SECONDREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.1427
102NDGENERALASSEMBLY
4228H.05C DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections143.121,144.030,144.615,313.055,and313.057,RSMo,andtoenactin
lieuthereoffivenewsectionsrelatingtotaxation.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections143.121,144.030,144.615,313.055,and313.057,RSMo,are
2repealedandfivenewsectionsenactedinlieuthereof,tobeknownassections143.121,
3144.030,144.615,144.813,and313.057,toreadasfollows:
143.121.1.TheMissouriadjustedgrossincomeofaresidentindividualshallbethe
2taxpayer'sfederaladjustedgrossincomesubjecttothemodificationsinthissection.
3 2.Thereshallbeaddedtothetaxpayer'sfederaladjustedgrossincome:
4 (1)Theamountofanyfederalincometaxrefundreceivedforaprioryearwhich
5resultedinaMissouriincometaxbenefit.Theamountaddedpursuanttothissubdivision
6shallnotincludeanyamountofafederalincometaxrefundattributabletoataxcredit
7reducingataxpayer'sfederaltaxliabilitypursuanttoPublicLaw116-136or116-260,enacted
8bythe116thUnitedStatesCongress,forthetaxyearbeginningonorafterJanuary1,2020,
9andendingonorbeforeDecember31,2020,anddeductedfromMissouriadjustedgross
10incomepursuanttosection143.171.Theamountaddedunderthissubdivisionshallalsonot
11includeanyamountofafederalincometaxrefundattributabletoataxcreditreducinga
12taxpayer'sfederaltaxliabilityunderanyotherfederallawthatprovidesdirecteconomic
13impactpaymentstotaxpayerstomitigatefinancialchallengesrelatedtotheCOVID-19
14pandemic,anddeductedfromMissouriadjustedgrossincomeundersection143.171;
15 (2)Interestoncertaingovernmentalobligationsexcludedfromfederalgrossincome
16by26U.S.C.Section103oftheInternalRevenueCode,asamended.Theprevioussentence
17shallnotapplytointerestonobligationsofthestateofMissourioranyofitspolitical
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18subdivisionsorauthoritiesandshallnotapplytotheinterestdescribedinsubdivision(1)of
19subsection3ofthissection.Theamountaddedpursuanttothissubdivisionshallbereduced
20bytheamountsapplicabletosuchinterestthatwouldhavebeendeductibleincomputingthe
21taxableincomeofthetaxpayerexceptonlyfortheapplicationof26U.S.C.Section265ofthe
22InternalRevenueCode,asamended.Thereductionshallonlybemadeifitisatleastfive
23hundreddollars;
24 (3)Theamountofanydeductionthatisincludedinthecomputationoffederal
25taxableincomepursuantto26U.S.C.Section168oftheInternalRevenueCodeasamended
26bytheJobCreationandWorkerAssistanceActof2002totheextenttheamountdeducted
27relatestopropertypurchasedonorafterJuly1,2002,butbeforeJuly1,2003,andtothe
28extenttheamountdeductedexceedstheamountthatwouldhavebeendeductiblepursuantto
2926U.S.C.Section168oftheInternalRevenueCodeof1986asineffectonJanuary1,2002;
30 (4)Theamountofanydeductionthatisincludedinthecomputationoffederal
31taxableincomefornetoperatinglossallowedby26U.S.C.Section172oftheInternal
32RevenueCodeof1986,asamended,otherthanthedeductionallowedby26U.S.C.Section
33172(b)(1)(G)and26U.S.C.Section172(i)oftheInternalRevenueCodeof1986,as
34amended,foranetoperatinglossthetaxpayerclaimsinthetaxyearinwhichthenet
35operatinglossoccurredorcarriesforwardforaperiodofmorethantwentyyearsandcarries
36backwardformorethantwoyears.Anyamountofnetoperatinglosstakenagainstfederal
37taxableincomebutdisallowedforMissouriincometaxpurposespursuanttothissubdivision
38afterJune18,2002,maybecarriedforwardandtakenagainstanyincomeontheMissouri
39incometaxreturnforaperiodofnotmorethantwentyyearsfromtheyearoftheinitialloss;
40and
41 (5)FornonresidentindividualsinalltaxableyearsendingonorafterDecember31,
422006,theamountofanypropertytaxespaidtoanotherstateorapoliticalsubdivisionof
43anotherstateforwhichadeductionwasallowedonsuchnonresident'sfederalreturninthe
44taxableyearunlesssuchstate,politicalsubdivisionofastate,ortheDistrictofColumbia
45allowsasubtractionfromincomeforpropertytaxespaidtothisstateforpurposesof
46calculatingincomefortheincometaxforsuchstate,politicalsubdivisionofastate,orthe
47DistrictofColumbia;
48 (6)ForalltaxyearsbeginningonorafterJanuary1,2018,anyinterestexpensepaid
49oraccruedinaprevioustaxableyear,butallowedasadeductionunder26U.S.C.Section
50163,asamended,inthecurrenttaxableyearbyreasonofthecarryforwardofdisallowed
51businessinterestprovisionsof26U.S.C.Section163(j),asamended.Forthepurposesofthis
52subdivision,aninterestexpenseisconsideredpaidoraccruedonlyinthefirsttaxableyearthe
53deductionwouldhavebeenallowableunder26U.S.C.Section163,asamended,ifthe
54limitationunder26U.S.C.Section163(j),asamended,didnotexist;
HCSHB1427 2 55 (7)ForalltaxyearsbeginningonorafterJanuary1,2022,theamountdeducted
56bythetaxpayerunder26U.S.C.Section174(a)(2)(B),asamended,forthetaxyear.
