Missouri DOR Issues Letter Ruling on Tax Implications for Lessor of Personal Vehicles

The Missouri Department of Revenue (DOR) July 31 issued a letter ruling, addressing the tax implications for a financial servicing company servicing leases for personal vehicles. The DOR clarified that if a Missouri lessee of a motor vehicle moves within Missouri, the local motor vehicle sales tax rate would be updated to the lessee’s new address. Furthermore, if a lessee moves out of Missouri, the lease receipts are no longer subject to Missouri motor vehicle sales tax. If an out-of-state lessee moves into Missouri, the motor vehicle sales tax rate is updated to the applicable rate at the lessee’s address. ...