FIRSTREGULARSESSION
HOUSEBILLNO.1402
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEDAVIS.
2254H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsection144.030,RSMo,andtoenactinlieuthereofonenewsectionrelatingtoa
salestaxexemption.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section144.030,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection144.030,toreadasfollows:
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
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18intofoodstuffswhicharetobesoldultimatelyinprocessedformatretail;orseed,limestone
19orfertilizerwhichistobeusedforseeding,limingorfertilizingcropswhichwhenharvested
20willbesoldatretailorwillbefedtolivestockorpoultrytobesoldultimatelyinprocessed
21formatretail;economicpoisonsregisteredpursuanttotheprovisionsoftheMissouri
22pesticideregistrationlaw,sections281.220to281.310,whicharetobeusedinconnection
23withthegrowthorproductionofcrops,fruittreesororchardsappliedbefore,during,orafter
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,
50orfacilitieslicensedundersection301.218butshallnotincludemotorvehiclesusedon
51highways.Forpurposesofthissection,thetermsmotorvehicleandhighwayshallhavethe
52samemeaningpursuanttosection301.010.Forthepurposesofthissubdivision,"part"
53includespurchasesofvehicleswhichareunusableasawhole.Forthepurposesofthis
54subdivision,subdivision(5)ofthissubsection,andsection144.054,aswellasthedefinition
HB1402 2 55insubdivision(9)ofsubsection1ofsection144.010,theterm"product"includes
56telecommunicationsservicesandtheterm"manufacturing"shallincludetheproduction,or
57productionandtransmission,oftelecommunicationsservices.Theprecedingsentencedoes
58notmakeasubstantivechangeinthelawandisintendedtoclarifythattheterm
59"manufacturing"hasincludedandcontinuestoincludetheproductionandtransmissionof
60"telecommunicationsservices",asenactedinthissubdivisionandsubdivision(5)ofthis
61subsection,aswellasthedefinitioninsubdivision(9)ofsubsection1ofsection144.010.
62Theprecedingtwosentencesreaffirmlegislativeintentconsistentwiththeinterpretationof
63thissubdivisionandsubdivision(5)ofthissubsectioninSouthwesternBellTel.Co.v.
64DirectorofRevenue,78S.W.3d763(Mo.banc2002)andSouthwesternBellTel.Co.v.
65DirectorofRevenue,182S.W.3d226(Mo.banc2005),andaccordinglyabrogatesthe
66Missourisupremecourt'sinterpretationofthoseexemptionsinIBMCorporationv.Director
67ofRevenue,491S.W.3d535(Mo.banc2016)totheextentinconsistentwiththissectionand
68SouthwesternBellTel.Co.v.DirectorofRevenue,78S.W.3d763(Mo.banc2002)and
69SouthwesternBellTel.Co.v.DirectorofRevenue,182S.W.3d226(Mo.banc2005).The
70constructionandapplicationofthissubdivisionasexpressedbytheMissourisupremecourt
71inDSTSystems,Inc.v.DirectorofRevenue,43S.W.3d799(Mo.banc2001);Southwestern
72BellTel.Co.v.DirectorofRevenue,78S.W.3d763(Mo.banc2002);andSouthwesternBell
73Tel.Co.v.DirectorofRevenue,182S.W.3d226(Mo.banc2005),isherebyaffirmed.
74Materialrecoveryisnotthereuseofmaterialswithinamanufacturingprocessortheuseofa
75productpreviouslyrecovered.Thematerialrecoveryprocessingplantshallqualifyunderthe
76provisionsofthissectionregardlessofownershipofthematerialbeingrecovered;
77 (5)Machineryandequipment,andpartsandthematerialsandsuppliessolely
78requiredfortheinstallationorconstructionofsuchmachineryandequipment,purchasedand
79usedtoestablishnewortoexpandexistingmanufacturing,miningorfabricatingplantsinthe
80stateifsuchmachineryandequipmentisuseddirectlyinmanufacturing,miningor
81fabricatingaproductwhichisintendedtobesoldultimatelyforfinaluseorconsumption.
