On June 15, 2026, the Missouri Department of Revenue (DOR) proposed amendments to the rule determining whether a transaction is subject to Missouri sales tax or use tax. Following that proposal, on September 15, 2026, the Secretary of State confirmed that these rules were updated without any changes being made to the proposed text of the amendment.

Key Updates to Sales and Use Tax

The main reason for updating the rule is to address the issue of merchandise shipped from a third party. Generally, a sale of tangible personal property is subject to Missouri sales tax when title or ownership transfers in Missouri. However, a Missouri title transfer alone does not automatically make the transaction taxable. If the property is sold as part of interstate commerce and qualifies for the applicable exemption, Missouri sales tax does not apply. When a sale is subject to Missouri sales tax, the seller is responsible for collecting and remitting the tax.

If a sale is not subject to Missouri sales tax but the property is subsequently stored, used, or consumed in Missouri, use tax may apply instead. If the seller has sufficient nexus with Missouri (a sufficient business connection to the state), the seller must generally collect the use tax from the buyer and remit it to the state. If the seller does not collect the tax, the buyer must pay the use tax directly to the Missouri Department of Revenue.

For taxable services, the rule is based primarily on where the service is performed. A taxable service performed in Missouri is subject to Missouri sales tax; one performed outside Missouri generally is not.

A transaction is considered "in commerce" when the order is approved outside Missouri, and the tangible personal property is shipped from outside the state directly to the Missouri buyer. However, this treatment does not apply in certain situations. For example, a transaction is not considered "in commerce" when the merchandise is shipped to the final customer by a third-party seller rather than by the retail seller.

The sale is also taxable when goods are first delivered in Missouri to the seller or the seller's agent, rather than to an independent third-party carrier. If those goods are then delivered to the buyer, Missouri sales tax applies..

Conclusion

These updated rules provide clearer boundaries for third-party shipment transactions, ensuring that tax obligations are accurately assigned based on shipping methods and nexus. Businesses engaged in cross-border sales and third-party fulfillment should carefully review their operations to maintain compliance with Missouri's sales and use tax requirements.