure, to compare and successfully match it to the damaged/mutilated ticket. Provided that the ticket has not been validated, the lottery’s director may authorize that the claim be paid.

(4) The director, solely at his/her option, may replace an invalid ticket with an unplayed ticket(s) of equivalent sales price for any current lottery game. In the event a defective ticket is purchased, the only responsibility or liability of the lottery shall be the replacement of the defective ticket with another unplayed ticket(s) of equivalent sales price from any lottery Scratchers game currently on sale.

History

AUTHORITY: section 313.220, RSMo 2016. Jan. 20, 1986. Amended: Filed June 3, 1999, 1990, 1993, 1995, 2003.

12 CSR 40-80.060 Grand Prize Drawing Process {#sec-12-csr-40-80.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.060}

History

AUTHORITY: section 313.230(2), RSMo 1986. Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Rescinded: Filed March 17, 1987, effective July 3, 1987.

12 CSR 40-80.070 Grand Prize for Jackpot Drawing {#sec-12-csr-40-80.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.070}

Filed March 17, 1987, effective July 3, 1987.

History

AUTHORITY: section 313.230(2), RSMo 1986. Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed May 15, 1986, effective May 25, 1986. Rescinded:

12 CSR 40-80.080 Claim Period {#sec-12-csr-40-80.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.080}

(Rescinded April 30, 2007)

Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed March 17, 1987, effective July 3, 1987. Amended:

Filed Aug. 28, 2002, effective March 30, 2003. Amended: Filed Nov. 15, 2005, effective June 30, 2006. Rescinded: Filed Oct. 6, 2006, effective April 30, 2007.

12 CSR 40-80.090 Ticket Responsibility 2014. Original rule filed Jan. 10, 1986, effec- {#sec-12-csr-40-80.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.090}

12 CSR 40-80.100 Disputes 2014. Original rule filed Jan. 10, 1986, effec- {#sec-12-csr-40-80.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.100}

12 CSR 40-80.110 Compliance 2014. Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: {#sec-12-csr-40-80.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.110}

12 CSR 40-80.120 Termination of Scratchers Games authorize the director to announce a termination date for Scratchers games. {#sec-12-csr-40-80.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.120}

(1) The director at any time may announce a termination date for any Scratchers game.

Tickets for the terminated game may not be sold or validated after the date announced. 2014.* Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015. 1993, 1995, 2003.

12 CSR 40-80.130 Retailer Conduct 2014. Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: {#sec-12-csr-40-80.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-80.130}

4CODE OF STATE REGULATIONS

(5/31/18) JOHNR. ASHCROFT

Chapter 85 Draw Game

12 CSR 40-85.090 Cancellation of or Failure to Enter Draw Game Tickets {#sec-12-csr-40-85.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.090}

12 CSR 40-85.100 Change of Location or of Business Organization for Draw Game Retailer REVENUE {#sec-12-csr-40-85.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.100}

12 CSR 40-85.005 Definitions for All Draw Games {#sec-12-csr-40-85.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.005}

PURPOSE: This rule defines certain terms for all draw games.

(1) Certified drawing. A drawing in which the lottery and an independent certified public accounting firm attests that the drawing equipment functioned properly and that a random selection of a winning combination has occurred.

(2) Drawing. The procedure by which the lottery randomly selects numbers or items in accordance with the specific game rules for those games requiring random selection of numbers or items.

(3) Duplicate ticket. A ticket produced by photograph, copier, or any other method other than a ticket generated by a draw games terminal.

(4) Draw game. A game played on a draw game terminal which is in communication with the lottery’s computer gaming system; also known as a computer-generated game.

(5) Draw games lottery retailer. A licensed retailer who has contracted with the lottery to sell draw games.

(6) Computer gaming system. The lottery’s computer gaming system consisting of draw games terminals and related equipment which communicates with the central processing equipment and a communication network.

(7) Draw games terminal. Computer hardware through which player game selections are generated and claims may be validated.

(8) Draw games ticket. A computer issued game play by a draw games lottery retailer to a player as a record for the numbers/wagers or combination of numbers/wagers the player has selected.

(9) Player-selected numbers/wagers. A number or wager or group of numbers or wagers either— (A) Selected by a player in connection with a draw game; or (B) Randomly selected by the computer gaming system. The computer-generated numbers/wagers are also known as quick picks or auto-picks.

(10) Share. A percentage of ownership in a winning ticket.

(11) Validation. The process of determining whether a draw games ticket presented for payment is a winning ticket.

(12) Validation number. The number displayed on the front of each draw games ticket which is used for validation.

Amended: Filed Dec. 27, 2017, effective June 30, 2018.

History

AUTHORITY: section 313.220, RSMo 2016. Original rule filed July 15, 1986, effective July 25, 1986. Amended: Filed May 25, 2000, effective Nov. 30, 2000. Amended:

12 CSR 40-85.010 Draw Games Contract Provisions 2014. Original rule filed June 4, 1986, effective June 14, 1986. Amended: Filed March 17, 1987, effective March 27, 1987. Amended: Filed March 1, 1988, effective May 26, 1988. Amended: Filed May 25, 2000, effective Nov. 30, 2000. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: {#sec-12-csr-40-85.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.010}

12 CSR 40-85.020 Criteria for On-Line Terminal Award {#sec-12-csr-40-85.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.020}

(Rescinded February 28, 2015)

Original rule filed June 4, 1986, effective June 14, 1986. Amended: Filed Dec. 5, 1988, effective April 27, 1989. Rescinded:

12 CSR 40-85.030 Draw Games Ticket Validation Requirements {#sec-12-csr-40-85.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.030}

PURPOSE: This rule sets forth the validation requirements for validating draw games winning tickets.

(1) All of the following requirements must be met for a draw games ticket to be a valid draw games winning ticket:

(A) The ticket validation number shall be presented in its entirety and shall correspond using the computer validation file to the selected numbers displayed on the ticket for the data displayed on the ticket;

(B) The ticket shall— 1. Not be altered, reconstituted, or tampered with in any manner;

Not be counterfeit or a duplicate of another winning ticket;
Have been issued by the lottery through a retailer in an authorized manner;
Not have been canceled;
Be validated in accordance with procedures for claiming and payment of prizes;

(C) The ticket data shall— 1. Have been recorded in the computer gaming system before the drawing; and 2. Match this computer record in every respect;

(D) The player-selected numbers/wagers, the validation number data, and the drawing date of an apparent winning ticket shall appear on the official file of winning tickets and may not have been previously paid;

(E) The ticket may not be misregistered, unregistered or unissued, or defectively printed to an extent that it cannot be processed by the lottery; and (F) The ticket shall pass all other confidential security checks of the lottery.

(2) The information printed on the ticket stock shall not be interpreted as providing any prize or procedure other than that authorized by the lottery for that game.

(3) The director may allow exceptions to the criteria in this rule.

Amended: Filed Dec. 27, 2017, effective June 30, 2018.

History

AUTHORITY: section 313.220, RSMo 2016. Original rule filed July 15, 1986, effective July 25, 1986. Amended: Filed May 25, 2000, effective Nov. 30, 2000. Amended:

12 CSR 40-85.040 Lotto Game {#sec-12-csr-40-85.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.040}

(Rescinded November 23, 1987)

History

AUTHORITY: section 313.230(2), RSMo 1986. Original rule filed July 15, 1986, effective July 25, 1986. Rescinded: Filed Aug. 28, 1987, effective Nov. 23, 1987.

12 CSR 40-85.050 Prize Amounts for Parimutuel Draw Games {#sec-12-csr-40-85.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.050}

PURPOSE: This rule sets the amount of prizes for parimutuel games.

(1) The total amount of prize money allocated to the winnings pool for draw games shall be a minimum of forty-five percent (45%) of the total gross draw games sales.

(2) The allocation of the draw games winnings to the prize categories shall be announced by the director at least one (1) week prior to the effective date of this rule and one (1) week prior to any future changes in the allocation.

(3) The prize money allocated to each of the winning prize categories will be divided equally by the number of plays determined to be winning plays for that prize. The director may establish a maximum or minimum prize allocation to each of the winning categories.

