Sales Tax Delivery :: Wamhoff Financial & Accounting

Sales Tax Delivery

August 3, 2016

In a recent Missouri Supreme Court case, Alberici Constructors, Inc. v. Director of Revenue, the Missouri Supreme Court held charges for delivery of a rented crane are subject to use tax because the parties intended for delivery of the crane to be part of the crane rental. The Missouri Supreme Court relied upon a previous case, Southern Red-E-Mix Co. v Director of Revenue that had identified a number of factors relevant to determining whether delivery is intended to be part of a sale. The factors include:

1. When title passes from the seller to the purchaser
2. Whether the delivery charges are separately stated
3. Who controls the cost and means of delivery
4. Who assumes the risk of loss during delivery
5. Whether the seller derives financial benefit from delivery

If the parties intend for the delivery to be part of the sale of tangible personal property, the delivery charge is subject to tax even when the delivery charge is separately stated.

The Missouri Department of Revenue is advising business owners to start collecting and remitting sales tax on the delivery charges soon. We recommend to our clients to commence the sales tax on delivery if required by September 1st.

Please contact your accountant if you have any questions concerning this.


Sandra M. Furuya
Enrolled Agent