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Missouri sales tax holiday

In Missouri, the annual Back to School Sales Tax Holiday occurs in August. Items sold that are eligible for the sales tax holiday exemption are exempt at the state level. Whether the item is exempt from the county, city, or district level taxes depends on whether the jurisdictions at those levels have opted to participate in the sales tax holiday.
Missouri has a specific tax return presentation on Form 53, Sales Tax Return, Page 2 for reporting transactions related to the sales tax holiday for when jurisdictions at all levels are participating versus when one or more jurisdictions aren't participating in the sales tax holiday.
Using the table data below for jurisdiction levels and indication of participation, an example of an import or input record with Clothing Sales at $3,000.00 and Sales Tax Holiday exemption at $1,000 would net the following two results on Form 53, Page 2.
All levels participate
Total Combined Tax Rate: 9.225%
Tax
Tax rate
Participates (Yes/No)
State
4.225%
Yes
County
1.500%
Yes
City
2.000%
Yes
District 1
0.500%
Yes
District 2
1.000%
Yes
One or More Levels Do Not Participate
Applicable Combined Tax Rate (County + District 1 Tax Rate): 2.5000%
Tax
Tax rate
Participates (Yes/No)
State
4.225%
Yes
County
1.500%
No
City
2.000%
Yes
District 1
0.500%
No
District 2
1.000%
Yes

Passing sales tax holiday sales as sales tax holiday exemption

If you import transactions using the Sales Tax Holiday exemption (HOL101) and you want the system to reclass your exemption amount to Taxable Sales Tax Holiday Sales or Taxable Sales Tax Holiday Clothing Sales, as shown in the previous example, when processing transactions in tax areas where one or more of the jurisdictions don't participate, select
Automatically reclass Sales Tax Holiday exemption to a tax type for reporting non-participating jurisdictions
 on the Missouri Organizer page.
If using the forward calculation method to calculate basis and taxes, you need only to provide the Sales Tax Holiday Exemption amount with Calculation Code 102, Forward Calculation, Gross Calculated.

Passing Taxable Sales Tax Holiday Sales Tax Type

If you pass sales tax holiday sales as Taxable Sales Tax Holiday Sales or Taxable Sales Tax Holiday Clothing Sales, it's assumed you have determined which transactions need to be reported on the separate Sales Tax Holiday row on the tax return and these are the transactions for those rows. Sales tax holiday transactions in tax areas that are totally exempt shouldn't be passed with this taxable tax type.
When back calculating, taxable sales tax holiday transactions, they need to be identified separately and as Taxable Sales Tax Holiday Sales or Taxable Sales Tax Holiday Clothing Sales tax type. These transactions should only be for tax areas where there are jurisdiction opting out of the sales tax holiday. If back calculation method's used to calculate basis and taxes, a single import or input record shouldn't be a blend of both transactions for sales tax holiday and transactions not pertaining to the sales tax holiday since a tax collected amount provided in a blended import or input record is comprised of more than one tax rate.

Tax Types

You can use our system tax type codes in your import files or create a Tax Type chart to cross-reference your sales tax holiday identifier to our system tax types. If you opt to use a Tax Type chart and don't currently utilize one, you'll need to select your chart on the Balance Import Wizard: Options Window Charts Tab prior to importing your records.
Our tax type codes related to sales tax holiday are as follows:
Description
Tax type code
General Sales
GEN101
Clothing Sales
CLO101
Sales Tax Holiday Exemption
HOL101
Taxable Sales Tax Holiday Sales
GEN108
Taxable Sales Tax Holiday Clothing Sales
CLO108

This article applies to:

  • Product: ONESOURCE Indirect Tax, ONESOURCE Sales and Use Tax Compliance
  • State: Missouri