SECONDREGULARSESSION
HOUSEBILLNO.2382
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEHARDWICK.
4964H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections144.010and144.1021,RSMo,andsection144.011asenactedbysenate
billsnos.153&97,onehundredfirstgeneralassembly,firstregularsession,and
section144.011asenactedbyhousebillno.1831,ninety-ninthgeneralassembly,
secondregularsession,andtoenactinlieuthereofthreenewsectionsrelatingtosales
taxesoncertainpurchasesofutilities.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections144.010and144.1021,RSMo,andsection144.011asenactedby
2senatebillsnos.153&97,onehundredfirstgeneralassembly,firstregularsession,and
3section144.011asenactedbyhousebillno.1831,ninety-ninthgeneralassembly,second
4regularsession,arerepealedandthreenewsectionsenactedinlieuthereof,tobeknownas
5sections144.010,144.011,and144.1021,toreadasfollows:
144.010.1.Thefollowingwords,terms,andphraseswhenusedinsections144.010
2to144.525havethemeaningsascribedtotheminthissection,exceptwhenthecontext
3indicatesadifferentmeaning:
4 (1)"Admission"includesseatsandtables,reservedorotherwise,andothersimilar
5accommodationsandchargesmadethereforandamountpaidforadmission,exclusiveofany
6admissiontaximposedbythefederalgovernmentorbysections144.010to144.525;
7 (2)"Business"includesanyactivityengagedinbyanyperson,orcausedtobe
8engagedinbyhim,withtheobjectofgain,benefitoradvantage,eitherdirectorindirect,and
9theclassificationofwhichbusinessisofsuchcharacterastobesubjecttothetermsof
10sections144.010to144.525.Apersonis"engaginginbusiness"inthisstateforpurposesof
11sections144.010to144.525ifsuchpersonengagesinbusinessactivitieswithinthisstateor
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 12maintainsaplaceofbusinessinthisstateundersection144.605.Theisolatedoroccasional
13saleoftangiblepersonalproperty,service,substance,orthing,byapersonnotengagedin
14suchbusiness,doesnotconstituteengaginginbusinesswithinthemeaningofsections
15144.010to144.525unlessthetotalamountofthegrossreceiptsfromsuchsales,exclusiveof
16receiptsfromthesaleoftangiblepersonalpropertybypersonswhichpropertyissoldinthe
17courseofthepartialorcompleteliquidationofahousehold,farmornonbusinessenterprise,
18exceedsthreethousanddollarsinanycalendaryear.Theprovisionsofthissubdivisionshall
19notbeconstruedtomakeanysaleofpropertywhichisexemptfromsalestaxorusetaxon
20June1,1977,subjecttothattaxthereafter;
21 (3)"Captivewildlife",includesbutisnotlimitedtoexoticpartridges,graypartridge,
22northernbobwhitequail,ring-neckedpheasant,captivewaterfowl,captivewhite-taileddeer,
23captiveelk,andcaptivefurbearersheldunderpermitissuedbytheMissouridepartmentof
24conservationforhuntingpurposes.Theprovisionsofthissubdivisionshallnotapplytosales
25taxonaharvestedanimal;
26 (4)"Grossreceipts",exceptasprovidedinsection144.012,meansthetotalamountof
27thesalepriceofthesalesatretailincludinganyservicesotherthanchargesincidenttothe
28extensionofcreditthatareapartofsuchsalesmadebythebusinesseshereinreferredto,
29capableofbeingvaluedinmoney,whetherreceivedinmoneyorotherwise;exceptthat,the
30termgrossreceiptsshallnotincludethesalepriceofpropertyreturnedbycustomerswhenthe
31fullsalepricethereofisrefundedeitherincashorbycredit.Indetermininganytaxdueunder
32sections144.010to144.525onthegrossreceipts,chargesincidenttotheextensionofcredit
33shallbespecificallyexempted.Forthepurposesofsections144.010to144.525thetotal
34amountofthesalepriceabovementionedshallbedeemedtobetheamountreceived.Itshall