82TheconstructionandapplicationofthissubdivisionasexpressedbytheMissourisupreme
83courtinDSTSystems,Inc.v.DirectorofRevenue,43S.W.3d799(Mo.banc2001);
84SouthwesternBellTel.Co.v.DirectorofRevenue,78S.W.3d763(Mo.banc2002);and
85SouthwesternBellTel.Co.v.DirectorofRevenue,182S.W.3d226(Mo.banc2005),is
86herebyaffirmed;
87 (6)Tangiblepersonalpropertywhichisusedexclusivelyinthemanufacturing,
88processing,modificationorassemblingofproductssoldtotheUnitedStatesgovernmentorto
89anyagencyoftheUnitedStatesgovernment;
90 (7)Animalsorpoultryusedforbreedingorfeedingpurposes,orcaptivewildlife;
HB1402 3 91 (8)Newsprint,ink,computers,photosensitivepaperandfilm,toner,printingplates
92andothermachinery,equipment,replacementpartsandsuppliesusedinproducing
93newspaperspublishedfordisseminationofnewstothegeneralpublic;
94 (9)Therentalsoffilms,recordsoranytypeofsoundorpicturetranscriptionsfor
95publiccommercialdisplay;
96 (10)Pumpingmachineryandequipmentusedtopropelproductsdeliveredby
97pipelinesengagedascommoncarriers;
98 (11)Railroadrollingstockforuseintransportingpersonsorpropertyininterstate
99commerceandmotorvehicleslicensedforagrossweightoftwenty-fourthousandpoundsor
100moreortrailersusedbycommoncarriers,asdefinedinsection390.020,inthetransportation
101ofpersonsorproperty;
102 (12)Electricalenergyusedintheactualprimarymanufacture,processing,
103compounding,miningorproducingofaproduct,orelectricalenergyusedintheactual
104secondaryprocessingorfabricatingoftheproduct,oramaterialrecoveryprocessingplantas
105definedinsubdivision(4)ofthissubsection,infacilitiesownedorleasedbythetaxpayer,if
106thetotalcostofelectricalenergysousedexceedstenpercentofthetotalcostofproduction,
107eitherprimaryorsecondary,exclusiveofthecostofelectricalenergysousedoriftheraw
108materialsusedinsuchprocessingcontainatleasttwenty-fivepercentrecoveredmaterialsas
109definedinsection260.200.Thereshallbearebuttablepresumptionthattherawmaterials
110usedintheprimarymanufactureofautomobilescontainatleasttwenty-fivepercent
111recoveredmaterials.Forpurposesofthissubdivision,"processing"meansanymodeof
112treatment,actorseriesofactsperformeduponmaterialstotransformandreducethemtoa
113differentstateorthing,includingtreatmentnecessarytomaintainorpreservesuchprocessing
114bytheproducerattheproductionfacility;
115 (13)Anodeswhichareusedorconsumedinmanufacturing,processing,
116compounding,mining,producingorfabricatingandwhichhaveausefullifeoflessthan
117oneyear;
118 (14)Machinery,equipment,appliancesanddevicespurchasedorleasedandused
119solelyforthepurposeofpreventing,abatingormonitoringairpollution,andmaterialsand
120suppliessolelyrequiredfortheinstallation,constructionorreconstructionofsuchmachinery,
121equipment,appliancesanddevices;
122 (15)Machinery,equipment,appliancesanddevicespurchasedorleasedandused
123solelyforthepurposeofpreventing,abatingormonitoringwaterpollution,andmaterialsand
124suppliessolelyrequiredfortheinstallation,constructionorreconstructionofsuchmachinery,
125equipment,appliancesanddevices;
126 (16)Tangiblepersonalpropertypurchasedbyaruralwaterdistrict;
HB1402 4 127 (17)Allamountspaidorchargedforadmissionorparticipationorotherfeespaidby
128orotherchargestoindividualsinorforanyplaceofamusement,entertainmentorrecreation,
129gamesorathleticevents,includingmuseums,fairs,zoosandplanetariums,ownedoroperated
130byamunicipalityorotherpoliticalsubdivisionwherealltheproceedsderivedtherefrom
131benefitthemunicipalityorotherpoliticalsubdivisionanddonotinuretoanyprivateperson,
132firm,orcorporation,provided,however,thatamunicipalityorotherpoliticalsubdivisionmay
133enterintorevenue-sharingagreementswithprivatepersons,firms,orcorporationsproviding
134goodsorservices,includingmanagementservices,inorfortheplaceofamusement,
135entertainmentorrecreation,gamesorathleticevents,andprovidedfurtherthatnothinginthis
136subdivisionshallexemptfromtaxanyamountsretainedbyanyprivateperson,firm,or
