Isolated or Occasional Sales by Businesses (Rescinded November 30, 2000)

AUTHORITY: section 144.270, RSMo 1994. Original rule filed Aug. 6, 1980, effective Jan. 1, 1981. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Rescinded: Filed May 24, 2000, effective Nov. 30, 2000. In Staley v. Missouri Director of Revenue, 623 SW2d 246 (Mo. banc 1981), a partnership contracted to sell all furnishings in a one-time liquidation sale. The court found since section 144.010.1(2) specifically provides that “business” and an “isolated or occasional sale” are distinct terms, no tax is due on isolated or occasional liquidation sales by parties not engaged in the business of selling items sold. Loethen Amusement, Inc. v. Director of Revenue, Case No. RS86-0130 (A.H.C. 10/2/87). The Administrative Hearing Commission held this transaction is subject to Missouri sales tax in that there is no exemption for partial liquidation of a business. The exemption provisions contained in 144.011(2), RSMo and 12 CSR 10-3.005 relate only to complete liquidation of a business.