Missouri Revised Statutes

Mo. Rev. Stat. § 144.020 (2026)

Rate of tax

✓ current as of May 2026

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144.020. Rate of tax — tickets, notice of sales tax. — 1. A tax is hereby levied and imposed for the privilege of titling new and used motor vehicles, trailers, boats, and outboard motors purchased or acquired for use on the highways or waters of this state which are required to be titled under the laws of the state of Missouri and, except as provided in subdivision (9) of this subsection, upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state. The rate of tax shall be as follows:

(1) Upon every retail sale in this state of tangible personal property, excluding motor vehicles, trailers, motorcycles, mopeds, motortricycles, boats and outboard motors required to be titled under the laws of the state of Missouri and subject to tax under subdivision (9) of this subsection, a tax equivalent to four percent of the purchase price paid or charged, or in case such sale involves the exchange of property, a tax equivalent to four percent of the consideration paid or charged, including the fair market value of the property exchanged at the time and place of the exchange, except as otherwise provided in section 144.025;

(2) A tax equivalent to four percent of the amount paid for admission and seating accommodations, or fees paid to, or in any place of amusement, entertainment or recreation, games and athletic events, except amounts paid for any instructional class;

(3) A tax equivalent to four percent of the basic rate paid or charged on all sales of electricity or electrical current, water and gas, natural or artificial, to domestic, commercial or industrial consumers;

(4) (a) A tax equivalent to four percent on the basic rate paid or charged on all sales of local and long distance telecommunications service to telecommunications subscribers and to others through equipment of telecommunications subscribers for the transmission of messages and conversations and upon the sale, rental or leasing of all equipment or services pertaining or incidental thereto; except that, the payment made by telecommunications subscribers or others, pursuant to section 144.060, and any amounts paid for access to the internet or interactive computer services shall not be considered as amounts paid for telecommunications services;

(b) If local and long distance telecommunications services subject to tax under this subdivision are aggregated with and not separately stated from charges for telecommunications service or other services not subject to tax under this subdivision, including, but not limited to, interstate or international telecommunications services, then the charges for nontaxable services may be subject to taxation unless the telecommunications provider can identify by reasonable and verifiable standards such portion of the charges not subject to such tax from its books and records that are kept in the regular course of business, including, but not limited to, financial statement, general ledgers, invoice and billing systems and reports, and reports for regulatory tariffs and other regulatory matters;

(c) A telecommunications provider shall notify the director of revenue of its intention to utilize the standards described in paragraph (b) of this subdivision to determine the charges that are subject to sales tax under this subdivision. Such notification shall be in writing and shall meet standardized criteria established by the department regarding the form and format of such notice;

(d) The director of revenue may promulgate and enforce reasonable rules and regulations for the administration and enforcement of the provisions of this subdivision. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2019, shall be invalid and void;

(5) A tax equivalent to four percent of the basic rate paid or charged for all sales of services for transmission of messages of telegraph companies;

(6) A tax equivalent to four percent on the amount of sales or charges for all rooms, meals and drinks furnished at any hotel, motel, tavern, inn, restaurant, eating house, drugstore, dining car, tourist cabin, tourist camp or other place in which rooms, meals or drinks are regularly served to the public. The tax imposed under this subdivision shall not apply to any automatic mandatory gratuity for a large group imposed by a restaurant when such gratuity is reported as employee tip income and the restaurant withholds income tax under section 143.191 on such gratuity;

(7) A tax equivalent to four percent of the amount paid or charged for intrastate tickets by every person operating a railroad, sleeping car, dining car, express car, boat, airplane and such buses and trucks as are licensed by the division of motor carrier and railroad safety of the department of economic development of Missouri, engaged in the transportation of persons for hire;

(8) A tax equivalent to four percent of the amount paid or charged for rental or lease of tangible personal property, provided that if the lessor or renter of any tangible personal property had previously purchased the property under the conditions of sale at retail or leased or rented the property and the tax was paid at the time of purchase, lease or rental, the lessor, sublessor, renter or subrenter shall not apply or collect the tax on the subsequent lease, sublease, rental or subrental receipts from that property. The purchase, rental or lease of motor vehicles, trailers, motorcycles, mopeds, motortricycles, boats, and outboard motors shall be taxed and the tax paid as provided in this section and section 144.070. In no event shall the rental or lease of boats and outboard motors be considered a sale, charge, or fee to, for or in places of amusement, entertainment or recreation nor shall any such rental or lease be subject to any tax imposed to, for, or in such places of amusement, entertainment or recreation. Rental and leased boats or outboard motors shall be taxed under the provisions of the sales tax laws as provided under such laws for motor vehicles and trailers. Tangible personal property which is exempt from the sales or use tax under section 144.030 upon a sale thereof is likewise exempt from the sales or use tax upon the lease or rental thereof;

(9) A tax equivalent to four percent of the purchase price, as defined in section 144.070, of new and used motor vehicles, trailers, boats, and outboard motors purchased or acquired for use on the highways or waters of this state which are required to be registered under the laws of the state of Missouri. This tax is imposed on the person titling such property, and shall be paid according to the procedures in section 144.070 or 144.440.

