Opinion ID: 1868509
Heading Depth: 1
Heading Rank: 2

Heading: Caskets

Text: The AHC ruled that caskets are also not subject to sales tax. A sale at retail is a transfer of the ownership of, or title to, tangible personal property, for consideration. Section 144.010.1(10). The taxable event is the passage of title or ownership. Blevins Asphalt Const. Co. v. Director of Revenue, 938 S.W.2d 899, 901 (Mo. banc 1997), citing Kurtz Concrete, Inc. v. Spradling, 560 S.W.2d 858, 860 (Mo. banc 1978). Title and ownership are usually, but not always, acquired simultaneously by the purchaser. Olin Corp. v. Director of Revenue, 945 S.W.2d 442, 444 (Mo. banc 1997); Becker Electric Co. v. Director of Revenue, 749 S.W.2d 403, 407-408 (Mo. banc 1988). In the Marsh case, the seller built cabinets and installed them in kitchens. Marsh, 537 S.W.2d at 403. Payment occurred only after the cabinets were affixed to the walls. The cabinets could not be installed elsewhere or removed without damaging the house. Id. at 404. This Court held that the transfer was consummated when the cabinets were nailed to the walls, becoming fixtures, and that there was no transfer of personal property. Id. at 407. In this case, the AHC reasoned that caskets are analogous to the cabinets in Marsh . The AHC decided that both title and ownership passed to the customer when the casket was buried. If either ownership or title passes to the customer before burial, the casket is personal property at that point, subject to tax. See Section 144.010.1(10). There are two distinctions between this case and Marsh . First, Buchholz's customers pay up front for the casket, while it is still moveable. Second, after the casket is paid for, the customer has control over its movements. The correct analogy to Marsh is that the caskets here are like cabinets sold at the cabinetmaker's shop, and then moved at the buyer's instruction to the house for permanent installation. See Marsh, 537 S.W.2d at 407. Buchholz emphasizes its physical possession of the casket until the burial, which must be under the direction of a licensed funeral establishment or director. See 4 CSR 120-2.070(23). Physical possession, however, is not conclusive of ownership; the key is the intent of the parties, as evidenced by all relevant facts, including custom or usage of trade. Ovid Bell Press v. Director of Revenue, 45 S.W.3d 880, 885 (Mo. banc 2001), citing Kurtz Concrete, Inc. v. Spradling, 560 S.W.2d 858, 861 (Mo. banc 1978). The record is undisputed that the customer may choose another licensed mortuary, and Buchholz obeys that choice. This acquiescence is statutory. Before obtaining possession of the body, a funeral director must have express authority from the person entitled to the custody or control of it. Section 333.121.2(17). If the funeral director refuses to surrender the body upon request of that person, the director can be disciplined. Section 333.121.2(21). The customer controls the body, and has paid for the surrounding casket, while it is still moveable. The transfer of the casket occurs when it is tangible personal property, subject to sales tax. Buchholz argues that the casket is not delivered to the customer until the time of burial. Buchholz stresses that it has the risk of loss for the casket until burial, showing its title and ownership of the casket until it is real property. The transfer of title and the responsibility for the loss do not necessarily occur at the same time. House of Lloyd, Inc. v. Director of Revenue, 824 S.W.2d 914, 922 (Mo.1992), rev'd on other grounds by Sipco, Inc. v. Director of Revenue, 875 S.W.2d 539 (Mo.1994). By custom and usage of trade, Buchholz retains the risk of loss even after the customer has acquired ownership and title by paying for the casket, and gaining control over its movements. Because both ownership and title pass to the customer prior to burial, caskets are personal property, subject to sales tax.