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Missouri: Nonprofits and Sales Tax

  • Oct 6, 2014 | Gail Cole

 The Missouri state capitol.

Charges for admission to certain nonprofit museums are exempt from sales tax in Missouri.

Missouri sales tax is imposed on charges for admission and seating to or in “any place of amusement, entertainment or recreation, games and athletic events” under Section 144.020.1(2), RSMo Supp. 2013.

However, under Section 144.030.2(21), RSMo Supp. 2013, “all sales made by or to not-for-profit civic … organizations … in their civic or charitable functions and activities” are exempt.

A museum recognized as a civic organization by the Missouri Department of Revenue asked the department if it was required to collect sales tax on the cost of admission. In response, the department wrote, “Applicant’s charges for admission to its museum are exempt from sales tax due to Applicant’s functions and activities.”

The critical component is not that the museum is a museum or a nonprofit. It is that it a nonprofit museum that has been recognized as a civic organization. Read the letter ruling in full for additional details.

Admission charges to museums are exempt in South Carolina and subject to sales tax in North Carolina. Learn more about how sales tax applies to nonprofits across the country.

photo credit: MoBikeFed 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.