0400S.02C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 245
AN ACT
To repeal sections 144.030 and 144.615, RSMo, and to
enact in lieu thereof two new sections relating to
sales tax exemptions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 144.030 and 144.615, RSMo, are
repealed and two new sections enacted in lieu thereof, to be
known as sections 144.030 and 144.615, to read as follows:
144.030. 1. There is hereby specifically exempted
from the provisions of sections 144.010 to 144.525 and from
the computation of the tax levied, assessed or payable
pursuant to sections 144.010 to 144.525 such retail sales as
may be made in commerce between this state and any other
state of the United States, or between this state and any
foreign country, and any retail sale which the state of
Missouri is prohibited from taxing pursuant to the
Constitution or laws of the United States of America, and
such retail sales of tangible personal property which the
general assembly of the state of Missouri is prohibited from
taxing or further taxing by the constitution of this state.
2. There are also specifically exempted from the
provisions of the local sales tax law as defined in section
32.085, section 238.235, a nd sections 144.010 to 144.525 and
144.600 to 144.761 and from the computation of the tax
levied, assessed or payable pursuant to the local sales tax
law as defined in section 32.085, section 238.235, and
sections 144.010 to 144.525 and 144.600 to 144. 745:
(1) Motor fuel or special fuel subject to an excise
tax of this state, unless all or part of such excise tax is
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refunded pursuant to section 142.824; or upon the sale at
retail of fuel to be consumed in manufacturing or creating
gas, power, steam, electrical current or in furnishing water
to be sold ultimately at retail; or feed for livestock or
poultry; or grain to be converted into foodstuffs which are
to be sold ultimately in processed form at retail; or seed,
limestone or fertilizer w hich is to be used for seeding,
liming or fertilizing crops which when harvested will be
sold at retail or will be fed to livestock or poultry to be
sold ultimately in processed form at retail; economic
poisons registered pursuant to the provisions of the
Missouri pesticide registration law, sections 281.220 to
281.310, which are to be used in connection with the growth
or production of crops, fruit trees or orchards applied
before, during, or after planting, the crop of which when
harvested will be sold at retail or will be converted into
foodstuffs which are to be sold ultimately in processed form
at retail;
(2) Materials, manufactured goods, machinery and parts
which when used in manufacturing, processing, compounding,
mining, producing or fabricating become a component part or
ingredient of the new personal property resulting from such
manufacturing, processing, compounding, mining, producing or
fabricating and which new personal property is intended to
be sold ultimately for final use or consumption; and
materials, including without limitation, gases and
manufactured goods, including without limitation slagging
materials and firebrick, which are ultimately consumed in
the manufacturing process by blending, reacting or
interacting with or by becoming, in whole or in part,
component parts or ingredients of steel products intended to
be sold ultimately for final use or consumption;
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(3) Materials, replacement parts and equipment
purchased for use directly upon, and for the repair and
maintenance or manufacture of, motor vehicles, watercraft,
railroad rolling stock or aircraft engaged as common
carriers of persons or property;
(4) Replacement machinery, equipment, and parts and
the materials and supplies solely requ ired for the
installation or construction of such replacement machinery,
equipment, and parts, used directly in manufacturing,
mining, fabricating or producing a product which is intended
to be sold ultimately for final use or consumption; and
machinery and equipment, and the materials and supplies
required solely for the operation, installation or
construction of such machinery and equipment, purchased and
used to establish new, or to replace or expand existing,
material recovery processing plants in this state. For the
purposes of this subdivision, a "material recovery
processing plant" means a facility that has as its primary
purpose the recovery of materials into a usable product or a
different form which is used in producing a new product and
shall include a facility or equipment which are used
exclusively for the collection of recovered materials for
delivery to a material recovery processing plant but shall
not include motor vehicles used on highways. For purposes
of this section, the terms motor vehicle and highway shall
have the same meaning pursuant to section 301.010. For the
purposes of this subdivision, subdivision (5) of this
subsection, and section 144.054, as well as the definition
in subdivision (9) of subsection 1 of section 144.010, the
term "product" includes telecommunications services and the
term "manufacturing" shall include the production, or
production and transmission, of telecommunications
services. The preceding sentence does not make a
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substantive change in the law and is intended to clarify
that the term "manufacturing" has included and continues to
include the production and transmission of
"telecommunications services", as enacted in this
subdivision and subdivision (5) of this subsection, as we ll
as the definition in subdivision (9) of subsection 1 of
section 144.010. The preceding two sentences reaffirm
legislative intent consistent with the interpretation of
this subdivision and subdivision (5) of this subsection in
Southwestern Bell Tel . Co. v. Director of Revenue, 78 S.W.3d
763 (Mo. banc 2002) and Southwestern Bell Tel. Co. v.
