Missouri sales tax update: delivery charges

Missouri sales tax update: delivery charges
On July 5, 2017, Missouri Governor Eric Greitens signed into law Senate Bill 16, which exempts from Missouri sales and use tax “usual and customary” delivery charges that are stated separately from the sale price of retail sales.

Client Alert Tag

In the summer of 2016, The Missouri Department of Revenue sent alerts to all businesses registered for Missouri sales tax. These alerts asserted that delivery charges may be taxable if delivery is intended to be part of the sale. The Missouri Supreme Court ruled in Alberici Constructors, Inc. v. Director of Revenue, 452 S.W.3d 632 (Mo. banc 2015) that intention is a key factor; if delivery was intended to be part of the sale of personal property, the seller would be expected to collect and remit sales taxes on the delivery fee, even if the delivery fee is separately stated on the invoice.

Senate Bill 16 is intended to clarify the matter and revert to the prior standard. The bill will take effect on August 28, 2017.

Please let your WK advisor know if you have any questions on how this bill affects you or your business.

IRS OFFERS TAX RELIEF FOR RESIDENTS, BUSINESS OWNERS OF STORM-AFFECTED COUNTIES IN MISSOURI.  The Internal Revenue Service (IRS) has announced that tax relief is available for individual and business filers in the aftermath of recent storms and flooding that affected several counties in Missouri.
HOW PLAN SPONSORS CAN MINIMIZE PENALTIES IN A DOL AUDIT.  Certain employee benefit plans (EBPs) are required to undergo financial statement audits in order to file the annual Form 5500. WK performs many financial statement audits of employee benefit plans. However, plan sponsors should also beware of another kind of audit: The Department of Labor (DOL) audit. A DOL audit covers some of the same aspects as a financial statement audit but generally goes into much more detail.
MISSOURI REVISED STATUTE ESTABLISHES CORPORATIONS MUST PAY AT LEAST SEMI-MONTHLY.  Missouri corporations that currently pay employees on a monthly basis should take note of a revised state statute that might require them to pay some or all employees on a semi-monthly basis.

Posted By Jessica Lehmen, CPA on 7-11-2017 | Topics: Client Alerts, News,