35alsoincludetheleaseorrentalconsiderationwheretherighttocontinuouspossessionoruse
36ofanyarticleoftangiblepersonalpropertyisgrantedunderaleaseorcontractandsuch
37transferofpossessionwouldbetaxableifoutrightsaleweremadeand,insuchcases,the
38sameshallbetaxableasifoutrightsaleweremadeandconsideredasasaleofsucharticle,
39andthetaxshallbecomputedandpaidbythelesseeupontherentalspaid.Thetermgross
40receiptsshallnotincludeusualandcustomarydeliverychargesthatarestatedseparatelyfrom
41thesaleprice;
42 (5)"Instructionalclass",includesanyclass,lesson,orinstructionintendedorusedfor
43teaching;
44 (6)"Livestock",cattle,calves,sheep,swine,ratitebirds,includingbutnotlimitedto,
45ostrichandemu,aquaticproductsasdescribedinsection277.024,llamas,alpaca,buffalo,
46bison,elkdocumentedasobtainedfromalegalsourceandnotfromthewild,goats,horses,
47otherequine,honeybees,orrabbitsraisedinconfinementforhumanconsumption;
HB2382 2 48 (7)"Motorvehicleleasingcompany"shallbeacompanyobtainingapermitfromthe
49directorofrevenuetooperateasamotorvehicleleasingcompany.Notallpersonsrentingor
50leasingtrailersormotorvehiclesneedtoobtainsuchapermit;however,nopersonfailingto
51obtainsuchapermitmayavailitselfoftheoptionaltaxprovisionsofsubsection5ofsection
52144.070,ashereinafterprovided;
53 (8)"Person"includesanyindividual,firm,copartnership,jointadventure,
54association,corporation,municipalorprivate,andwhetherorganizedforprofitornot,
55state,county,politicalsubdivision,statedepartment,commission,board,bureauoragency,
56exceptthestatetransportationdepartment,estate,trust,businesstrust,receiverortrustee
57appointedbythestateorfederalcourt,syndicate,oranyothergrouporcombinationactingas
58aunit,andthepluralaswellasthesingularnumber;
59 (9)"Productwhichisintendedtobesoldultimatelyforfinaluseorconsumption"
60meanstangiblepersonalproperty,oranyservicethatissubjecttostateorlocalsalesoruse
61taxes,oranytaxthatissubstantiallyequivalentthereto,inthisstateoranyotherstate;
62 (10)"Purchaser"meansapersonwhopurchasestangiblepersonalpropertyorto
63whomarerenderedservices,receiptsfromwhicharetaxableundersections144.010to
64144.525;
65 (11)"Researchorexperimentationactivities"arethedevelopmentofanexperimental
66orpilotmodel,plantprocess,formula,inventionorsimilarproperty,andtheimprovementof
67existingpropertyofsuchtype.Researchorexperimentationactivitiesdonotinclude
68activitiessuchasordinarytestingorinspectionofmaterialsorproductsforqualitycontrol,
69efficiencysurveys,advertisingpromotionsorresearchinconnectionwithliterary,historical
70orsimilarprojects;
71 (12)"Sale"or"sales"includesinstallmentandcreditsales,andtheexchangeof
72propertiesaswellasthesalethereofformoney,everyclosedtransactionconstitutingasale,
73andmeansanytransfer,exchangeorbarter,conditionalorotherwise,inanymannerorbyany
74meanswhatsoever,oftangiblepersonalpropertyforvaluableconsiderationandtherendering,
75furnishingorsellingforavaluableconsiderationanyofthesubstances,thingsandservices
76hereindesignatedanddefinedastaxableunderthetermsofsections144.010to144.525;
77 (13)"Saleatretail"meansanytransfermadebyanypersonengagedinbusinessas
78definedhereinoftheownershipof,ortitleto,tangiblepersonalpropertytothepurchaser,for
79useorconsumptionandnotforresaleinanyformastangiblepersonalproperty,foravaluable
80consideration;exceptthat,forthepurposesofsections144.010to144.525andthetax
81imposedthereby:(i)purchasesoftangiblepersonalpropertymadebydulylicensed
82physicians,dentists,optometristsandveterinariansandusedinthepracticeoftheir
83professionsshallbedeemedtobepurchasesforuseorconsumptionandnotforresale;and
