FIRSTREGULARSESSION
HOUSEBILLNO.590
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEKNIGHT.
1159H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections144.020and144.030,RSMo,andtoenactinlieuthereoftwonewsections
relatingtocertainmotorvehiclesalestaxes.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections144.020and144.030,RSMo,arerepealedandtwonewsections
2enactedinlieuthereof,tobeknownassections144.020and144.030,toreadasfollows:
144.020.1.Ataxisherebyleviedandimposedfortheprivilegeoftitlingnewand
2usedmotorvehicles,trailers,boats,andoutboardmotorspurchasedoracquiredforuseonthe
3highwaysorwatersofthisstatewhicharerequiredtobetitledunderthelawsofthestateof
4Missouriand,exceptasprovidedinsubdivision(9)ofthissubsection,uponallsellersforthe
5privilegeofengaginginthebusinessofsellingtangiblepersonalpropertyorrendering
6taxableserviceatretailinthisstate.Therateoftaxshallbeasfollows:
7 (1)Uponeveryretailsaleinthisstateoftangiblepersonalproperty,excludingmotor
8vehicles,trailers,motorcycles,mopeds,motortricycles,boatsandoutboardmotorsrequiredto
9betitledunderthelawsofthestateofMissouriandsubjecttotaxundersubdivision(9)ofthis
10subsection,ataxequivalenttofourpercentofthepurchasepricepaidorcharged,orincase
11suchsaleinvolvestheexchangeofproperty,ataxequivalenttofourpercentofthe
12considerationpaidorcharged,includingthefairmarketvalueofthepropertyexchangedat
13thetimeandplaceoftheexchange,exceptasotherwiseprovidedinsection144.025;
14 (2)Ataxequivalenttofourpercentoftheamountpaidforadmissionandseating
15accommodations,orfeespaidto,orinanyplaceofamusement,entertainmentorrecreation,
16gamesandathleticevents,exceptamountspaidforanyinstructionalclass;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (3)Ataxequivalenttofourpercentofthebasicratepaidorchargedonallsalesof
18electricityorelectricalcurrent,waterandgas,naturalorartificial,todomestic,commercialor
19industrialconsumers;
20 (4)(a)Ataxequivalenttofourpercentonthebasicratepaidorchargedonallsales
21oflocalandlongdistancetelecommunicationsservicetotelecommunicationssubscribersand
22toothersthroughequipmentoftelecommunicationssubscribersforthetransmissionof
23messagesandconversationsanduponthesale,rentalorleasingofallequipmentorservices
24pertainingorincidentalthereto;exceptthat,thepaymentmadebytelecommunications
25subscribersorothers,pursuanttosection144.060,andanyamountspaidforaccesstothe
26internetorinteractivecomputerservicesshallnotbeconsideredasamountspaidfor
27telecommunicationsservices;
28 (b)Iflocalandlongdistancetelecommunicationsservicessubjecttotaxunderthis
29subdivisionareaggregatedwithandnotseparatelystatedfromchargesfor
30telecommunicationsserviceorotherservicesnotsubjecttotaxunderthissubdivision,
31including,butnotlimitedto,interstateorinternationaltelecommunicationsservices,thenthe
32chargesfornontaxableservicesmaybesubjecttotaxationunlessthetelecommunications
33providercanidentifybyreasonableandverifiablestandardssuchportionofthechargesnot
34subjecttosuchtaxfromitsbooksandrecordsthatarekeptintheregularcourseofbusiness,
35including,butnotlimitedto,financialstatement,generalledgers,invoiceandbillingsystems
36andreports,andreportsforregulatorytariffsandotherregulatorymatters;
37 (c)Atelecommunicationsprovidershallnotifythedirectorofrevenueofitsintention
38toutilizethestandardsdescribedinparagraph(b)ofthissubdivisiontodeterminethecharges
39thataresubjecttosalestaxunderthissubdivision.Suchnotificationshallbeinwritingand
40shallmeetstandardizedcriteriaestablishedbythedepartmentregardingtheformandformat
41ofsuchnotice;
42 (d)Thedirectorofrevenuemaypromulgateandenforcereasonablerulesand
43regulationsfortheadministrationandenforcementoftheprovisionsofthissubdivision.Any
44ruleorportionofarule,asthattermisdefinedinsection536.010,thatiscreatedunderthe
45authoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandis
46subjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissection
47andchapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
48pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannula
49rulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandany
50ruleproposedoradoptedafterAugust28,2019,shallbeinvalidandvoid;
51 (5)Ataxequivalenttofourpercentofthebasicratepaidorchargedforallsalesof
52servicesfortransmissionofmessagesoftelegraphcompanies;
HB590 2 53 (6)Ataxequivalenttofourpercentontheamountofsalesorchargesforallrooms,