137corporationundersuchrevenue-sharingagreement;
138 (18)Allsalesofinsulin,andallsales,rentals,repairs,andpartsofdurablemedical
139equipment,prostheticdevices,andorthopedicdevicesasdefinedonJanuary1,1980,bythe
140federalMedicareprogrampursuanttoTitleXVIIIoftheSocialSecurityActof1965,
141includingtheitemsspecifiedinSection1862(a)(12)ofthatact,andalsospecifically
142includinghearingaidsandhearingaidsuppliesandallsalesofdrugswhichmaybelegally
143dispensedbyalicensedpharmacistonlyuponalawfulprescriptionofapractitionerlicensed
144toadministerthoseitems,includingsamplesandmaterialsusedtomanufacturesamples
145whichmaybedispensedbyapractitionerauthorizedtodispensesuchsamplesandallsalesor
146rentalofmedicaloxygen,homerespiratoryequipmentandaccessoriesincludingparts,and
147hospitalbedsandaccessoriesandambulatoryaidsincludingparts,andallsalesorrentalof
148manualandpoweredwheelchairsincludingparts,andstairwaylifts,Braillewriters,electronic
149Brailleequipmentand,ifpurchasedorrentedbyoronbehalfofapersonwithoneormore
150physicalormentaldisabilitiestoenablethemtofunctionmoreindependently,allsalesor
151rentalofscootersincludingparts,andreadingmachines,electronicprintenlargersand
152magnifiers,electronicalternativeandaugmentativecommunicationdevices,anditemsused
153solelytomodifymotorvehiclestopermittheuseofsuchmotorvehiclesbyindividualswith
154disabilitiesorsalesofover-the-counterornonprescriptiondrugstoindividualswith
155disabilities,anddrugsrequiredbytheFoodandDrugAdministrationtomeettheover-the-
156counterdrugproductlabelingrequirementsin21CFR201.66,oritssuccessor,asprescribed
157byahealthcarepractitionerlicensedtoprescribe;
158 (19)Allsalesmadebyortoreligiousandcharitableorganizationsandinstitutionsin
159theirreligious,charitableoreducationalfunctionsandactivitiesandallsalesmadebyortoall
160elementaryandsecondaryschoolsoperatedatpublicexpenseintheireducationalfunctions
161andactivities;
162 (20)Allsalesofaircrafttocommoncarriersforstorageorforuseininterstate
163commerceandallsalesmadebyortonot-for-profitcivic,social,serviceorfraternal
HB1402 5 164organizations,includingfraternalorganizationswhichhavebeendeclaredtax-exempt
165organizationspursuanttoSection501(c)(8)or(10)ofthe1986InternalRevenueCode,as
166amended,intheircivicorcharitablefunctionsandactivitiesandallsalesmadeto
167eleemosynaryandpenalinstitutionsandindustriesofthestate,andallsalesmadetoany
168privatenot-for-profitinstitutionofhighereducationnototherwiseexcludedpursuantto
169subdivision(19)ofthissubsectionoranyinstitutionofhighereducationsupportedbypublic
170funds,andallsalesmadetoastatereliefagencyintheexerciseofrelieffunctionsand
171activities;
172 (21)Allticketsalesmadebybenevolent,scientificandeducationalassociations
173whichareformedtofoster,encourage,andpromoteprogressandimprovementinthescience
174ofagricultureandintheraisingandbreedingofanimals,andbynonprofitsummertheater
175organizationsifsuchorganizationsareexemptfromfederaltaxpursuanttotheprovisionsof
176theInternalRevenueCodeandalladmissionchargesandentryfeestotheMissouristatefair
177oranyfairconductedbyacountyagriculturalandmechanicalsocietyorganizedandoperated
178pursuanttosections262.290to262.530;
179 (22)Allsalesmadetoanyprivatenot-for-profitelementaryorsecondaryschool,all
180salesoffeedadditives,medicationsorvaccinesadministeredtolivestockorpoultryinthe
181productionoffoodorfiber,allsalesofpesticidesusedintheproductionofcrops,livestockor
182poultryforfoodorfiber,allsalesofbeddingusedintheproductionoflivestockorpoultryfor
183foodorfiber,allsalesofpropaneornaturalgas,electricityordieselfuelusedexclusivelyfor
184dryingagriculturalcrops,naturalgasusedintheprimarymanufactureorprocessingoffuel
185ethanolasdefinedinsection142.028,naturalgas,propane,andelectricityusedbyaneligible
186newgenerationcooperativeoraneligiblenewgenerationprocessingentityasdefinedin
