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| 2 | 2 | | FIRST REGULAR SESSION |
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| 3 | 3 | | SENATE BILL NO. 185 |
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| 4 | 4 | | 103RD GENERAL ASSEMBLY |
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| 5 | 5 | | INTRODUCED BY SENATOR CIERPIOT. |
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| 6 | 6 | | 1303S.01I KRISTINA MARTIN, Secretary |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | To amend chapter 144, RSMo, by adding thereto one new section relating to a sales and use tax |
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| 9 | 9 | | exemption for certain broadband equipment. |
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| 10 | 10 | | |
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| 11 | 11 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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| 12 | 12 | | Section A. Chapter 144, RSMo, is amended by adding thereto 1 |
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| 13 | 13 | | one new section, to be known as section 144.812, to read as 2 |
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| 14 | 14 | | follows:3 |
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| 15 | 15 | | 144.812. 1. For purposes of this section, the 1 |
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| 16 | 16 | | following terms shall mean: 2 |
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| 17 | 17 | | (1) "Machinery and equipment used to provide broadband 3 |
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| 18 | 18 | | communications service", includes, but is not limited to, 4 |
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| 19 | 19 | | wires, cables, fiber, conduits, antennas, poles, switches, 5 |
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| 20 | 20 | | routers, amplifiers, rectifiers, repeaters, receivers, 6 |
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| 21 | 21 | | multiplexers, duplexers, transmitters, circuit cards, 7 |
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| 22 | 22 | | insulating and protective materia ls and cases, power 8 |
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| 23 | 23 | | equipment, backup power equipment, diagnostic equipment, 9 |
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| 24 | 24 | | storage devices, customer premise equipment, modems, 10 |
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| 25 | 25 | | software, cable modem termination system components and Wi - 11 |
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| 26 | 26 | | Fi equipment, and other general central office or headend 12 |
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| 27 | 27 | | and hub equipment, such as channel cards, frames, and 13 |
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| 28 | 28 | | cabinets, or equipment used in successor technologies, 14 |
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| 29 | 29 | | including items used to monitor, test, maintain, enable, or 15 |
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| 30 | 30 | | facilitate qualifying equipment, machinery, ancillary 16 |
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| 31 | 31 | | components, appurtenances, access ories, or other 17 SB 185 2 |
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| 32 | 32 | | infrastructure that is used in whole or in part to provide 18 |
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| 33 | 33 | | broadband communications service; 19 |
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| 34 | 34 | | (2) "Broadband communications service", internet 20 |
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| 35 | 35 | | access as defined in 47 U.S.C. Section 151, note, 21 |
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| 36 | 36 | | telecommunications service, video prog ramming service, or 22 |
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| 37 | 37 | | any combination thereof; 23 |
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| 38 | 38 | | (3) "Broadband communications service provider", a 24 |
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| 39 | 39 | | person engaged in the provision of broadband communications 25 |
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| 40 | 40 | | service or an affiliate of such person; 26 |
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| 41 | 41 | | (4) "Person", the same meaning as such term i s defined 27 |
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| 42 | 42 | | under section 144.010. 28 |
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| 43 | 43 | | 2. For all tax years beginning on or after January 1, 29 |
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| 44 | 44 | | 2026, in addition to the exemptions granted under the 30 |
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| 45 | 45 | | provisions of section 144.030, there shall also be 31 |
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| 46 | 46 | | specifically exempted from the provisions of sections 32 |
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| 47 | 47 | | 144.010 to 144.525, sections 144.600 to 144.746, and section 33 |
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| 48 | 48 | | 238.235; the provisions of any local sales tax law, as 34 |
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| 49 | 49 | | defined in section 32.085; the computation of the tax 35 |
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| 50 | 50 | | levied, assessed, or payable under sections 144.010 to 36 |
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| 51 | 51 | | 144.525, sections 144.600 to 144.746, and section 238.235; 37 |
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| 52 | 52 | | and the provisions of any local sales tax law, as defined in 38 |
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| 53 | 53 | | section 32.085, all sales, purchases, or use of machinery 39 |
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| 54 | 54 | | and equipment used to provide broadband communications 40 |
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| 55 | 55 | | service by a broadband communications service provider. 41 |
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| 56 | 56 | | 3. To qualify for the exemption provided under this 42 |
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| 57 | 57 | | section, the broadband communications service provider shall 43 |
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| 58 | 58 | | furnish to the seller a certificate in writing to the effect 44 |
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| 59 | 59 | | that an exemption under this section is applicable to the 45 |
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| 60 | 60 | | machinery and equipment used to provide broadband 46 |
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| 61 | 61 | | communications service so purchased or used. The director 47 |
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| 62 | 62 | | of revenue shall permit any such broadband communications 48 |
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| 63 | 63 | | service provider to enter into a direct pay agreement with 49 SB 185 3 |
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| 64 | 64 | | the department of revenue, pu rsuant to which such provider 50 |
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| 65 | 65 | | may pay directly to the department of revenue any applicable 51 |
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| 66 | 66 | | sales and use taxes on such equipment. 52 |
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| 67 | 67 | | 4. No inference, implication, or presumption of 53 |
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| 68 | 68 | | legislative construction shall be drawn or made by reason of 54 |
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| 69 | 69 | | the adoption of this section with respect to subdivisions 55 |
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| 70 | 70 | | (4) to (6) of subsection 2 of 144.030 or the qualification 56 |
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| 71 | 71 | | for the exemptions provided therein. This subsection, 57 |
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| 72 | 72 | | therefore, expresses the legislative intent that adoption of 58 |
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| 73 | 73 | | this section shall have no impact on subdivisions (4) to (6) 59 |
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| 74 | 74 | | of subsection 2 of 144.030 or, as clarified in those 60 |
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| 75 | 75 | | subdivisions, the application of Southwestern Bell Tel. Co. 61 |
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| 76 | 76 | | v. Director of Revenue , 78 S.W.3d 763 (Mo. banc 2002) and 62 |
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| 77 | 77 | | Southwestern Bell Tel. Co. v. Director of Reve nue, 182 63 |
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| 78 | 78 | | S.W.3d 226 (Mo. banc 2005). 64 |
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| 79 | 79 | | |
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