Governor Greitens stops taxation of delivery fees
Gov. Eric Greitens has signed a bill that forbids the State of Missouri from collecting sales tax on delivery fees.The law is a response to a 2015 Missouri Supreme Court ruling, Alberici Constructors Inc. v. Director of Revenue, that allowed the taxation of delivery fees charged to bring a crane to a construction worksite. This ruling opened the door to additional taxes on delivery fees.
Prior to the court ruling, Missouri allowed separately stated shipping/delivery fees to be exempt from the tax base. However, after the court ruling, the Missouri Department of Revenue sent out notification to corporate taxpayers that if delivery is intended to be part of the sale of a product, the charge would be subject to Missouri sales tax, even when separately stated.
The Missouri Chamber of Commerce and Industry led the push to stop this tax grab, working with Sen. Will Kraus, a Republican from Lee’s Summit, to advance Senate Bill 16. The bill was passed by the legislature and signed into law by Gov. Greitens on July 5.