54mealsanddrinksfurnishedatanyhotel,motel,tavern,inn,restaurant,eatinghouse,
55drugstore,diningcar,touristcabin,touristcamporotherplaceinwhichrooms,mealsor
56drinksareregularlyservedtothepublic.Thetaximposedunderthissubdivisionshallnot
57applytoanyautomaticmandatorygratuityforalargegroupimposedbyarestaurantwhen
58suchgratuityisreportedasemployeetipincomeandtherestaurantwithholdsincometax
59undersection143.191onsuchgratuity;
60 (7)Ataxequivalenttofourpercentoftheamountpaidorchargedforintrastate
61ticketsbyeverypersonoperatingarailroad,sleepingcar,diningcar,expresscar,boat,
62airplaneandsuchbusesandtrucksasarelicensedbythedivisionofmotorcarrierandrailroad
63safetyofthedepartmentofeconomicdevelopmentofMissouri,engagedinthetransportation
64ofpersonsforhire;
65 (8)Ataxequivalenttofourpercentoftheamountpaidorchargedforrentalorlease
66oftangiblepersonalproperty,providedthatifthelessororrenterofanytangiblepersonal
67propertyhadpreviouslypurchasedthepropertyundertheconditionsofsaleatretailorleased
68orrentedthepropertyandthetaxwaspaidatthetimeofpurchase,leaseorrental,thelessor,
69sublessor,renterorsubrentershallnotapplyorcollectthetaxonthesubsequentlease,
70sublease,rentalorsubrentalreceiptsfromthatproperty.Thepurchase,rentalorleaseof
71motorvehicles,trailers,motorcycles,mopeds,motortricycles,boats,andoutboardmotors
72shallbetaxedandthetaxpaidasprovidedinthissectionandsection144.070.Innoevent
73shalltherentalorleaseofboatsandoutboardmotorsbeconsideredasale,charge,orfeeto,
74fororinplacesofamusement,entertainmentorrecreationnorshallanysuchrentalorlease
75besubjecttoanytaximposedto,for,orinsuchplacesofamusement,entertainmentor
76recreation.Rentalandleasedboatsoroutboardmotorsshallbetaxedundertheprovisionsof
77thesalestaxlawsasprovidedundersuchlawsformotorvehiclesandtrailers.Tangible
78personalpropertywhichisexemptfromthesalesorusetaxundersection144.030uponasale
79thereofislikewiseexemptfromthesalesorusetaxupontheleaseorrentalthereof;
80 (9)Ataxequivalenttofourpercentofthepurchaseprice,asdefinedinsection
81144.070,ofnewandusedmotorvehicles,trailers,boats,andoutboardmotorspurchasedor
82acquiredforuseonthehighwaysorwatersofthisstatewhicharerequiredtoberegistered
83underthelawsofthestateofMissouri.Thistaxisimposedonthepersontitlingsuch
84property,andshallbepaidaccordingtotheproceduresinsection144.440.Theprovisionsof
85thissubdivisionshallnotapplytosalesofmotorvehiclesmorethantenyearsoldand
86soldforthepurchasepriceoflessthantwenty-fivethousanddollars,asprovidedunder
87section144.030.
HB590 3 88 2.Allticketssoldwhicharesoldundertheprovisionsofthischapterwhichare
89subjecttothesalestaxshallhaveprinted,stampedorotherwiseendorsedthereon,thewords
90"Thisticketissubjecttoasalestax.".
144.030.1.Thereisherebyspecificallyexemptedfromtheprovisionsofsections
2144.010to144.525andfromthecomputationofthetaxlevied,assessedorpayablepursuant
3tosections144.010to144.525suchretailsalesasmaybemadeincommercebetweenthis
4stateandanyotherstateoftheUnitedStates,orbetweenthisstateandanyforeigncountry,
5andanyretailsalewhichthestateofMissouriisprohibitedfromtaxingpursuanttothe
6ConstitutionorlawsoftheUnitedStatesofAmerica,andsuchretailsalesoftangible
7personalpropertywhichthegeneralassemblyofthestateofMissouriisprohibitedfrom
8taxingorfurthertaxingbytheconstitutionofthisstate.
9 2.Therearealsospecificallyexemptedfromtheprovisionsofthelocalsalestaxlaw
10asdefinedinsection32.085,section238.235,andsections144.010to144.525and144.600to
11144.761andfromthecomputationofthetaxlevied,assessedorpayablepursuanttothelocal
12salestaxlawasdefinedinsection32.085,section238.235,andsections144.010to144.525
13and144.600to144.745:
14 (1)Motorfuelorspecialfuelsubjecttoanexcisetaxofthisstate,unlessallorpartof
15suchexcisetaxisrefundedpursuanttosection142.824;oruponthesaleatretailoffueltobe
16consumedinmanufacturingorcreatinggas,power,steam,electricalcurrentorinfurnishing
17watertobesoldultimatelyatretail;orfeedforlivestockorpoultry;orgraintobeconverted
18intofoodstuffswhicharetobesoldultimatelyinprocessedformatretail;orseed,limestone
19orfertilizerwhichistobeusedforseeding,limingorfertilizingcropswhichwhenharvested
20willbesoldatretailorwillbefedtolivestockorpoultrytobesoldultimatelyinprocessed
21formatretail;economicpoisonsregisteredpursuanttotheprovisionsoftheMissouri
22pesticideregistration[law]act,sections[281.220] 281.210to281.310,whicharetobeused
