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Missouri Swaps Use Tax for Sales Tax

  • Jul 9, 2013 | Gail Cole

 Buying a car in Missouri? Sales tax will be imposed at time of titling.

A new use taxes on the storage, use or consumption of motor vehicles, trailers, boats or outboard motors. Yet fear not--the tax man still cometh. In place of use tax, state and local sales tax will be charged when boats, outboard motors, trailers and motor vehicles are titled. The address of the owner will inform the local rate.

In addition, the law stipulates that any local taxing jurisdiction that has not already approved a local use tax "must put to a vote of the people whether to discontinue collecting sales tax on the titling of motor vehicles purchased from a source other than a licensed Missouri dealer." Localities have between November 2014 and November 2016 to put the issue to a vote.

If no vote is held, "the taxing jurisdiction must cease collecting the sales tax." It should be noted that a vote may be held at any time to repeal the tax, so long as 15% of the registered voters petition to have such a vote.

Most state and local use tax rates are the same as the corresponding sales tax rates. However, sales tax is typically collected by the seller at the time of sale, while use tax must be remitted by the buyer. Use tax guarantees that tax will be paid no matter where or how an item is purchased. It originally came about shortly after states imposed sales tax, to prevent people from crossing state borders to purchase items tax free.

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photo credit: Claire L. Evans via photopin cc

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.