Section 12 Motor Vehicle Leasing

• Library: Tax Law 2009

Under § 144.020.1(8), RSMo Supp. 2007, a sales tax is imposed on the amount of the lease of tangible personal property if sales tax is not paid by the lessor at the time of purchase of the property. Sections 144.070 and 144.440, RSMo 2000, however, provide for the taxation of motor vehicles by separate means (payment directly to MoDOR). In 1975, the legislature amended § 144.070 to allow motor vehicle leasing companies the option of paying sales tax either on the rental receipts or, in accordance with §§ 144.070 and 144.440, on the full purchase price at the time of the acquisition of the vehicle.

Section 144.070.5 and .6 provides that any motor vehicle rental or leasing business may apply to the Director for authority to operate as a leasing company. These companies must be approved by the Director and may pay taxes on the price of a motor vehicle or trailer at the time of registration or instead pay sales tax on gross receipts. If a sales tax is charged on gross receipts, it must be paid by a company on the amount charged for...