The lessor has the option of either paying the tax up front on the item to be leased or charging the tax on the lease receipts. Only one of these options may be chosen. If the lessor chooses to charge the tax on the lease receipts on items other than motor vehicles, the tax due is based on the place of business of the lessor. If the lessor has more than one place of business, the taxable situs of the sale is the location where the initial order is taken. Any motor vehicle, which is leased or rented as the result of a contract shall be taxable at the lessee's location at the time the lease is executed.
Sales tax is applicable on all sales made from a location within the state of Missouri.
For further information concerning farm machinery, please contact the Department and request a copy of Regulation 12 CSR 10-3.274. A charitable, religious or educational exempt entity may complete a project exemption certificate and present it to the contractor who in turn may use the certificate to purchase materials for a specific project tax exempt. The certificate expiration date. The Department does not issue these exemptions. This is a transaction between the exempt organization and the contractor.