By Ted Friedman and Timothy Gustafson
The Missouri Department of Revenue determined that clients of a moving company were not subject to sales tax on boxes provided by the company and used to move the clients’ belongings. As part of the company’s moving services, it provided boxes for clients to pack their belongings. Any boxes that were still in useable condition after the move were taken back by the company. The Department reasoned the “true object of the transaction” was the nontaxable moving services, not the boxes, and concluded the clients were not subject to sales tax on use of the boxes. The Department noted, however, the company should pay sales or use tax on its purchase of the boxes used in its moving services. Mo. Ltr. Rul. No. LR 7343 (Jan. 14, 2014).