State Tax Day - Current, S.5, Missouri—Sales and Use Tax: Taxability of Installation Services for Paint Booth Equipment Discussed, (Feb 3, 2026)

A subcontractor’s installation of the applicant's paint booth equipment is not subject to Missouri sales tax because the subcontractor is providing labor and labor is not subject to tax. Installation of equipment is not a taxable service. The applicant should not collect sales tax from the subcontractor because the applicant's contract with the subcontractor is for the purpose of installing paint booth equipment manufactured by the applicant. However, to the extent that the subcontractor sells materials to the applicant as part of installing the paint booth equipment, the applicant should provide the subcontractor with a Form 149 Sales and Use Tax Exemption Certificate. In addition, the applicant should receive a completed Form 149 from the purchaser of the paint booth, and the applicant should provide the completed Form 149 to the subcontractor along with furnishing the subcontractor with a copy of the Certificate of Direct Pay Authorization.

Letter Ruling No. LR 8378, Missouri Department of Revenue, January 8, 2026, ¶204-661