Missouri Enacts Tax Change Notification Requirements
- Jul 13, 2015 | Gail Cole
A new Missouri Department of Revenue to notify businesses of certain sales tax changes.
SB 18 reads, in pertinent part:
“If any item of tangible personal property or service determined to be taxable under the sales tax law or the compensating use tax law is modified by a decision or order of:
(1) The director of revenue;
(2) The administrative hearing commission; or
(3) A court of competent jurisdiction;
which changes which items of tangible personal property or services are taxable, and a reasonable person would not have expected the decision or order based solely on prior law or regulation, all affected sellers shall be notified by the department of revenue before such modification shall take effect for such sellers. Failure of the department of revenue to notify a seller shall relieve such seller of liability for taxes that would be due under the modification until the seller is notified. The waiver of liability for taxes under this subsection shall only apply to sellers actively selling the type of tangible personal property or service affected by the decision on the date the decision or order is made or handed down and shall not apply to any seller that has previously remitted tax on the tangible personal property or taxable services subject to the decision or order or to any seller that had prior notice that the seller must collect and remit the tax.”
The bill also repeals the existing Section 144.021 RSMo and replaces it with a new section 144.021. Read the full text of Senate Bill 18 for additional information.
As this Missouri legislation indicates, keeping informed of sales tax changes is challenging—especially for businesses selling in multiple states. Implementing an automated solution simplifies transaction tax compliance. Learn more.