The taxability of such charges was drawn into question in a recent Missouri Supreme Court case that confused taxpayers and led to more than 100,000 letters being sent from the Missouri Department of Revenue to taxpayers. Those letters provided no additional guidance beyond several very broad factors listed in the court case and taxpayers have feared they could innocently be violating the law as changed by the Missouri Supreme Court.
The bill would exempt “usual and customary” charges from sales and use taxes. Because the bill is clarifying the intent of the Legislature and restoring the exemption that was in effect until recently drawn into question by the Court, there will be no cost to the State of Missouri.
The bill now moves to the Missouri House for further consideration.