57 3.Thereshallbesubtractedfromthetaxpayer'sfederaladjustedgrossincomethe
58followingamountstotheextentincludedinfederaladjustedgrossincome:
59 (1)Interestreceivedondepositsheldatafederalreservebankorinterestordividends
60onobligationsoftheUnitedStatesanditsterritoriesandpossessionsorofanyauthority,
61commissionorinstrumentalityoftheUnitedStatestotheextentexemptfromMissouri
62incometaxespursuanttothelawsoftheUnitedStates.Theamountsubtractedpursuantto
63thissubdivisionshallbereducedbyanyinterestonindebtednessincurredtocarrythe
64describedobligationsorsecuritiesandbyanyexpensesincurredintheproductionofinterest
65ordividendincomedescribedinthissubdivision.Thereductionintheprevioussentence
66shallonlyapplytotheextentthatsuchexpensesincludingamortizablebondpremiumsare
67deductedindeterminingthetaxpayer'sfederaladjustedgrossincomeorincludedinthe
68taxpayer'sMissouriitemizeddeduction.Thereductionshallonlybemadeiftheexpenses
69totalatleastfivehundreddollars;
70 (2)Theportionofanygain,fromthesaleorotherdispositionofpropertyhavinga
71higheradjustedbasistothetaxpayerforMissouriincometaxpurposesthanforfederal
72incometaxpurposesonDecember31,1972,thatdoesnotexceedsuchdifferenceinbasis.If
73againisconsideredalong-termcapitalgainforfederalincometaxpurposes,themodification
74shallbelimitedtoone-halfofsuchportionofthegain;
75 (3)Theamountnecessarytopreventthetaxationpursuanttothischapterofany
76annuityorotheramountofincomeorgainwhichwasproperlyincludedinincomeorgainand
77wastaxedpursuanttothelawsofMissouriforataxableyearpriortoJanuary1,1973,tothe
78taxpayer,ortoadecedentbyreasonofwhosedeaththetaxpayeracquiredtherighttoreceive
79theincomeorgain,ortoatrustorestatefromwhichthetaxpayerreceivedtheincomeor
80gain;
81 (4)Accumulationdistributionsreceivedbyataxpayerasabeneficiaryofatrusttothe
82extentthatthesameareincludedinfederaladjustedgrossincome;
83 (5)Theamountofanystateincometaxrefundforaprioryearwhichwasincludedin
84thefederaladjustedgrossincome;
85 (6)Theportionofcapitalgainspecifiedinsection135.357thatwouldotherwisebe
86includedinfederaladjustedgrossincome;
87 (7)Theamountthatwouldhavebeendeductedinthecomputationoffederaltaxable
88incomepursuantto26U.S.C.Section168oftheInternalRevenueCodeasineffecton
89January1,2002,totheextentthatamountrelatestopropertypurchasedonorafterJuly1,
902002,butbeforeJuly1,2003,andtotheextentthatamountexceedstheamountactually
HCSHB1427 3 91deductedpursuantto26U.S.C.Section168oftheInternalRevenueCodeasamendedbythe
92JobCreationandWorkerAssistanceActof2002;
93 (8)ForalltaxyearsbeginningonorafterJanuary1,2005,theamountofanyincome
94receivedformilitaryservicewhilethetaxpayerservesinacombatzonewhichisincludedin
95federaladjustedgrossincomeandnototherwiseexcludedtherefrom.Asusedinthissection,
96"combatzone"meansanyareawhichthePresidentoftheUnitedStatesbyExecutiveOrder
97designatesasanareainwhichArmedForcesoftheUnitedStatesareorhaveengagedin
98combat.Serviceisperformedinacombatzoneonlyifperformedonorafterthedate
99designatedbythePresidentbyExecutiveOrderasthedateofthecommencingofcombat
100activitiesinsuchzone,andonorbeforethedatedesignatedbythePresidentbyExecutive
101Orderasthedateoftheterminationofcombatantactivitiesinsuchzone;
102 (9)ForalltaxyearsendingonorafterJuly1,2002,withrespecttoqualifiedproperty
103thatissoldorotherwisedisposedofduringataxableyearbyataxpayerandforwhichan
104additionalmodificationwasmadeundersubdivision(3)ofsubsection2ofthissection,the
105amountbywhichadditionalmodificationmadeundersubdivision(3)ofsubsection2ofthis
106sectiononqualifiedpropertyhasnotbeenrecoveredthroughtheadditionalsubtractions
107providedinsubdivision(7)ofthissubsection;
108 (10)ForalltaxyearsbeginningonorafterJanuary1,2014,theamountofany
109incomereceivedaspaymentfromanyprogramwhichprovidescompensationtoagricultural
110producerswhohavesufferedalossastheresultofadisasteroremergency,includingthe:
111 (a)LivestockForageDisasterProgram;
112 (b)LivestockIndemnityProgram;
113 (c)EmergencyAssistanceforLivestock,Honeybees,andFarm-RaisedFish;
114 (d)EmergencyConservationProgram;
115 (e)NoninsuredCropDisasterAssistanceProgram;
116 (f)Pasture,Rangeland,ForagePilotInsuranceProgram;
117 (g)AnnualForagePilotProgram;
118 (h)LivestockRiskProtectionInsurancePlan;
119 (i)LivestockGrossMarginInsurancePlan;
120 (11)ForalltaxyearsbeginningonorafterJanuary1,2018,anyinterestexpensepaid
121oraccruedinthecurrenttaxableyear,butnotdeductedasaresultofthelimitationimposed
122under26U.S.C.Section163(j),asamended.Forthepurposesofthissubdivision,aninterest
123expenseisconsideredpaidoraccruedonlyinthefirsttaxableyearthedeductionwouldhave
124beenallowableunder26U.S.C.Section163,asamended,ifthelimitationunder26U.S.C.
125Section163(j),asamended,didnotexist;
126 (12)Onehundredpercentofanyretirementbenefitsreceivedbyanytaxpayerasa
127resultofthetaxpayer'sserviceintheArmedForcesoftheUnitedStates,includingreserve
HCSHB1427 4 128componentsandtheNationalGuardofthisstate,asdefinedin32U.S.C.Sections101(3)and
129109,andanyothermilitaryforceorganizedunderthelawsofthisstate;[and]
130 (13)Onehundredpercentofanyfederalgrantmoneysreceivedforthepurposeof
131providingorexpandingaccesstobroadbandinternettoareasofthestatedeemedtobelacking
132suchaccess; and
133 (14)ForalltaxyearsbeginningonorafterJanuary1,2022,theamountof
134specifiedresearchorexperimentalexpendituresthatarebothrequiredtobechargedto
135capitalaccountandactuallyarechargedtocapitalaccountasrequiredby26U.S.C.
136Section174(a)(2)(A),asamended,forthetaxyear,afteranyreductiontothatamount
137under26U.S.C.Section280C(c),asamended.
138 4.Thereshallbeaddedtoorsubtractedfromthetaxpayer'sfederaladjustedgross
139incomethetaxpayer'sshareoftheMissourifiduciaryadjustmentprovidedinsection143.351.
140 5.Thereshallbeaddedtoorsubtractedfromthetaxpayer'sfederaladjustedgross
141incomethemodificationsprovidedinsection143.411.
142 6.Inadditiontothemodificationstoataxpayer'sfederaladjustedgrossincomeinthis
143section,tocalculateMissouriadjustedgrossincomethereshallbesubtractedfromthe
144taxpayer'sfederaladjustedgrossincomeanygainrecognizedpursuantto26U.S.C.Section
1451033oftheInternalRevenueCodeof1986,asamended,arisingfromcompulsoryor
146involuntaryconversionofpropertyasaresultofcondemnationortheimminencethereof.
147 7.(1)Asusedinthissubsection,"qualifiedhealthinsurancepremium"meansthe
148amountpaidduringthetaxyearbysuchtaxpayerforanyinsurancepolicyprimarily
149providinghealthcarecoverageforthetaxpayer,thetaxpayer'sspouse,orthetaxpayer's
150dependents.
151 (2)Inadditiontothesubtractionsinsubsection3ofthissection,onehundredpercent
152oftheamountofqualifiedhealthinsurancepremiumsshallbesubtractedfromthetaxpayer's
153federaladjustedgrossincometotheextenttheamountpaidforsuchpremiumsisincludedin
154federaltaxableincome.Thetaxpayershallprovidethedepartmentofrevenuewithproofof
155theamountofqualifiedhealthinsurancepremiumspaid.
156 8.(1)BeginningJanuary1,2014,inadditiontothesubtractionsprovidedinthis
157section,onehundredpercentofthecostincurredbyataxpayerforahomeenergyaudit
158conductedbyanentitycertifiedbythedepartmentofnaturalresourcesundersection640.153
159ortheimplementationofanyenergyefficiencyrecommendationsmadeinsuchanauditshall
160besubtractedfromthetaxpayer'sfederaladjustedgrossincometotheextenttheamountpaid
161foranysuchactivityisincludedinfederaltaxableincome.Thetaxpayershallprovidethe
162departmentofrevenuewithasummaryofanyrecommendationsmadeinaqualifiedhome
163energyaudit,thenameandcertificationnumberofthequalifiedhomeenergyauditorwho
164conductedtheaudit,andproofoftheamountpaidforanyactivitiesunderthissubsectionfor
HCSHB1427 5 165whichadeductionisclaimed.Thetaxpayershallalsoprovideacopyofthesummaryofany
166recommendationsmadeinaqualifiedhomeenergyaudittothedepartmentofnatural
167resources.