Director of Revenue, 182 S.W.3d 226 (Mo. banc 2005), and
accordingly abrogates the Missouri supreme court's
interpretation of those exemptions in IBM Corporat ion v.
Director of Revenue, 491 S.W.3d 535 (Mo. banc 2016) to the
extent inconsistent with this section and Southwestern Bell
Tel. Co. v. Director of Revenue, 78 S.W.3d 763 (Mo. banc
2002) and Southwestern Bell Tel. Co. v. Director of Revenue,
182 S.W.3d 226 (Mo. banc 2005). The construction and
application of this subdivision as expressed by the Missouri
supreme court in DST Systems, Inc. v. Director of Revenue,
43 S.W.3d 799 (Mo. banc 2001); Southwestern Bell Tel. Co. v.
Director of Revenue, 78 S.W.3d 763 (Mo. banc 2002); and
Southwestern Bell Tel. Co. v. Director of Revenue, 182
S.W.3d 226 (Mo. banc 2005), is hereby affirmed. Material
recovery is not the reuse of materials within a
manufacturing process or the use of a product previously
recovered. The material recovery processing plant shall
qualify under the provisions of this section regardless of
ownership of the material being recovered;
(5) Machinery and equipment, and parts and the
materials and supplies solely required for the installation
or construction of such machinery and equipment, purchased
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and used to establish new or to expand existing
manufacturing, mining or fabricating plants in the state if
such machinery and equipment is used directly in
manufacturing, mining or fabricating a product which is
intended to be sold ultimately for final use or
consumption. The construction and application of this
subdivision as expressed by the Missouri supreme court in
DST Systems, Inc. v. Director of Revenue, 43 S.W.3d 799 (Mo.
banc 2001); Southwestern Bell Tel. Co. v. Director of
Revenue, 78 S.W.3d 763 (Mo. banc 2002); and Southwestern
Bell Tel. Co. v. Director of Revenue, 182 S.W.3d 226 (Mo.
banc 2005), is hereby affirmed;
(6) Tangible personal property which is used
exclusively in the manufacturing, processing, modification
or assembling of products sold to the United States
government or to any agency of the United States government;
(7) Animals or poultry used for breeding or feeding
purposes, or captive wildlife;
(8) Newsprint, ink, computers, photosensitive paper
and film, toner, printing plates and other machinery,
equipment, replacement parts and supplies used in producing
newspapers published for dissemination of news to the
general public;
(9) The rentals of films, records or any type of sound
or picture transcriptions for public commercial display;
(10) Pumping machinery and equipment used to propel
products delivered by pipelines engaged as common carriers;
(11) Railroad rolling stock for use in transporting
persons or property in interstate commerce and motor
vehicles licensed for a gross weight of twenty -four thousand
pounds or more or trailers used by common carriers, as
defined in section 390.020, in the transportation of persons
or property;
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(12) Electrical energy used in the actual primary
manufacture, processing, compounding, mining or producing of
a product, or electrical energy used in the actual secondary
processing or fabricating of the pr oduct, or a material
recovery processing plant as defined in subdivision (4) of
this subsection, in facilities owned or leased by the
taxpayer, if the total cost of electrical energy so used
exceeds ten percent of the total cost of production, either
primary or secondary, exclusive of the cost of electrical
energy so used or if the raw materials used in such
processing contain at least twenty -five percent recovered
materials as defined in section 260.200. There shall be a
rebuttable presumption th at the raw materials used in the
primary manufacture of automobiles contain at least twenty -
five percent recovered materials. For purposes of this
subdivision, "processing" means any mode of treatment, act
or series of acts performed upon materials to transform and
reduce them to a different state or thing, including
treatment necessary to maintain or preserve such processing
by the producer at the production facility;
(13) Anodes which are used or consumed in
manufacturing, processing, compo unding, mining, producing or
fabricating and which have a useful life of less than one
year;
(14) Machinery, equipment, appliances and devices
purchased or leased and used solely for the purpose of
preventing, abating or monitoring air pollution, and
materials and supplies solely required for the installation,
construction or reconstruction of such machinery, equipment,
appliances and devices;
(15) Machinery, equipment, appliances and devices
purchased or leased and used solely for the p urpose of
