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Why is my exempt customer in Missouri charging tax?

Overview

You have a customer who is tax exempt in Missouri using the reason I) Industrial production / manufacturer and it's now charging tax. 

Environment

AvaTax

Resolution

  • Avalara's Content team updated the taxability for this exemption reason to include that some local jurisdictions in Missouri are taxable.

  • This is due to those local jurisdictions having specific manufacturing rates.

    • Because some local jurisdictions don't have a rate for seller's use tax in Missouri, you may see those jurisdictions being marked as taxable but with a 0% rate.

  • This change was made due to Missouri's new stipulation that Manufacturer's are exempt at the state level but not locals detailed at the state's FAQ webpage.

  • If you would like the manufacturer's exemption to be fully exempt, you can create an exempt entity rule or use another exemption reason that is fully exempt in Missouri.