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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11349
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I HAVE A CLIENT THAT RECEIVED A SALES TAX NOTICE FOR SALES

Customer Question

I HAVE A CLIENT THAT RECEIVED A SALES TAX NOTICE FOR SALES TAX ON
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I HAVE A CLIENT THAT RECEIVED A MISSOURI SALES TAX NOTICE FOR RENTS RECEIVED ON SELF MINI STORAGE UNITS. HE THOUGHT THAT
JA: Is there anything else the Accountant should be aware of?
Customer: HE HAS HAD THE UNIT FOR SEVERAL YEARS AND I CANNOT FIND ANYTHING THAT INDICATES THAT THIS TYPE OF RENT FOR MISSOURI SALES TAX HAS CHANGED IN THE RECENT YEARS. WHAT IS YOU KNOWLEDGE OF THIS
Submitted: 7 months ago.
Category: Tax
Expert:  Lane replied 7 months ago.

Hi. I can help here. My name's Lane

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Rents received on these units haven't been taxable since 2009 AR. But if this was for previous years, that could explain things.

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Another possibility is that this was for locks and storage SUPPLIES.

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See this from AR DFA:

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"Act 1274 of 2009 repealed the state and local sales tax levied on mini-warehouse and self storage rental services. Charges for the storing of motor vehicles and boats will remain taxable. Sales and rentals of tangible personal property such as locks or storage supplies remain taxable."

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Please let me know if you have any questions at all, before rating me

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit") ... Otherwise I receive no crediting for the work here.

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Thank you!

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Customer: replied 7 months ago.
I found in 144.610.1 of the Missouri revised statutes that "A tax is imposed for the privilege of, storing, using, or consuming within this state any article of tangible personal property, excluding motor vehicles, trailers, motorcycles, mopeds, boats, and outboard motors required to be titled under the laws of the state of Missouri and subject to tax under subdivision(9) of subsection 1 of section 144.020 purchased on or after the effective date of sections 144.600 to 144.745 in an amount equivalent to the percentage imposed on the sales price in the sales tax law in section 144.020." Do you know the effective date of this law and what the law was in 2013, 2014 and 2015. The client notice was for 2013. Also soes this mean that the client has to separate items in the storeag and prorate rents betwen exempt and nonn exempt items? Thanks for your input in advance.
Expert:  Lane replied 7 months ago.

Give me a little time to do some digging.

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And, if you would, don't reply (unless you need something else or want to add something). That makes things take longer, given he way the site works from out end)

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BUT don't hesitate if you have something additional.

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