2. All tickets sold which are sold under the provisions of this chapter which are subject to the sales tax shall have printed, stamped or otherwise endorsed thereon, the words "This ticket is subject to a sales tax.".

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(RSMo 1939 § 11408, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. I p. 546, A.L. 1963 p. 195, A.L. 1965 p. 261, A.L. 1972 S.B. 407, A.L. 1975 S.B. 92, A.L. 1979 S.B. 218, et al., A.L. 1982 Adopted by Initiative, Proposition C, November 2, 1982, A.L. 1985 H.B. 280, et al., A.L. 1996 H.B. 1098, A.L. 1998 S.B. 627, A.L. 2001 H.B. 933, A.L. 2011 S.B. 356, A.L. 2013 H.B. 184 merged with S.B. 23 merged with S.B. 99, A.L. 2015 H.B. 517 & 754, A.L. 2016 S.B. 1025, A.L. 2019 H.B. 220, A.L. 2021 S.B. 153 & 97, A.L. 2023 S.B. 398)

CROSS REFERENCE:

Nonseverability clause, 144.008

(2014) Provision imposing sales tax upon gross receipts from untethered hot air balloon rides is preempted to extent of conflict with federal Anti-Head Tax prohibition against tax or charge on gross receipts from individual's travel in air commerce. Balloons Over the Rainbow v. Director of Revenue, 427 S.W.3d 815 (Mo. banc).

(2022) Monthly membership dues for club are subject to sales tax; taxpayer failed to meet burden of proving members received more than recreational services in exchange for dues. Saddle and Sirloin Club of Kansas City v. Director of Revenue, 655 S.W.3d 351 (Mo.banc).

Notes of Decisions

Cited in 100 cases (2 in the last 5 years), 1958–2022 · leading case: King v. Laclede Gas Co., 648 S.W.2d 113 (Mo. 1983).

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King v. Laclede Gas Co., 648 S.W.2d 113 (Mo. 1983). · cites it 41× “Thus, the storage of natural gas and storage and vaporization of liquid propane are essential for continuous service of Laclede's customers. In 1979 taxpayer requested exemptions from sales tax on electricity used in the operation of these facilities on the grounds that the…”

Columbia Athletic Club v. Dir. of Revenue, 961 S.W.2d 806 (Mo. 1998). · cites it 22× “This case involves a dispute over the assessment of sales tax under section 144.020, RSMo, [1] for basic membership dues at a physical fitness center.”

Six Flags Theme Parks, Inc. v. Dir. of Revenue, 102 S.W.3d 526 (Mo. 2003). · cites it 16× “As a result, Six Flags argues, the sales receipts generated from patrons playing the video games are subject to section 144.020's exclusion. The relationship Six Flags has with patrons who play the video games resembles more of a licensor-licensee relationship than that of a…”

Sw. Bell Yellow Pages, Inc. v. Dir. of Revenue, 94 S.W.3d 388 (Mo. 2002). · cites it 10× “See section 144.020, RSMo 2000. The state in which Southwestern Bell purchased the paper, however, did not assess sales tax.”

Greenbriar Hills Country Club v. Dir. of Revenue, 47 S.W.3d 346 (Mo. 2001). · cites it 8× “Greenbriar prevailed when this Court, on appeal, reversed the AHC's decision while construing section 144.020 in a favorable manner to Greenbriar's contentions that its service charges were exempt from the sales tax.”

Balloons Over the Rainbow, Inc. v. Dir. of Revenue, 427 S.W.3d 815 (Mo. 2014). · cites it 8× “It claimed that it was entitled to a refund of those taxes because the federal AHTA prohibits Missouri from assessing sales taxes on the sale of hot air balloon rides; therefore, section 144.020 — the Missouri statute under which Balloons paid the Missouri sales tax — is…”

J.B. Vending Co. v. Dir. of Revenue, 54 S.W.3d 183 (Mo. 2001). · cites it 8× “The latter section is entitled "Rate of taxtickets, notice of sales tax" and begins: (1) A tax is hereby levied and imposed upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state.”