preventing, abating or monitoring water pollution, and
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materials and supplies solely required for the installation,
construction or reconstruction of such machinery, equipment,
appliances and devices;
(16) Tangible personal property pur chased by a rural
water district;
(17) All amounts paid or charged for admission or
participation or other fees paid by or other charges to
individuals in or for any place of amusement, entertainment
or recreation, games or athletic events, inclu ding museums,
fairs, zoos and planetariums, owned or operated by a
municipality or other political subdivision where all the
proceeds derived therefrom benefit the municipality or other
political subdivision and do not inure to any private
person, firm, or corporation, provided, however, that a
municipality or other political subdivision may enter into
revenue-sharing agreements with private persons, firms, or
corporations providing goods or services, including
management services, in or for the pl ace of amusement,
entertainment or recreation, games or athletic events, and
provided further that nothing in this subdivision shall
exempt from tax any amounts retained by any private person,
firm, or corporation under such revenue -sharing agreement;
(18) All sales of insulin, and all sales, rentals,
repairs, and parts of durable medical equipment, prosthetic
devices, and orthopedic devices as defined on January 1,
1980, by the federal Medicare program pursuant to Title
XVIII of the Social Se curity Act of 1965, including the
items specified in Section 1862(a)(12) of that act, and also
specifically including hearing aids and hearing aid supplies
and all sales of drugs which may be legally dispensed by a
licensed pharmacist only upon a lawfu l prescription of a
practitioner licensed to administer those items, including
samples and materials used to manufacture samples which may
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be dispensed by a practitioner authorized to dispense such
samples and all sales or rental of medical oxygen, hom e
respiratory equipment and accessories including parts, and
hospital beds and accessories and ambulatory aids including
parts, and all sales or rental of manual and powered
wheelchairs including parts, and stairway lifts, Braille
writers, electronic Braille equipment and, if purchased or
rented by or on behalf of a person with one or more physical
or mental disabilities to enable them to function more
independently, all sales or rental of scooters including
parts, and reading machines, electronic print enlargers and
magnifiers, electronic alternative and augmentative
communication devices, and items used solely to modify motor
vehicles to permit the use of such motor vehicles by
individuals with disabilities or sales of over -the-counter
or nonprescription drugs to individuals with disabilities,
and drugs required by the Food and Drug Administration to
meet the over-the-counter drug product labeling requirements
in 21 CFR 201.66, or its successor, as prescribed by a
health care practitioner licensed to prescribe;
(19) All sales made by or to religious and charitable
organizations and institutions in their religious,
charitable or educational functions and activities and all
sales made by or to all elementary and secondary schools
operated at public expense in their educational functions
and activities;
(20) All sales of aircraft to common carriers for
storage or for use in interstate commerce and all sales made
by or to not-for-profit civic, social, service or fraternal
organizations, including fraternal organizations which have
been declared tax-exempt organizations pursuant to Section
501(c)(8) or (10) of the 1986 Internal Revenue Code, as
amended, in their civic or charitable functions and
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activities and all sales mad e to eleemosynary and penal
institutions and industries of the state, and all sales made
to any private not-for-profit institution of higher
education not otherwise excluded pursuant to subdivision
(19) of this subsection or any institution of higher
education supported by public funds, and all sales made to a
state relief agency in the exercise of relief functions and
activities;
(21) All ticket sales made by benevolent, scientific
and educational associations which are formed to foster,
encourage, and promote progress and improvement in the
science of agriculture and in the raising and breeding of
animals, and by nonprofit summer theater organizations if
such organizations are exempt from federal tax pursuant to
the provisions of the Int ernal Revenue Code and all
admission charges and entry fees to the Missouri state fair
or any fair conducted by a county agricultural and
