FIRST REGULAR SESSION
SENATE BILL NO. 185
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR CIERPIOT.
1303S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 144, RSMo, by adding thereto one new section relating to a sales and use tax
exemption for certain broadband equipment.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 144, RSMo, is amended by adding thereto 1
one new section, to be known as section 144.812, to read as 2
follows:3
144.812. 1. For purposes of this section, the 1
following terms shall mean: 2
(1) "Machinery and equipment used to provide broadband 3
communications service", includes, but is not limited to, 4
wires, cables, fiber, conduits, antennas, poles, switches, 5
routers, amplifiers, rectifiers, repeaters, receivers, 6
multiplexers, duplexers, transmitters, circuit cards, 7
insulating and protective materia ls and cases, power 8
equipment, backup power equipment, diagnostic equipment, 9
storage devices, customer premise equipment, modems, 10
software, cable modem termination system components and Wi - 11
Fi equipment, and other general central office or headend 12
and hub equipment, such as channel cards, frames, and 13
cabinets, or equipment used in successor technologies, 14
including items used to monitor, test, maintain, enable, or 15
facilitate qualifying equipment, machinery, ancillary 16
components, appurtenances, access ories, or other 17 SB 185 2
infrastructure that is used in whole or in part to provide 18
broadband communications service; 19
(2) "Broadband communications service", internet 20
access as defined in 47 U.S.C. Section 151, note, 21
telecommunications service, video prog ramming service, or 22
any combination thereof; 23
(3) "Broadband communications service provider", a 24
person engaged in the provision of broadband communications 25
service or an affiliate of such person; 26
(4) "Person", the same meaning as such term i s defined 27
under section 144.010. 28
2. For all tax years beginning on or after January 1, 29
2026, in addition to the exemptions granted under the 30
provisions of section 144.030, there shall also be 31
specifically exempted from the provisions of sections 32
144.010 to 144.525, sections 144.600 to 144.746, and section 33
238.235; the provisions of any local sales tax law, as 34
defined in section 32.085; the computation of the tax 35
levied, assessed, or payable under sections 144.010 to 36
144.525, sections 144.600 to 144.746, and section 238.235; 37
and the provisions of any local sales tax law, as defined in 38
section 32.085, all sales, purchases, or use of machinery 39
and equipment used to provide broadband communications 40
service by a broadband communications service provider. 41
3. To qualify for the exemption provided under this 42
section, the broadband communications service provider shall 43
furnish to the seller a certificate in writing to the effect 44
that an exemption under this section is applicable to the 45
machinery and equipment used to provide broadband 46
communications service so purchased or used. The director 47
of revenue shall permit any such broadband communications 48
service provider to enter into a direct pay agreement with 49 SB 185 3
the department of revenue, pu rsuant to which such provider 50
may pay directly to the department of revenue any applicable 51
sales and use taxes on such equipment. 52
4. No inference, implication, or presumption of 53
legislative construction shall be drawn or made by reason of 54
the adoption of this section with respect to subdivisions 55
(4) to (6) of subsection 2 of 144.030 or the qualification 56
for the exemptions provided therein. This subsection, 57
therefore, expresses the legislative intent that adoption of 58
this section shall have no impact on subdivisions (4) to (6) 59
of subsection 2 of 144.030 or, as clarified in those 60
subdivisions, the application of Southwestern Bell Tel. Co. 61
v. Director of Revenue , 78 S.W.3d 763 (Mo. banc 2002) and 62
Southwestern Bell Tel. Co. v. Director of Reve nue, 182 63
S.W.3d 226 (Mo. banc 2005). 64