Sales Tax Articles
Sales Tax State Activity Update - May 2007
Missouri - Real Property Improvements – Real Materials – Contractors Really Should Pay the Tax
The Missouri Director of Revenue ruled a contractor making improvements to real property does not charge sales tax on labor and materials used in performance of the improvement.
The contractor generally performs labor only contracts, but occasionally transfers materials in making improvements to real property.
The Director indicated that a person agreeing to improve real property, where title to the materials used to complete the improvement pass to the consumer upon completion of the work, is not making retail sales of materials to customers.
The contractor is the user or consumer of such materials and pays sales tax to the supplier of materials at the time of purchase.
The full text can be viewed on the Missouri Department of Revenue website.
(Missouri Director of Revenue, Letter Ruling No. 3685, 03/12/2007)
Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.
Call 800.355.3500 to Speak to a Sales Representative.
