State Sales Tax Rates

State Sales Tax Rates Missouri State Sales Tax 2014

Missouri Sales Tax 2014
Missouri State Sales Tax for 2014 Maximum Municipal Sales Tax

4.23%

5.02%

What is the Missouri Sales Tax?

The Missouri state sales tax is 4.225%, with a maximum possible sales tax (including local and municipal sales taxes) of 9.241%.

Local governments in Missouri are allowed to add a local sales tax of up to 5.016 percent on top of the MO state sales tax for all qualifying sales in their jurisdiction - so the actual sales tax paid on any purchase in Missouri can be up to 9.241% depending on location.

Missouri charges a use tax as well as service tax in addition to the standard sales tax. Additional sales taxes may be imposed by localities as well as certain "development districts" within city limits. When combined, these taxes could add up to general sales taxes of more then 10%.

As an incentive to properly collect and remit sales taxes to the government, Missouri companies can keep 2% of the qualifying sales and use taxes they collect from consumers. Consumers themselves are responsible for paying use taxes to Missouri for purchases made out of the state.

What sales are exempt from the Missouri Sales Tax?

Missouri Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. Missouri, however, does not exempt any purchases from state or local sales taxes.

Missouri sets a special sales tax rate for unprepared food and groceries (at 1.225%). While many other states also collect a special (and often higher) sales tax on prepared and restaraunt food, Missouri does not have a specific restaraunt sales tax.

Generally, the Missouri sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the Missouri sales tax if they provide the seller with a Missouri Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in Missouri), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how Missouri handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] Missouri sales tax information on Tax-Rates.org
http://www.tax-rates.org/Missouri/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html