187section348.432,andallsalesoffarmmachineryandequipment,otherthanairplanes,motor
188vehiclesandtrailers,andanyfreightchargesonanyexemptitem.Asusedinthis
189subdivision,theterm"feedadditives"meanstangiblepersonalpropertywhich,whenmixed
190withfeedforlivestockorpoultry,istobeusedinthefeedingoflivestockorpoultry.Asused
191inthissubdivision,theterm"pesticides"includesadjuvantssuchascropoils,surfactants,
192wettingagentsandotherassortedpesticidecarriersusedtoimproveorenhancetheeffectofa
193pesticideandthefoamusedtomarktheapplicationofpesticidesandherbicidesforthe
194productionofcrops,livestockorpoultry.Asusedinthissubdivision,theterm"farm
195machineryandequipment"shallmean:
196 (a)Neworusedfarmtractorsandsuchotherneworusedfarmmachineryand
197equipment,includingutilityvehiclesusedforanyagriculturaluse,andrepairorreplacement
198partsthereonandanyaccessoriesforandupgradestosuchfarmmachineryandequipment
199androtarymowersusedforanyagriculturalpurposes.Forthepurposesofthissubdivision,
200"utilityvehicle"shallmeananymotorizedvehiclemanufacturedandusedexclusivelyforoff-
HB1402 6 201highwayusewhichismorethanfiftyinchesbutnomorethaneightyinchesinwidth,
202measuredfromoutsideoftirerimtooutsideoftirerim,withanunladendryweightofthree
203thousandfivehundredpoundsorless,travelingonfourorsixwheels;
204 (b)Suppliesandlubricantsusedexclusively,solely,anddirectlyforproducingcrops,
205raisingandfeedinglivestock,fish,poultry,pheasants,chukar,quail,orforproducingmilkfor
206ultimatesaleatretail,includingfielddraintile;and
207 (c)One-halfofeachpurchaser'spurchaseofdieselfuelthereforwhichis:
208 a.Usedexclusivelyforagriculturalpurposes;
209 b.Usedonlandownedorleasedforthepurposeofproducingfarmproducts;and
210 c.Useddirectlyinproducingfarmproductstobesoldultimatelyinprocessedformor
211otherwiseatretailorinproducingfarmproductstobefedtolivestockorpoultrytobesold
212ultimatelyinprocessedformatretail;
213 (23)Exceptasotherwiseprovidedinsection144.032,allsalesofmeteredwater
214service,electricity,electricalcurrent,natural,artificialorpropanegas,wood,coalorhome
215heatingoilfordomesticuseandinanycitynotwithinacounty,allsalesofmeteredor
216unmeteredwaterservicefordomesticuse:
217 (a)"Domesticuse"meansthatportionofmeteredwaterservice,electricity,electrical
218current,natural,artificialorpropanegas,wood,coalorhomeheatingoil,andinanycitynot
219withinacounty,meteredorunmeteredwaterservice,whichanindividualoccupantofa
220residentialpremisesusesfornonbusiness,noncommercialornonindustrialpurposes.Utility
221servicethroughasingleormastermeterforresidentialapartmentsorcondominiums,
222includingserviceforcommonareasandfacilitiesandvacantunits,shallbedeemedtobefor
223domesticuse.Eachsellershallestablishandmaintainasystemwherebyindividualpurchases
224aredeterminedasexemptornonexempt;
225 (b)Regulatedutilitysellersshalldeterminewhetherindividualpurchasesareexempt
226ornonexemptbasedupontheseller'sutilityservicerateclassificationsascontainedintariffs
227onfilewithandapprovedbytheMissouripublicservicecommission.Salesandpurchases
228madepursuanttotherateclassification"residential"andsalestoandpurchasesmadebyoron
229behalfoftheoccupantsofresidentialapartmentsorcondominiumsthroughasingleormaster
230meter,includingserviceforcommonareasandfacilitiesandvacantunits,shallbeconsidered
231assalesmadefordomesticuseandsuchsalesshallbeexemptfromsalestax.Sellersshall
232chargesalestaxupontheentireamountofpurchasesclassifiedasnondomesticuse.The
233seller'sutilityservicerateclassificationandtheprovisionofservicethereundershallbe
234conclusiveastowhetherornottheutilitymustchargesalestax;
235 (c)Eachpersonmakingdomesticusepurchasesofservicesorpropertyandwhouses
236anyportionoftheservicesorpropertysopurchasedforanondomesticuseshall,bythe
237fifteenthdayofthefourthmonthfollowingtheyearofpurchase,andwithoutassessment,
HB1402 7 238noticeordemand,fileareturnandpaysalestaxonthatportionofnondomesticpurchases.
