Frequently Asked Questions
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Sales by Farmers at Farmers Markets
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How do I register with the department to collect and remit sales tax?
Complete the Business Tax Registration Application (
Form 2643
) and submit it to:
You may also register online using Online Business Registration. Taxpayers registering to collect and remit sales tax must post a bond equal to three times their anticipated monthly liability. If the estimated liability is less than $500, the bond amount is $25. A registration form ( Form 2643
) must be submitted for each location that
will transact sales.
) and submit it to:
You may also register online using Online Business Registration. Taxpayers registering to collect and remit sales tax must post a bond equal to three times their anticipated monthly liability. If the estimated liability is less than $500, the bond amount is $25. A registration form ( Form 2643
) must be submitted for each location that
will transact sales.
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Are processed foods and fresh foods subject to the same sales tax?
Yes, processed foods and fresh farm grown products are all subject to the state
sales tax for food of 1.225 percent. These foods are also subject to any applicable
local sales tax.
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Should state sales tax be reported quarterly or annually?
It depends on how much sales tax you collect. If collections average over
$500 per month, file monthly. Collections averaging between $15 and $500 per
month should be filed quarterly. Monthly collections of less than $15 can
be filed annually. Because farmers markets are often seasonal, it is possible
that you can file on a monthly or quarterly basis only in the seasons in which you
will make sales. The department will assist you in determining your filing
frequency when you register to collect the sales tax.
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Does a producer who travels to multiple markets in multiple
cities have to charge the local sales tax rate in each city?
Yes, the local sales tax rate applies. A producer who travels to multiple
farmers markets establishes a business location in the city in which each market
is located. Therefore, the seller should collect and remit tax based on the
rate in effect in the city in which that market is located. You can check
the combined
state and local sales tax rate tables
to determine the rate in effect at your farmers market or call (573) 751-5860.
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When do I need to file my returns?
If you file monthly, returns are due on the 20th of the following month except for
March, June, September, and December, which are due the last day of the following
month. If you file quarterly, returns are due the last day of the month following
the end of the quarter (April, July, October, and January). Do not include
the tax collected in your gross receipts when determining the proper amount of tax
to remit to the department. Learn more about reporting sales tax by reviewing
our Sales Tax Detailed Instructions and Information (
Form 4789
) or call (573) 751-5860.
) or call (573) 751-5860.
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I sell produce, crafts, and bakery items. How do I charge and pay taxes on those items?
Charge sales tax on the total sale price of the produce and bakery items at a rate
of 1.225 percent plus any applicable local sales tax. Charge tax on the total
sale price of the craft items at a rate of 4.225 percent plus any applicable local
sales tax. The sale of the produce and bakery items should be reported on
a separate line from the sale of the crafts because of the different tax rate.
You can check the combined
state and local sales tax rate tables
to determine the rate in effect at your farmers market.
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I'm a farmer and I sell produce. I didn't think I had to pay taxes on the
goods I sell. Farmers that take their grain to market don't have to pay
taxes at the elevator. Why is it that I have to pay taxes at a farmers market?
Sales tax applies when the seller is making a sale at retail to the final user or
consumer, but not when the purchaser is selling the product for resale. A
farmer selling products at retail at a farmers market must collect and remit sales
tax. A farmer selling grain at an elevator is selling the grain for resale
or use in manufacturing a product for sale.
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My [minor] children have a produce business and they sell at
our local farmers market. Do they have to pay or charge taxes?
Yes, the sales made by the children at a farmers market are taxable sales.
However, because they are minors, the department cannot issue a sales tax license
to the children. A parent should obtain a sales tax license on behalf of the
children and report any sales to the department.
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My husband and I sell our extra produce at the farmers market. We only make
about $2,000 per season. Do we have to charge or pay taxes?
Yes, you do. Any person who establishes a booth at a farmers market is in
the business of selling tangible personal property. As a result, you must
collect and remit sales tax to the department regardless of the amount of annual
sales.
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I sell processed beef. I take orders at the farmers market, take the beef
to the processor, and then deliver the beef to the customer's home. How do
I handle taxes?
Tax should be charged on the retail price of the beef based on your business location,
most likely your farm. Missouri law indicates that if a person has more than
one place of business that participates in the sale, the sale is deemed to be consummated
at the business location of the retailer. Because you take orders at the farmers
market, but then fill the orders by delivering beef from your farm to a processor,
then deliver the beef to the customer's home, more than one location is involved
in the sale. Under Missouri law, the proper rate to charge is based on your
business location, which is your farm.
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I buy produce at auctions and from neighbors and resell the produce at a farmers
market. Do I need to pay taxes on these products? If so, how do I do so?
Yes, you must pay taxes on the re-sold goods. You'll need to issue a Sales/Use
Tax Exemption Certificate (
Form 149
) to the farmers from whom you purchased the
produce. After resale, collect and remit tax on your sale at retail based
on the price you charged your customer.
) to the farmers from whom you purchased the
produce. After resale, collect and remit tax on your sale at retail based
on the price you charged your customer.
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I sell honey at the farmers market. What is the sales tax rate?
Sales tax should be collected on the total price charged your customer at the state
rate of 1.225 percent plus any applicable local sales tax.
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Is the farmer's stall at the farmers market considered a "regular stand or place
of business away from his farm"?
Yes. For purposes of sales tax law, the farmer's stall at a farmers market
is considered a business location. State and local sales tax should be collected
and remitted.
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If a farmer grows produce at home and sells it at farmers markets or along the roadside,
should taxes be charged to the customer and remitted to the department?
Yes, both state and local sales tax applies to the sale of produce, whether it is
retailed at a farmers market or along the roadside.
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Do I have to pay local sales tax on the sale of jams, jellies, or baked goods that
I process on my farm?
Yes. You must collect and remit sales tax on the retail sale of jams, jellies, and
baked goods that are processed on your farm based on the total selling price of
those items. However, any ingredients purchased to make the jam, jelly, or
baked goods can be purchased without paying sales tax. You must issue a Sales/Use
Tax Exemption Certificate (
Form 149
) to any business from which you purchase the
ingredients.
) to any business from which you purchase the
ingredients.