Missouri DOR Exempts Concession Sales by Municipalities From Sales Tax

The Missouri Department of Revenue (DOR) issued a letter ruling regarding the taxability of concessions sold by municipalities. Taxpayer is a municipality that operates an aquatics facility and hosts various recreational events. Taxpayer sought to know if sales of concessions and other tangible personal property items are subject to sales tax. DOR held that a municipality’s sales of concessions and other tangible personal property at recreational facilities it operates are exempt from sales tax since all proceeds benefit the municipality. This exemption applies broadly to all fees paid by individuals at municipally owned places of amusement, entertainment or recreation. [Mo. ...