Missouri—Sales and Use Tax: Funeral Home’s Purchase of Burial Vaults Subject to Tax

MISSOURI: A funeral home’s (taxpayer’s) purchase of burial vaults was subject to Missouri sales and use tax because the taxpayer was the end-user of the vaults. Generally, a contractor is the final user and consumer of the materials and supplies used and consumed in fulfilling a construction contract and which become part of a completed real property improvement. In this matter, the taxpayer inquired whether its purchase of burial vaults was subject to the state and local sales taxes. It was noted that the burial vaults were fixtures that adapted to the land and became part of the real property. Further, the taxpayer was a contractor because it was hired by its customer to purchase the vaults and lower them into the grave. Accordingly, the taxpayer was the end-user of the vaults and was required to pay any sales tax owed on the purchase of the vaults from the taxpayer’s vault supplier.

Letter Ruling No. LR 8123, Missouri Department of Revenue, October 29, 2020

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