Missouri DOR Determines Civic Organization’s Sales Tax Exemption Didn’t Pass Through to Contractors, Subcontractors

The Missouri Department of Revenue (DOR) Aug. 3 determined in a letter ruling that Taxpayer’s civic exemption status didn’t pass through to a contractor and its subcontractors for sales and use tax purposes. Taxpayer was a civic organization that held a limited exemption from Missouri sales and use tax on purchases and sales. Taxpayer inquired whether its exempt status passed through to a contractor and its subcontractors on purchases of construction materials for use in constructing a new interchange in the county. The DOR noted that: 1) construction materials are tangible personal property subject to Missouri sales tax unless an ...