Missouri sales tax is levied on the transaction of physical personal services as well as other itemized services. The Missouri sales tax is a substantial structure with lots of laws and other considerations that govern the commercial transactions in this state.
Missouri Sales Tax Rates
The state of Missouri has a standard sales tax rate of 4.225% but on the sale of automobiles, trailers, boats and outboard motors a special use tax rate of 4% is levied.
However, the tax rate in the local administrative zones is more than the standard average. This could be attributed to the fact that the local authorities in charge of taxation in these zones, levy extra charges on the sales.
The following table gives a demonstration of the tax rates of some of the administrative areas of Missouri:
| Municipality |
County |
Sales Tax Rate |
| Washington |
Franklin |
6.975% |
| Clayton |
St. Louis |
7.325% |
| Arnold |
Jefferson |
6.975% |
| St. Louis City |
St. Louis City |
7.616% |
| Troy |
Lincoln |
7.475% |
| Warrenton |
Warren |
7.875% |
| St. Charles |
St. Charles |
7.325% |
Missouri Sales Tax Exemptions
The following categories are exempted from sales taxes in Missouri:
Machinery and equipment employed to build a new facility or expand an already existing manufacturing facility are tax-exempt. Tax exemption is provided only if such machinery or equipments are used directly to manufacture a product, which would ultimately be sold.
Replacement of machinery and equipments that are used directly to create a product, which is supposed to be sold, are tax-exempt. Tax exemption is provided only if their acquisition has been called for due to change in design or product, as opposed to obsolescence.
Machineries, equipments and tools that help in subsiding air pollution may be acquired without having to pay sales taxes. In order to receive this exemption, a company only needs to have the relevant state governmental agency certification stating that the equipment is pollution control equipment.