(4) Game liability limits— (A) When the potential aggregate prize liability, resulting from all wagers containing a particular combination of numbers, reaches or first exceeds a prize payout level as determined by the director in a single drawing, no further wagers of that number combination shall be accepted by the lottery gaming system for that drawing.

(B) Notwithstanding subsection (A) of this

section, the director may, when conditions so warrant as determined in the director’s sole discretion, establish a prize liability threshold that is higher than the published level for a single drawing.

(5) In a draw game, if no winning ticket qualifies for a prize category, the amount allocated for the prize shall be carried over and added to the prize pool of the next drawing for that particular game or will be allocated to other prize levels according to the rules of that game.

(6) The amount allocated to the first prize may be used to purchase securities or an annuity for each winning play. The first prize will be payable to winning tickets by an initial cash payment plus payments as established by the director. Any winning ticket owned in shares by multiple owners shall be funded as outlined above to the owners as declared on the claim form for claiming the draw games prizes. As established by the director, the first prize may be payable to winning ticket holder(s) in a lump sum cash payment equal to the cash value of the first prize annuity or a percentage of the first prize.

Filed May 14, 1987, effective Aug. 13, 1987.

Amended: Filed Aug. 4, 1988, effective Oct. 27, 1988. Amended: Filed Sept. 15, 1997, effective March 30, 1998. Amended: Filed May 25, 2000, effective Nov. 30, 2000. 28, 2015. Amended: Filed Dec. 27, 2017, 1993, 1995, 2003 and 313.230, RSMo 1985, amended 1988, 1990, 1993.

History

AUTHORITY: sections 313.220 and 313.230, RSMo 2016. Original rule filed July 15, 1986, effective July 25, 1986. Amended:

12 CSR 40-85.055 Designation for Specifics for Each Draw Game {#sec-12-csr-40-85.055 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.055}

PURPOSE: This rule designates the specifics the director will publish for each draw game.

(1) The director shall publish the following specifics for each draw game at least one (1) week prior to the start of that game:

(A) The name of the game;

(B) The combination or range of numbers which will be used in the game;

(D) The allocation of the winnings pool to the prize categories;

(E) The method of matching player-selected number(s) with the winning number(s); and (F) The cost of a play.

(2) The director shall retain the specifics for each draw game at the Jefferson City office of the Missouri Lottery for one (1) year following the last day on which prizes may be claimed for that game.

(3) The director shall cause the specifics set out in section (1) to be published and released to media for publication to inform the public and players of the specifics of the draw game.

History

AUTHORITY: section 313.230(1)(b)(c)(d), RSMo 2000. Original rule filed May 14, 1987, effective Aug. 13, 1987. Amended: Original authority: 313.230, RSMo 1985, amended 1988, 1990, 1993.

12 CSR 40-85.060 Further Limitations on Draw Games Prizes 2014. Original rule filed July 15, 1986, effective July 25, 1986. Amended: Filed Feb. 11, 1987, effective Feb. 21, 1987. Amended: {#sec-12-csr-40-85.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.060}

12 CSR 40-85.070 Disputes 2014. Original rule filed July 15, 1986, effective July 25, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: {#sec-12-csr-40-85.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.070}

12 CSR 40-85.080 Payments of Prizes Up to $600 Authorized 2014. Original rule filed July 15, 1986, effective July 25, 1986. Amended: Filed Feb. 11, 1987, effective Feb. 21, 1987. Amended: {#sec-12-csr-40-85.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.080}

12 CSR 40-85.090 Cancellation of or Failure to Enter Draw Game Tickets 2014. Original rule filed Sept. 15, 1986, effective Sept. 25, 1986. Amended: Filed Nov. 14, 1986, effective Nov. 24, 1986. {#sec-12-csr-40-85.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.090}

12 CSR 40-85.100 Change of Location or of Business Organization for Draw Game Retailer 2014. Original rule filed Nov. 14, 1986, effective Nov. 24, 1986. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: {#sec-12-csr-40-85.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.100}

12 CSR 40-85.110 Pick-3 Game 1997. Original rule filed Feb. 11, 1987, effective Feb. 21, 1987. Amended: Filed Feb. 4, 1993, effective Aug. 9, 1993. Amended: Filed Sept. 15, 1997, effective March 30, 1998. {#sec-12-csr-40-85.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.110}

Rescinded: Filed May 25, 2000, effective 4CODE OF STATE REGULATIONS (5/31/18) JOHNR. ASHCROFT Nov. 30, 2000.

12 CSR 40-85.120 Winning Tickets in Pick- 1997. Original rule filed Feb. 11, 1987, effective Feb. 21, 1987. Amended: Filed Sept. 15, 1997, effective March 30, 1998. Rescinded: {#sec-12-csr-40-85.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.120}

12 CSR 40-85.130 Prize Amounts for Pick- 1997. Original rule filed Feb. 11, 1987, effective Feb. 21, 1987. Amended: Filed May 3, 1988, effective Aug. 25, 1988. Amended: {#sec-12-csr-40-85.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.130}

Filed Sept. 15, 1997, effective March 30, 1998. Rescinded: Filed May 25, 2000, effective Nov. 30, 2000.

12 CSR 40-85.140 Drawing and Selling Times {#sec-12-csr-40-85.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.140}

PURPOSE: This rule establishes the drawing and selling times for the draw games.

(1) Drawings shall be conducted at times and places designated by the executive director. 2014.* Original rule filed Feb. 11, 1987, effective Feb. 21, 1987. Amended: Filed Dec. 5, 1988, effective April 27, 1989. Amended: 28, 2015.

12 CSR 40-85.150 Breakage 1988. Original rule filed Feb. 11, 1987, effective Feb. 21, 1987. Rescinded: Filed May 25, 2000, effective Nov. 30, 2000. {#sec-12-csr-40-85.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.150}

12 CSR 40-85.160 Prize Pool for Pick-3 1988. Original rule filed Feb. 11, 1987, effective Feb. 21, 1987. Rescinded: Filed May 25, 2000, effective Nov. 30, 2000. {#sec-12-csr-40-85.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.160}

12 CSR 40-85.170 Game Sell-Out Prohibited 2014. Original rule filed Sept. 17, 1992, effective June 7, 1993. Amended: Filed Aug. 24, 2004, effective March 30, 2005. Amended: Filed July 15, 2014, effective Feb. 28, 2015. Rescinded: Filed Dec. 27, 2017, effective June 30, 2018. {#sec-12-csr-40-85.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.170}

12 CSR 40-85.175 Entry of Plays {#sec-12-csr-40-85.175 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-85.175}

PURPOSE: This rule provides acceptable methods of playing lottery draw games at retail locations.

Draw game plays may only be entered manually using the lottery terminal keypad or touch screen, or by means of inserting a playslip provided by the Missouri Lottery and handmarked by the player or by other means approved by the Missouri Lottery. Retailers shall not permit facsimile playslips, copies of playslips, or other materials not printed or approved by the Missouri Lottery to be inserted into the terminal’s playslip reader.

Retailers shall not permit any device to be connected to a lottery terminal to enter plays, except as approved by the Missouri Lottery. 2014.* Original rule filed Feb. 4, 1993, effective Aug. 9, 1993. Amended: Filed July 15, 2014, effective Feb. 28, 2015. *Original authority: 313.220, RSMo 1985, amended 1988, 1993, 1995, 2003.

