12 CSR 10-103.350 - Sales Tax on Motor Vehicles
(1) In
general, the sale of motor vehicles and trailers are subject to tax.
(2) Definition of Terms.
(A) Agricultural use-used in cultivating or
raising agricultural products.
(B)
All-terrain vehicle-any motorized vehicle manufactured and used exclusively for
off-highway use which is fifty inches (50") or less in width, with an unladen
dry weight of six hundred (600) pounds or less, traveling on three (3), four
(4) or more low pressure tires, with a seat designed to be straddled by the
operator, and handlebars for steering control.
(C) Grain or livestock produced or raised by
the purchaser-means the purchaser of the motor vehicle or trailer has either
cultivated the grain or has cared for the livestock.
(D) Highway-any public thoroughfare for
vehicles.
(E) Motor vehicle-any
self-propelled vehicle not operated exclusively upon tracks, except farm
tractors. Off-road utility vehicles are not motor vehicles, but all-terrain
vehicles are treated as motor vehicles for purposes of this rule.
(F) Off-road utility vehicle-any motorized
vehicle manufactured and used exclusively for off-highway use with a seat that
is not designed to be straddled by the operator, and with a steering mechanism
other than handlebars.
(G)
Trailer-any vehicle without motive power designed for carrying property or
passengers on its own structure and for being drawn by a motor vehicle, except
those running exclusively on tracks, cotton trailers and manufactured
homes.
(H) Vehicle-any mechanical
device on wheels, designed primarily for use, or used, on highways, except
motorized bicycles, vehicles propelled or drawn by horses or human power, or
vehicles used exclusively on fixed rails or tracks, or cotton trailers or
motorized wheelchairs operated by handicapped persons.
(3) Basic Application.
(A) Sales tax on motor vehicles and trailers
is remitted to the Department of Revenue when submitting the application for
title to the department. The applicable tax rate is the rate in effect at the
address of the purchaser at the time the application is submitted to the
department.
(B) If a person
purchases a motor vehicle or trailer, and, before titling and registering it in
Missouri, moves and titles it out-of-state within thirty (30) days of the
purchase, no Missouri tax is due. If a person registers a motor vehicle or
trailer in another state and regularly operates it in such state for at least
ninety (90) days prior to registering it in Missouri, no Missouri tax is due.
If the vehicle is brought to Missouri within ninety (90) days of registering
the motor vehicle or trailer, Missouri tax is due but is reduced by any tax
paid to the other state.
(C) A
person registered with the department as a motor vehicle leasing company may
elect to pay tax on its purchase of a motor vehicle or trailer or may purchase
the motor vehicle or trailer without paying tax on the purchase and collect and
remit tax on the lease receipts. If the motor vehicle leasing company chooses
to pay tax on its purchase rather than the lease receipts, the tax rate it
remits is based on the location of the motor vehicle leasing company. If the
motor vehicle leasing company elects to collect and remit tax on the lease
receipts and the lease is for more than sixty (60) days, tax is due on any down
payment and lease receipts based on the address of the lessee. If the lease is
for sixty (60) days or less, tax is due based on the location of the motor
vehicle leasing company. Once a motor vehicle leasing company makes an election
to pay tax on its purchases or to collect and remit tax on its subsequent lease
receipts, the election must be the same for all vehicles it purchases for
lease. To qualify as a motor vehicle leasing company that will remit tax on
lease receipts, the company must first obtain a permit to operate as a motor
vehicle leasing company from the department.
(D) When a person trades tangible personal
property to a motor vehicle dealer for a motor vehicle or trailer, tax is due
on the difference between the price of the motor vehicle or trailer purchased
and the amount allowed for the trade-in. If the amount allowed for the trade-in
is greater than the purchase price of the motor vehicle or trailer, no tax is
due. When a manufacturer's rebate is offered, the tax due is based on the
purchase price of the motor vehicle or trailer less the rebate. A trade-in
allowance applies only to transactions between a purchaser and a motor vehicle
dealer.
(E) Except as provided in
subsection (3)(F), if an article is traded for a motor vehicle or trailer, the
person trading the article must have paid or otherwise satisfied the tax on the
purchase of the article unless the purchase was exempt or excluded from
tax.
(F) Grain or livestock raised
or produced by a purchaser may be traded for a motor vehicle or trailer, if the
motor vehicle or trailer is purchased from a motor vehicle dealer for
agricultural use.
(G) If a person
purchases or contracts to purchase a motor vehicle or trailer and sells one (1)
or more motor vehicles or trailers within one hundred eighty (180) days before
or after the purchase or contract to purchase, the person owes tax on the
difference between the purchase price and the sale price of the respective
motor vehicles or trailers. If the person paid the full amount of the tax on
the purchase, the person may obtain a refund of the excess tax paid.
(H) If a person suffers a total insurance
loss and subsequently purchases or contracts to purchase a replacement vehicle
after the date of loss but no later than one hundred eighty (180) days after
the date of the total loss payment, the person can offset the insurance payoff
amount plus any deductible against the purchase price and remit tax on the
difference. If the vehicle is not covered by insurance, the person must
purchase the replacement vehicle within one hundred eighty (180) days of the
loss. The person can only offset the loss against the purchase of one (1)
replacement vehicle.
(I) If a
person who has previously titled and paid tax on a vehicle gives the vehicle to
another person, the person must complete a gift statement for the person to
whom the vehicle was given to present when titling with the department. No tax
is due.