168 (2)Atnotimeshalladeductionclaimedunderthissubsectionbyanindividual
169taxpayerortaxpayersfilingcombinedreturnsexceedonethousanddollarsperyearfor
170individualtaxpayersorcumulativelyexceedtwothousanddollarsperyearfortaxpayers
171filingcombinedreturns.
172 (3)Anydeductionclaimedunderthissubsectionshallbeclaimedforthetaxyearin
173whichthequalifiedhomeenergyauditwasconductedorinwhichtheimplementationofthe
174energyefficiencyrecommendationsoccurred.Ifimplementationoftheenergyefficiency
175recommendationsoccurredduringmorethanoneyear,thedeductionmaybeclaimedinmore
176thanoneyear,subjecttothelimitationsprovidedundersubdivision(2)ofthissubsection.
177 (4)Adeductionshallnotbeclaimedforanyotherwiseeligibleactivityunderthis
178subsectionifsuchactivityqualifiedforandreceivedanyrebateorotherincentivethrougha
179state-sponsoredenergyprogramorthroughanelectriccorporation,gascorporation,electric
180cooperative,ormunicipallyownedutility.
181 9.Theprovisionsofsubsection8ofthissectionshallexpireonDecember31,2020.
182 10.(1)Asusedinthissubsection,thefollowingtermsmean:
183 (a)"Beginningfarmer",ataxpayerwho:
184 a.HasfiledatleastonebutnotmorethantenInternalRevenueServiceScheduleF
185(Form1040)ProfitorLossFromFarmingformssinceturningeighteenyearsofage;
186 b.IsapprovedforabeginningfarmerloanthroughtheUSDAFarmServiceAgency
187BeginningFarmerdirectorguaranteedloanprogram;
188 c.Hasafarmingoperationthatisdeterminedbythedepartmentofagriculturetobe
189newproductionagriculturebutistheprincipaloperatorofafarmandhassubstantialfarming
190knowledge;or
191 d.Hasbeendeterminedbythedepartmentofagriculturetobeaqualifiedfamily
192member;
193 (b)"Farmowner",anindividualwhoownsfarmlandanddisposesoforrelinquishes
194useofallorsomeportionofsuchfarmlandasfollows:
195 a.Asaletoabeginningfarmer;
196 b.Aleaseorrentalagreementnotexceedingtenyearswithabeginningfarmer;or
197 c.Acrop-sharearrangementnotexceedingtenyearswithabeginningfarmer;
198 (c)"Qualifiedfamilymember",anindividualwhoisrelatedtoafarmownerwithin
199thefourthdegreebyblood,marriage,oradoptionandwhoispurchasingorleasingorisina
200crop-sharearrangementforlandfromalloraportionofsuchfarmowner'sfarmingoperation.
HCSHB1427 6 201 (2)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
202isafarmownerwhosellsalloraportionofsuchfarmlandtoabeginningfarmermaysubtract
203fromsuchtaxpayer'sMissouriadjustedgrossincomeanamounttotheextentincludedin
204federaladjustedgrossincomeasprovidedinthissubdivision.
205 (b)Subjecttothelimitationsinparagraph(c)ofthissubdivision,theamountthatmay
206besubtractedshallbeequaltotheportionofcapitalgainsreceivedfromthesaleofsuch
207farmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuchtaxpayersubtractssuch
208capitalgain.
209 (c)Ataxpayermaysubtractthefollowingamountsandpercentagespertaxyearin
210totalcapitalgainsreceivedfromthesaleofsuchfarmlandunderthissubdivision:
211 a.Forthefirsttwomilliondollarsreceived,onehundredpercent;
212 b.Forthenextonemilliondollarsreceived,eightypercent;
213 c.Forthenextonemilliondollarsreceived,sixtypercent;
214 d.Forthenextonemilliondollarsreceived,fortypercent;and
215 e.Forthenextonemilliondollarsreceived,twentypercent.
216 (d)Thedepartmentofrevenueshallprepareanannualreportreviewingthecostsand
217benefitsandcontainingstatisticalinformationregardingthesubtractionofcapitalgains
218authorizedunderthissubdivisionfortheprevioustaxyearincluding,butnotlimitedto,the
219totalamountofallcapitalgainssubtractedandthenumberoftaxpayerssubtractingsuch
220capitalgains.SuchreportshallbesubmittedbeforeFebruaryfirstofeachyeartothe
221committeeonagriculturepolicyoftheMissourihouseofrepresentativesandthecommittee
222onagriculture,foodproductionandoutdoorresourcesoftheMissourisenate,orthesuccessor
223committees.
224 (3)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
225isafarmownerwhoentersaleaseorrentalagreementforalloraportionofsuchfarmland
226withabeginningfarmermaysubtractfromsuchtaxpayer'sMissouriadjustedgrossincomean
227amounttotheextentincludedinfederaladjustedgrossincomeasprovidedinthis
228subdivision.
229 (b)Subjecttothelimitationinparagraph(c)ofthissubdivision,theamountthatmay
230besubtractedshallbeequaltotheportionofcashrentincomereceivedfromtheleaseor
231rentalofsuchfarmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuchtaxpayer
232subtractssuchincome.
233 (c)Notaxpayershallsubtractmorethantwenty-fivethousanddollarspertaxyearin
234totalcashrentincomereceivedfromtheleaseorrentalofsuchfarmlandunderthis
235subdivision.
236 (4)(a)Inadditiontoallothersubtractionsauthorizedinthissection,ataxpayerwho
237isafarmownerwhoentersacrop-sharearrangementonalloraportionofsuchfarmlandwith
HCSHB1427 7 238abeginningfarmermaysubtractfromsuchtaxpayer'sMissouriadjustedgrossincomean
239amounttotheextentincludedinfederaladjustedgrossincomeasprovidedinthis
240subdivision.
241 (b)Subjecttothelimitationinparagraph(c)ofthissubdivision,theamountthatmay
242besubtractedshallbeequaltotheportionofincomereceivedfromthecrop-share
243arrangementonsuchfarmlandthatsuchtaxpayerreceivesinthetaxyearforwhichsuch
244taxpayersubtractssuchincome.
245 (c)Notaxpayershallsubtractmorethantwenty-fivethousanddollarspertaxyearin
246totalincomereceivedfromtheleaseorrentalofsuchfarmlandunderthissubdivision.
247 (5)Thedepartmentofagricultureshall,byrule,establishaprocesstoverifythata
248taxpayerisabeginningfarmerforpurposesofthissectionandshallprovideverificationto
249thebeginningfarmerandfarmsellerofsuchfarmer'sandseller'scertificationand
250qualificationfortheexemptionprovidedinthissubsection.