23inconnectionwiththegrowthorproductionofcrops,fruittreesororchardsappliedbefore,
24during,orafterplanting,thecropofwhichwhenharvestedwillbesoldatretailorwillbe
25convertedintofoodstuffswhicharetobesoldultimatelyinprocessedformatretail;
26 (2)Materials,manufacturedgoods,machineryandpartswhichwhenusedin
27manufacturing,processing,compounding,mining,producingorfabricatingbecomea
28componentpartoringredientofthenewpersonalpropertyresultingfromsuch
29manufacturing,processing,compounding,mining,producingorfabricatingandwhichnew
30personalpropertyisintendedtobesoldultimatelyforfinaluseorconsumption;and
31materials,includingwithoutlimitation,gasesandmanufacturedgoods,includingwithout
32limitationslaggingmaterialsandfirebrick,whichareultimatelyconsumedinthe
33manufacturingprocessbyblending,reactingorinteractingwithorbybecoming,inwhole
HB590 4 34orinpart,componentpartsoringredientsofsteelproductsintendedtobesoldultimatelyfor
35finaluseorconsumption;
36 (3)Materials,replacementpartsandequipmentpurchasedforusedirectlyupon,and
37fortherepairandmaintenanceormanufactureof,motorvehicles,watercraft,railroadrolling
38stockoraircraftengagedascommoncarriersofpersonsorproperty;
39 (4)Replacementmachinery,equipment,andpartsandthematerialsandsupplies
40solelyrequiredfortheinstallationorconstructionofsuchreplacementmachinery,equipment,
41andparts,useddirectlyinmanufacturing,mining,fabricatingorproducingaproductwhichis
42intendedtobesoldultimatelyforfinaluseorconsumption;andmachineryandequipment,
43andthematerialsandsuppliesrequiredsolelyfortheoperation,installationorconstructionof
44suchmachineryandequipment,purchasedandusedtoestablishnew,ortoreplaceorexpand
45existing,materialrecoveryprocessingplantsinthisstate.Forthepurposesofthis
46subdivision,a"materialrecoveryprocessingplant"meansafacilitythathasasitsprimary
47purposetherecoveryofmaterialsintoausableproductoradifferentformwhichisusedin
48producinganewproductandshallincludeafacilityorequipmentwhichareusedexclusively
49forthecollectionofrecoveredmaterialsfordeliverytoamaterialrecoveryprocessingplant
50butshallnotincludemotorvehiclesusedonhighways.Forpurposesofthissection,theterms
51motorvehicleandhighwayshallhavethesamemeaningpursuanttosection301.010.Forthe
52purposesofthissubdivision,subdivision(5)ofthissubsection,andsection144.054,aswell
53asthedefinitioninsubdivision(9)ofsubsection1ofsection144.010,theterm"product"
54includestelecommunicationsservicesandtheterm"manufacturing"shallincludethe
55production,orproductionandtransmission,oftelecommunicationsservices.Thepreceding
56sentencedoesnotmakeasubstantivechangeinthelawandisintendedtoclarifythattheterm
57"manufacturing"hasincludedandcontinuestoincludetheproductionandtransmissionof
58"telecommunicationsservices",asenactedinthissubdivisionandsubdivision(5)ofthis
59subsection,aswellasthedefinitioninsubdivision(9)ofsubsection1ofsection144.010.
60Theprecedingtwosentencesreaffirmlegislativeintentconsistentwiththeinterpretationof
61thissubdivisionandsubdivision(5)ofthissubsectioninSouthwesternBellTel.Co.v.
62DirectorofRevenue,78S.W.3d763(Mo.banc2002)andSouthwesternBellTel.Co.v.
63DirectorofRevenue,182S.W.3d226(Mo.banc2005),andaccordinglyabrogatesthe
64Missourisupremecourt'sinterpretationofthoseexemptionsinIBMCorporationv.Director
65ofRevenue,491S.W.3d535(Mo.banc2016)totheextentinconsistentwiththissectionand
66SouthwesternBellTel.Co.v.DirectorofRevenue,78S.W.3d763(Mo.banc2002)and
67SouthwesternBellTel.Co.v.DirectorofRevenue,182S.W.3d226(Mo.banc2005).The
68constructionandapplicationofthissubdivisionasexpressedbytheMissourisupremecourt
69inDSTSystems,Inc.v.DirectorofRevenue,43S.W.3d799(Mo.banc2001);Southwestern
70BellTel.Co.v.DirectorofRevenue,78S.W.3d763(Mo.banc2002);andSouthwesternBell
HB590 5 71Tel.Co.v.DirectorofRevenue,182S.W.3d226(Mo.banc2005),isherebyaffirmed.
72Materialrecoveryisnotthereuseofmaterialswithinamanufacturingprocessortheuseofa
73productpreviouslyrecovered.Thematerialrecoveryprocessingplantshallqualifyunderthe
74provisionsofthissectionregardlessofownershipofthematerialbeingrecovered;
75 (5)Machineryandequipment,andpartsandthematerialsandsuppliessolely
76requiredfortheinstallationorconstructionofsuchmachineryandequipment,purchasedand
77usedtoestablishnewortoexpandexistingmanufacturing,miningorfabricatingplantsinthe
78stateifsuchmachineryandequipmentisuseddirectlyinmanufacturing,miningor
79fabricatingaproductwhichisintendedtobesoldultimatelyforfinaluseorconsumption.