mechanical society organized and operated pursuant to
sections 262.290 to 262.530;
(22) All sales made to an y private not-for-profit
elementary or secondary school, all sales of feed additives,
medications or vaccines administered to livestock or poultry
in the production of food or fiber, all sales of pesticides
used in the production of crops, livestock or poultry for
food or fiber, all sales of bedding used in the production
of livestock or poultry for food or fiber, all sales of
propane or natural gas, electricity or diesel fuel used
exclusively for drying agricultural crops, natural gas used
in the primary manufacture or processing of fuel ethanol as
defined in section 142.028, natural gas, propane, and
electricity used by an eligible new generation cooperative
or an eligible new generation processing entity as defined
in section 348.432, and all sales of farm machinery and
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equipment, other than airplanes, motor vehicles and
trailers, and any freight charges on any exempt item. As
used in this subdivision, the term "feed additives" means
tangible personal property which, when mixed with feed for
livestock or poultry, is to be used in the feeding of
livestock or poultry. As used in this subdivision, the term
"pesticides" includes adjuvants such as crop oils,
surfactants, wetting agents and other assorted pesticide
carriers used to improve or enhance the effect of a
pesticide and the foam used to mark the application of
pesticides and herbicides for the production of crops,
livestock or poultry. As used in this subdivision, the term
"farm machinery and equipment" shall mean:
(a) New or used farm tractors and such other new or
used farm machinery and equipment, including utility
vehicles used for any agricultural use, and repair or
replacement parts thereon and any accessories for and
upgrades to such farm machinery and equipme nt and rotary
mowers used for any agricultural purposes. For the purposes
of this subdivision, "utility vehicle" shall mean any
motorized vehicle manufactured and used exclusively for off -
highway use which is more than fifty inches but no more than
eighty inches in width, measured from outside of tire rim to
outside of tire rim, with an unladen dry weight of three
thousand five hundred pounds or less, traveling on four or
six wheels;
(b) Supplies and lubricants used exclusively, solely,
and directly for producing crops, raising and feeding
livestock, fish, poultry, pheasants, chukar, quail, or for
producing milk for ultimate sale at retail, including field
drain tile; and
(c) One-half of each purchaser's purchase of diesel
fuel therefor which is:
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a. Used exclusively for agricultural purposes;
b. Used on land owned or leased for the purpose of
producing farm products; and
c. Used directly in producing farm products to be sold
ultimately in processed form or otherwi se at retail or in
producing farm products to be fed to livestock or poultry to
be sold ultimately in processed form at retail;
(23) Except as otherwise provided in section 144.032,
all sales of metered water service, electricity, electrical
current, natural, artificial or propane gas, wood, coal or
home heating oil for domestic use and in any city not within
a county, all sales of metered or unmetered water service
for domestic use:
(a) "Domestic use" means that portion of metered water
service, electricity, electrical current, natural,
artificial or propane gas, wood, coal or home heating oil,
and in any city not within a county, metered or unmetered
water service, which an individual occupant of a residential
premises uses for nonb usiness, noncommercial or
nonindustrial purposes. Utility service through a single or
master meter for residential apartments or condominiums,
including service for common areas and facilities and vacant
units, shall be deemed to be for domestic use. Each seller
shall establish and maintain a system whereby individual
purchases are determined as exempt or nonexempt;
(b) Regulated utility sellers shall determine whether
individual purchases are exempt or nonexempt based upon the
seller's utility service rate classifications as contained
in tariffs on file with and approved by the Missouri public
service commission. Sales and purchases made pursuant to
the rate classification "residential" and sales to and
purchases made by or on behalf of the occupants of
residential apartments or condominiums through a single or
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master meter, including service for common areas and
facilities and vacant units, shall be considered as sales
made for domestic use and such sales shall be exempt from
