The Missouri sales and use tax is imposed on taxable retail sales of tangible personal property and certain services. The statewide general tax rate is 4.225%.
Cities and counties are authorized to impose sales and use taxes for various purposes. These local sales and use taxes are generally imposed in the same manner, on the same subject, and collected in the same way as the state sales and use tax.
However, in many jurisdictions, the local use tax rate is less than the local sales tax rate. This is unusual in the world of sales and use tax – in almost all states and local jurisdictions throughout the country, the sales tax rate is the same as the use tax rate. The average local sales and use tax rate in Missouri is 3.66%.
Missouri also has special taxing districts as follows:
- Transportation development district sales tax;
- County Transit Authority sales tax;
- Museum district sales tax;
- Fire protection district sales tax;
- Theater, cultural arts, and entertainment district sales tax; and
- Branson/Lakes tourism community enhancement district sales tax.
There are special/lower local rates on food and sales of qualified machinery and equipment used in manufacturing, while food and manufacturing purchases are entirely exempt from the state sales and use tax. Further, there is no state or local USE tax imposed on qualified manufacturing machinery and equipment.
Contrary to logic, Missouri requires that a paper sales and use tax return be filed when there are more than 150 local jurisdictions to report – there is no electronic upload option. A paper return for a taxpayer with customers throughout the state can be as many as 50 pages. An e-file option is available to those taxpayers with less than 150 local jurisdictions to report.
Somewhat unique to Missouri is that sales and use tax are reported on different returns. Sales tax is reported on form 53-1, vendor’s use tax on form 53-V and consumer’s use tax on form 53-C.
With a combined average sales tax rate of 7.885%, Missouri is an average state from a sales and use tax burden perspective. However, compliance with Missouri’s local tax rates and filing requirements are a bit more taxing than most states.