80TheconstructionandapplicationofthissubdivisionasexpressedbytheMissourisupreme
81courtinDSTSystems,Inc.v.DirectorofRevenue,43S.W.3d799(Mo.banc2001);
82SouthwesternBellTel.Co.v.DirectorofRevenue,78S.W.3d763(Mo.banc2002);and
83SouthwesternBellTel.Co.v.DirectorofRevenue,182S.W.3d226(Mo.banc2005),is
84herebyaffirmed;
85 (6)Tangiblepersonalpropertywhichisusedexclusivelyinthemanufacturing,
86processing,modificationorassemblingofproductssoldtotheUnitedStatesgovernmentorto
87anyagencyoftheUnitedStatesgovernment;
88 (7)Animalsorpoultryusedforbreedingorfeedingpurposes,orcaptivewildlife;
89 (8)Newsprint,ink,computers,photosensitivepaperandfilm,toner,printingplates
90andothermachinery,equipment,replacementpartsandsuppliesusedinproducing
91newspaperspublishedfordisseminationofnewstothegeneralpublic;
92 (9)Therentalsoffilms,recordsoranytypeofsoundorpicturetranscriptionsfor
93publiccommercialdisplay;
94 (10)Pumpingmachineryandequipmentusedtopropelproductsdeliveredby
95pipelinesengagedascommoncarriers;
96 (11)Railroadrollingstockforuseintransportingpersonsorpropertyininterstate
97commerceandmotorvehicleslicensedforagrossweightoftwenty-fourthousandpoundsor
98moreortrailersusedbycommoncarriers,asdefinedinsection390.020,inthetransportation
99ofpersonsorproperty;
100 (12)Electricalenergyusedintheactualprimarymanufacture,processing,
101compounding,miningorproducingofaproduct,orelectricalenergyusedintheactual
102secondaryprocessingorfabricatingoftheproduct,oramaterialrecoveryprocessingplantas
103definedinsubdivision(4)ofthissubsection,infacilitiesownedorleasedbythetaxpayer,if
104thetotalcostofelectricalenergysousedexceedstenpercentofthetotalcostofproduction,
105eitherprimaryorsecondary,exclusiveofthecostofelectricalenergysousedoriftheraw
106materialsusedinsuchprocessingcontainatleasttwenty-fivepercentrecoveredmaterialsas
107definedinsection260.200.Thereshallbearebuttablepresumptionthattherawmaterials
HB590 6 108usedintheprimarymanufactureofautomobilescontainatleasttwenty-fivepercent
109recoveredmaterials.Forpurposesofthissubdivision,"processing"meansanymodeof
110treatment,actorseriesofactsperformeduponmaterialstotransformandreducethemtoa
111differentstateorthing,includingtreatmentnecessarytomaintainorpreservesuchprocessing
112bytheproducerattheproductionfacility;
113 (13)Anodeswhichareusedorconsumedinmanufacturing,processing,
114compounding,mining,producingorfabricatingandwhichhaveausefullifeoflessthan
115oneyear;
116 (14)Machinery,equipment,appliancesanddevicespurchasedorleasedandused
117solelyforthepurposeofpreventing,abatingormonitoringairpollution,andmaterialsand
118suppliessolelyrequiredfortheinstallation,constructionorreconstructionofsuchmachinery,
119equipment,appliancesanddevices;
120 (15)Machinery,equipment,appliancesanddevicespurchasedorleasedandused
121solelyforthepurposeofpreventing,abatingormonitoringwaterpollution,andmaterialsand
122suppliessolelyrequiredfortheinstallation,constructionorreconstructionofsuchmachinery,
123equipment,appliancesanddevices;
124 (16)Tangiblepersonalpropertypurchasedbyaruralwaterdistrict;
125 (17)Allamountspaidorchargedforadmissionorparticipationorotherfeespaidby
126orotherchargestoindividualsinorforanyplaceofamusement,entertainmentorrecreation,
127gamesorathleticevents,includingmuseums,fairs,zoosandplanetariums,ownedoroperated
128byamunicipalityorotherpoliticalsubdivisionwherealltheproceedsderivedtherefrom
129benefitthemunicipalityorotherpoliticalsubdivisionanddonotinuretoanyprivateperson,
130firm,orcorporation,provided,however,thatamunicipalityorotherpoliticalsubdivisionmay
131enterintorevenue-sharingagreementswithprivatepersons,firms,orcorporationsproviding
132goodsorservices,includingmanagementservices,inorfortheplaceofamusement,
133entertainmentorrecreation,gamesorathleticevents,andprovidedfurtherthatnothinginthis
134subdivisionshallexemptfromtaxanyamountsretainedbyanyprivateperson,firm,or
135corporationundersuchrevenue-sharingagreement;
136 (18)Allsalesofinsulin,andallsales,rentals,repairs,andpartsofdurablemedical
137equipment,prostheticdevices,andorthopedicdevicesasdefinedonJanuary1,1980,bythe
138federalMedicareprogrampursuanttoTitleXVIIIoftheSocialSecurityActof1965,
139includingtheitemsspecifiedinSection1862(a)(12)ofthatact(42U.S.C.Section1395y,as
140amended), andalsospecificallyincludinghearingaidsandhearingaidsuppliesandallsales
141ofdrugswhichmaybelegallydispensedbyalicensedpharmacistonlyuponalawful
142prescriptionofapractitionerlicensedtoadministerthoseitems,includingsamplesand
143materialsusedtomanufacturesampleswhichmaybedispensedbyapractitionerauthorized
144todispensesuchsamplesandallsalesorrentalofmedicaloxygen,homerespiratory
HB590 7 145equipmentandaccessoriesincludingparts,andhospitalbedsandaccessoriesandambulatory
146aidsincludingparts,andallsalesorrentalofmanualandpoweredwheelchairsincluding
147parts,andstairwaylifts,Braillewriters,electronicBrailleequipmentand,ifpurchasedor
148rentedbyoronbehalfofapersonwithoneormorephysicalormentaldisabilitiestoenable
149themtofunctionmoreindependently,allsalesorrentalofscootersincludingparts,and
150readingmachines,electronicprintenlargersandmagnifiers,electronicalternativeand
151augmentativecommunicationdevices,anditemsusedsolelytomodifymotorvehiclesto
152permittheuseofsuchmotorvehiclesbyindividualswithdisabilitiesorsalesofover-the-
153counterornonprescriptiondrugstoindividualswithdisabilities,anddrugsrequiredbythe
154FoodandDrugAdministrationtomeettheover-the-counterdrugproductlabeling
155requirementsin21CFR201.66,oritssuccessor,asprescribedbyahealthcare
156practitionerlicensedtoprescribe;
157 (19)Allsalesmadebyortoreligiousandcharitableorganizationsandinstitutionsin
158theirreligious,charitableoreducationalfunctionsandactivitiesandallsalesmadebyortoall
159elementaryandsecondaryschoolsoperatedatpublicexpenseintheireducationalfunctions
160andactivities;
