Sales Tax Articles
Sales Tax State Activity Update - November 2007
Missouri Dubs Advertising a Service
A Missouri taxpayer recently raised the question about sales tax fees in regards to their monthly costs for advertising on the Internet.
The Missouri Department of Revenue ruled that monthly fees for advertising on the Internet are not subject to sales or use tax. Advertising on the Internet is not the sale of tangible personal property and not one of the enumerated services subject to tax.
They based this ruling on the following legislation:
- Section 144.020, RSMo, imposes a sales tax on the retail sale of tangible personal property and certain enumerated services.
- Section 144.610, RSMo, imposes a use tax "for the privilege of storing, using or consuming within this state any article of tangible personal property."
- Pursuant to Section 144.034, RSMo, "sales of advertising by legal newspapers pursuant to chapter 493, RSMo, advertising agencies, broadcast stations, and standardized outdoor billboard advertising shall be considered the sale of a service and not the sale of tangible personal property."
The full Letter Ruling may be viewed on the Missouri Department of Revenue Website.
(Missouri Department of Revenue, Letter Ruling No. LR3995, 8/16/2007)
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