EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 237
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
0285S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 144.054, RSMo, and to enact in lieu thereof one new section relating to sales tax
exemptions.
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Section A. Section 144.054, RSMo, is repealed and one new 1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
(3) "Producing" includes, but is not limited to, the 13
production of, including the production and transmission of, 14
telecommunication services; 15
(4) "Product" includes, but is not limited to, 16
telecommunications services; 17 SB 237 2
(5) "Recovered materials", those materials which have 18
been diverted or removed from the solid waste stream for 19
sale, use, reuse, or recycling, whether or not they require 20
subsequent separation and processing. 21
2. (1) In addition to all other exemptions granted 22
under this chapter, there is hereby specifically exempted 23
from the provisions of this chapter [and the local sales tax 24
law as defined in section 32.085 ] and from the computation 25
of the tax levied, assessed, or payable under this chapter 26
[and the local sales tax law as defined in section 32.085 ], 27
electrical energy and gas, whether natural, artificial, or 28
propane, water, coal, and energy sources, chemicals, 29
machinery, 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, compounding, 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. b anc 2002); and Southwestern 39
Bell Tel. Co. v. Director of Revenue , 182 S.W.3d 226 (Mo. 40
banc 2005), is hereby affirmed. 41
(2) In addition to the exemption granted pursuant to 42
subdivision (1) of this subsection, a political subdivision 43
may exempt such transactions from any sales tax levied by 44
such political subdivision pursuant to the local sales tax 45
law as defined in section 32.085, provided that no such 46
exemption shall become effective unless approved by a vote 47
of the people. 48 SB 237 3
3. In addition to all other exemptions granted under 49
this chapter, there is hereby specifically exempted from the 50
provisions of this chapter and the local sales tax law as 51
defined in section 32.085, and from the computation of the 52
tax levied, assessed, or payable un der this chapter and the 53
local sales tax law as defined in section 32.085, all 54
utilities, machinery, and equipment used or consumed 55
directly in television or radio broadcasting and all sales 56
and purchases of tangible personal property, utilities, 57
services, or any other transaction that would otherwise be 58
subject to the state or local sales or use tax when such 59
sales are made to or purchases are made by a contractor for 60
use in fulfillment of any obligation under a defense 61
contract with the United St ates government, and all sales 62
and leases of tangible personal property by any county, 63
city, incorporated town, or village, provided such sale or 64
lease is authorized under chapter 100, and such transaction 65
is certified for sales tax exemption by the de partment of 66
economic development, and tangible personal property used 67
for railroad infrastructure brought into this state for 68
processing, fabrication, or other modification for use 69
outside the state in the regular course of business. 70
4. In addition to all other exemptions granted under 71
this chapter, there is hereby specifically exempted from the 72
provisions of this chapter and the local sales tax law as 73
defined in section 32.085, and from the computation of the 74
tax levied, assessed, or payable under this chapter and the 75
local sales tax law as defined in section 32.085, all sales 76
and purchases of tangible personal property, utilities, 77
services, or any other transaction that would otherwise be 78
subject to the state or local sales or use tax whe n such 79
sales are made to or purchases are made by a private partner 80 SB 237 4
for use in completing a project under sections 227.600 to 81
227.669. 82
5. In addition to all other exemptions granted under 83
this chapter, there is hereby specifically exempted from t he 84
provisions of this chapter and the local sales tax law as 85
defined in section 32.085, and from the computation of the 86
tax levied, assessed, or payable under this chapter and the 87
local sales tax law as defined in section 32.085, all 88
materials, manufactured goods, machinery and parts, 89
electrical energy and gas, whether natural, artificial or 90
propane, water, coal and other energy sources, chemicals, 91
soaps, detergents, cleaning and sanitizing agents, and other 92
ingredients and materials inserted by co mmercial or 93
industrial laundries to treat, clean, and sanitize textiles 94
in facilities which process at least five hundred pounds of 95
textiles per hour and at least sixty thousand pounds per 96
week. 97
6. In addition to all other exemptions granted 98
pursuant to this chapter, there is hereby exempted from the 99
provisions of and the computation of the tax levied, 100
assessed, or payable pursuant to this chapter and the local 101
sales tax law as defined in section 32.085, all sales and 102
purchases of tangible pe rsonal property, building materials, 103
equipment, fixtures, manufactured goods, machinery, and 104
parts for the purposes of constructing all or any portion of 105
a nuclear security enterprise located in any city with more 106
than four hundred thousand inhabitants and located in more 107
than one county. This subsection shall expire on August 28, 108
2034. 109