Chapter 90 Specific Scratchers Game Rule

12 CSR 40-90.010 Instant Game Number 1 Theme Jan. 20, 1986. Rescinded: Filed June 3, {#sec-12-csr-40-90.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.010}

12 CSR 40-90.020 Rub-Off Spots and Play Symbols for Instant Game Number 1 Jan. 20, 1986. Rescinded: Filed June 3, {#sec-12-csr-40-90.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.020}

12 CSR 40-90.030 Number and Value of Prizes Jan. 20, 1986. Rescinded: Filed June 3, {#sec-12-csr-40-90.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.030}

12 CSR 40-90.040 Symbol Captions for Instant Game Number 1 Jan. 20, 1986. Rescinded: Filed June 3, {#sec-12-csr-40-90.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.040}

12 CSR 40-90.050 Retailer Validation Code for Instant Game Number 1 Jan. 20, 1986. Rescinded: Filed June 3, {#sec-12-csr-40-90.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.050}

12 CSR 40-90.060 Instant Game Number 2 Theme {#sec-12-csr-40-90.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.060}

12 CSR 40-90.070 Rub-Off Spots and Play Symbols for Instant Game Number 2 {#sec-12-csr-40-90.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.070}

12 CSR 40-90.080 Number and Value of Prizes 14, 1986. Amended: Filed April 9, 1986, effective April 19, 1986. Rescinded: Filed June 3, 1999, effective Dec. 30, 1999. {#sec-12-csr-40-90.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.080}

12 CSR 40-90.090 Symbol Captions for Instant Game Number 2 {#sec-12-csr-40-90.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.090}

12 CSR 40-90.100 Retailer Validation Code for Instant Game Number 2 {#sec-12-csr-40-90.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.100}

12 CSR 40-90.110 Designation of Specifics for Each Scratchers Game {#sec-12-csr-40-90.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.110}

(Rescinded June 30, 2018)

Original rule filed April 9, 1986, effective April 19, 1986. Amended: Filed June 3, 1999, effective Dec. 30, 1999. Amended:

Filed July 15, 2014, effective Feb. 28, 2015.

Rescinded: Filed Dec. 27, 2017, effective June 30, 2018.

History

AUTHORITY: section 313.220, RSMo Supp.

12 CSR 40-90.120 State Fair Spin Game {#sec-12-csr-40-90.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-90.120}

JOHNR. ASHCROFT(5/31/18)

History

AUTHORITY: section 313.230(1)(c)(d)(e)(f), RSMo 1986. Original rule filed May 1, 1987, effective July 11, 1987. Rescinded: Filed June 3, 1999, effective Dec. 30, 1999.

Chapter 95 Pull Tab Game

12 CSR 40-95.010 Pull Tab Game {#sec-12-csr-40-95.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 40-95.010}

PURPOSE: The purpose of this rule is to define the Pull Tab as a game for the Missouri Lottery.

(1) The following rule shall define the game Pull Tab as a game for the Missouri Lottery:

(A) Pull Tab tickets are lottery tickets that are played by opening tabs to reveal if a prize was won. A winning ticket will be determined by matching, aligning, adding, or locating symbols or numbers under the tabs, or as specifically described on the ticket or in an individual game rule;

(B) The price of Pull Tab tickets to retailers shall be established by the executive director;

(C) The prize structure for each Pull Tab game will be published and available on the lottery’s website, MOLottery.com two (2) weeks prior to the first sale of each game;

(D) A licensed lottery retailer may sell pull tabs at the discretion of the executive director;

(E) Compensation for the sale of Pull Tab tickets shall be paid by the lottery at an amount to be determined by the executive director. The executive director may institute an incentive program; and (F) The lottery reserves the right to immediately halt Pull Tab sales at any retail location to limit the liability to the lottery and its retailer. Sales may resume at the discretion of the lottery.

Filed July 15, 2014, effective Feb. 28, 2015. *Original authority: 313.230, RSMo 1985, amended 1988, 1990, 1993.

JASONKANDER(1/29/15)

History

AUTHORITY: section 313.230, RSMo 2000. Original rule filed Feb. 16, 1990, effective April 26, 1990. Amended: Filed May 25, 2000, effective Nov. 30, 2000. Amended:

Division 50 Missouri Horse Racing Commission

Chapter 1 Organizational Structure, Description, Practices and Procedures (Moved to 11 CSR 45-49)

12 CSR 50-1.010 Organizational Structure, {#sec-12-csr-50-1.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-1.010}

(Moved to 11 CSR 45-49.010)

ROBINCARNAHAN(5/31/09)

Chapter 10 Definitions (Moved to 11 CSR 45-50)

12 CSR 50-10.010 Definitions {#sec-12-csr-50-10.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-10.010}

(Moved to 11 CSR 45-50.010)

12 CSR 50-10.011 Definitions (Thoroughbred and Quarterhorse) {#sec-12-csr-50-10.011 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-10.011}

(Moved to 11 CSR 45-50.011)

ROBINCARNAHAN(5/31/09)

Chapter 11 Class A Licenses - Race Track Owner (Moved to 11 CSR 45-51)

12 CSR 50-11.001 Disclosure of Applications Emergency rule filed Oct. 16, 1986, effective Oct. 26, 1986, expired Feb. 12, 1987. Emergency rescission filed Nov. 7, 1986, effective Nov. 17, 1986. {#sec-12-csr-50-11.001 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.001}

12 CSR 50-11.010 Class A License Defined {#sec-12-csr-50-11.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.010}

(Moved to 11 CSR 45-51.010)

12 CSR 50-11.020 Application for Class A License {#sec-12-csr-50-11.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.020}

(Moved to 11 CSR 45-51.020)

12 CSR 50-11.030 Applicant’s Affidavit {#sec-12-csr-50-11.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.030}

(Moved to 11 CSR 45-51.030)

12 CSR 50-11.040 Disclosure of Ownership and Control {#sec-12-csr-50-11.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.040}

(Moved to 11 CSR 45-51.040)

12 CSR 50-11.050 Disclosure of Character Information {#sec-12-csr-50-11.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.050}

(Moved to 11 CSR 45-51.050)

12 CSR 50-11.060 Disclosure of Financial Interests {#sec-12-csr-50-11.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.060}

(Moved to 11 CSR 45-51.060)

12 CSR 50-11.070 Disclosure of Improvements and Equipment {#sec-12-csr-50-11.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.070}

(Moved to 11 CSR 45-51.070)

12 CSR 50-11.080 Disclosure of Development Process {#sec-12-csr-50-11.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.080}

(Moved to 11 CSR 45-51.080)

12 CSR 50-11.090 Disclosure of Financial Resources {#sec-12-csr-50-11.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.090}

(Moved to 11 CSR 45-51.090)

12 CSR 50-11.100 Disclosure of Financial Plan {#sec-12-csr-50-11.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.100}

(Moved to 11 CSR 45-51.100)

12 CSR 50-11.110 Disclosure of Governmental Actions {#sec-12-csr-50-11.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.110}

(Moved to 11 CSR 45-51.110)

12 CSR 50-11.120 Disclosure of Management {#sec-12-csr-50-11.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.120}

(Moved to 11 CSR 45-51.120)

12 CSR 50-11.130 Disclosure of Public Service {#sec-12-csr-50-11.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.130}

(Moved to 11 CSR 45-51.130)

12 CSR 50-11.140 Disclosure of Impact of Facility {#sec-12-csr-50-11.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.140}

(Moved to 11 CSR 45-51.140)

12 CSR 50-11.150 Disclosure of Public Support and Opposition {#sec-12-csr-50-11.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.150}

(Moved to 11 CSR 45-51.150)

12 CSR 50-11.160 Effects on Competition {#sec-12-csr-50-11.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.160}

(Moved to 11 CSR 45-51.160)

12 CSR 50-11.170 Disclosure of Assistance in Preparation of Application {#sec-12-csr-50-11.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.170}

(Moved to 11 CSR 45-51.170)

12 CSR 50-11.180 Personnel Information and Authorization for Release {#sec-12-csr-50-11.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.180}

(Moved to 11 CSR 45-51.180)

12 CSR 50-11.190 Class A License Criteria {#sec-12-csr-50-11.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.190}

(Moved to 11 CSR 45-51.190)

12 CSR 50-11.200 Application and License Fees for Class A License {#sec-12-csr-50-11.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-11.200}

(Moved to 11 CSR 45-51.200)

Chapter 12 Class B Licenses (Moved to 11 CSR 45-52)

12 CSR 50-12.010 Class B License Defined {#sec-12-csr-50-12.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.010}

(Moved to 11 CSR 45-52.010)

12 CSR 50-12.020 Application for Class B License {#sec-12-csr-50-12.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.020}

(Moved to 11 CSR 45-52.020)

12 CSR 50-12.030 Applicant’s Affidavit {#sec-12-csr-50-12.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.030}

(Moved to 11 CSR 45-52.030)

12 CSR 50-12.040 Disclosure of Information {#sec-12-csr-50-12.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.040}

(Moved to 11 CSR 45-52.040)

