EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
[TRULY AGREED TO AND FINALLY PASSED ]
SENATE BILL NO. 1388
102ND GENERAL ASSEMBLY
2024
5414S.02T
AN ACT
To repeal section 144.054, RSMo, and to enact in lieu thereof one new section relating to a sales
tax exemption for certain nuclear facilities.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 144.054, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 144.054, 2
to read as follows:3
144.054. 1. As used in this section, the following 1
terms mean: 2
(1) "Nuclear security enterprise", the same meaning as 3
defined in 50 U.S.C. Section 2501, inclusive of buildings, 4
structures, and infrastructure constructed for use as a 5
defense nuclear facility as defined in 50 U.S.C. Section 6
2501; 7
(2) "Processing", any mode of treatment, act, or 8
series of acts performed upon materials to transform or 9
reduce them to a different state or thing, including 10
treatment necessary to maintain or preserve such processing 11
by the producer at the production facility; 12
[(2)] (3) "Producing" includes, but is not limited to, 13
the production of, including the production and transmission 14
of, telecommunication services; 15
[(3)] (4) "Product" includes, but is not limited to, 16
telecommunications services; 17 SB 1388 2
[(4)] (5) "Recovered materials", those materials which 18
have been diverted or removed from the solid waste stream 19
for sale, use, reuse, or recycling, whether or not they 20
require subsequent separatio n and processing. 21
2. In addition to all other exemptions granted under 22
this chapter, there is hereby specifically exempted from the 23
provisions of this chapter and the local sales tax law as 24
defined in section 32.085 and from the computation of the 25
tax levied, assessed, or payable under this chapter and the 26
local sales tax law as defined in section 32.085, electrical 27
energy and gas, whether natural, artificial, or propane, 28
water, coal, and energy sources, chemicals, machinery, 29
equipment, and materials used or consumed in the 30
manufacturing, processing, compounding, mining, or producing 31
of any product, or used or consumed in the processing of 32
recovered materials, or used in research and development 33
related to manufacturing, processing, compoun ding, mining, 34
or producing any product. The construction and application 35
of this subsection as expressed by the Missouri supreme 36
court in DST Systems, Inc. v. Director of Revenue , 43 S.W.3d 37
799 (Mo. banc 2001); Southwestern Bell Tel. Co. v. Director 38
of Revenue, 78 S.W.3d 763 (Mo. banc 2002); and Southwestern 39
Bell Tel. Co. v. Director of Revenue , 182 S.W.3d 226 (Mo. 40
banc 2005), is hereby affirmed. 41
3. In addition to all other exemptions granted under 42
this chapter, there is hereby specifically e xempted from the 43
provisions of this chapter and the local sales tax law as 44
defined in section 32.085, and from the computation of the 45
tax levied, assessed, or payable under this chapter and the 46
local sales tax law as defined in section 32.085, all 47
utilities, machinery, and equipment used or consumed 48
directly in television or radio broadcasting and all sales 49 SB 1388 3
and purchases of tangible personal property, utilities, 50
services, or any other transaction that would otherwise be 51
subject to the state or loca l sales or use tax when such 52
sales are made to or purchases are made by a contractor for 53
use in fulfillment of any obligation under a defense 54
contract with the United States government, and all sales 55
and leases of tangible personal property by any coun ty, 56
city, incorporated town, or village, provided such sale or 57
lease is authorized under chapter 100, and such transaction 58
is certified for sales tax exemption by the department of 59
economic development, and tangible personal property used 60
for railroad infrastructure brought into this state for 61
processing, fabrication, or other modification for use 62
outside the state in the regular course of business. 63
4. In addition to all other exemptions granted under 64
this chapter, there is hereby specifically exempted from the 65
provisions of this chapter and the local sales tax law as 66
defined in section 32.085, and from the computation of the 67
tax levied, assessed, or payable under this chapter and the 68
local sales tax law as defined in section 32.085, all sa les 69
and purchases of tangible personal property, utilities, 70
services, or any other transaction that would otherwise be 71
subject to the state or local sales or use tax when such 72
sales are made to or purchases are made by a private partner 73
for use in completing a project under sections 227.600 to 74
227.669. 75
5. In addition to all other exemptions granted under 76
this chapter, there is hereby specifically exempted from the 77
provisions of this chapter and the local sales tax law as 78
defined in section 32 .085, and from the computation of the 79
tax levied, assessed, or payable under this chapter and the 80
local sales tax law as defined in section 32.085, all 81 SB 1388 4
materials, manufactured goods, machinery and parts, 82
electrical energy and gas, whether natural, arti ficial or 83
propane, water, coal and other energy sources, chemicals, 84
soaps, detergents, cleaning and sanitizing agents, and other 85
ingredients and materials inserted by commercial or 86
industrial laundries to treat, clean, and sanitize textiles 87
in facilities which process at least five hundred pounds of 88
textiles per hour and at least sixty thousand pounds per 89
week. 90
6. In addition to all other exemptions granted 91
pursuant to this chapter, there is hereby exempted from the 92
provisions of and the comp utation of the tax levied, 93
assessed, or payable pursuant to this chapter and the local 94
sales tax law as defined in section 32.085, all sales and 95
purchases of tangible personal property, building materials, 96
equipment, fixtures, manufactured goods, machi nery, and 97
parts for the purposes of constructing all or any portion of 98
a nuclear security enterprise located in any city with more 99
than four hundred thousand inhabitants and located in more 100
than one county. This subsection shall expire on August 28, 101
2034. 102