239Eachpersonmakingnondomesticpurchasesofservicesorpropertyandwhousesanyportion
240oftheservicesorpropertysopurchasedfordomesticuse,andeachpersonmakingdomestic
241purchasesonbehalfofoccupantsofresidentialapartmentsorcondominiumsthroughasingle
242ormastermeter,includingserviceforcommonareasandfacilitiesandvacantunits,undera
243nonresidentialutilityservicerateclassificationmay,betweenthefirstdayofthefirstmonth
244andthefifteenthdayofthefourthmonthfollowingtheyearofpurchase,applyforcreditor
245refundtothedirectorofrevenueandthedirectorshallgivecreditormakerefundfortaxes
246paidonthedomesticuseportionofthepurchase.Thepersonmakingsuchpurchaseson
247behalfofoccupantsofresidentialapartmentsorcondominiumsshallhavestandingtoapplyto
248thedirectorofrevenueforsuchcreditorrefund;
249 (24)Allsalesofhandicraftitemsmadebythesellerortheseller'sspouseiftheseller
250ortheseller'sspouseisatleastsixty-fiveyearsofage,andifthetotalgrossproceedsfrom
251suchsalesdonotconstituteamajorityoftheannualgrossincomeoftheseller;
252 (25)Excisetaxes,collectedonsalesatretail,imposedbySections4041,4071,4081,
253[4091,] 4161,4181,4251,4261and4271ofTitle26,UnitedStatesCode.Thedirectorof
254revenueshallpromulgaterulespursuanttochapter536toeliminateallstateandlocalsales
255taxesonsuchexcisetaxes;
256 (26)Salesoffuelconsumedorusedintheoperationofships,barges,orwaterborne
257vesselswhichareusedprimarilyinorforthetransportationofpropertyorcargo,orthe
258conveyanceofpersonsforhire,onnavigableriversborderingonorlocatedinpartinthis
259state,ifsuchfuelisdeliveredbythesellertothepurchaser'sbarge,ship,orwaterbornevessel
260whileitisafloatuponsuchriver;
261 (27)Allsalesmadetoaninterstatecompactagencycreatedpursuanttosections
26270.370to70.441orsections238.010to238.100intheexerciseofthefunctionsandactivities
263ofsuchagencyasprovidedpursuanttothecompact;
264 (28)Computers,computersoftwareandcomputersecuritysystemspurchasedforuse
265byarchitecturalorengineeringfirmsheadquarteredinthisstate.Forthepurposesofthis
266subdivision,"headquarteredinthisstate"meanstheofficefortheadministrativemanagement
267ofatleastfourintegratedfacilitiesoperatedbythetaxpayerislocatedinthestateofMissouri;
268 (29)Alllivestocksaleswheneitherthesellerisengagedinthegrowing,producingor
269feedingofsuchlivestock,orthesellerisengagedinthebusinessofbuyingandselling,
270barteringorleasingofsuchlivestock;
271 (30)Allsalesofbargeswhicharetobeusedprimarilyinthetransportationof
272propertyorcargooninterstatewaterways;
273 (31)Electricalenergyorgas,whethernatural,artificialorpropane,water,orother
274utilitieswhichareultimatelyconsumedinconnectionwiththemanufacturingofcellularglass
HB1402 8 275productsorinanymaterialrecoveryprocessingplantasdefinedinsubdivision(4)ofthis
276subsection;
277 (32)Notwithstandingotherprovisionsoflawtothecontrary,allsalesofpesticidesor
278herbicidesusedintheproductionofcrops,aquaculture,livestockorpoultry;
279 (33)Tangiblepersonalpropertyandutilitiespurchasedforuseorconsumption
280directlyorexclusivelyintheresearchanddevelopmentofagricultural/biotechnologyand
281plantgenomicsproductsandprescriptionpharmaceuticalsconsumedbyhumansoranimals;
282 (34)Allsalesofgrainbinsforstorageofgrainforresale;
283 (35)Allsalesoffeedwhicharedevelopedforandusedinthefeedingofpetsowned