12 CSR 50-12.050 Additional Improvements Information Required {#sec-12-csr-50-12.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.050}

(Moved to 11 CSR 45-52.050)

12 CSR 50-12.060 Disclosure of Authorization to use Class A Horse Racing Facility {#sec-12-csr-50-12.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.060}

(Moved to 11 CSR 45-52.060)

12 CSR 50-12.070 Disclosure of Management {#sec-12-csr-50-12.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.070}

(Moved to 11 CSR 45-52.070)

12 CSR 50-12.160 Bond for Class B Licenses {#sec-12-csr-50-12.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.160}

(Moved to 11 CSR 45-52.160)

12 CSR 50-12.190 Class B License Criteria {#sec-12-csr-50-12.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-12.190}

(Moved to 11 CSR 45-52.190)

ROBINCARNAHAN(5/31/09)

Chapter 13 Class D License - Fairgrounds Racing (Moved to 11 CSR 45-53)

12 CSR 50-13.010 Class D License Defined {#sec-12-csr-50-13.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.010}

(Moved to 11 CSR 45-53.010)

12 CSR 50-13.020 Application for Class D License {#sec-12-csr-50-13.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.020}

(Moved to 11 CSR 45-53.020)

12 CSR 50-13.030 Applicant’s Affidavit {#sec-12-csr-50-13.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.030}

(Moved to 11 CSR 45-53.030)

12 CSR 50-13.040 Disclosure of Character Information {#sec-12-csr-50-13.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.040}

(Moved to 11 CSR 45-53.040)

12 CSR 50-13.050 Disclosure of Improvements and Equipment {#sec-12-csr-50-13.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.050}

(Moved to 11 CSR 45-53.050)

12 CSR 50-13.060 Disclosure of Development Process {#sec-12-csr-50-13.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.060}

(Moved to 11 CSR 45-53.060)

12 CSR 50-13.070 Disclosure of Financial Resources {#sec-12-csr-50-13.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.070}

(Moved to 11 CSR 45-53.070)

12 CSR 50-13.080 Disclosure of Financial Plan {#sec-12-csr-50-13.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.080}

(Moved to 11 CSR 45-53.080)

12 CSR 50-13.090 Disclosure of Governmental Actions {#sec-12-csr-50-13.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.090}

(Moved to 11 CSR 45-53.090)

12 CSR 50-13.100 Disclosure of Management {#sec-12-csr-50-13.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.100}

(Moved to 11 CSR 45-53.100)

12 CSR 50-13.110 Disclosure of Impact of Facility {#sec-12-csr-50-13.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.110}

(Moved to 11 CSR 45-53.110)

12 CSR 50-13.120 Disclosure of Public Support and Opposition {#sec-12-csr-50-13.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.120}

(Moved to 11 CSR 45-53.120)

12 CSR 50-13.130 Disclosure of Assistance in Preparation of Application {#sec-12-csr-50-13.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.130}

(Moved to 11 CSR 45-53.130)

12 CSR 50-13.140 Personnel Information and Authorization for Release {#sec-12-csr-50-13.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.140}

(Moved to 11 CSR 45-53.140)

12 CSR 50-13.150 Class D License Criteria {#sec-12-csr-50-13.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.150}

(Moved to 11 CSR 45-53.150)

12 CSR 50-13.160 Application and License Fee for Class D License {#sec-12-csr-50-13.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.160}

(Moved to 11 CSR 45-53.160)

12 CSR 50-13.170 Bond for Class D License {#sec-12-csr-50-13.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-13.170}

(Moved to 11 CSR 45-53.170)

ROBINCARNAHAN(5/31/09)

Chapter 15 Breeding Fund (Moved to 11 CSR 45-55)

12 CSR 50-15.010 Standardbred Breeding {#sec-12-csr-50-15.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.010}

(Moved to 11 CSR 45-55.010)

12 CSR 50-15.020 Thoroughbred Breeding {#sec-12-csr-50-15.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.020}

(Rescinded October 31, 1991)

Filed June 14, 1991, effective Oct. 31, 1991.

History

AUTHORITY: sections 313.540 and 313. 710, RSMo 1986. Original rule filed Oct. 13, 1987, effective Jan. 14, 1988. Rescinded:

12 CSR 50-15.030 Quarter Horse Breeding {#sec-12-csr-50-15.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.030}

(Rescinded October 31, 1991)

Filed June 14, 1991, effective Oct. 31, 1991.

History

AUTHORITY: sections 313.540 and 313.710, RSMo 1986. Original rule filed March 13, 1987, effective June 11, 1987. Rescinded:

12 CSR 50-15.040 Administrative Authority {#sec-12-csr-50-15.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.040}

(Moved to 11 CSR 45-55.040)

12 CSR 50-15.050 Advisory Committee {#sec-12-csr-50-15.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.050}

(Moved to 11 CSR 45-55.050)

12 CSR 50-15.060 Deposits of Fund {#sec-12-csr-50-15.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.060}

(Moved to 11 CSR 45-55.060)

12 CSR 50-15.070 Expenditures From {#sec-12-csr-50-15.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.070}

(Moved to 11 CSR 45-55.070)

12 CSR 50-15.080 Organizational Licensee’s Responsibility {#sec-12-csr-50-15.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.080}

(Moved to 11 CSR 45-55.080)

12 CSR 50-15.090 Registration Required for Missouri-Bred Eligibility {#sec-12-csr-50-15.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.090}

(Moved to 11 CSR 45-55.090)

12 CSR 50-15.100 Requirements for Broodmare Eligibility {#sec-12-csr-50-15.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.100}

(Moved to 11 CSR 45-55.100)

12 CSR 50-15.110 Eligibility Requirements for Stallions {#sec-12-csr-50-15.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.110}

(Moved to 11 CSR 45-55.110)

12 CSR 50-15.120 Eligibility Requirements for Racing Stock (Grandfather Clause) {#sec-12-csr-50-15.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.120}

(Moved to 11 CSR 45-55.120)

12 CSR 50-15.130 Inspection of Registration {#sec-12-csr-50-15.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.130}

(Moved to 11 CSR 45-55.130)

12 CSR 50-15.140 False Statements Conerning Missouri-Bred Registration {#sec-12-csr-50-15.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.140}

(Moved to 11 CSR 45-55.140)

12 CSR 50-15.150 Notification of Ownership Changes {#sec-12-csr-50-15.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.150}

(Moved to 11 CSR 45-55.150)

12 CSR 50-15.160 Eligibility Requirements for Racing Stock (Starting With Foals of 1992) {#sec-12-csr-50-15.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.160}

(Moved to 11 CSR 45-55.160)

12 CSR 50-15.170 Notification of Address Change {#sec-12-csr-50-15.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.170}

(Moved to 11 CSR 45-55.170)

12 CSR 50-15.180 Registration Fees {#sec-12-csr-50-15.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-15.180}

(Moved to 11 CSR 45-55.180)

ROBINCARNAHAN(5/31/09)

Chapter 19 Bid Procedures (Moved to 11 CSR 45-59)

12 CSR 50-19.010 Bid Procedure {#sec-12-csr-50-19.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-19.010}

(Moved to 11 CSR 45-59.010)

12 CSR 50-19.020 Bids Not to be Revealed {#sec-12-csr-50-19.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-19.020}

(Moved to 11 CSR 45-59.020)

12 CSR 50-19.030 Three or Fewer Vendors {#sec-12-csr-50-19.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-19.030}

(Moved to 11 CSR 45-59.030)

12 CSR 50-19.040 Professional Services {#sec-12-csr-50-19.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-19.040}

(Moved to 11 CSR 45-59.040)

ROBINCARNAHAN(5/31/09)

Chapter 20 Commission and Commission Officials (Moved to 11 CSR 45-60)

12 CSR 50-20.010 Commission Officials {#sec-12-csr-50-20.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.010}

(Moved to 11 CSR 45-60.010)

12 CSR 50-20.020 Judges {#sec-12-csr-50-20.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.020}

(Moved to 11 CSR 45-60.020)

12 CSR 50-20.025 Stewards {#sec-12-csr-50-20.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.025}

(Moved to 11 CSR 45-60.025)