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
22pesticideregistrationlaw,sections281.220to281.310,whicharetobeusedinconnection
23withthegrowthorproductionofcrops,fruittreesororchardsappliedbefore,during,orafter
HCSHB1427 8 24planting,thecropofwhichwhenharvestedwillbesoldatretailorwillbeconvertedinto
25foodstuffswhicharetobesoldultimatelyinprocessedformatretail;
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
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
HCSHB1427 9 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
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
HCSHB1427 10 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
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
HCSHB1427 11 134subdivisionshallexemptfromtaxanyamountsretainedbyanyprivateperson,firm,or
135corporationundersuchrevenue-sharingagreement;
136 (18)Allsalesofinsulin,andallsales,rentals,repairs,andpartsofdurablemedical
137equipment,prostheticdevices,andorthopedicdevicesasdefined[onJanuary1,1980,] bythe
138federalMedicareprogrampursuanttoTitleXVIIIoftheSocialSecurityActof1965,as
139amended,includingtheitemsspecifiedinSection1862(a)(12)ofthatact,andalso
140specificallyincludinghearingaidsandhearingaidsuppliesandallsalesofdrugswhichmay
141belegallydispensedbyalicensedpharmacistonlyuponalawfulprescriptionofapractitioner
142licensedtoadministerthoseitems,includingsamplesandmaterialsusedtomanufacture
143sampleswhichmaybedispensedbyapractitionerauthorizedtodispensesuchsamplesand
144allsalesorrentalofmedicaloxygen,homerespiratoryequipmentandaccessoriesincluding
145parts,andhospitalbedsandaccessoriesandambulatoryaidsincludingparts,andallsalesor
146rentalofmanualandpoweredwheelchairsincludingpartsandaccessories, andstairwaylifts,
147Braillewriters,electronicBrailleequipmentand,ifpurchasedorrentedbyoronbehalfofa
148personwithoneormorephysicalormentaldisabilitiestoenablethemtofunctionmore
149independently,allsalesorrentalofscootersincludingparts,andreadingmachines,electronic
150printenlargersandmagnifiers,electronicalternativeandaugmentativecommunication
151devices,anditemsusedsolelytomodifymotorvehiclestopermittheuseofsuchmotor
152vehiclesbyindividualswithdisabilitiesorsalesofover-the-counterornonprescriptiondrugs
153toindividualswithdisabilities,anddrugsrequiredbytheFoodandDrugAdministrationto
154meettheover-the-counterdrugproductlabelingrequirementsin21CFR201.66,orits
155successor,asprescribedbyahealthcarepractitionerlicensedtoprescribe;
156 (19)Allsalesmadebyortoreligiousandcharitableorganizationsandinstitutionsin
157theirreligious,charitableoreducationalfunctionsandactivitiesandallsalesmadebyortoall
158elementaryandsecondaryschoolsoperatedatpublicexpenseintheireducationalfunctions
159andactivities;
160 (20)Allsalesofaircrafttocommoncarriersforstorageorforuseininterstate
161commerceandallsalesmadebyortonot-for-profitcivic,social,serviceorfraternal
162organizations,includingfraternalorganizationswhichhavebeendeclaredtax-exempt
163organizationspursuanttoSection501(c)(8)or(10)ofthe1986InternalRevenueCode,as
164amended,intheircivicorcharitablefunctionsandactivitiesandallsalesmadeto
165eleemosynaryandpenalinstitutionsandindustriesofthestate,andallsalesmadetoany
166privatenot-for-profitinstitutionofhighereducationnototherwiseexcludedpursuantto
167subdivision(19)ofthissubsectionoranyinstitutionofhighereducationsupportedbypublic
168funds,andallsalesmadetoastatereliefagencyintheexerciseofrelieffunctionsand
169activities;
HCSHB1427 12 170 (21)Allticketsalesmadebybenevolent,scientificandeducationalassociations
171whichareformedtofoster,encourage,andpromoteprogressandimprovementinthescience
172ofagricultureandintheraisingandbreedingofanimals,andbynonprofitsummertheater
173organizationsifsuchorganizationsareexemptfromfederaltaxpursuanttotheprovisionsof
174theInternalRevenueCodeandalladmissionchargesandentryfeestotheMissouristatefair
175oranyfairconductedbyacountyagriculturalandmechanicalsocietyorganizedandoperated
176pursuanttosections262.290to262.530;
177 (22)Allsalesmadetoanyprivatenot-for-profitelementaryorsecondaryschool,all
178salesoffeedadditives,medicationsorvaccinesadministeredtolivestockorpoultryinthe
179productionoffoodorfiber,allsalesofpesticidesusedintheproductionofcrops,livestockor
180poultryforfoodorfiber,allsalesofbeddingusedintheproductionoflivestockorpoultryfor
181foodorfiber,allsalesofpropaneornaturalgas,electricityordieselfuelusedexclusivelyfor
182dryingagriculturalcrops,naturalgasusedintheprimarymanufactureorprocessingoffuel
183ethanolasdefinedinsection142.028,naturalgas,propane,andelectricityusedbyaneligible
184newgenerationcooperativeoraneligiblenewgenerationprocessingentityasdefinedin
185section348.432,andallsalesoffarmmachineryandequipment,otherthanairplanes,motor
186vehiclesandtrailers,andanyfreightchargesonanyexemptitem.Asusedinthis
187subdivision,theterm"feedadditives"meanstangiblepersonalpropertywhich,whenmixed
188withfeedforlivestockorpoultry,istobeusedinthefeedingoflivestockorpoultry.Asused
189inthissubdivision,theterm"pesticides"includesadjuvantssuchascropoils,surfactants,
190wettingagentsandotherassortedpesticidecarriersusedtoimproveorenhancetheeffectofa
191pesticideandthefoamusedtomarktheapplicationofpesticidesandherbicidesforthe
192productionofcrops,livestockorpoultry.Asusedinthissubdivision,theterm"farm
193machineryandequipment"shallmean:
194 (a)Neworusedfarmtractorsandsuchotherneworusedfarmmachineryand
195equipment,includingutilityvehiclesusedforanyagriculturaluse,andrepairorreplacement
196partsthereonandanyaccessoriesforandupgradestosuchfarmmachineryandequipment
197androtarymowersusedforanyagriculturalpurposes.Forthepurposesofthissubdivision,
198"utilityvehicle"shallmeananymotorizedvehiclemanufacturedandusedexclusivelyforoff-
199highwayusewhichismorethanfiftyinchesbutnomorethaneightyinchesinwidth,
200measuredfromoutsideoftirerimtooutsideoftirerim,withanunladendryweightofthree
201thousandfivehundredpoundsorless,travelingonfourorsixwheels;
202 (b)Suppliesandlubricantsusedexclusively,solely,anddirectlyforproducingcrops,
203raisingandfeedinglivestock,fish,poultry,pheasants,chukar,quail,orforproducingmilkfor
204ultimatesaleatretail,includingfielddraintile;and
205 (c)One-halfofeachpurchaser'spurchaseofdieselfuelthereforwhichis:
206 a.Usedexclusivelyforagriculturalpurposes;
HCSHB1427 13 207 b.Usedonlandownedorleasedforthepurposeofproducingfarmproducts;and
208 c.Useddirectlyinproducingfarmproductstobesoldultimatelyinprocessedformor
209otherwiseatretailorinproducingfarmproductstobefedtolivestockorpoultrytobesold
210ultimatelyinprocessedformatretail;
211 (23)Exceptasotherwiseprovidedinsection144.032,allsalesofmeteredwater
212service,electricity,electricalcurrent,natural,artificialorpropanegas,wood,coalorhome
213heatingoilfordomesticuseandinanycitynotwithinacounty,allsalesofmeteredor
214unmeteredwaterservicefordomesticuse:
215 (a)"Domesticuse"meansthatportionofmeteredwaterservice,electricity,electrical
216current,natural,artificialorpropanegas,wood,coalorhomeheatingoil,andinanycitynot
217withinacounty,meteredorunmeteredwaterservice,whichanindividualoccupantofa
218residentialpremisesusesfornonbusiness,noncommercialornonindustrialpurposes.Utility
219servicethroughasingleormastermeterforresidentialapartmentsorcondominiums,
220includingserviceforcommonareasandfacilitiesandvacantunits,shallbedeemedtobefor
221domesticuse.Eachsellershallestablishandmaintainasystemwherebyindividualpurchases
222aredeterminedasexemptornonexempt;
223 (b)Regulatedutilitysellersshalldeterminewhetherindividualpurchasesareexempt
224ornonexemptbasedupontheseller'sutilityservicerateclassificationsascontainedintariffs
225onfilewithandapprovedbytheMissouripublicservicecommission.Salesandpurchases
226madepursuanttotherateclassification"residential"andsalestoandpurchasesmadebyoron
227behalfoftheoccupantsofresidentialapartmentsorcondominiumsthroughasingleormaster
228meter,includingserviceforcommonareasandfacilitiesandvacantunits,shallbeconsidered
229assalesmadefordomesticuseandsuchsalesshallbeexemptfromsalestax.Sellersshall
230chargesalestaxupontheentireamountofpurchasesclassifiedasnondomesticuse.The
231seller'sutilityservicerateclassificationandtheprovisionofservicethereundershallbe
232conclusiveastowhetherornottheutilitymustchargesalestax;
233 (c)Eachpersonmakingdomesticusepurchasesofservicesorpropertyandwhouses
234anyportionoftheservicesorpropertysopurchasedforanondomesticuseshall,bythe
235fifteenthdayofthefourthmonthfollowingtheyearofpurchase,andwithoutassessment,
236noticeordemand,fileareturnandpaysalestaxonthatportionofnondomesticpurchases.