84(ii)thesellingofcomputerprintouts,computeroutputormicrofilmormicroficheand
HB2382 3 85computer-assistedphotocompositionstoapurchasertoenablethepurchasertoobtainforhis
86orherownusethedesiredinformationcontainedinsuchcomputerprintouts,computeroutput
87onmicrofilmormicroficheandcomputer-assistedphotocompositionsshallbeconsideredas
88thesaleofaserviceandnotasthesaleoftangiblepersonalproperty.Wherenecessaryto
89conformtothecontextofsections144.010to144.525andthetaximposedthereby,theterm
90saleatretailshallbeconstruedtoembrace:
91 (a)Salesofadmissiontickets,cashadmissions,chargesandfeestoorinplacesof
92amusement,entertainmentandrecreation,gamesandathleticevents,exceptamountspaidfor
93anyinstructionalclass;
94 (b)Salesofelectricity,electricalcurrent,waterandgas,naturalorartificial,to
95domestic,commercialorindustrialconsumers, exceptasprovidedinsubdivision(12)of
96subsection1ofsection144.011;
97 (c)Salesoflocalandlongdistancetelecommunicationsserviceto
98telecommunicationssubscribersandtoothersthroughequipmentoftelecommunications
99subscribersforthetransmissionofmessagesandconversations,andthesale,rentalorleasing
100ofallequipmentorservicespertainingorincidentalthereto;
101 (d)Salesofservicefortransmissionofmessagesbytelegraphcompanies;
102 (e)Salesorchargesforallrooms,mealsanddrinksfurnishedatanyhotel,motel,
103tavern,inn,restaurant,eatinghouse,drugstore,diningcar,touristcamp,touristcabin,orother
104placeinwhichrooms,mealsordrinksareregularlyservedtothepublic;
105 (f)Salesofticketsbyeverypersonoperatingarailroad,sleepingcar,diningcar,
106expresscar,boat,airplane,andsuchbusesandtrucksasarelicensedbythedivisionofmotor
107carrierandrailroadsafetyofthedepartmentofeconomicdevelopmentofMissouri,engaged
108inthetransportationofpersonsforhire;
109 (14)"Seller"meansapersonsellingorfurnishingtangiblepersonalpropertyor
110renderingservices,onthereceiptsfromwhichataxisimposedpursuanttosection144.020;
111 (15)Thenoun"tax"meanseitherthetaxpayablebythepurchaserofacommodityor
112servicesubjecttotax,ortheaggregateamountoftaxesduefromthevendorofsuch
113commoditiesorservicesduringtheperiodforwhichheorsheisrequiredtoreporthisorher
114collections,asthecontextmayrequire;and
115 (16)"Telecommunicationsservice",forthepurposeofthischapter,thetransmission
116ofinformationbywire,radio,opticalcable,coaxialcable,electronicimpulses,orother
117similarmeans.Asusedinthisdefinition,"information"meansknowledgeorintelligence
118representedbyanyformofwriting,signs,signals,pictures,sounds,oranyothersymbols.
119Telecommunicationsservicedoesnotincludethefollowingifsuchservicesareseparately
120statedonthecustomer'sbilloronrecordsofthesellermaintainedintheordinarycourseof
121business:
HB2382 4 122 (a)Accesstotheinternet,accesstointeractivecomputerservicesorelectronic
123publishingservices,excepttheamountpaidforthetelecommunicationsserviceusedto
124providesuchaccess;
125 (b)Answeringservicesandone-waypagingservices;
126 (c)Privatemobileradioserviceswhicharenottwo-waycommercialmobileradio
127servicessuchaswirelesstelephone,personalcommunicationsservicesorenhanced
128specializedmobileradioservicesasdefinedpursuanttofederallaw;or
129 (d)Cableorsatellitetelevisionormusicservices.
130 2.Forpurposesofthetaxesimposedundersections144.010to144.525,andany
131otherprovisionsoflawpertainingtosalesorusetaxeswhichincorporatetheprovisionsof
132sections144.010to144.525byreference,thetermmanufacturedhomesshallhavethesame
133meaninggivenitinsection700.010.
134 3.Sections144.010to144.525maybeknownandquotedasthe"SalesTaxLaw".