Krispy Kreme Doughnut Corp. v. Dir. of Revenue, 488 S.W.3d 62 (Mo. 2016). · cites it 5× “Between April 2003 and December 2005 (the relevant tax periods), Krispy Kreme collected and remitted sales tax from its retail sales based on the 4% rate imposed by § 144.020. However, in 2006, Krispy Kreme took notice of § 144.”

Street v. Dir. of Revenue, 361 S.W.3d 355 (Mo. 2012). · cites it 8× “1, RSMo 2000, the tax burden imposed by the use tax must be equivalent in percentage to the sales tax imposed in section 144.020. The complementary nature of sales and use taxes is reflected in chapter 144, RSMo 2000.”

Sneary v. Dir. of Revenue, 865 S.W.2d 342 (Mo. 1993). · cites it 8× “The Sales Tax The primary issue is whether the sales by Sneary to his clients constitute the sales of tangible personal property within the meaning of § 144.020, RSMo 1986, or whether, as Sneary asserts, the transactions are nontaxable performances of a service.”

Greenbriar Hills Country Club v. Dir. of Revenue, 935 S.W.2d 36 (Mo. 1996). · cites it 5× “Determination of the issue of whether the service charge is subject to sales tax requires construction of parts of section 144.020, RSMo 1994, 2 set out in pertinent part as follows: 1.”

Fall Creek Constr. Co. v. Dir. of Revenue, 109 S.W.3d 165 (Mo. 2003). · cites it 6× “745 in an amount equivalent to the percentage imposed on the sales price in the sales tax law in section 144.020. This tax does not apply with respect to the storage, use or consumption of any article of tangible personal property purchased, produced or manufactured outside this…”

Show all 100 citing cases →

— Mo. Rev. Stat. § 144.020(1) — 4 cases

Becker Elec. Co. v. Dir. of Revenue, 749 S.W.2d 403 (Mo. 1988).

Fall Creek Constr. Co. v. Dir. of Revenue, 109 S.W.3d 165 (Mo. 2003). “745 in an amount equivalent to the percentage imposed on the sales price in the sales tax law in section 144.020. This tax does not apply with respect to the storage, use or consumption of any article of tangible personal property purchased, produced or manufactured outside this…”

Sw. Bell Tel. Co. v. Morris, 345 S.W.2d 62 (Mo. 1961).

ITT Canteen Corp. v. Spradling, 526 S.W.2d 11 (Mo. 1975).

— Mo. Rev. Stat. § 144.020(1)(3) — 1 case

King v. Laclede Gas Co., 648 S.W.2d 113 (Mo. 1983). “Thus, the storage of natural gas and storage and vaporization of liquid propane are essential for continuous service of Laclede's customers. In 1979 taxpayer requested exemptions from sales tax on electricity used in the operation of these facilities on the grounds that the…”

— Mo. Rev. Stat. § 144.020(2) — 2 cases

Fostaire Harbor, Inc. v. Missouri Dir. of Revenue, 679 S.W.2d 272 (Mo. 1984).

Balloons Over the Rainbow, Inc. v. Dir. of Revenue, 427 S.W.3d 815 (Mo. 2014). “It claimed that it was entitled to a refund of those taxes because the federal AHTA prohibits Missouri from assessing sales taxes on the sale of hot air balloon rides; therefore, section 144.020 — the Missouri statute under which Balloons paid the Missouri sales tax — is…”

— Mo. Rev. Stat. § 144.020(4) — 1 case

Sw. Bell Tel. Co. v. Dir. of Revenue, 78 S.W.3d 763 (Mo. 2002).

— Mo. Rev. Stat. § 144.020(6) — 1 case

Greenbriar Hills Country Club v. Dir. of Revenue, 47 S.W.3d 346 (Mo. 2001). “Greenbriar prevailed when this Court, on appeal, reversed the AHC's decision while construing section 144.020 in a favorable manner to Greenbriar's contentions that its service charges were exempt from the sales tax.”

— Mo. Rev. Stat. § 144.020(8) — 2 cases

Brambles Indus., Inc. v. Dir. of Revenue, 981 S.W.2d 568 (Mo. 1998).

APLUX, LLC, & Paul & Ann Lux Assocs., L.P. v. Dir. of Revenue (Mo. 2021).

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