(J) A sale of an
all-terrain vehicle by a non-dealer is subject to sales tax if the purchase
price is more than three thousand dollars ($3,000). A sale of an all-terrain
vehicle by a non-dealer is not subject to sales tax if the purchase price is
three thousand dollars ($3,000) or less. See
12 CSR
10-103.200.
(4) Examples.
(A) A person purchases a vehicle for $18,000
at the local car dealership. As a part of the transaction, the dealer offers a
$500 rebate and the person trades a vehicle for another $3,000. The purchaser
must pay tax to the Department of Revenue when titling the vehicle on $14,500
($18,000 - $3,500 = $14,500). The applicable rate is the rate in effect at the
purchaser's address at the time of titling.
(B) A person purchases a vehicle from a
dealer for $25,000 in May. That person pays tax on $25,000. In June, the person
sells a different vehicle for $15,000 and an outboard motor for $500. Because
the sales took place within 180 days of the purchase of the vehicle, the person
can obtain a refund of tax paid on the purchase transaction based upon the
$15,500 received on the sale.
(C) A
person is in an accident that results in a total loss of the vehicle. After the
loss of this vehicle, the person buys a new vehicle for $15,000 and pays tax on
the full amount when titling the vehicle with the department. Two weeks after
purchasing the vehicle, the insurance company pays $5,000 on the loss of the
vehicle. The policy included a $500 deductible. The person can obtain a refund
of tax based upon $5,500, which includes the $5,000 paid by the insurance
company and the $500 deductible.
(D) A person owns a motor vehicle. The person
buys a second motor vehicle and puts the first motor vehicle on the market.
Before the first vehicle is sold, it is in an accident that results in a total
loss of the vehicle. Two weeks after the accident, the insurance company pays
$5,000 on the loss of the first vehicle. The person cannot obtain a refund of
tax because the person did not purchase a replacement vehicle after the first
vehicle was destroyed.
(E) A person
is in an accident that results in a total loss of the vehicle. The vehicle was
not insured. After the loss of this vehicle, the person buys a new vehicle for
$15,000. The Kelly Blue Book value for the lost vehicle is $5,000. When titling
the vehicle with the department, the person pays tax on $10,000, which is the
$15,000 cost of the new vehicle less the value of the loss.
(F) A person purchases an all-terrain vehicle
from a local dealer. The purchaser must obtain a title and remit tax to the
department based on the rate in effect at the purchaser's location at the time
of titling.
(G) A business sells an
off-road utility vehicle. The utility vehicle is not a motor vehicle and does
not need to be titled. The business must collect and remit tax on the
sale.
(H) A person trades in grain
valued at $5,000 to a dealer on the purchase of a cattle trailer valued at
$10,000. The purchaser grew the grain and will use the cattle trailer in its
business of raising cattle. The purchaser receives a trade-in credit of $5,000
on the purchase of the trailer because the purchaser produced the grain and the
trailer is used by the purchaser in agriculture.
(I) Same situation as subsection (4)(H),
except the purchaser's son produced the grain. The purchaser receives no
trade-in credit because the purchaser did not produce the grain that was
traded.
(J) A landowner agrees with
a local farmer that the farmer can farm some of landowner's land in exchange
for 50% of the crops produced on the land. The landowner trades in grain grown
by the farmer on the land on the purchase of a horse trailer used in the
landowner's breeding operations. The landowner receives a trade-in credit on
the purchase of the trailer. The landowner shares the risk of a successful
harvest and therefore, is cultivating the grain.
(K) A landowner agrees with a local farmer
that the farmer can farm some of landowner's land in exchange for $1,000. The
farmer delivers grain grown on the land valued at $1,000 in payment of the
rent. The landowner trades in the grain on the purchase of a horse trailer used
in the landowner's breeding operations. The landowner does not receive a
trade-in credit on the purchase of the trailer because the landowner is merely
renting land, not cultivating grain.
(L) A farmer sells grain raised by the farmer
to an elevator and directs the elevator to pay the farmer for the grain by
delivering a check payable to a local motor vehicle dealer. The farmer uses the
check to purchase a pickup truck that will be used to haul and carry necessary
supplies and materials to and from the farm. The transaction does not qualify
for the trade-in allowance because the grain was not traded to the dealer for
the truck. Instead, it was sold to the elevator and the proceeds were used to
purchase the truck.
(M) An
out-of-state motor vehicle leasing company purchases a motor vehicle out of
state and leases it to a Missouri resident. The leasing company has elected to
pay tax on lease receipts rather than on the purchase. The lease payments are
subject to sales tax at the rate in effect at the location of the Missouri
resident.
(N) An out-of-state motor
vehicle leasing company purchases a motor vehicle out-of-state and leases it to
an out-of-state resident. The resident's state requires the leasing company to
pay tax on all proceeds under the lease at the time of the lease. During the
term of the lease, the lessee moves to Missouri. Under section
144.440, RSMo, the lease
payments are subject to highway use tax at the rate in effect at the location
of the Missouri resident. The lessor receives credit for any tax paid to
another state on the lease receipts.
(O) An individual purchases a used motor
vehicle by making a down payment, trading in another vehicle, and using dealer
financing for the balance of the purchase price. Prior to titling the vehicle,
the dealer repossesses the vehicle for failure to make payments under the
financing agreement. The individual still owes sales tax on the purchase of the
vehicle unless the dealer agrees in writing to void the sale and return all
payments and the trade-in to the purchaser.
Notes
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