237Eachpersonmakingnondomesticpurchasesofservicesorpropertyandwhousesanyportion
238oftheservicesorpropertysopurchasedfordomesticuse,andeachpersonmakingdomestic
239purchasesonbehalfofoccupantsofresidentialapartmentsorcondominiumsthroughasingle
240ormastermeter,includingserviceforcommonareasandfacilitiesandvacantunits,undera
241nonresidentialutilityservicerateclassificationmay,betweenthefirstdayofthefirstmonth
242andthefifteenthdayofthefourthmonthfollowingtheyearofpurchase,applyforcreditor
243refundtothedirectorofrevenueandthedirectorshallgivecreditormakerefundfortaxes
HCSHB1427 14 244paidonthedomesticuseportionofthepurchase.Thepersonmakingsuchpurchaseson
245behalfofoccupantsofresidentialapartmentsorcondominiumsshallhavestandingtoapplyto
246thedirectorofrevenueforsuchcreditorrefund;
247 (24)Allsalesofhandicraftitemsmadebythesellerortheseller'sspouseiftheseller
248ortheseller'sspouseisatleastsixty-fiveyearsofage,andifthetotalgrossproceedsfrom
249suchsalesdonotconstituteamajorityoftheannualgrossincomeoftheseller;
250 (25)Excisetaxes,collectedonsalesatretail,imposedbySections4041,4071,4081,
251[4091,] 4161,4181,4251,4261and4271ofTitle26,UnitedStatesCode.Thedirectorof
252revenueshallpromulgaterulespursuanttochapter536toeliminateallstateandlocalsales
253taxesonsuchexcisetaxes;
254 (26)Salesoffuelconsumedorusedintheoperationofships,barges,orwaterborne
255vesselswhichareusedprimarilyinorforthetransportationofpropertyorcargo,orthe
256conveyanceofpersonsforhire,onnavigableriversborderingonorlocatedinpartinthis
257state,ifsuchfuelisdeliveredbythesellertothepurchaser'sbarge,ship,orwaterbornevessel
258whileitisafloatuponsuchriver;
259 (27)Allsalesmadetoaninterstatecompactagencycreatedpursuanttosections
26070.370to70.441orsections238.010to238.100intheexerciseofthefunctionsandactivities
261ofsuchagencyasprovidedpursuanttothecompact;
262 (28)Computers,computersoftwareandcomputersecuritysystemspurchasedforuse
263byarchitecturalorengineeringfirmsheadquarteredinthisstate.Forthepurposesofthis
264subdivision,"headquarteredinthisstate"meanstheofficefortheadministrativemanagement
265ofatleastfourintegratedfacilitiesoperatedbythetaxpayerislocatedinthestateofMissouri;
266 (29)Alllivestocksaleswheneitherthesellerisengagedinthegrowing,producingor
267feedingofsuchlivestock,orthesellerisengagedinthebusinessofbuyingandselling,
268barteringorleasingofsuchlivestock;
269 (30)Allsalesofbargeswhicharetobeusedprimarilyinthetransportationof
270propertyorcargooninterstatewaterways;
271 (31)Electricalenergyorgas,whethernatural,artificialorpropane,water,orother
272utilitieswhichareultimatelyconsumedinconnectionwiththemanufacturingofcellularglass
273productsorinanymaterialrecoveryprocessingplantasdefinedinsubdivision(4)ofthis
274subsection;
275 (32)Notwithstandingotherprovisionsoflawtothecontrary,allsalesofpesticidesor
276herbicidesusedintheproductionofcrops,aquaculture,livestockorpoultry;
277 (33)Tangiblepersonalpropertyandutilitiespurchasedforuseorconsumption
278directlyorexclusivelyintheresearchanddevelopmentofagricultural/biotechnologyand
279plantgenomicsproductsandprescriptionpharmaceuticalsconsumedbyhumansoranimals;
280 (34)Allsalesofgrainbinsforstorageofgrainforresale;
HCSHB1427 15 281 (35)Allsalesoffeedwhicharedevelopedforandusedinthefeedingofpetsowned
282byacommercialbreederwhensuchsalesaremadetoacommercialbreeder,asdefinedin
283section273.325,andlicensedpursuanttosections273.325to273.357;
284 (36)Allpurchasesbyacontractoronbehalfofanentitylocatedinanotherstate,
285providedthattheentityisauthorizedtoissueacertificateofexemptionforpurchasestoa
286contractorundertheprovisionsofthatstate'slaws.Forpurposesofthissubdivision,theterm
287"certificateofexemption"shallmeananydocumentevidencingthattheentityisexemptfrom
288salesandusetaxesonpurchasespursuanttothelawsofthestateinwhichtheentityis
289located.Anycontractormakingpurchasesonbehalfofsuchentityshallmaintainacopyof
290theentity'sexemptioncertificateasevidenceoftheexemption.Iftheexemptioncertificate
291issuedbytheexemptentitytothecontractorislaterdeterminedbythedirectorofrevenueto
292beinvalidforanyreasonandthecontractorhasacceptedthecertificateingoodfaith,neither
293thecontractorortheexemptentityshallbeliableforthepaymentofanytaxes,interestand
294penaltydueastheresultofuseoftheinvalidexemptioncertificate.Materialsshallbeexempt
295fromallstateandlocalsalesandusetaxeswhenpurchasedbyacontractorforthepurposeof
296fabricatingtangiblepersonalpropertywhichisusedinfulfillingacontractforthepurposeof
297constructing,repairingorremodelingfacilitiesforthefollowing:
298 (a)Anexemptentitylocatedinthisstate,iftheentityisoneofthoseentitiesableto
299issueprojectexemptioncertificatesinaccordancewiththeprovisionsofsection144.062;or
300 (b)Anexemptentitylocatedoutsidethestateiftheexemptentityisauthorizedto
301issueanexemptioncertificatetocontractorsinaccordancewiththeprovisionsofthatstate's
302lawandtheapplicableprovisionsofthissection;
303 (37)Allsalesorothertransfersoftangiblepersonalpropertytoalessorwholeases
304thepropertyunderaleaseofoneyearorlongerexecutedorineffectatthetimeofthesaleor
305othertransfertoaninterstatecompactagencycreatedpursuanttosections70.370to70.441or
306sections238.010to238.100;
307 (38)Salesofticketstoanycollegiateathleticchampionshipeventthatisheldina
308facilityownedoroperatedbyagovernmentalauthorityorcommission,aquasi-governmental
309agency,astateuniversityorcollegeorbythestateoranypoliticalsubdivisionthereof,
310includingamunicipality,andthatisplayedonaneutralsiteandmayreasonablybeplayedat
311asitelocatedoutsidethestateofMissouri.Forpurposesofthissubdivision,"neutralsite"
312meansanysitethatisnotlocatedonthecampusofaconferencememberinstitution
313participatingintheevent;
314 (39)Allpurchasesbyasportscomplexauthoritycreatedundersection64.920,andall
315salesofutilitiesbysuchauthorityattheauthority'scostthatareconsumedinconnectionwith
