Sales and use tax compliance in Missouri is complicated. Instead of local jurisdictions having one local Sales Tax rate on top of the state rate, they have multiple and varying local rates. There’s a local sales tax rate and a local use tax rate (which often differ); there’s a local food sales tax rate and a local food use tax rate (also typically different); there’s also a domestic utility rate and a manufacturing exempt rate, which isn’t zero, despite the name.

Not convinced? Check out the following rate changes that took effect January 1, 2019.

City rate changes

Cape Girardeau has extended an existing 0.375% city storm water/local parks sales tax, keeping the total tax rate at 0.5%. This tax also applies to the sale of domestic utilities. And the Cape Dogwood Community Improvement District, which includes a portion of the city of Cape Girardeau in Cape Girardeau County, has imposed a 1% district sales and use tax.

Caruthersville has imposed a 0.5% city economic development sales tax.

Clarkton has imposed a 1% city sales tax.

Clever has imposed a 1.875% local option use tax to match the city's sales tax.

Fredericktown has imposed a 0.5% city public safety sales tax.

Grandview has extended the existing 0.5% city Capital Improvements Sales and use tax, which also applies to the sale of domestic utilities.

Greenwood has imposed a 0.5% city sales tax.

The Village of Indian Point has imposed a 0.5% city public mass transportation sales tax.

Kansas City has extended the existing 1% city sales and use tax.

In addition, the 9th and Central Community Improvement District, which includes a portion of Kansas City (Jackson County) and is fully overlapped by the Kansas City Downtown Streetcar Transportation Development District and the Kansas City Zoological District, has imposed a 1% district sales and use tax.

Also, the I 470 Western Gateway Transportation Development District, which includes a portion of Kansas City (Jackson County) and a portion of the city of Lee's Summit in Jackson County, has imposed a 1% district sales tax. The I 470 Western Gateway Transportation Development District is fully overlapped by the Kansas City Zoological District and fully overlaps the I 470 and View High Community Improvement District.

And the Valley View Community Improvement District, which includes a portion of the city of Kansas City (Clay County) and is fully overlapped by the Kansas City Zoological District, has imposed a 1% district sales and use tax. 

Lathrop has extended the existing 0.5% city capital improvements sales and use tax, which also applies to the sale of domestic utilities. Lathrop has imposed a 1.5% local option use tax to match the city's sales tax.

Lebanon has extended the existing 0.5% city public mass transportation sales tax.

Matthews has imposed a 0.5% city economic development sales tax.

Moberly has extended an existing 0.5% city storm water/local parks sales and use tax.

New Hampton has imposed a 1% city sales and use tax, and added a local option use tax to match the existing city sales tax.

Osceola has extended an existing 0.5% city capital improvements sales tax.

Pendleton has imposed a 1% city sales tax.

Pine Lawn has imposed a 0.5% city economic development sales tax.

Wheatland has extended an existing 0.5% city capital improvements sales tax and 0.5% city public mass transportation sales tax, both of which also apply to the sale of domestic utilities.

County rate changes

DeKalb County has extended an existing 0.5% county capital improvements sales and use tax and imposed a new 0.5% county law enforcement sales and use tax.

Jasper County has extended an existing 0.25% county capital improvements sales tax.

Lafayette County has extended the existing 0.5% county capital improvements sales and use tax.

Pike County has imposed a 0.5625% county emergency services sales tax for E-911. Within Pike County, Clarksville has imposed a 1% local option use tax to match the city's sales tax.

Stoddard County has imposed a 0.5% county capital improvements sales and use tax. In addition, the county has imposed a 2% local option use tax to match the county's sales tax.

Taney County has extended an existing 0.5% county capital improvements sales tax.

Special districts

In addition to the above, numerous special district sales and use tax rate changes took effect in Missouri on January 1, 2019. For details, see the Missouri Department of Revenue.

Remote sales tax

Missouri lawmakers are looking to adopt economic nexus, which would require out-of-state sellers with a certain amount of economic activity in the state to collect and remit sales tax. If that becomes the new reality, doing business in Missouri could become considerably more complex. Learn more.