161 (20)Allsalesofaircrafttocommoncarriersforstorageorforuseininterstate
162commerceandallsalesmadebyortonot-for-profitcivic,social,serviceorfraternal
163organizations,includingfraternalorganizationswhichhavebeendeclaredtax-exempt
164organizationspursuanttoSection501(c)(8)or(10)ofthe1986InternalRevenueCode,as
165amended,intheircivicorcharitablefunctionsandactivitiesandallsalesmadeto
166eleemosynaryandpenalinstitutionsandindustriesofthestate,andallsalesmadetoany
167privatenot-for-profitinstitutionofhighereducationnototherwiseexcludedpursuantto
168subdivision(19)ofthissubsectionoranyinstitutionofhighereducationsupportedbypublic
169funds,andallsalesmadetoastatereliefagencyintheexerciseofrelieffunctionsand
170activities;
171 (21)Allticketsalesmadebybenevolent,scientificandeducationalassociations
172whichareformedtofoster,encourage,andpromoteprogressandimprovementinthescience
173ofagricultureandintheraisingandbreedingofanimals,andbynonprofitsummertheater
174organizationsifsuchorganizationsareexemptfromfederaltaxpursuanttotheprovisionsof
175theInternalRevenueCodeandalladmissionchargesandentryfeestotheMissouristatefair
176oranyfairconductedbyacountyagriculturalandmechanicalsocietyorganizedandoperated
177pursuanttosections262.290to262.530;
178 (22)Allsalesmadetoanyprivatenot-for-profitelementaryorsecondaryschool,all
179salesoffeedadditives,medicationsorvaccinesadministeredtolivestockorpoultryinthe
180productionoffoodorfiber,allsalesofpesticidesusedintheproductionofcrops,livestockor
181poultryforfoodorfiber,allsalesofbeddingusedintheproductionoflivestockorpoultryfor
HB590 8 182foodorfiber,allsalesofpropaneornaturalgas,electricityordieselfuelusedexclusivelyfor
183dryingagriculturalcrops,naturalgasusedintheprimarymanufactureorprocessingoffuel
184ethanolasdefinedinsection142.028,naturalgas,propane,andelectricityusedbyaneligible
185newgenerationcooperativeoraneligiblenewgenerationprocessingentityasdefinedin
186section348.432,andallsalesoffarmmachineryandequipment,otherthanairplanes,motor
187vehiclesandtrailers,andanyfreightchargesonanyexemptitem.Asusedinthis
188subdivision,theterm"feedadditives"meanstangiblepersonalpropertywhich,whenmixed
189withfeedforlivestockorpoultry,istobeusedinthefeedingoflivestockorpoultry.Asused
190inthissubdivision,theterm"pesticides"includesadjuvantssuchascropoils,surfactants,
191wettingagentsandotherassortedpesticidecarriersusedtoimproveorenhancetheeffectofa
192pesticideandthefoamusedtomarktheapplicationofpesticidesandherbicidesforthe
193productionofcrops,livestockorpoultry.Asusedinthissubdivision,theterm"farm
194machineryandequipment"shallmean:
195 (a)Neworusedfarmtractorsandsuchotherneworusedfarmmachineryand
196equipment,includingutilityvehiclesusedforanyagriculturaluse,andrepairorreplacement
197partsthereonandanyaccessoriesforandupgradestosuchfarmmachineryandequipment
198androtarymowersusedforanyagriculturalpurposes.Forthepurposesofthissubdivision,
199"utilityvehicle"shallmeananymotorizedvehiclemanufacturedandusedexclusivelyforoff-
200highwayusewhichismorethanfiftyinchesbutnomorethaneightyinchesinwidth,
201measuredfromoutsideoftirerimtooutsideoftirerim,withanunladendryweightofthree
202thousandfivehundredpoundsorless,travelingonfourorsixwheels;
203 (b)Suppliesandlubricantsusedexclusively,solely,anddirectlyforproducingcrops,
204raisingandfeedinglivestock,fish,poultry,pheasants,chukar,quail,orforproducingmilkfor
205ultimatesaleatretail,includingfielddraintile;and
206 (c)One-halfofeachpurchaser'spurchaseofdieselfuelthereforwhichis:
207 a.Usedexclusivelyforagriculturalpurposes;
208 b.Usedonlandownedorleasedforthepurposeofproducingfarmproducts;and
209 c.Useddirectlyinproducingfarmproductstobesoldultimatelyinprocessedformor
210otherwiseatretailorinproducingfarmproductstobefedtolivestockorpoultrytobesold
211ultimatelyinprocessedformatretail;
212 (23)Exceptasotherwiseprovidedinsection144.032,allsalesofmeteredwater
213service,electricity,electricalcurrent,natural,artificialorpropanegas,wood,coalorhome
214heatingoilfordomesticuseandinanycitynotwithinacounty,allsalesofmeteredor
215unmeteredwaterservicefordomesticuse:
216 (a)"Domesticuse"meansthatportionofmeteredwaterservice,electricity,electrical
217current,natural,artificialorpropanegas,wood,coalorhomeheatingoil,andinanycitynot
218withinacounty,meteredorunmeteredwaterservice,whichanindividualoccupantofa
HB590 9 219residentialpremisesusesfornonbusiness,noncommercialornonindustrialpurposes.Utility
220servicethroughasingleormastermeterforresidentialapartmentsorcondominiums,
221includingserviceforcommonareasandfacilitiesandvacantunits,shallbedeemedtobefor
222domesticuse.Eachsellershallestablishandmaintainasystemwherebyindividualpurchases
223aredeterminedasexemptornonexempt;
224 (b)Regulatedutilitysellersshalldeterminewhetherindividualpurchasesareexempt
225ornonexemptbasedupontheseller'sutilityservicerateclassificationsascontainedintariffs
226onfilewithandapprovedbytheMissouripublicservicecommission.Salesandpurchases
227madepursuanttotherateclassification"residential"andsalestoandpurchasesmadebyoron
228behalfoftheoccupantsofresidentialapartmentsorcondominiumsthroughasingleormaster
229meter,includingserviceforcommonareasandfacilitiesandvacantunits,shallbeconsidered
230assalesmadefordomesticuseandsuchsalesshallbeexemptfromsalestax.Sellersshall
231chargesalestaxupontheentireamountofpurchasesclassifiedasnondomesticuse.The
232seller'sutilityservicerateclassificationandtheprovisionofservicethereundershallbe
233conclusiveastowhetherornottheutilitymustchargesalestax;
234 (c)Eachpersonmakingdomesticusepurchasesofservicesorpropertyandwhouses
235anyportionoftheservicesorpropertysopurchasedforanondomesticuseshall,bythe
236fifteenthdayofthefourthmonthfollowingtheyearofpurchase,andwithoutassessment,
237noticeordemand,fileareturnandpaysalestaxonthatportionofnondomesticpurchases.
