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Delivery Charges Excluded from Missouri Sales and Use Taxes Effective August 28

07.07.2017

Senate Bill to Lower Income Taxes and Increase Sales TaxOn July 5, Governor Eric Greitens signed into law Missouri Senate Bill 16, which excludes “usual and customary delivery charges” from sales and use taxes. The law will become effective on August 28, 2017.

In January 2015, a decision by the Missouri Supreme Court held that shipping charges for the transaction at issue in the case were subject to tax. This in effect made shipping charges related to taxable transactions subject to sales and use tax.

To learn more about the history of the applicability of sales and use tax on delivery charges, click here.

Bernard OttenlipsJackson_Amy - CopyIf you have any questions regarding sales and use tax, please contact Bernie Ottenlips, Principal, State and Local Tax, at 314.687.2375 or bottenlips@bswllc.com, or Amy Jackson, Manager, State and Local Tax, at 314.983.1336 or ajackson@bswllc.com.

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