144.011.1.Forpurposesofthischapter,andthetaxesimposedthereby,the
2definitionof"retailsale"or"saleatretail"shallnotbeconstruedtoincludeanyofthe
3following:
4 (1)Thetransferbyonecorporationofsubstantiallyallofitstangiblepersonal
5propertytoanothercorporationpursuanttoamergerorconsolidationeffectedunderthelaws
6ofthestateofMissourioranyotherjurisdiction;
7 (2)Thetransferoftangiblepersonalpropertyincidenttotheliquidationorcessation
8ofataxpayer'stradeorbusiness,conductedinproprietorship,partnershiporcorporateform,
9excepttotheextentanytransferismadeintheordinarycourseofthetaxpayer'stradeor
10business;
11 (3)Thetransferoftangiblepersonalpropertytoacorporationsolelyinexchangefor
12itsstockorsecurities;
13 (4)Thetransferoftangiblepersonalpropertytoacorporationbyashareholderasa
14contributiontothecapitalofthetransfereecorporation;
15 (5)Thetransferoftangiblepersonalpropertytoapartnershipsolelyinexchangefora
16partnershipinteresttherein;
17 (6)Thetransferoftangiblepersonalpropertybyapartnerasacontributiontothe
18capitalofthetransfereepartnership;
19 (7)Thetransferoftangiblepersonalpropertybyacorporationtooneormoreofits
20shareholdersasadividend,returnofcapital,distributioninthepartialorcompleteliquidation
21ofthecorporationordistributioninredemptionoftheshareholder'sinteresttherein;
22 (8)Thetransferoftangiblepersonalpropertybyapartnershiptooneormoreofits
23partnersasacurrentdistribution,returnofcapitalordistributioninthepartialorcomplete
24liquidationofthepartnershiporofthepartner'sinteresttherein;
HB2382 5 25 (9)Thetransferofreusablecontainersusedinconnectionwiththesaleoftangible
26personalpropertycontainedthereinforwhichadepositisrequiredandrefundedonreturn;
27 (10)Thepurchasebypersonsoperatingeatingorfoodserviceestablishments,of
28itemsofanonreusablenaturewhicharefurnishedtothecustomersofsuchestablishments
29withorinconjunctionwiththeretailsalesoftheirfoodorbeverage.Suchitemsshall
30include,butnotbelimitedto,wrappingorpackagingmaterialsandnonreusablepaper,wood,
31plasticandaluminumarticlessuchascontainers,trays,napkins,dishes,silverware,cups,
32bags,boxes,straws,sticksandtoothpicks;
33 (11)Thepurchasebypersonsoperatinghotels,motelsorothertransient
34accommodationestablishments,ofitemsofanonreusablenaturewhicharefurnishedto
35theguestsintheguests'roomsofsuchestablishmentsandsuchitemsareincludedinthe
36chargemadeforsuchaccommodations.Suchitemsshallinclude,butnotbelimitedto,soap,
37shampoo,tissueandothertoiletriesandfoodorconfectioneryitemsofferedtotheguests
38withoutcharge;
39 (12)Thepurchasebypersonsoperatinghotels,motels,orothertransient
40accommodationestablishmentsofelectricity,electricalcurrent,water,andgas,whether
41naturalorartificial,whichareusedtoheat,cool,orprovidewaterorpowertothe
42guests'accommodationsofsuchestablishments,includingsleepingrooms,meetingand
43banquetrooms,andanyothercustomerspacerentedbyguests,andwhichareincluded
44inthechargemadeforsuchaccommodations.Anypersonrequiredtoremitsalestaxon
45suchpurchasespriortoAugust28,2022,shallbeentitledtoarefundonsuchtaxes
46remitted;
47 (13)Thetransferofamanufacturedhomeotherthan:
48 (a)Atransferwhichinvolvesthedeliveryofthedocumentknownasthe
49"Manufacturer'sStatementofOrigin"toapersonotherthanamanufacturedhomedealer,as
50definedinsection700.010,forpurposesofallowingsuchpersontoobtainatitletothe
51manufacturedhomefromthedepartmentofrevenueofthisstateortheappropriateagencyor
52officerofanyotherstate;
53 (b)Atransferwhichinvolvesthedeliveryofa"RepossessedTitle"toaresidentof
54thisstateifthetaximposedbythischapterwasnotpaidonthetransferofthemanufactured
55homedescribedinparagraph(a)ofthissubdivision;
56 (c)ThefirsttransferwhichoccursafterDecember31,1985,ifthetaximposedbythis
57chapterwasnotpaidonanytransferofthesamemanufacturedhomewhichoccurredbefore