284byacommercialbreederwhensuchsalesaremadetoacommercialbreeder,asdefinedin
285section273.325,andlicensedpursuanttosections273.325to273.357;
286 (36)Allpurchasesbyacontractoronbehalfofanentitylocatedinanotherstate,
287providedthattheentityisauthorizedtoissueacertificateofexemptionforpurchasestoa
288contractorundertheprovisionsofthatstate'slaws.Forpurposesofthissubdivision,theterm
289"certificateofexemption"shallmeananydocumentevidencingthattheentityisexemptfrom
290salesandusetaxesonpurchasespursuanttothelawsofthestateinwhichtheentityis
291located.Anycontractormakingpurchasesonbehalfofsuchentityshallmaintainacopyof
292theentity'sexemptioncertificateasevidenceoftheexemption.Iftheexemptioncertificate
293issuedbytheexemptentitytothecontractorislaterdeterminedbythedirectorofrevenueto
294beinvalidforanyreasonandthecontractorhasacceptedthecertificateingoodfaith,neither
295thecontractorortheexemptentityshallbeliableforthepaymentofanytaxes,interestand
296penaltydueastheresultofuseoftheinvalidexemptioncertificate.Materialsshallbeexempt
297fromallstateandlocalsalesandusetaxeswhenpurchasedbyacontractorforthepurposeof
298fabricatingtangiblepersonalpropertywhichisusedinfulfillingacontractforthepurposeof
299constructing,repairingorremodelingfacilitiesforthefollowing:
300 (a)Anexemptentitylocatedinthisstate,iftheentityisoneofthoseentitiesableto
301issueprojectexemptioncertificatesinaccordancewiththeprovisionsofsection144.062;or
302 (b)Anexemptentitylocatedoutsidethestateiftheexemptentityisauthorizedto
303issueanexemptioncertificatetocontractorsinaccordancewiththeprovisionsofthatstate's
304lawandtheapplicableprovisionsofthissection;
305 (37)Allsalesorothertransfersoftangiblepersonalpropertytoalessorwholeases
306thepropertyunderaleaseofoneyearorlongerexecutedorineffectatthetimeofthesaleor
307othertransfertoaninterstatecompactagencycreatedpursuanttosections70.370to70.441or
308sections238.010to238.100;
309 (38)Salesofticketstoanycollegiateathleticchampionshipeventthatisheldina
310facilityownedoroperatedbyagovernmentalauthorityorcommission,aquasi-governmental
311agency,astateuniversityorcollegeorbythestateoranypoliticalsubdivisionthereof,
HB1402 9 312includingamunicipality,andthatisplayedonaneutralsiteandmayreasonablybeplayedat
313asitelocatedoutsidethestateofMissouri.Forpurposesofthissubdivision,"neutralsite"
314meansanysitethatisnotlocatedonthecampusofaconferencememberinstitution
315participatingintheevent;
316 (39)Allpurchasesbyasportscomplexauthoritycreatedundersection64.920,andall
317salesofutilitiesbysuchauthorityattheauthority'scostthatareconsumedinconnectionwith
318theoperationofasportscomplexleasedtoaprofessionalsportsteam;
319 (40)Allmaterials,replacementparts,andequipmentpurchasedforusedirectlyupon,
320andforthemodification,replacement,repair,andmaintenanceofaircraft,aircraftpower
321plants,andaircraftaccessories;
322 (41)Salesofsportingclays,wobble,skeet,andtraptargetstoanyshootingrangeor
323similarplacesofbusinessforuseinthenormalcourseofbusinessandmoneyreceivedbya
324shootingrangeorsimilarplacesofbusinessfrompatronsandheldbyashootingrangeor
325similarplaceofbusinessforredistributiontopatronsattheconclusionofashootingevent;
326 (42)Allsalesofmotorfuel,asdefinedinsection142.800,usedinanywatercraft,as
327definedinsection306.010;