238Eachpersonmakingnondomesticpurchasesofservicesorpropertyandwhousesanyportion
239oftheservicesorpropertysopurchasedfordomesticuse,andeachpersonmakingdomestic
240purchasesonbehalfofoccupantsofresidentialapartmentsorcondominiumsthroughasingle
241ormastermeter,includingserviceforcommonareasandfacilitiesandvacantunits,undera
242nonresidentialutilityservicerateclassificationmay,betweenthefirstdayofthefirstmonth
243andthefifteenthdayofthefourthmonthfollowingtheyearofpurchase,applyforcreditor
244refundtothedirectorofrevenueandthedirectorshallgivecreditormakerefundfortaxes
245paidonthedomesticuseportionofthepurchase.Thepersonmakingsuchpurchaseson
246behalfofoccupantsofresidentialapartmentsorcondominiumsshallhavestandingtoapplyto
247thedirectorofrevenueforsuchcreditorrefund;
248 (24)Allsalesofhandicraftitemsmadebythesellerortheseller'sspouseiftheseller
249ortheseller'sspouseisatleastsixty-fiveyearsofage,andifthetotalgrossproceedsfrom
250suchsalesdonotconstituteamajorityoftheannualgrossincomeoftheseller;
251 (25)Excisetaxes,collectedonsalesatretail,imposedbySections4041,4071,4081,
252[4091,] 4161,4181,4251,4261and4271ofTitle26,UnitedStatesCode.Thedirectorof
253revenueshallpromulgaterulespursuanttochapter536toeliminateallstateandlocalsales
254taxesonsuchexcisetaxes;
HB590 10 255 (26)Salesoffuelconsumedorusedintheoperationofships,barges,orwaterborne
256vesselswhichareusedprimarilyinorforthetransportationofpropertyorcargo,orthe
257conveyanceofpersonsforhire,onnavigableriversborderingonorlocatedinpartinthis
258state,ifsuchfuelisdeliveredbythesellertothepurchaser'sbarge,ship,orwaterbornevessel
259whileitisafloatuponsuchriver;
260 (27)Allsalesmadetoaninterstatecompactagencycreatedpursuanttosections
26170.370to70.441orsections238.010to238.100intheexerciseofthefunctionsandactivities
262ofsuchagencyasprovidedpursuanttothecompact;
263 (28)Computers,computersoftwareandcomputersecuritysystemspurchasedforuse
264byarchitecturalorengineeringfirmsheadquarteredinthisstate.Forthepurposesofthis
265subdivision,"headquarteredinthisstate"meanstheofficefortheadministrativemanagement
266ofatleastfourintegratedfacilitiesoperatedbythetaxpayerislocatedinthestateofMissouri;
267 (29)Alllivestocksaleswheneitherthesellerisengagedinthegrowing,producingor
268feedingofsuchlivestock,orthesellerisengagedinthebusinessofbuyingandselling,
269barteringorleasingofsuchlivestock;
270 (30)Allsalesofbargeswhicharetobeusedprimarilyinthetransportationof
271propertyorcargooninterstatewaterways;
272 (31)Electricalenergyorgas,whethernatural,artificialorpropane,water,orother
273utilitieswhichareultimatelyconsumedinconnectionwiththemanufacturingofcellularglass
274productsorinanymaterialrecoveryprocessingplantasdefinedinsubdivision(4)ofthis
275subsection;
276 (32)Notwithstandingotherprovisionsoflawtothecontrary,allsalesofpesticidesor
277herbicidesusedintheproductionofcrops,aquaculture,livestockorpoultry;
278 (33)Tangiblepersonalpropertyandutilitiespurchasedforuseorconsumption
279directlyorexclusivelyintheresearchanddevelopmentofagricultural/biotechnologyand
280plantgenomicsproductsandprescriptionpharmaceuticalsconsumedbyhumansoranimals;
281 (34)Allsalesofgrainbinsforstorageofgrainforresale;
282 (35)Allsalesoffeedwhicharedevelopedforandusedinthefeedingofpetsowned
283byacommercialbreederwhensuchsalesaremadetoacommercialbreeder,asdefinedin
284section273.325,andlicensedpursuanttosections273.325to273.357;
285 (36)Allpurchasesbyacontractoronbehalfofanentitylocatedinanotherstate,
286providedthattheentityisauthorizedtoissueacertificateofexemptionforpurchasestoa
287contractorundertheprovisionsofthatstate'slaws.Forpurposesofthissubdivision,theterm
288"certificateofexemption"shallmeananydocumentevidencingthattheentityisexemptfrom
289salesandusetaxesonpurchasespursuanttothelawsofthestateinwhichtheentityis
290located.Anycontractormakingpurchasesonbehalfofsuchentityshallmaintainacopyof
291theentity'sexemptioncertificateasevidenceoftheexemption.Iftheexemptioncertificate
HB590 11 292issuedbytheexemptentitytothecontractorislaterdeterminedbythedirectorofrevenueto
293beinvalidforanyreasonandthecontractorhasacceptedthecertificateingoodfaith,neither
294thecontractorortheexemptentityshallbeliableforthepaymentofanytaxes,interestand
295penaltydueastheresultofuseoftheinvalidexemptioncertificate.Materialsshallbeexempt
296fromallstateandlocalsalesandusetaxeswhenpurchasedbyacontractorforthepurposeof
297fabricatingtangiblepersonalpropertywhichisusedinfulfillingacontractforthepurposeof
298constructing,repairingorremodelingfacilitiesforthefollowing:
