Sales by Farmers at Farmers Markets
- How do I register with the department to collect and remit sales tax?
- Are processed foods and fresh foods subject to the same sales tax?
- When do I need to file my returns?
- Do I have to pay local sales tax on the sale of jams, jellies, or baked goods that I process on my farm?
Complete the Business Tax Registration Application (Form 2643) and submit it to:Business Tax Registration
P.O. Box 357
Jefferson City, MO 65105-0357
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.
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.
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.
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.
If you still have questions, please check out other Business Tax FAQs.