Missouri DOR Determines Promotional Items Permanently Attached to Buildings Subject to Sales Tax

The Missouri Department of Revenue (DOR) Sept. 30 determined in a letter ruling that Taxpayer’s promotional items permanently attached to buildings were subject to sales and use tax. Taxpayer, an advertising company, inquired whether affixing permanent tangible items including billboards of promotional value to buildings and into the ground were exempt from taxation. The DOR noted that: 1) Taxpayer acted as a contractor (or possibly as a dual operator) when permanently affixing items to buildings and real property; 2) when acting as a contractor, Taxpayer might be subject to taxes depending upon when title to tangible property shifted from Taxpayer ...