299 (a)Anexemptentitylocatedinthisstate,iftheentityisoneofthoseentitiesableto
300issueprojectexemptioncertificatesinaccordancewiththeprovisionsofsection144.062;or
301 (b)Anexemptentitylocatedoutsidethestateiftheexemptentityisauthorizedto
302issueanexemptioncertificatetocontractorsinaccordancewiththeprovisionsofthatstate's
303lawandtheapplicableprovisionsofthissection;
304 (37)Allsalesorothertransfersoftangiblepersonalpropertytoalessorwholeases
305thepropertyunderaleaseofoneyearorlongerexecutedorineffectatthetimeofthesaleor
306othertransfertoaninterstatecompactagencycreatedpursuanttosections70.370to70.441or
307sections238.010to238.100;
308 (38)Salesofticketstoanycollegiateathleticchampionshipeventthatisheldina
309facilityownedoroperatedbyagovernmentalauthorityorcommission,aquasi-governmental
310agency,astateuniversityorcollegeorbythestateoranypoliticalsubdivisionthereof,
311includingamunicipality,andthatisplayedonaneutralsiteandmayreasonablybeplayedat
312asitelocatedoutsidethestateofMissouri.Forpurposesofthissubdivision,"neutralsite"
313meansanysitethatisnotlocatedonthecampusofaconferencememberinstitution
314participatingintheevent;
315 (39)Allpurchasesbyasportscomplexauthoritycreatedundersection64.920,andall
316salesofutilitiesbysuchauthorityattheauthority'scostthatareconsumedinconnectionwith
317theoperationofasportscomplexleasedtoaprofessionalsportsteam;
318 (40)Allmaterials,replacementparts,andequipmentpurchasedforusedirectlyupon,
319andforthemodification,replacement,repair,andmaintenanceofaircraft,aircraftpower
320plants,andaircraftaccessories;
321 (41)Salesofsportingclays,wobble,skeet,andtraptargetstoanyshootingrangeor
322similarplacesofbusinessforuseinthenormalcourseofbusinessandmoneyreceivedbya
323shootingrangeorsimilarplacesofbusinessfrompatronsandheldbyashootingrangeor
324similarplaceofbusinessforredistributiontopatronsattheconclusionofashootingevent;
325 (42)Allsalesofmotorfuel,asdefinedinsection142.800,usedinanywatercraft,as
326definedinsection306.010;
327 (43)Anyneworusedaircraftsoldordeliveredinthisstatetoapersonwhoisnota
328residentofthisstateoracorporationthatisnotincorporatedinthisstate,andsuchaircraftis
HB590 12 329nottobebasedinthisstateandshallnotremaininthisstatemorethantenbusinessdays
330subsequenttothelasttooccurof:
331 (a)Thetransferoftitletotheaircrafttoapersonwhoisnotaresidentofthisstateora
332corporationthatisnotincorporatedinthisstate;or
333 (b)Thedateofthereturntoserviceoftheaircraftinaccordancewith14CFR91.407
334foranymaintenance,preventivemaintenance,rebuilding,alterations,repairs,orinstallations
335thatarecompletedcontemporaneouslywiththetransferoftitletotheaircrafttoapersonwho
336isnotaresidentofthisstateoracorporationthatisnotincorporatedinthisstate;
337 (44)Motorvehiclesregisteredinexcessoffifty-fourthousandpounds,andthe
338trailerspulledbysuchmotorvehicles,thatareactuallyusedinthenormalcourseofbusiness
339tohaulpropertyonthepublichighwaysofthestate,andthatarecapableofhaulingloads
340commensuratewiththemotorvehicle'sregisteredweight;andthematerials,replacement
341parts,andequipmentpurchasedforusedirectlyupon,andfortherepairandmaintenanceor
342manufactureofsuchvehicles.Forpurposesofthissubdivision,"motorvehicle"and"public
343highway"shallhavethemeaningasascribedinsection390.020;
344 (45)Allinternetaccessortheuseofinternetaccessregardlessofwhetherthetaxis
345imposedonaproviderofinternetaccessorabuyerofinternetaccess.Forpurposesofthis
346subdivision,thefollowingtermsshallmean:
347 (a)"Directcosts",costsincurredbyagovernmentalauthoritysolelybecauseofan
348internetserviceprovider'suseofthepublicright-of-way.Thetermshallnotincludecoststhat
349thegovernmentalauthoritywouldhaveincurrediftheinternetserviceproviderdidnotmake
350suchuseofthepublicright-of-way.Directcostsshallbedeterminedinamannerconsistent
351withgenerallyacceptedaccountingprinciples;
352 (b)"Internet",computerandtelecommunicationsfacilities,includingequipmentand
353operatingsoftware,thatcomprisestheinterconnectedworldwidenetworkthatemploythe
354transmissioncontrolprotocolorinternetprotocol,oranypredecessororsuccessorprotocols
355tothatprotocol,tocommunicateinformationofallkindsbywireorradio;
356 (c)"Internetaccess",aservicethatenablesuserstoconnecttotheinternettoaccess
357content,information,orotherserviceswithoutregardtowhethertheserviceisreferredtoas
358telecommunications,communications,transmission,orsimilarservices,andwithoutregardto
359whetheraprovideroftheserviceissubjecttoregulationbytheFederalCommunications
