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Delivery charges sales/use tax exemption to Governor Greitens

The Missouri House today passed SB 16, a bill to exempt usual and customary separately stated delivery charges from sales and use taxes, sending the bill to Governor Eric Greitens’ desk.

The question of whether sales and use taxes apply to delivery charges has been unresolved since the Missouri Supreme Court issued a decision with a complicated set of rules on the subject.  According to the criteria established by the Court, most delivery charges would likely be subject to sales and use taxes. In reality, sales and use taxes on delivery charges have only been collected in certain limited situations.

The bill will clarify that such charges are exempt in most situations.  The bill will be effective August 28, 2017, provided it is signed by Governor Greitens.

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