12 CSR 50-20.030 Commission Veterinarian {#sec-12-csr-50-20.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.030}

(Moved to 11 CSR 45-60.030)

12 CSR 50-20.040 Commission Laboratory {#sec-12-csr-50-20.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.040}

(Moved to 11 CSR 45-60.040)

12 CSR 50-20.050 Suspensions {#sec-12-csr-50-20.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.050}

(Moved to 11 CSR 45-60.050)

12 CSR 50-20.055 Effect of Suspension or Revocation on Spouse {#sec-12-csr-50-20.055 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.055}

(Moved to 11 CSR 45-60.055)

12 CSR 50-20.060 Conflict Between U.S.T.A. and Commission Rules {#sec-12-csr-50-20.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-20.060}

(Moved to 11 CSR 45-60.060)

ROBINCARNAHAN(5/31/09)

Chapter 30 Association Officials (Moved to 11 CSR 45-61)

12 CSR 50-30.010 General Considerations {#sec-12-csr-50-30.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.010}

(Moved to 11 CSR 45-61.010)

12 CSR 50-30.015 Thoroughbred Association Officials {#sec-12-csr-50-30.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.015}

(Moved to 11 CSR 45-61.015)

12 CSR 50-30.020 Racing Secretary {#sec-12-csr-50-30.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.020}

(Moved to 11 CSR 45-61.020)

12 CSR 50-30.021 Racing Secretary (Thoroughbred) {#sec-12-csr-50-30.021 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.021}

(Moved to 11 CSR 45-61.021)

12 CSR 50-30.022 Paddock Judge—Thoroughbred {#sec-12-csr-50-30.022 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.022}

(Moved to 11 CSR 45-61.022)

12 CSR 50-30.023 Horse Identifier—Thoroughbred {#sec-12-csr-50-30.023 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.023}

(Moved to 11 CSR 45-61.023)

12 CSR 50-30.024 Clerk of the Scales {#sec-12-csr-50-30.024 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.024}

(Moved to 11 CSR 45-61.024)

12 CSR 50-30.025 Starter {#sec-12-csr-50-30.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.025}

(Moved to 11 CSR 45-61.025)

12 CSR 50-30.026 Timer {#sec-12-csr-50-30.026 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.026}

(Moved to 11 CSR 45-61.026)

12 CSR 50-30.027 Patrol and Placing Judges {#sec-12-csr-50-30.027 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.027}

(Moved to 11 CSR 45-61.027)

12 CSR 50-30.028 Association Veterinarian {#sec-12-csr-50-30.028 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.028}

(Moved to 11 CSR 45-61.028)

12 CSR 50-30.029 Jockey Room Custodian and Valet Attendants {#sec-12-csr-50-30.029 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.029}

(Moved to 11 CSR 45-61.029)

12 CSR 50-30.030 Adoption of Rule 6 of U.S.T.A. {#sec-12-csr-50-30.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-30.030}

(Moved to 11 CSR 45-61.030)

ROBINCARNAHAN(5/31/09)

Chapter 40 Permit Holders (Moved to 11 CSR 45-62)

12 CSR 50-40.010 General Requirements {#sec-12-csr-50-40.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.010}

(Moved to 11 CSR 45-62.010)

12 CSR 50-40.020 Commission Offices {#sec-12-csr-50-40.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.020}

(Moved to 11 CSR 45-62.020)

12 CSR 50-40.030 Ejection {#sec-12-csr-50-40.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.030}

(Moved to 11 CSR 45-62.030)

12 CSR 50-40.035 Stands for Officials— Thoroughbred and Quarter Horse {#sec-12-csr-50-40.035 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.035}

(Moved to 11 CSR 45-62.035)

12 CSR 50-40.040 Racing Surfaces {#sec-12-csr-50-40.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.040}

(Moved to 11 CSR 45-62.040)

12 CSR 50-40.050 Public Information {#sec-12-csr-50-40.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.050}

(Moved to 11 CSR 45-62.050)

12 CSR 50-40.055 Program {#sec-12-csr-50-40.055 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.055}

(Moved to 11 CSR 45-62.055)

12 CSR 50-40.060 Numbers of Races per Performance {#sec-12-csr-50-40.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.060}

(Moved to 11 CSR 45-62.060)

12 CSR 50-40.070 Appointment of Racing Officials and Department Heads {#sec-12-csr-50-40.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.070}

(Moved to 11 CSR 45-62.070)

12 CSR 50-40.080 Trust Funds {#sec-12-csr-50-40.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.080}

(Moved to 11 CSR 45-62.080)

12 CSR 50-40.090 Condition Book {#sec-12-csr-50-40.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.090}

(Moved to 11 CSR 45-62.090)

12 CSR 50-40.100 Photo-Finish Equipment {#sec-12-csr-50-40.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.100}

(Moved to 11 CSR 45-62.100)

12 CSR 50-40.110 VTR Equipment {#sec-12-csr-50-40.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.110}

(Moved to 11 CSR 45-62.110)

12 CSR 50-40.120 Photograph Posted {#sec-12-csr-50-40.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.120}

(Moved to 11 CSR 45-62.120)

12 CSR 50-40.130 Driver’s Stand {#sec-12-csr-50-40.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.130}

(Moved to 11 CSR 45-62.130)

12 CSR 50-40.140 Starting Gate {#sec-12-csr-50-40.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.140}

(Moved to 11 CSR 45-62.140)

12 CSR 50-40.145 Distance Poles (Thoroughbred and Quarter Horse) {#sec-12-csr-50-40.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.145}

(Moved to 11 CSR 45-62.145)

12 CSR 50-40.150 Detention Enclosure {#sec-12-csr-50-40.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.150}

(Moved to 11 CSR 45-62.150)

12 CSR 50-40.160 Grounds’ Facilities, Water and Sewage {#sec-12-csr-50-40.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.160}

(Moved to 11 CSR 45-62.160)

12 CSR 50-40.170 Safety and Medical Aid {#sec-12-csr-50-40.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.170}

(Moved to 11 CSR 45-62.170)

12 CSR 50-40.180 Fire Protection {#sec-12-csr-50-40.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.180}

(Moved to 11 CSR 45-62.180)

12 CSR 50-40.190 Stable and Ground Security {#sec-12-csr-50-40.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.190}

(Moved to 11 CSR 45-62.190)

12 CSR 50-40.200 Electric Timing Device {#sec-12-csr-50-40.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.200}

(Moved to 11 CSR 45-62.200)

12 CSR 50-40.205 Lighting {#sec-12-csr-50-40.205 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.205}

(Moved to 11 CSR 45-62.205)

12 CSR 50-40.210 Patrol Judge’s Communication {#sec-12-csr-50-40.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.210}

(Moved to 11 CSR 45-62.210)

12 CSR 50-40.220 Hippodroming Ban {#sec-12-csr-50-40.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.220}

(Moved to 11 CSR 45-62.220)

12 CSR 50-40.230 Communication System {#sec-12-csr-50-40.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.230}

(Moved to 11 CSR 45-62.230)

12 CSR 50-40.240 Primary and Secondary Liability {#sec-12-csr-50-40.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.240}

(Moved to 11 CSR 45-62.240)

12 CSR 50-40.250 Listening Devices {#sec-12-csr-50-40.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.250}

(Moved to 11 CSR 45-62.250)

12 CSR 50-40.260 Payment of Purses {#sec-12-csr-50-40.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-40.260}

(Moved to 11 CSR 45-62.260)

ROBINCARNAHAN(5/31/09)

Chapter 50 Class C Licenses (Moved to 11 CSR 45-65)

12 CSR 50-50.010 General Provisions for Class C Licenses {#sec-12-csr-50-50.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-50.010}

(Moved to 11 CSR 45-65.010)

12 CSR 50-50.020 Specific Licenses {#sec-12-csr-50-50.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-50.020}

(Moved to 11 CSR 45-65.020)

12 CSR 50-50.030 Fees {#sec-12-csr-50-50.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-50.030}

(Moved to 11 CSR 45-65.030)

12 CSR 50-50.035 Prohibited Acts {#sec-12-csr-50-50.035 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-50.035}

(Moved to 11 CSR 45-65.035)

12 CSR 50-50.040 Duties of Specific Licensees {#sec-12-csr-50-50.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-50.040}