sales tax. Sellers shall charge sales tax upon the entire
amount of purchases classified as nondomestic use. The
seller's utility service rate classification and the
provision of service thereunder shall be conclusive as to
whether or not the utility must charge sales tax;
(c) Each person making domestic use purchases of
services or property and who uses any portion of the
services or property so purchased for a nondomestic use
shall, by the fifteenth day of the fourth month following
the year of purchase, and without assessment, notice or
demand, file a return and pay sales tax on that portion of
nondomestic purchases. Each person making nondomestic
purchases of services or property and who uses any portion
of the services or property so pur chased for domestic use,
and each person making domestic purchases on behalf of
occupants of residential apartments or condominiums through
a single or master meter, including service for common areas
and facilities and vacant units, under a nonresiden tial
utility service rate classification may, between the first
day of the first month and the fifteenth day of the fourth
month following the year of purchase, apply for credit or
refund to the director of revenue and the director shall
give credit or make refund for taxes paid on the domestic
use portion of the purchase. The person making such
purchases on behalf of occupants of residential apartments
or condominiums shall have standing to apply to the director
of revenue for such credit or refu nd;
(24) All sales of handicraft items made by the seller
or the seller's spouse if the seller or the seller's spouse
is at least sixty-five years of age, and if the total gross
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proceeds from such sales do not constitute a majority of the
annual gross income of the seller;
(25) Excise taxes, collected on sales at retail,
imposed by Sections 4041, 4071, 4081, [4091,] 4161, 4181,
4251, 4261 and 4271 of Title 26, United States Code. The
director of revenue shall promulgate rules pursuant to
chapter 536 to eliminate all state and local sales taxes on
such excise taxes;
(26) Sales of fuel consumed or used in the operation
of ships, barges, or waterborne vessels which are used
primarily in or for the transportation of property or carg o,
or the conveyance of persons for hire, on navigable rivers
bordering on or located in part in this state, if such fuel
is delivered by the seller to the purchaser's barge, ship,
or waterborne vessel while it is afloat upon such river;
(27) All sales made to an interstate compact agency
created pursuant to sections 70.370 to 70.441 or sections
238.010 to 238.100 in the exercise of the functions and
activities of such agency as provided pursuant to the
compact;
(28) Computers, computer software and computer
security systems purchased for use by architectural or
engineering firms headquartered in this state. For the
purposes of this subdivision, "headquartered in this state"
means the office for the administrative management of at
least four integrated facilities operated by the taxpayer is
located in the state of Missouri;
(29) All livestock sales when either the seller is
engaged in the growing, producing or feeding of such
livestock, or the seller is engaged in the busine ss of
buying and selling, bartering or leasing of such livestock;
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(30) All sales of barges which are to be used
primarily in the transportation of property or cargo on
interstate waterways;
(31) Electrical energy or gas, whether natural,
artificial or propane, water, or other utilities which are
ultimately consumed in connection with the manufacturing of
cellular glass products or in any material recovery
processing plant as defined in subdivision (4) of this
subsection;
(32) Notwithstanding other provisions of law to the
contrary, all sales of pesticides or herbicides used in the
production of crops, aquaculture, livestock or poultry;
(33) Tangible personal property and utilities
purchased for use or consumption directly o r exclusively in
the research and development of agricultural/biotechnology
and plant genomics products and prescription pharmaceuticals
consumed by humans or animals;
(34) All sales of grain bins for storage of grain for
resale;
(35) All sales of feed which are developed for and
used in the feeding of pets owned by a commercial breeder
when such sales are made to a commercial breeder, as defined
in section 273.325, and licensed pursuant to sections
273.325 to 273.357;
(36) All purchases by a contractor on behalf of an
entity located in another state, provided that the entity is
authorized to issue a certificate of exemption for purchases
to a contractor under the provisions of that state's laws.