328 (43)Anyneworusedaircraftsoldordeliveredinthisstatetoapersonwhoisnota
329residentofthisstateoracorporationthatisnotincorporatedinthisstate,andsuchaircraftis
330nottobebasedinthisstateandshallnotremaininthisstatemorethantenbusinessdays
331subsequenttothelasttooccurof:
332 (a)Thetransferoftitletotheaircrafttoapersonwhoisnotaresidentofthisstateora
333corporationthatisnotincorporatedinthisstate;or
334 (b)Thedateofthereturntoserviceoftheaircraftinaccordancewith14CFR91.407
335foranymaintenance,preventivemaintenance,rebuilding,alterations,repairs,orinstallations
336thatarecompletedcontemporaneouslywiththetransferoftitletotheaircrafttoapersonwho
337isnotaresidentofthisstateoracorporationthatisnotincorporatedinthisstate;
338 (44)Motorvehiclesregisteredinexcessoffifty-fourthousandpounds,andthe
339trailerspulledbysuchmotorvehicles,thatareactuallyusedinthenormalcourseofbusiness
340tohaulpropertyonthepublichighwaysofthestate,andthatarecapableofhaulingloads
341commensuratewiththemotorvehicle'sregisteredweight;andthematerials,replacement
342parts,andequipmentpurchasedforusedirectlyupon,andfortherepairandmaintenanceor
343manufactureofsuchvehicles.Forpurposesofthissubdivision,"motorvehicle"and"public
344highway"shallhavethemeaningasascribedinsection390.020;
345 (45)Allinternetaccessortheuseofinternetaccessregardlessofwhetherthetaxis
346imposedonaproviderofinternetaccessorabuyerofinternetaccess.Forpurposesofthis
347subdivision,thefollowingtermsshallmean:
HB1402 10 348 (a)"Directcosts",costsincurredbyagovernmentalauthoritysolelybecauseofan
349internetserviceprovider'suseofthepublicright-of-way.Thetermshallnotincludecoststhat
350thegovernmentalauthoritywouldhaveincurrediftheinternetserviceproviderdidnotmake
351suchuseofthepublicright-of-way.Directcostsshallbedeterminedinamannerconsistent
352withgenerallyacceptedaccountingprinciples;
353 (b)"Internet",computerandtelecommunicationsfacilities,includingequipmentand
354operatingsoftware,thatcomprisestheinterconnectedworldwidenetworkthatemploythe
355transmissioncontrolprotocolorinternetprotocol,oranypredecessororsuccessorprotocols
356tothatprotocol,tocommunicateinformationofallkindsbywireorradio;
357 (c)"Internetaccess",aservicethatenablesuserstoconnecttotheinternettoaccess
358content,information,orotherserviceswithoutregardtowhethertheserviceisreferredtoas
359telecommunications,communications,transmission,orsimilarservices,andwithoutregardto
360whetheraprovideroftheserviceissubjecttoregulationbytheFederalCommunications
361Commissionasacommoncarrierunder47U.S.C.Section201,etseq.Forpurposesofthis
362subdivision,internetaccessalsoincludes:thepurchase,use,orsaleofcommunications
363services,includingtelecommunicationsservicesasdefinedinsection144.010,totheextent
364thecommunicationsservicesarepurchased,used,orsoldtoprovidetheservicedescribedin
365thissubdivisionortootherwiseenableuserstoaccesscontent,information,orotherservices
366offeredovertheinternet;servicesthatareincidentaltotheprovisionofaservicedescribedin
367thissubdivision,whenfurnishedtousersaspartofsuchservice,includingahomepage,
368electronicmail,andinstantmessaging,includingvoice-capableandvideo-capableelectronic
369mailandinstantmessaging,videoclips,andpersonalelectronicstoragecapacity;ahome
370pageelectronicmailandinstantmessaging,includingvoice-capableandvideo-capable