(Moved to 11 CSR 45-65.040)

ROBINCARNAHAN(5/31/09)

Chapter 60 Patrons (Moved to 11 CSR 45-67)

12 CSR 50-60.010 Ejection of Patrons {#sec-12-csr-50-60.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-60.010}

(Moved to 11 CSR 45-67.010)

ROBINCARNAHAN(5/31/09)

Chapter 70 Conduct of Races (Moved to 11 CSR 45-70)

12 CSR 50-70.010 Rules of Racing—Harness {#sec-12-csr-50-70.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-70.010}

(Moved to 11 CSR 45-70.010)

12 CSR 50-70.011 Rules of Racing—Thoroughbred and Quarter Horse {#sec-12-csr-50-70.011 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-70.011}

(Moved to 11 CSR 45-70.011)

12 CSR 50-70.012 Claiming {#sec-12-csr-50-70.012 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-70.012}

(Moved to 11 CSR 45-70.012)

12 CSR 50-70.020 Urine Test Emergency rule filed June 20, 1986, effective June 30, 1986, expired Oct. 13, 1986. {#sec-12-csr-50-70.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-70.020}

12 CSR 50-70.030 Breathalyzer or Other Test of Alcohol Emergency rule filed June 20, 1986, effective June 30, 1986, expired Oct. 13, 1986. {#sec-12-csr-50-70.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-70.030}

12 CSR 50-70.040 Bleeder List {#sec-12-csr-50-70.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-70.040}

(Moved to 11 CSR 45-70.040)

ROBINCARNAHAN(5/31/09)

Chapter 80 Pari-Mutuel Wagering Systems (Moved to 11 CSR 45-80)

12 CSR 50-80.010 General {#sec-12-csr-50-80.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.010}

(Moved to 11 CSR 45-80.010)

12 CSR 50-80.020 Pools Authorized {#sec-12-csr-50-80.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.020}

(Moved to 11 CSR 45-80.020)

12 CSR 50-80.030 Win Pool {#sec-12-csr-50-80.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.030}

(Moved to 11 CSR 45-80.030)

12 CSR 50-80.040 Place Pool {#sec-12-csr-50-80.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.040}

(Moved to 11 CSR 45-80.040)

12 CSR 50-80.050 Show Pool {#sec-12-csr-50-80.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.050}

(Moved to 11 CSR 45-80.050)

12 CSR 50-80.060 Daily Double Pool {#sec-12-csr-50-80.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.060}

(Moved to 11 CSR 45-80.060)

12 CSR 50-80.070 Quinella Pool {#sec-12-csr-50-80.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.070}

(Moved to 11 CSR 45-80.070)

12 CSR 50-80.080 Exacta Pool (also Known as Perfecta) {#sec-12-csr-50-80.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.080}

(Moved to 11 CSR 45-80.080)

12 CSR 50-80.090 Trifecta (Triple) Pool {#sec-12-csr-50-80.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.090}

(Moved to 11 CSR 45-80.090)

12 CSR 50-80.091 Twin Trifecta (Double Triple) Pool {#sec-12-csr-50-80.091 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.091}

(Moved to 11 CSR 45-80.091)

12 CSR 50-80.100 Refunds {#sec-12-csr-50-80.100 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.100}

(Moved to 11 CSR 45-80.100)

12 CSR 50-80.110 Race Cancelled {#sec-12-csr-50-80.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.110}

(Moved to 11 CSR 45-80.110)

12 CSR 50-80.120 Totalisator Breakdown {#sec-12-csr-50-80.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.120}

(Moved to 11 CSR 45-80.120)

12 CSR 50-80.130 Minimum Wager and Payoff {#sec-12-csr-50-80.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.130}

(Moved to 11 CSR 45-80.130)

12 CSR 50-80.140 Odds or Payoffs Posted {#sec-12-csr-50-80.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.140}

(Moved to 11 CSR 45-80.140)

12 CSR 50-80.150 Betting Explanation {#sec-12-csr-50-80.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.150}

(Moved to 11 CSR 45-80.150)

12 CSR 50-80.160 Pools Dependent Upon Entries {#sec-12-csr-50-80.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.160}

(Moved to 11 CSR 45-80.160)

12 CSR 50-80.170 Pari-Mutuel Ticket Sales {#sec-12-csr-50-80.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.170}

(Moved to 11 CSR 45-80.170)

12 CSR 50-80.180 Payment {#sec-12-csr-50-80.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.180}

(Moved to 11 CSR 45-80.180)

12 CSR 50-80.190 Responsibility for Posting Results {#sec-12-csr-50-80.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.190}

(Moved to 11 CSR 45-80.190)

12 CSR 50-80.200 Verification of Payoffs {#sec-12-csr-50-80.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.200}

(Moved to 11 CSR 45-80.200)

12 CSR 50-80.210 Over and Under Payments of Payoffs {#sec-12-csr-50-80.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.210}

(Moved to 11 CSR 45-80.210)

12 CSR 50-80.220 Coupled Betting Interests {#sec-12-csr-50-80.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.220}

(Moved to 11 CSR 45-80.220)

12 CSR 50-80.230 Emergency Situations {#sec-12-csr-50-80.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.230}

(Moved to 11 CSR 45-80.230)

12 CSR 50-80.240 Totalisator Employees {#sec-12-csr-50-80.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.240}

(Moved to 11 CSR 45-80.240)

12 CSR 50-80.250 Remission of Outs and Breakage {#sec-12-csr-50-80.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-80.250}

(Moved to 11 CSR 45-80.250)

ROBINCARNAHAN(5/31/09)

Chapter 90 Hearing Rules (Moved to 11 CSR 45-90)

12 CSR 50-90.010 Judges’ Summary Hearings {#sec-12-csr-50-90.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.010}

(Moved to 11 CSR 45-90.010)

12 CSR 50-90.020 Appeal of the Decision of the Judges {#sec-12-csr-50-90.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.020}

(Moved to 11 CSR 45-90.020)

12 CSR 50-90.025 Appeal of the Decision of the Commission Staff {#sec-12-csr-50-90.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.025}

(Moved to 11 CSR 45-90.025)

12 CSR 50-90.030 Appeals to the Commission to be Heard De Novo {#sec-12-csr-50-90.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.030}

(Moved to 11 CSR 45-90.030)

12 CSR 50-90.040 Executive Director Designated Hearing Officer {#sec-12-csr-50-90.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.040}

(Moved to 11 CSR 45-90.040)

12 CSR 50-90.050 Waiver of Hearing {#sec-12-csr-50-90.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.050}

(Moved to 11 CSR 45-90.050)

12 CSR 50-90.060 Notice of Hearing {#sec-12-csr-50-90.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.060}

(Moved to 11 CSR 45-90.060)

12 CSR 50-90.070 Prehearing Conferences and Stipulations {#sec-12-csr-50-90.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.070}

(Moved to 11 CSR 45-90.070)

12 CSR 50-90.080 Deliberations of the {#sec-12-csr-50-90.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 50-90.080}

(Moved to 11 CSR 45-90.080)

ROBINCARNAHAN(5/31/09)

Division 60 Motor Vehicle Commission

Chapter 1 General Rules

12 CSR 60-1.050 Public Complaint Handling and Disposition Procedures REVENUE {#sec-12-csr-60-1.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-1.050}

12 CSR 60-1.010 Definitions 1990. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-1.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-1.010}

12 CSR 60-1.020 Missouri Motor Vehicle Commission 1990. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-1.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-1.020}

12 CSR 60-1.030 General Organization 1990. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-1.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-1.030}

12 CSR 60-1.040 Policy for Handling Release of Public Records 1990. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-1.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-1.040}

12 CSR 60-1.050 Public Complaint Handling and Disposition Procedures 1990. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-1.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-1.050}

12 CSR 60-1.060 Fees {#sec-12-csr-60-1.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-1.060}

Emergency rule filed July 10, 1989, effective July 20, 1989, expired Nov. 16, 1989.

Original rule filed July 10, 1989, effective Sept. 28, 1989. Amended: Filed Aug. 12, 1991, effective Jan. 13, 1992. Amended:

Filed Nov. 18, 1991, effective April 9, 1992.

