Governor Eric Greitens signed SB 16 into law on July 5, 2017. The bill clarifies the exemption for “usual and customary delivery charges” that are separately stated on the customer’s bill. The exemption applies to both sales and use taxes and is effective August 28, 2017.
AIM strongly advocated for the bill during passage and sent a letter requesting the Governor sign the bill. AIM’s Tax Committee hosted a meeting with the DOR and concerned taxpayers last summer on this matter. We are pleased we were able to get this bill passed and signed into law.
We are continuing to communicate with the Department of Revenue regarding periods between July 2016 and August 2017. The DOR issued a letter to taxpayers in July 2016 notifying them of the Supreme Court’s decision and several criteria that would be used to determine whether delivery charges were subject to sales/use taxes.
The bill is effective August 28, 2017.