316theoperationofasportscomplexleasedtoaprofessionalsportsteam;
HCSHB1427 16 317 (40)Allmaterials,replacementparts,andequipmentpurchasedforusedirectlyupon,
318andforthemodification,replacement,repair,andmaintenanceofaircraft,aircraftpower
319plants,andaircraftaccessories;
320 (41)Salesofsportingclays,wobble,skeet,andtraptargetstoanyshootingrangeor
321similarplacesofbusinessforuseinthenormalcourseofbusinessandmoneyreceivedbya
322shootingrangeorsimilarplacesofbusinessfrompatronsandheldbyashootingrangeor
323similarplaceofbusinessforredistributiontopatronsattheconclusionofashootingevent;
324 (42)Allsalesofmotorfuel,asdefinedinsection142.800,usedinanywatercraft,as
325definedinsection306.010;
326 (43)Anyneworusedaircraftsoldordeliveredinthisstatetoapersonwhoisnota
327residentofthisstateoracorporationthatisnotincorporatedinthisstate,andsuchaircraftis
328nottobebasedinthisstateandshallnotremaininthisstatemorethantenbusinessdays
329subsequenttothelasttooccurof:
330 (a)Thetransferoftitletotheaircrafttoapersonwhoisnotaresidentofthisstateora
331corporationthatisnotincorporatedinthisstate;or
332 (b)Thedateofthereturntoserviceoftheaircraftinaccordancewith14CFR91.407
333foranymaintenance,preventivemaintenance,rebuilding,alterations,repairs,orinstallations
334thatarecompletedcontemporaneouslywiththetransferoftitletotheaircrafttoapersonwho
335isnotaresidentofthisstateoracorporationthatisnotincorporatedinthisstate;
336 (44)Motorvehiclesregisteredinexcessoffifty-fourthousandpounds,andthe
337trailerspulledbysuchmotorvehicles,thatareactuallyusedinthenormalcourseofbusiness
338tohaulpropertyonthepublichighwaysofthestate,andthatarecapableofhaulingloads
339commensuratewiththemotorvehicle'sregisteredweight;andthematerials,replacement
340parts,andequipmentpurchasedforusedirectlyupon,andfortherepairandmaintenanceor
341manufactureofsuchvehicles.Forpurposesofthissubdivision,"motorvehicle"and"public
342highway"shallhavethemeaningasascribedinsection390.020;
343 (45)Allinternetaccessortheuseofinternetaccessregardlessofwhetherthetaxis
344imposedonaproviderofinternetaccessorabuyerofinternetaccess.Forpurposesofthis
345subdivision,thefollowingtermsshallmean:
346 (a)"Directcosts",costsincurredbyagovernmentalauthoritysolelybecauseofan
347internetserviceprovider'suseofthepublicright-of-way.Thetermshallnotincludecoststhat
348thegovernmentalauthoritywouldhaveincurrediftheinternetserviceproviderdidnotmake
349suchuseofthepublicright-of-way.Directcostsshallbedeterminedinamannerconsistent
350withgenerallyacceptedaccountingprinciples;
351 (b)"Internet",computerandtelecommunicationsfacilities,includingequipmentand
352operatingsoftware,thatcomprisestheinterconnectedworldwidenetworkthatemploythe
HCSHB1427 17 353transmissioncontrolprotocolorinternetprotocol,oranypredecessororsuccessorprotocols
354tothatprotocol,tocommunicateinformationofallkindsbywireorradio;
355 (c)"Internetaccess",aservicethatenablesuserstoconnecttotheinternettoaccess
356content,information,orotherserviceswithoutregardtowhethertheserviceisreferredtoas
357telecommunications,communications,transmission,orsimilarservices,andwithoutregardto
358whetheraprovideroftheserviceissubjecttoregulationbytheFederalCommunications
359Commissionasacommoncarrierunder47U.S.C.Section201,etseq.Forpurposesofthis
360subdivision,internetaccessalsoincludes:thepurchase,use,orsaleofcommunications
361services,includingtelecommunicationsservicesasdefinedinsection144.010,totheextent
362thecommunicationsservicesarepurchased,used,orsoldtoprovidetheservicedescribedin
363thissubdivisionortootherwiseenableuserstoaccesscontent,information,orotherservices
364offeredovertheinternet;servicesthatareincidentaltotheprovisionofaservicedescribedin
365thissubdivision,whenfurnishedtousersaspartofsuchservice,includingahomepage,
366electronicmail,andinstantmessaging,includingvoice-capableandvideo-capableelectronic
367mailandinstantmessaging,videoclips,andpersonalelectronicstoragecapacity;ahome
368pageelectronicmailandinstantmessaging,includingvoice-capableandvideo-capable
369electronicmailandinstantmessaging,videoclips,andpersonalelectronicstoragecapacity
370thatareprovidedindependentlyorthatarenotpackedwithinternetaccess.Asusedinthis
371subdivision,internetaccessdoesnotincludevoice,audio,andvideoprogrammingorother
372productsandservices,exceptservicesdescribedinthisparagraphorthissubdivision,thatuse
373internetprotocoloranysuccessorprotocolandforwhichthereisacharge,regardlessof
374whetherthechargeisseparatelystatedoraggregatedwiththechargeforservicesdescribedin
375thisparagraphorthissubdivision;
376 (d)"Tax",anychargeimposedbythestateorapoliticalsubdivisionofthestatefor
377thepurposeofgeneratingrevenuesforgovernmentalpurposesandthatisnotafeeimposed
378foraspecificprivilege,service,orbenefitconferred,exceptasdescribedasotherwiseunder
379thissubdivision,oranyobligationimposedonasellertocollectandtoremittothestateora
380politicalsubdivisionofthestateanygrossretailtax,salestax,orusetaximposedonabuyer
381bysuchagovernmentalentity.Thetermtaxshallnotincludeanyfranchisefeeorsimilarfee
382imposedorauthorizedundersections67.1830to67.1846orsection67.2689;Section622or
383653oftheCommunicationsActof1934,47U.S.C.Section542and47U.S.C.Section573;
384oranyotherfeerelatedtoobligationsoftelecommunicationscarriersunderthe
385CommunicationsActof1934,47U.S.C.Section151,etseq.,excepttotheextentthat:
386 a.Thefeeisnotimposedforthepurposeofrecoveringdirectcostsincurredbythe
387franchisingorothergovernmentalauthorityfromprovidingthespecificprivilege,service,or
388benefitconferredtothepayerofthefee;or
HCSHB1427 18 389 b.Thefeeisimposedfortheuseofapublicright-of-waybasedonapercentageofthe
390servicerevenue,andthefeeexceedstheincrementaldirectcostsincurredbythe
391governmentalauthorityassociatedwiththeprovisionofthatright-of-waytotheprovider
392ofinternetaccessservice.