Amended: Filed Nov. 21, 1994, effective May 28, 1995. Amended: Filed Sept. 19, 1995, effective March 30, 1996. Rescinded: Filed Oct. 15, 1999, effective April 30, 2000.

Rebecca McDowell Cook (3/31/00)

History

AUTHORITY: section 301.553, RSMo 1994.

Chapter 2 Licensure Procedures

12 CSR 60-2.010 Licensure Procedures 1989. Original rule filed Nov. 3, 1989, effective Feb. 25, 1990. Rescinded: Filed Oct. 15, {#sec-12-csr-60-2.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.010}

12 CSR 60-2.020 Licensure Requirements for Boat Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.020}

12 CSR 60-2.030 Licensure Requirements for Franchised New Motor Vehicle Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.030}

12 CSR 60-2.040 Licensure Requirements for Used Motor Vehicle Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.040}

12 CSR 60-2.050 Licensure Requirements for Wholesale Motor Vehicle Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.050}

12 CSR 60-2.060 Licensure Requirements for Recreational Motor Vehicle Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.060}

12 CSR 60-2.070 Licensure Requirements for Historic Motor Vehicle Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.070}

12 CSR 60-2.080 Licensure Requirements for Classic Motor Vehicle Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.080}

12 CSR 60-2.090 Licensure Requirements for Motorcycle Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.090}

2 CSR 60-2.100 Licensure Requirements for New Vehicle and Trailer Manufacturers 1989. Original rule filed July 10, 1989, effec- {#sec-2-csr-60-2.100 omnilex-key=us-mo-regs-official--title-12--2 CSR 60-2.100}

12 CSR 60-2.110 Licensure Requirements for Boat Manufacturers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.110}

2 CSR 60-2.120 Bona Fide Established Place of Business 1989. Original rule filed Nov. 3, 1989, effective Feb. 25, 1990. Rescinded: Filed Oct. 15, {#sec-2-csr-60-2.120 omnilex-key=us-mo-regs-official--title-12--2 CSR 60-2.120}

12 CSR 60-2.130 Registration With 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.130}

12 CSR 60-2.140 Business Records of Motor Vehicle Manufacturers, Boat Manufacturers, Motor Vehicle Dealers and Boat Dealers 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-2.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.140}

12 CSR 60-2.150 Dealer License Plates {#sec-12-csr-60-2.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.150}

Original rule filed Feb. 14, 1991, effective July 8, 1991. Rescinded: Filed Oct. 15,

History

AUTHORITY: section 301.575, RSMo Supp.

12 CSR 60-2.160 Business Records of Manufacturers, Dealers and Boat Dealers 1989. Original rule filed Oct. 18, 1991, effective March 9, 1992. Rescinded: Filed Oct. 15, 1999, effective April 30, 2000. {#sec-12-csr-60-2.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.160}

12 CSR 60-2.170 Regulation of Boat Dealer’s Certificate of Number and Plates 1990. Original rule filed Oct. 18, 1991, effective March 9, 1992. Rescinded: Filed Oct. 15, 1999, effective April 30, 2000. {#sec-12-csr-60-2.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-2.170}

Rebecca McDowell Cook (3/31/00)

Chapter 3 Off-Premise Shows or Tent Sales

12 CSR 60-3.010 Dealership Activity Conducted Away From Registered Bona FideEstablished Place of Business {#sec-12-csr-60-3.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-3.010}

(Rescinded April 30, 2000)

Original rule filed Nov. 3, 1989, effective Feb. 25, 1990. Rescinded: Filed Sept. 4, 1990, effective Feb. 14, 1991. Readopted:

Filed April 13, 1992, effective Dec. 3, 1992.

Rescinded: Filed Oct. 15, 1999, effective April 30, 2000.

Rebecca McDowell Cook (3/31/00)

History

AUTHORITY: section 301.553, RSMo Supp.

Chapter 4 License Denial, Disciplinary Actions and Appeal and Hearing Procedures

12 CSR 60-4.010 License Denial or Disciplinary Actions 1989. Original rule filed July 10, 1989, effective Sept. 28, 1989. Rescinded: Filed Oct. 15, 1999, effective April 30, 2000. {#sec-12-csr-60-4.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.010}

12 CSR 60-4.020 Review of License Denial 1989. Original rule filed July 10, 1989, effective Sept. 28, 1989. Amended: Filed April 18, 1990, effective June 28, 1990. Rescinded: {#sec-12-csr-60-4.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.020}

12 CSR 60-4.030 Waiver of Hearing 1989. Original rule filed July 10, 1989, effective Sept. 28, 1989. Amended: Filed April 18, 1990, effective June 28, 1990. Rescinded: {#sec-12-csr-60-4.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.030}

12 CSR 60-4.040 Disciplinary Procedures and Hearings 1989. Original rule filed July 10, 1989, effec- 1990, effective June 28, 1990. Amended: {#sec-12-csr-60-4.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.040}

Filed Aug. 11, 1993, effective Jan. 31, 1994.

Rescinded: Filed Oct. 15, 1999, effective April 30, 2000.

12 CSR 60-4.050 Designated Hearing Officer 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-4.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.050}

12 CSR 60-4.060 Notice of Hearing 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-4.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.060}

12 CSR 60-4.070 Prehearing Conferences and Stipulations 1989. Original rule filed July 10, 1989, effec- {#sec-12-csr-60-4.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.070}

12 CSR 60-4.080 Deliberations of the Commission (AUTHORITY: section 301.553, RSMo Supp. {#sec-12-csr-60-4.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-4.080}

Original rule filed July 10, 1989, effec- Rebecca McDowell Cook (3/31/00)

Chapter 5 Advertising Practices

12 CSR 60-5.010 Advertising Practices for Motor Vehicle Dealers {#sec-12-csr-60-5.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 60-5.010}

(Rescinded April 30, 2000)

Amended: Filed Sept. 14, 1994, effective April 30, 1995. Rescinded: Filed Oct. 15, 1999, effective April 30, 2000.

Rebecca McDowell Cook (3/31/00)

History

AUTHORITY: sections 301.553 and 301.562, RSMo 1994. Emergency rule filed Feb. 3, 1993, effective March 1, 1993, expired June 28, 1993. Original rule filed Oct. 2, 1992, effective June 7, 1993. Amended: Filed Aug. 11, 1993, effective Jan. 31, 1994. Emergency amendment filed Sept. 14, 1994, effective Sept. 24, 1994, expired Jan. 21, 1995.

12 CSR — Department of Revenue

Division 10 Director of Revenue

Chapter 1 Organization of Department of Revenue

12 CSR 10-1.010 Organizational Structure {#sec-12-csr-10-1.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-1.010}

12 CSR 10-1.020 Letter Rulings {#sec-12-csr-10-1.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-1.020}

Chapter 2 Income Tax

12 CSR 10-2.016 Quarter-Monthly Period Reporting and Remitting Withholding Tax {#sec-12-csr-10-2.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.016}

12 CSR 10-2.017 Transient Employer Financial Assurance Instrument for Employer’s {#sec-12-csr-10-2.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.017}

12 CSR 10-2.019 Determination of Withholding for Work Performed at Temporary {#sec-12-csr-10-2.019 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.019}

12 CSR 10-2.030 Non-Standard Tax Periods, Subsequent Change of Accounting Period, {#sec-12-csr-10-2.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.030}

12 CSR 10-2.040 Transitional Adjustments in Accounting Methods {#sec-12-csr-10-2.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.040}

12 CSR 10-2.067 Failure to Pay Estimated Tax for Tax Years Ending After {#sec-12-csr-10-2.067 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.067}

12 CSR 10-2.085 Credit for New or Expanded Business Facility {#sec-12-csr-10-2.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.085}

12 CSR 10-2.090 Computation of Federal Income Tax Deduction for Consolidated {#sec-12-csr-10-2.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.090}

12 CSR 10-2.110 Penalty for Filing Incomplete or Misleading Income Tax Returns {#sec-12-csr-10-2.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.110}

12 CSR 10-2.120 Information at Source Reporting Requirements {#sec-12-csr-10-2.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.120}

12 CSR 10-2.130 Allocation of Taxable Social Security Benefits Between Spouses {#sec-12-csr-10-2.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.130}

