Real Estate and Construction Newsletter August 2016
Understanding the Missouri Ruling on Delivery Charge Taxation
Last week, the Missouri Department of Revenue sent correspondence to all Missouri taxpayers registered as a seller of tangible personal property notifying them of the ruling in a recent court case involving Alberici Constructors, Inc. The issue at hand was whether or not sales tax should have been paid by the taxpayer on delivery charges. Ultimately, it was decided the delivery charges were subject to sales tax because it was the intent of both parties for the delivery services to be part of the larger transaction. As you might expect, this ruling has been the primary topic of conversation for local contractors ever since.