By Sahang-Hee Hahn and Jack Trachtenberg
The Missouri Department of Revenue determined that an out-of-state provider of mail systems products had nexus for sales and use tax purposes due to the selling activities of dealers in the state. The taxpayer sold products that enabled customers to centralize the distribution and collection of their mail and packages. The Department’s nexus determination was based in large part on a finding that the taxpayer engaged in business activities within Missouri through four dealers who sold its products in-state and on the fact that it advertised its product line through an internet catalog, informing potential customers that it could provide a quote and install products in Missouri. Despite the fact that the taxpayer had less than $500,000 of in-state annual sales and did not have a place of business in Missouri, the Department nonetheless concluded that the taxpayer was a “vendor” for sales and use tax purposes because the dealers were considered the taxpayer’s “selling agents” in the state within the meaning of RSMo section 144.605(14). Mo. Ltr. Rul. No. 7271 (May 23, 2013).