12 CSR 10-2.145 Regulation for Computation of Interest on Investment Tax Credit {#sec-12-csr-10-2.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.145}

12 CSR 10-2.160 State Income Tax Deduction Add-Back. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 {#sec-12-csr-10-2.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.160}

12 CSR 10-2.190 Partnership and S Corporation Annual Return Filing Requirements, Composite Returns, and Nonresident Partner/Shareholder Income {#sec-12-csr-10-2.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.190}

12 CSR 10-2.255 Allocation and Apportionment for Nonresident Shareholders of S Corporations and Nonresident Partners of Partnerships {#sec-12-csr-10-2.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.255}

12 CSR 10-2.260 Apportionment Method for Broadcasters (Beginning on or After {#sec-12-csr-10-2.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.260}

12 CSR 10-2.720 Reporting Requirements for Individual Medical Accounts {#sec-12-csr-10-2.720 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.720}

12 CSR 10-2.005 Questions and Answers {#sec-12-csr-10-2.005 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.005}

12 CSR 10-2.010 Income Tax of Current or Former Spouses {#sec-12-csr-10-2.010 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.010}

12 CSR 10-2.015 Withholding of Tax {#sec-12-csr-10-2.015 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.015}

12 CSR 10-2.016 Quarter-Monthly Period Reporting and Remitting Withholding Tax {#sec-12-csr-10-2.016 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.016}

12 CSR 10-2.017 Transient Employer Financial Assurance Instrument for Employer’s Withholding Tax {#sec-12-csr-10-2.017 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.017}

12 CSR 10-2.019 Determination of Withholding for Work Performed at Temporary Work Location {#sec-12-csr-10-2.019 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.019}

12 CSR 10-2.020 Difference in Basis on December 31, 1972 {#sec-12-csr-10-2.020 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.020}

12 CSR 10-2.025 Adjustment to Avoid Double Taxation {#sec-12-csr-10-2.025 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.025}

12 CSR 10-2.030 Non-Standard Tax Periods, Subsequent Change of Accounting Period, and Personal and Dependency Exemption Deductions {#sec-12-csr-10-2.030 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.030}

12 CSR 10-2.035 Conformity of Missouri With Federal Accounting Methods {#sec-12-csr-10-2.035 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.035}

12 CSR 10-2.040 Transitional Adjustments in Accounting Methods {#sec-12-csr-10-2.040 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.040}

12 CSR 10-2.045 Missouri Consolidated Income Tax Returns {#sec-12-csr-10-2.045 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.045}

12 CSR 10-2.050 Elective Division of Income {#sec-12-csr-10-2.050 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.050}

12 CSR 10-2.052 Optional Single Sales Factor {#sec-12-csr-10-2.052 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.052}

12 CSR 10-2.055 Failure to File Tax Returns {#sec-12-csr-10-2.055 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.055}

12 CSR 10-2.060 Failure to Pay Tax {#sec-12-csr-10-2.060 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.060}

12 CSR 10-2.065 Failure to Pay Estimated Tax {#sec-12-csr-10-2.065 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.065}

12 CSR 10-2.067 Failure to Pay Estimated Tax for Tax Years Ending After December 31, 1989 {#sec-12-csr-10-2.067 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.067}

12 CSR 10-2.070 Interest on Overpayments {#sec-12-csr-10-2.070 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.070}

12 CSR 10-2.075 Multistate Allocation and Apportionment {#sec-12-csr-10-2.075 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.075}

12 CSR 10-2.076 Allocation and Apportionment (Beginning on or After January 1, 2020) {#sec-12-csr-10-2.076 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.076}

12 CSR 10-2.080 Domestic International Sales Corporations {#sec-12-csr-10-2.080 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.080}

12 CSR 10-2.085 Credit for New or Expanded Business Facility {#sec-12-csr-10-2.085 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.085}

12 CSR 10-2.090 Computation of Federal Income Tax Deduction for Consolidated Groups {#sec-12-csr-10-2.090 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.090}

12 CSR 10-2.105 Report of Changes in Federal Income Tax Return {#sec-12-csr-10-2.105 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.105}

12 CSR 10-2.110 Penalty for Filing Incomplete or Misleading Income Tax Returns {#sec-12-csr-10-2.110 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.110}

12 CSR 10-2.115 Enterprise Zone Credit and Exemption {#sec-12-csr-10-2.115 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.115}

12 CSR 10-2.120 Information at Source Reporting Requirements {#sec-12-csr-10-2.120 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.120}

12 CSR 10-2.125 Cultural Contributions PURPOSES: {#sec-12-csr-10-2.125 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.125}

12 CSR 10-2.130 Allocation of Taxable Social Security Benefits Between Spouses {#sec-12-csr-10-2.130 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.130}

12 CSR 10-2.135 Frivolous Returns {#sec-12-csr-10-2.135 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.135}

12 CSR 10-2.140 Partnership Filing Requirements {#sec-12-csr-10-2.140 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.140}

12 CSR 10-2.145 Regulation for Computation of Interest on Investment Tax Credit Carryback {#sec-12-csr-10-2.145 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.145}

12 CSR 10-2.150 Tax Exempt Status of United States Government-Related Obligations {#sec-12-csr-10-2.150 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.150}

12 CSR 10-2.155 Regulated Investment Companies {#sec-12-csr-10-2.155 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.155}

12 CSR 10-2.160 State Income Tax Deduction Add-Back {#sec-12-csr-10-2.160 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.160}

12 CSR 10-2.165 Net Operating Losses on Corporate Income Tax Returns {#sec-12-csr-10-2.165 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.165}

12 CSR 10-2.170 Wood Energy Credit {#sec-12-csr-10-2.170 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.170}

12 CSR 10-2.175 Agricultural Unemployed Person {#sec-12-csr-10-2.175 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.175}

12 CSR 10-2.180 Public Law 86-272 Immunity {#sec-12-csr-10-2.180 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.180}

12 CSR 10-2.190 Partnership and S Corporation Annual Return Filing Requirements, Composite Returns, and Nonresident Partner/Shareholder Income Tax Withholding {#sec-12-csr-10-2.190 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.190}

12 CSR 10-2.195 Special Needs Adoption Tax Credit {#sec-12-csr-10-2.195 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.195}

12 CSR 10-2.200 Trucking Companies {#sec-12-csr-10-2.200 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.200}

12 CSR 10-2.205 Railroads {#sec-12-csr-10-2.205 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.205}

12 CSR 10-2.210 Airlines {#sec-12-csr-10-2.210 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.210}

12 CSR 10-2.220 Taxation of Nonresident Members of Professional Athletic Teams {#sec-12-csr-10-2.220 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.220}

12 CSR 10-2.225 Withholding of Tax by Nonresident Professional Athletic Teams {#sec-12-csr-10-2.225 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.225}

12 CSR 10-2.226 Withholding of Tax by Nonresident Professional Entertainers {#sec-12-csr-10-2.226 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.226}

12 CSR 10-2.230 Construction Contractors {#sec-12-csr-10-2.230 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.230}

12 CSR 10-2.235 Government Pension Exemption {#sec-12-csr-10-2.235 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.235}

12 CSR 10-2.240 Determination of Timeliness {#sec-12-csr-10-2.240 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.240}

12 CSR 10-2.250 Reciprocal Agreements with Other States for Tax Refund Offsets {#sec-12-csr-10-2.250 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.250}

12 CSR 10-2.255 Allocation and Apportionment for Nonresident Shareholders of S Corporations and Nonresident Partners of Partnerships (Beginning on or After January 1, 2020) {#sec-12-csr-10-2.255 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.255}

12 CSR 10-2.260 Apportionment Method for Broadcasters (Beginning on or After January 1, 2020) {#sec-12-csr-10-2.260 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.260}

12 CSR 10-2.436 SALT Parity Act Implementation {#sec-12-csr-10-2.436 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.436}

12 CSR 10-2.705 Filing Corporation Tax Returns {#sec-12-csr-10-2.705 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.705}

12 CSR 10-2.710 Net Operating Losses on Individual Income Tax Returns {#sec-12-csr-10-2.710 omnilex-key=us-mo-regs-official--title-12--12 CSR 10-2.710}