58December31,1985;or
59 [(13)] (14)Chargesforinitiationfeesorduesto:
HB2382 6 60 (a)Fraternalbeneficiariessocieties,ordomesticfraternalsocieties,ordersor
61associationsoperatingunderthelodgesystemasubstantialpartoftheactivitiesofwhichare
62devotedtoreligious,charitable,scientific,literary,educationalorfraternalpurposes;
63 (b)PostsororganizationsofpastorpresentmembersoftheArmedForcesofthe
64UnitedStatesoranauxiliaryunitorsocietyof,oratrustorfoundationfor,anysuchpostor
65organizationsubstantiallyallofthemembersofwhicharepastorpresentmembersofthe
66ArmedForcesoftheUnitedStatesorwhoarecadets,spouses,widows,orwidowersofpast
67orpresentmembersoftheArmedForcesoftheUnitedStates,nopartofthenetearningsof
68whichinurestothebenefitofanyprivateshareholderorindividual;or
69 (c)NonprofitorganizationsexemptfromtaxationunderSection501(c)(7)ofthe
70InternalRevenueCodeof1986,asamended.
71 2.Theassumptionofliabilitiesofthetransferorbythetransfereeincidenttoanyof
72thetransactionsenumeratedintheabovesubdivisions(1)to(8)ofsubsection1ofthissection
73shallnotdisqualifythetransferfromtheexclusiondescribedinthissection,wheresuch
74liabilityassumptionisrelatedtothepropertytransferredandwheretheassumptiondoesnot
75haveasitsprincipalpurposetheavoidanceofMissourisalesorusetax.
[144.011.1.Forpurposesofsections144.010to144.525and144.600
2 to144.748,andthetaxesimposedthereby,thedefinitionof"retailsale"or
3 "saleatretail"shallnotbeconstruedtoincludeanyofthefollowing:
4 (1)Thetransferbyonecorporationofsubstantiallyallofitstangible
5 personalpropertytoanothercorporationpursuanttoamergerorconsolidation
6 effectedunderthelawsofthestateofMissourioranyotherjurisdiction;
7 (2)Thetransferoftangiblepersonalpropertyincidenttothe
8 liquidationorcessationofataxpayer'stradeorbusiness,conductedin
9 proprietorship,partnershiporcorporateform,excepttotheextentanytransfer
10 ismadeintheordinarycourseofthetaxpayer'stradeorbusiness;
11 (3)Thetransferoftangiblepersonalpropertytoacorporationsolelyin
12 exchangeforitsstockorsecurities;
13 (4)Thetransferoftangiblepersonalpropertytoacorporationbya
14 shareholderasacontributiontothecapitalofthetransfereecorporation;
15 (5)Thetransferoftangiblepersonalpropertytoapartnershipsolelyin
16 exchangeforapartnershipinteresttherein;
17 (6)Thetransferoftangiblepersonalpropertybyapartnerasa
18 contributiontothecapitalofthetransfereepartnership;
19 (7)Thetransferoftangiblepersonalpropertybyacorporationtoone
20 ormoreofitsshareholdersasadividend,returnofcapital,distributioninthe
21 partialorcompleteliquidationofthecorporationordistributioninredemption
22 oftheshareholder'sinteresttherein;
23 (8)Thetransferoftangiblepersonalpropertybyapartnershiptoone
24 ormoreofitspartnersasacurrentdistribution,returnofcapitalordistribution
25 inthepartialorcompleteliquidationofthepartnershiporofthepartner's
26 interesttherein;
HB2382 7 27 (9)Thetransferofreusablecontainersusedinconnectionwiththesale
28 oftangiblepersonalpropertycontainedthereinforwhichadepositisrequired
29 andrefundedonreturn;
30 (10)Thepurchasebypersonsoperatingeatingorfoodservice
31 establishments,ofitemsofanonreusablenaturewhicharefurnishedtothe
32 customersofsuchestablishmentswithorinconjunctionwiththeretailsalesof
33 theirfoodorbeverage.Suchitemsshallinclude,butnotbelimitedto,
34 wrappingorpackagingmaterialsandnonreusablepaper,wood,plasticand
35 aluminumarticlessuchascontainers,trays,napkins,dishes,silverware,cups,
36 bags,boxes,straws,sticksandtoothpicks;
37 (11)Thepurchasebypersonsoperatinghotels,motelsorother
38 transientaccommodationestablishments,ofitemsofanonreusablenature
39 whicharefurnishedtotheguestsintheguests'roomsofsuchestablishments
40 andsuchitemsareincludedinthechargemadeforsuchaccommodations.