360Commissionasacommoncarrierunder47U.S.C.Section201,etseq.Forpurposesofthis
361subdivision,internetaccessalsoincludes:thepurchase,use,orsaleofcommunications
362services,includingtelecommunicationsservicesasdefinedinsection144.010,totheextent
363thecommunicationsservicesarepurchased,used,orsoldtoprovidetheservicedescribedin
364thissubdivisionortootherwiseenableuserstoaccesscontent,information,orotherservices
365offeredovertheinternet;servicesthatareincidentaltotheprovisionofaservicedescribedin
HB590 13 366thissubdivision,whenfurnishedtousersaspartofsuchservice,includingahomepage,
367electronicmail,andinstantmessaging,includingvoice-capableandvideo-capableelectronic
368mailandinstantmessaging,videoclips,andpersonalelectronicstoragecapacity;ahome
369pageelectronicmailandinstantmessaging,includingvoice-capableandvideo-capable
370electronicmailandinstantmessaging,videoclips,andpersonalelectronicstoragecapacity
371thatareprovidedindependentlyorthatarenotpackedwithinternetaccess.Asusedinthis
372subdivision,internetaccessdoesnotincludevoice,audio,andvideoprogrammingorother
373productsandservices,exceptservicesdescribedinthisparagraphorthissubdivision,thatuse
374internetprotocoloranysuccessorprotocolandforwhichthereisacharge,regardlessof
375whetherthechargeisseparatelystatedoraggregatedwiththechargeforservicesdescribedin
376thisparagraphorthissubdivision;
377 (d)"Tax",anychargeimposedbythestateorapoliticalsubdivisionofthestatefor
378thepurposeofgeneratingrevenuesforgovernmentalpurposesandthatisnotafeeimposed
379foraspecificprivilege,service,orbenefitconferred,exceptasdescribedasotherwiseunder
380thissubdivision,oranyobligationimposedonasellertocollectandtoremittothestateora
381politicalsubdivisionofthestateanygrossretailtax,salestax,orusetaximposedonabuyer
382bysuchagovernmentalentity.Thetermtaxshallnotincludeanyfranchisefeeorsimilarfee
383imposedorauthorizedundersections67.1830to67.1846orsection67.2689;Section622or
384653oftheCommunicationsActof1934,47U.S.C.Section542and47U.S.C.Section573;
385oranyotherfeerelatedtoobligationsoftelecommunicationscarriersunderthe
386CommunicationsActof1934,47U.S.C.Section151,etseq.,excepttotheextentthat:
387 a.Thefeeisnotimposedforthepurposeofrecoveringdirectcostsincurredbythe
388franchisingorothergovernmentalauthorityfromprovidingthespecificprivilege,service,or
389benefitconferredtothepayerofthefee;or
390 b.Thefeeisimposedfortheuseofapublicright-of-waybasedonapercentageofthe
391servicerevenue,andthefeeexceedstheincrementaldirectcostsincurredbythe
392governmentalauthorityassociatedwiththeprovisionofthatright-of-waytotheprovider
393ofinternetaccessservice.
394
395Nothinginthissubdivisionshallbeinterpretedasanexemptionfromtaxesdueongoodsor
396servicesthatweresubjecttotaxonJanuary1,2016;
397 (46)Allpurchasesbyacompanyofsolarphotovoltaicenergysystems,components
398usedtoconstructasolarphotovoltaicenergysystem,andallpurchasesofmaterialsand
399suppliesuseddirectlytoconstructormakeimprovementstosuchsystems,providedthatsuch
400systems:
401 (a)Aresoldorleasedtoanenduser;or
402 (b)Areusedtoproduce,collectandtransmitelectricityforresaleorretail;
HB590 14 403 (47)Allsalesofmotorvehiclesmorethantenyearsoldsoldforthepurchase
404priceoflessthantwenty-fivethousanddollars.Forthepurposesofthissubdivision,
405"motorvehicle"meansanyautomobile,truck,orself-propelledvehicledesignedand
406licensedforoperationuponthehighwaysandheldforsaleintheordinarycourseof
407business.Theterm"motorvehicle"doesnotincludefarmtractorsormachinery,
408vehiclesexclusivelyoperatedordrivenuponfixedrailsortrack,electricbicycles,or
409motorizedbicycles.
410 3.Anyruling,agreement,orcontract,whetherwrittenororal,expressorimplied,
411betweenapersonandthisstate'sexecutivebranch,oranyotherstateagencyordepartment,
412stating,agreeing,orrulingthatsuchpersonisnotrequiredtocollectsalesandusetaxinthis
413statedespitethepresenceofawarehouse,distributioncenter,orfulfillmentcenterinthisstate
414thatisownedoroperatedbythepersonoranaffiliatedpersonshallbenullandvoidunlessit
415isspecificallyapprovedbyamajorityvoteofeachofthehousesofthegeneralassembly.For
416purposesofthissubsection,an"affiliatedperson"meansanypersonthatisamemberofthe
417samecontrolledgroupofcorporationsasdefinedinSection1563(a)oftheInternalRevenue
418Codeof1986,asamended,asthevendororanyotherentitythat,notwithstandingitsformof
419organization,bearsthesameownershiprelationshiptothevendorasacorporationthatisa
420memberofthesamecontrolledgroupofcorporationsasdefinedinSection1563(a)ofthe
421InternalRevenueCode,asamended.
âś”
HB590 15