393
394Nothinginthissubdivisionshallbeinterpretedasanexemptionfromtaxesdueongoodsor
395servicesthatweresubjecttotaxonJanuary1,2016;
396 (46)Allpurchasesbyacompanyofsolarphotovoltaicenergysystems,components
397usedtoconstructasolarphotovoltaicenergysystem,andallpurchasesofmaterialsand
398suppliesuseddirectlytoconstructormakeimprovementstosuchsystems,providedthatsuch
399systems:
400 (a)Aresoldorleasedtoanenduser;or
401 (b)Areusedtoproduce,collectandtransmitelectricityforresaleorretail;
402 (47)Allsalesofusedtangiblepersonalpropertypurchasedbyaconsumerfor
403useorconsumption,andnotforresale,forvaluableconsiderationdirectlyfromaseller
404atanauctionofusedtangiblepersonalpropertyorfromanotherconsumer.Forthe
405purposesofthissection,"usedtangiblepersonalproperty"isanytangiblepersonal
406propertythatissoldasecondtimeatanauctionoranynumberofadditional
407subsequenttimesaftertheinitialpointofsaleatanauction,uponwhichasalestaxis
408levied.Theterm"usedtangiblepersonalproperty"shallnotincludemotorvehicles,
409trailers,boats,oroutboardmotorspurchasedoracquiredforuseonthehighwaysor
410watersofthisstatethatarerequiredtobetitledunderthelawsofthestateofMissouri.
411 3.Anyruling,agreement,orcontract,whetherwrittenororal,expressorimplied,
412betweenapersonandthisstate'sexecutivebranch,oranyotherstateagencyordepartment,
413stating,agreeing,orrulingthatsuchpersonisnotrequiredtocollectsalesandusetaxinthis
414statedespitethepresenceofawarehouse,distributioncenter,orfulfillmentcenterinthisstate
415thatisownedoroperatedbythepersonoranaffiliatedpersonshallbenullandvoidunlessit
416isspecificallyapprovedbyamajorityvoteofeachofthehousesofthegeneralassembly.For
417purposesofthissubsection,an"affiliatedperson"meansanypersonthatisamemberofthe
418samecontrolledgroupofcorporationsasdefinedinSection1563(a)oftheInternalRevenue
419Codeof1986,asamended,asthevendororanyotherentitythat,notwithstandingitsformof
420organization,bearsthesameownershiprelationshiptothevendorasacorporationthatisa
421memberofthesamecontrolledgroupofcorporationsasdefinedinSection1563(a)ofthe
422InternalRevenueCode,asamended.
144.615.Therearespecificallyexemptedfromthetaxesleviedinsections144.600to
2144.745:
HCSHB1427 19 3 (1)Property,thestorage,useorconsumptionofwhichthisstateisprohibitedfrom
4taxingpursuanttotheconstitutionorlawsoftheUnitedStatesorofthisstate;
5 (2)Property,thegrossreceiptsfromthesaleofwhicharerequiredtobeincludedin
6themeasureofthetaximposedpursuanttotheMissourisalestaxlaw;
7 (3)Tangiblepersonalproperty,thesaleorothertransferofwhich,ifmadeinthis
8state,wouldbeexemptfromornotsubjecttotheMissourisalestaxpursuanttotheprovisions
9ofsubsection2ofsection144.030;
10 (4)Motorvehicles,trailers,boats,andoutboardmotorssubjecttothetaximposedby
11section144.020;
12 (5)Tangiblepersonalpropertywhichhasbeensubjectedtoataxbyanyotherstatein
13thisrespecttoitssalesoruse;provided,ifsuchtaxislessthanthetaximposedbysections
14144.600to144.745,suchproperty,ifotherwisetaxable,shallbesubjecttoataxequaltothe
15differencebetweensuchtaxandthetaximposedbysections144.600to144.745;
16 (6)Tangiblepersonalpropertyheldbyprocessors,retailers,importers,manufacturers,
17wholesalers,orjobberssolelyforresaleintheregularcourseofbusiness;
18 (7)Personalandhouseholdeffectsandfarmmachineryusedwhileanindividualwas
19abonafideresidentofanotherstateandwhothereafterbecamearesidentofthisstate,or
20tangiblepersonalpropertybroughtintothestatebyanonresidentforhisownstorage,useor
21consumptionwhiletemporarilywithinthestate;
22 (8)Usedtangiblepersonalpropertypurchasedbyaconsumerforuseor
23consumption,andnotforresale,forvaluableconsiderationdirectlyfromaselleratan
24auctionofusedtangiblepersonalpropertyorfromanotherconsumer.Forthepurposes
25ofthissection,"usedtangiblepersonalproperty"isanytangiblepersonalpropertythat
26issoldasecondtimeatanauctionoranynumberofadditionalsubsequenttimesafter
27theinitialpointofsaleatanauction,uponwhichasalestaxislevied.Theterm"used
28tangiblepersonalproperty"shallnotincludemotorvehicles,trailers,boats,oroutboard
29motorspurchasedoracquiredforuseonthehighwaysorwatersofthisstatethatare
30requiredtobetitledunderthelawsofthestateofMissouri.
144.813.Inadditiontoallotherexemptionsgrantedunderthischapter,thereis
2herebyspecificallyexemptedfromstateandlocalsalesandusetaxesdefined,levied,or
3calculatedundersection32.085,sections144.010to144.525,sections144.600to144.761,
4andsection238.235allsalesofclassIIImedicaldevicesasdescribedin21U.S.C.360c(a)
5(1)(C)thatuseelectricfieldsforthepurposesofthetreatmentofcancer,including
6componentsandrepairpartsandthedisposableorsingle-patient-usesuppliesrequired
7fortheuseofsuchdevices.
313.057.1.Itisunlawfulforanyperson,eitherasanowner,lesseeoremployee,to
2operate,carryon,conductormaintainanyformofmanufacturing,selling,leasingor
HCSHB1427 20 3distributionofanybingoequipmentorsupplieswithouthavingfirstprocuredandmaintained
4aMissouribingoequipmentandsuppliesmanufacturerorsupplierlicense.
5 2.Thecommissionshallsubmittwosetsoffingerprintsforeachkeyperson,as
6definedincommissionrulesandregulations,ofanentityororganizationseekingissuanceor
7renewalofaMissouribingoequipmentandsuppliesmanufacturerorsupplierlicense,forthe
8purposeofcheckingtheperson'spriorcriminalhistorywhenthecommissiondeterminesa
9nationwidecheckiswarranted.Thefingerprintcardsandanyrequiredfeesshallbesentto
10theMissouristatehighwaypatrol'scriminalrecordsdivision.Thefirstsetoffingerprints
11shallbeusedforsearchingthestaterepositoryofcriminalhistoryinformation.Thesecond
12setoffingerprintsshallbeforwardedtotheFederalBureauofInvestigation,Identification
13Division,forthesearchingofthefederalcriminalhistoryfiles.Thepatrolshallnotifythe
14commissionofanycriminalhistoryinformationorlackofcriminalhistoryinformation
15discoveredontheindividual.Notwithstandingtheprovisionsofsection610.120,allrecords
16relatedtoanycriminalhistoryinformationdiscoveredshallbeaccessibleandavailabletothe
17commission.
18 3.Theholderofastatebingolicensemay,withintwoyearsofcessationof
19conductingbingooruponspecificapprovalbythecommission,disposeofbysaleina
20mannerapprovedbythecommission,anyorallofhisbingoequipmentandsupplies,without
21asupplier'slicense.Incaseofforeclosureofalienbyabankorotherpersonholdinga
22securityinterestforwhichbingoequipmentissecurityinwholeorinpartforthelien,the
23commissionmayauthorizethedispositionofthebingoequipmentwithoutrequiringa
24supplier'slicense.