371electronicmailandinstantmessaging,videoclips,andpersonalelectronicstoragecapacity
372thatareprovidedindependentlyorthatarenotpackedwithinternetaccess.Asusedinthis
373subdivision,internetaccessdoesnotincludevoice,audio,andvideoprogrammingorother
374productsandservices,exceptservicesdescribedinthisparagraphorthissubdivision,thatuse
375internetprotocoloranysuccessorprotocolandforwhichthereisacharge,regardlessof
376whetherthechargeisseparatelystatedoraggregatedwiththechargeforservicesdescribedin
377thisparagraphorthissubdivision;
378 (d)"Tax",anychargeimposedbythestateorapoliticalsubdivisionofthestatefor
379thepurposeofgeneratingrevenuesforgovernmentalpurposesandthatisnotafeeimposed
380foraspecificprivilege,service,orbenefitconferred,exceptasdescribedasotherwiseunder
381thissubdivision,oranyobligationimposedonasellertocollectandtoremittothestateora
382politicalsubdivisionofthestateanygrossretailtax,salestax,orusetaximposedonabuyer
383bysuchagovernmentalentity.Thetermtaxshallnotincludeanyfranchisefeeorsimilarfee
384imposedorauthorizedundersections67.1830to67.1846orsection67.2689;Section622or
HB1402 11 385653oftheCommunicationsActof1934,47U.S.C.Section542and47U.S.C.Section573;
386oranyotherfeerelatedtoobligationsoftelecommunicationscarriersunderthe
387CommunicationsActof1934,47U.S.C.Section151,etseq.,excepttotheextentthat:
388 a.Thefeeisnotimposedforthepurposeofrecoveringdirectcostsincurredbythe
389franchisingorothergovernmentalauthorityfromprovidingthespecificprivilege,service,or
390benefitconferredtothepayerofthefee;or
391 b.Thefeeisimposedfortheuseofapublicright-of-waybasedonapercentageofthe
392servicerevenue,andthefeeexceedstheincrementaldirectcostsincurredbythe
393governmentalauthorityassociatedwiththeprovisionofthatright-of-waytotheprovider
394ofinternetaccessservice.
395
396Nothinginthissubdivisionshallbeinterpretedasanexemptionfromtaxesdueongoodsor
397servicesthatweresubjecttotaxonJanuary1,2016;
398 (46)Allpurchasesbyacompanyofsolarphotovoltaicenergysystems,components
399usedtoconstructasolarphotovoltaicenergysystem,andallpurchasesofmaterialsand
400suppliesuseddirectlytoconstructormakeimprovementstosuchsystems,providedthatsuch
401systems:
402 (a)Aresoldorleasedtoanenduser;or
403 (b)Areusedtoproduce,collectandtransmitelectricityforresaleorretail.
404 3.Anyruling,agreement,orcontract,whetherwrittenororal,expressorimplied,
405betweenapersonandthisstate'sexecutivebranch,oranyotherstateagencyordepartment,
406stating,agreeing,orrulingthatsuchpersonisnotrequiredtocollectsalesandusetaxinthis
407statedespitethepresenceofawarehouse,distributioncenter,orfulfillmentcenterinthisstate
408thatisownedoroperatedbythepersonoranaffiliatedpersonshallbenullandvoidunlessit
409isspecificallyapprovedbyamajorityvoteofeachofthehousesofthegeneralassembly.For
410purposesofthissubsection,an"affiliatedperson"meansanypersonthatisamemberofthe
411samecontrolledgroupofcorporationsasdefinedinSection1563(a)oftheInternalRevenue
412Codeof1986,asamended,asthevendororanyotherentitythat,notwithstandingitsformof
413organization,bearsthesameownershiprelationshiptothevendorasacorporationthatisa
414memberofthesamecontrolledgroupofcorporationsasdefinedinSection1563(a)ofthe
415InternalRevenueCode,asamended.
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