41 Suchitemsshallinclude,butnotbelimitedto,soap,shampoo,tissueandother
42 toiletriesandfoodorconfectioneryitemsofferedtotheguestswithoutcharge;
43 (12)Thetransferofamanufacturedhomeotherthan:
44 (a)Atransferwhichinvolvesthedeliveryofthedocumentknownas
45 the"Manufacturer'sStatementofOrigin"toapersonotherthana
46 manufacturedhomedealer,asdefinedinsection700.010,forpurposesof
47 allowingsuchpersontoobtainatitletothemanufacturedhomefromthe
48 departmentofrevenueofthisstateortheappropriateagencyorofficerofany
49 otherstate;
50 (b)Atransferwhichinvolvesthedeliveryofa"RepossessedTitle"to
51 aresidentofthisstateifthetaximposedbysections144.010to144.525was
52 notpaidonthetransferofthemanufacturedhomedescribedinparagraph(a)
53 ofthissubdivision;
54 (c)ThefirsttransferwhichoccursafterDecember31,1985,ifthetax
55 imposedbysections144.010to144.525wasnotpaidonanytransferofthe
56 samemanufacturedhomewhichoccurredbeforeDecember31,1985;or
57 (13)Chargesforinitiationfeesorduesto:
58 (a)Fraternalbeneficiariessocieties,ordomesticfraternalsocieties,
59 ordersorassociationsoperatingunderthelodgesystemasubstantialpartof
60 theactivitiesofwhicharedevotedtoreligious,charitable,scientific,literary,
61 educationalorfraternalpurposes;
62 (b)PostsororganizationsofpastorpresentmembersoftheArmed
63 ForcesoftheUnitedStatesoranauxiliaryunitorsocietyof,oratrustor
64 foundationfor,anysuchpostororganizationsubstantiallyallofthemembers
65 ofwhicharepastorpresentmembersoftheArmedForcesoftheUnitedStates
66 orwhoarecadets,spouses,widows,orwidowersofpastorpresentmembers
67 oftheArmedForcesoftheUnitedStates,nopartofthenetearningsofwhich
68 inurestothebenefitofanyprivateshareholderorindividual;or
69 (c)NonprofitorganizationsexemptfromtaxationunderSection501
70 (c)(7)oftheInternalRevenueCodeof1986,asamended.
71 2.Theassumptionofliabilitiesofthetransferorbythetransferee
72 incidenttoanyofthetransactionsenumeratedintheabovesubdivisions(1)to
73 (8)ofsubsection1ofthissectionshallnotdisqualifythetransferfromthe
74 exclusiondescribedinthissection,wheresuchliabilityassumptionisrelated
HB2382 8 75 tothepropertytransferredandwheretheassumptiondoesnothaveasits
76 principalpurposetheavoidanceofMissourisalesorusetax.]
144.1021.Theenactmentofsections143.177,144.608,144.637,144.638,and
2144.752ofthisact;therepealandreenactmentofsections143.011,[144.011,]144.014,
3144.020,144.049,144.054,144.140,144.526,and144.605ofthisact;andtherepealof
4sections144.710,144.1000,144.1003,144.1006,144.1009,144.1012,and144.1015ofthis
5actshallbecomeeffectiveJanuary1,2023.
âś”
HB2382 9