25 4.Anypersonwhomthecommissiondeterminestobeasuitablepersontoreceivea
26licensepursuanttotheprovisionsofthissectionmaybeissuedamanufacturer'sorsupplier's
27license.Thecommissionmayrequiresupplierstopostabondwiththecommissioninan
28amountandinthemannerprescribedbythecommission.Theburdenofprovinghis
29qualificationtoreceiveorholdalicensepursuanttothissectionisatalltimesontheapplicant
30orlicensee.
31 5.Thecommissionshallchargeandcollectfromeachapplicantforasupplier's
32licenseaone-timeapplicationfeesetbythecommission,nottoexceedfivethousanddollars.
33Thecommissionshallchargeandcollectanannualrenewalfeeforeachsupplierlicenseenot
34toexceedonethousanddollars.Theapplicantshallberesponsibleforthetotalcostofthe
35criminalhistoryinvestigation.Ifthecostoftheinvestigationexceedsthetotalamountoffees
36filedbytheapplicantinthissubsection,thecommissionmayassessadditionalfeesasit
37deemsappropriate.
38 6.Thecommissionshallchargeandcollectfromeachapplicantforamanufacturer's
39licenseaone-timeapplicationfeesetbythecommission,nottoexceedfivethousanddollars.
HCSHB1427 21 40Thecommissionshallchargeandcollectanannualrenewalfeeforeachmanufacturer
41licenseenottoexceedonethousanddollars.Theapplicantshallberesponsibleforthetotal
42costofthecriminalhistoryinvestigation.Ifthecostoftheinvestigationexceedsthetotal
43amountoffeesfiledbytheapplicantinthissubsection,thecommissionmayassessadditional
44feesasitdeemsappropriate.
45 7.Thecommissionshallchargeandcollectfromeachapplicantforahallprovider's
46licenseaone-timeapplicationfeesetbythecommission,nottoexceedsevenhundredfifty
47dollars.Thecommissionshallchargeandcollectanannualrenewalfeeforeachhallprovider
48licenseenottoexceedfivehundreddollars.
49 8.Alllicensesissuedpursuanttothissectionshallbeissuedforthecalendaryearand
50shallexpireonDecemberthirty-firstofeachyear.Regardlessofthedateofapplicationor
51issuanceofthelicense,thefeetobechargedandcollectedpursuanttothissectionshallbethe
52fullannualfee.
53 9.Alllicensefeescollectedpursuanttothissectionshallbepaidoverimmediatelyto
54thestatetreasurertobedepositedtothecreditofthegamingcommissionfund.
55 10.Alllicenseespursuanttothissectionshallmaintainforaperiodofnotlessthan
56threeyearsfullandcompleterecordsofallbusinesscarriedoninthisstateandshallmake
57sameavailableforinspectiontoanydulyauthorizedrepresentativeofthecommission.Ifa
58supplierdoesnotreceivepaymentinfullfromanorganizationwithinthirtydaysofthe
59deliveryofbingosupplies,thesuppliershallnotifythecommissioninwriting,orinamanner
60specifiedbythecommissioninitsrulesandregulations,ofthedelinquency.Uponreceiptof
61thenoticeofdelinquency,thecommissionshallnotifyallsuppliersthatuntilfurthernotice
62fromthecommission,allsalesofbingosuppliestothedelinquentorganizationsshallbeona
63cash-onlybasis.Uponreceiptofthenoticefromthecommission,nosuppliermayextend
64credittothedelinquentorganizationuntilsuchtimeasthecommissionapprovescreditsales.
65Ifamanufacturerdoesnotreceivepaymentinfullfromasupplierwithinninetydaysofthe
66deliveryofbingosupplies,themanufacturershallnotifythecommissioninwriting,orina
67mannerspecifiedbythecommissioninitsrulesandregulations,ofthedelinquency.Upon
68receiptofthenoticeofdelinquency,thecommissionshallnotifyallmanufacturersthatuntil
69furthernoticefromthecommission,allsalesofbingosuppliestothedelinquentsuppliershall
70beonacash-onlybasis.Uponreceiptofthenoticefromthecommission,nomanufacturer
71mayextendcredittothedelinquentsupplieruntilsuchtimeasthecommissionapproves
72creditsales.
73 11.[UntilJanuary1,1995,allsuppliersshallpayataxonallpull-tabcards
74distributedbythemintheamountoftendollarsperboxwhensoldbyanyorganization
75licensedtoconductbingopursuanttotheprovisionsofsections313.005to313.080.Nobox
76soldshallcontainmorethantwenty-fourhundredpull-tabcards.BeginningJanuary1,1995,
HCSHB1427 22 77ataxisherebyimposedintheamountoftwopercentofthegrossreceiptsoftheretailsales
78valuechargedforeachpull-tabcardsoldinMissouritobepaidbythesupplier.Thetaxes,
79lesstwopercentofthetotalamountpaidwhichmayberetainedbythesupplier,iftimelyfiled
80andpaid,shallbepaidonamonthlybasistothecommissionbyeachsupplierofpull-tabsand
81shallbedueonthelastdayofeachmonthfollowingthemonthinwhichthepull-tabswere
82sold.Thetaxesshallbedepositedinthestatetreasury,creditedtothebingoproceedsfor
83educationfund.] Allpull-tabcardssoldbysuppliersinthisstateshallbearonthefacethereof
84theamountforwhichsuchpull-tabcardswillbesold.Eachunitcontainershallcontaincards
85printedinsuchamannerastoensurethatatleastsixtypercentofthegrossrevenues
86generatedbytheultimatesaleofsuchcardsshallbereturnedtothefinalpurchasersofsuch
87cards.[Anysupplierwhofailstopaythetaximposedpursuanttothissubsectionshallhave
88hislicenseissuedpursuanttothissectionrevokedandshallbeguiltyofaclassA
89misdemeanor.]
[313.055.1.Ataxisherebyimposedoneachorganizationconducting
2 thegameofbingowhichawardstowinnersofbingogamesprizesor
3 merchandisehavinganaggregateretailvalueofmorethanfivethousand
4 dollarsannuallyandmorethanonehundreddollarsinanysingleday.Thetax
5 shallbeintheamountoftwo-tenthsofonecentuponeachbingocardand
6 progressivebingogamecardsoldinMissouritobepaidbythesupplier.The
7 taxes,lesstwopercentofthetotalamountpaidwhichmayberetainedbythe
8 supplier,shallbepaidonamonthlybasistothecommission,byeachsupplier
9 ofbingosuppliesandshallbedueonthelastdayofthemonthfollowingthe
10 monthinwhichthebingocardwassold,withthedateofsalebeingthedateon
11 theinvoiceevidencingthesale,alongwithsuchreportsasmayberequiredby
12 thecommission.Thetaxesshallbedepositedinthestatetreasury,creditedto
13 thebingoproceedsforeducationfund.
14 2.Alltaxesnotpaidtothecommissionbythepersonorlicensee
15 requiredtoremitthesameonthedatewhenthesamebecomesdueand
16 payabletothecommissionundertheprovisionsofsections313.005to
17 313.085shallbearinterestattheratetobesetbythecommissionnottoexceed
18 twopercentpercalendarmonth,orfractionthereof,fromandaftersuchdate
19 untilpaid.Inaddition,thecommissionmayimposeapenaltynottoexceed
20 threetimestheamountoftaxesdueforfailuretosubmitthereportsrequired
21 bythissectionandpaythetaxesdue.]
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HCSHB1427 23