Most states collect both sales tax and personal income tax, although some states only collect one of the two main types of tax. States also levy special taxes on certain items, typically higher than the standard sales tax rate. Generally, taxes are meant to discourage certain behavior, such as smoking or gambling, while raising state revenue. Missouri has relatively low "sin" taxes on beer, gasoline, and cigarettes.
The state also collects a $2 admission fee from patrons of riverboat gambling facilities.
The following chart lists the various Missouri consumer taxes, including sales tax and use tax. See FindLaw's Tax Law section for more general information.
|Sales Tax||4.225% §144.020; Mo. Const. Art. IV §§43(a) and 47(c)|
|Cigarette Tax||$0.17 per pack of 20 §149.015|
|Gasoline Tax per Gallon||17¢ §142.803|
|Use Tax||Same rate as sales tax §144.610|
|Liquor Tax||Beer $0.06 per gallon; Wine 42¢/gal.; Spirits $2/gal. §§311.550|
|Gambling Tax||Riverboat gambling tax: $2.00 per person admitted §313.820|
Note: State laws are constantly changing -- contact a Missouri tax attorney or conduct your own legal research to verify the state law(s) you are researching.
Raising Revenue: How Consumer Taxes are Spent
Consumer taxes, in addition to personal income taxes, help raise revenue for public projects and resources for the state. Sometimes taxes that are received for the purchase of certain goods are used for related purposes. For instance, proceeds from gasoline taxes may go toward road repair. An increasing number of states is considering charging fees for electric car drivers who otherwise don't pay into this tax base.
Additionally, taxes on items such as tobacco and liquor are often intended to discourage their use. If cigarettes become too expensive to purchase habitually, the theory goes, users will have more incentive to quit. Often, taxes raised from tobacco and alcohol products go toward resources to help people quit or get help if needed.
What is Use Tax?
While a state generally cannot tax you for goods purchased in another state, a "use" tax may be levied in some instances. For example, if you purchase an automobile in a state with a much lower tax rate, and then take it back to your home state, you may have to pay the difference in taxes to your home state.
Research the Law
Missouri Consumer Tax Laws: Related Resources
Contact a qualified attorney.