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Missouri Rules on Phone Late Payment and Service Fees

In the never-ending quest to keep you up to date on changes in the world of sales tax, we've been perusing individual state Department of Revenue websites.

Missouri Department of Revenue Letter Ruling 7141, dated August 31, 2012, responds to the issue of phone late payment fees and service fees for 900 numbers."]

Two questions are resolved.

Are Late Fees on Telephone Bills Subject to Sales Tax?

No. Separately stated late fees "are not one of the enumerated taxable services under Section 144.020" of RSMo, and are therefore not subject to sales tax.

RSMo is The Missouri Revised Statutes.

Are Service Fees for Calling 900 Numbers Subject to Sales Tax?

Yes. When a customer places a telephone call to a "900" or "976" area code, a telecommunication service charge is incurred and is "subject to sales tax." While numerous exclusions are listed in LR 7141, calling "900" and "976" numbers is not one of them.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.