For purposes of this subdivisio n, the term "certificate of
exemption" shall mean any document evidencing that the
entity is exempt from sales and use taxes on purchases
pursuant to the laws of the state in which the entity is
located. Any contractor making purchases on behalf of su ch
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entity shall maintain a copy of the entity's exemption
certificate as evidence of the exemption. If the exemption
certificate issued by the exempt entity to the contractor is
later determined by the director of revenue to be invalid
for any reason and the contractor has accepted the
certificate in good faith, neither the contractor or the
exempt entity shall be liable for the payment of any taxes,
interest and penalty due as the result of use of the invalid
exemption certificate. Materials shall be exempt from all
state and local sales and use taxes when purchased by a
contractor for the purpose of fabricating tangible personal
property which is used in fulfilling a contract for the
purpose of constructing, repairing or remodeling facilitie s
for the following:
(a) An exempt entity located in this state, if the
entity is one of those entities able to issue project
exemption certificates in accordance with the provisions of
section 144.062; or
(b) An exempt entity located outsi de the state if the
exempt entity is authorized to issue an exemption
certificate to contractors in accordance with the provisions
of that state's law and the applicable provisions of this
section;
(37) All sales or other transfers of tangible pe rsonal
property to a lessor who leases the property under a lease
of one year or longer executed or in effect at the time of
the sale or other transfer to an interstate compact agency
created pursuant to sections 70.370 to 70.441 or sections
238.010 to 238.100;
(38) Sales of tickets to any collegiate athletic
championship event that is held in a facility owned or
operated by a governmental authority or commission, a quasi -
governmental agency, a state university or college or by the
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state or any political subdivision thereof, including a
municipality, and that is played on a neutral site and may
reasonably be played at a site located outside the state of
Missouri. For purposes of this subdivision, "neutral site"
means any site that is not located on the campus of a
conference member institution participating in the event;
(39) All purchases by a sports complex authority
created under section 64.920, and all sales of utilities by
such authority at the authority's cost that are consu med in
connection with the operation of a sports complex leased to
a professional sports team;
(40) All materials, replacement parts, and equipment
purchased for use directly upon, and for the modification,
replacement, repair, and maintenance of aircraft, aircraft
power plants, and aircraft accessories;
(41) Sales of sporting clays, wobble, skeet, and trap
targets to any shooting range or similar places of business
for use in the normal course of business and money received
by a shooting range or similar places of business from
patrons and held by a shooting range or similar place of
business for redistribution to patrons at the conclusion of
a shooting event;
(42) All sales of motor fuel, as defined in section
142.800, used in any watercraft, as defined in section
306.010;
(43) Any new or used aircraft sold or delivered in
this state to a person who is not a resident of this state
or a corporation that is not incorporated in this state, and
such aircraft is not to be based in this state and shall not
remain in this state more than ten business days subsequent
to the last to occur of:
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(a) The transfer of title to the aircraft to a person
who is not a resident of this state or a corporation that is
not incorporated in this state; or
(b) The date of the return to service of the aircraft
in accordance with 14 CFR 91.407 for any maintenance,
preventive maintenance, rebuilding, alterations, repairs, or
installations that are completed contemporaneously with the
transfer of title to the aircraft to a person who is not a
resident of this state or a corporation that is not
incorporated in this state;
(44) Motor vehicles registered in excess of fifty -four
thousand pounds, and the trailers pulled by suc h motor
vehicles, that are actually used in the normal course of
business to haul property on the public highways of the
state, and that are capable of hauling loads commensurate
with the motor vehicle's registered weight; and the
materials, replaceme nt parts, and equipment purchased for
use directly upon, and for the repair and maintenance or
manufacture of such vehicles. For purposes of this
subdivision, "motor vehicle" and "public highway" shall have
the meaning as ascribed in section 390.020;
(45) All internet access or the use of internet access
regardless of whether the tax is imposed on a provider of
internet access or a buyer of internet access. For purposes
of this subdivision, the following terms shall mean:
(a) "Direct costs", costs incurred by a governmental
authority solely because of an internet service provider's
use of the public right -of-way. The term shall not include
costs that the governmental authority would have incurred if
the internet service provider did not make such use of the
public right-of-way. Direct costs shall be determined in a
manner consistent with generally accepted accounting
principles;
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(b) "Internet", computer and telecommunications
facilities, including equipment and operating s oftware, that
comprises the interconnected worldwide network that employ
the transmission control protocol or internet protocol, or
any predecessor or successor protocols to that protocol, to
communicate information of all kinds by wire or radio;
(c) "Internet access", a service that enables users to
connect to the internet to access content, information, or
other services without regard to whether the service is
referred to as telecommunications, communications,
transmission, or similar servi ces, and without regard to
whether a provider of the service is subject to regulation
by the Federal Communications Commission as a common carrier
under 47 U.S.C. Section 201, et seq. For purposes of this
subdivision, internet access also includes: the purchase,
use, or sale of communications services, including
telecommunications services as defined in section 144.010,
to the extent the communications services are purchased,
used, or sold to provide the service described in this
subdivision or to otherwise enable users to access content,
information, or other services offered over the internet;
services that are incidental to the provision of a service
described in this subdivision, when furnished to users as
part of such service, including a home page, electronic
mail, and instant messaging, including voice -capable and
video-capable electronic mail and instant messaging, video
clips, and personal electronic storage capacity; a home page
electronic mail and instant messaging, including voi ce-
capable and video-capable electronic mail and instant
messaging, video clips, and personal electronic storage
capacity that are provided independently or that are not
packed with internet access. As used in this subdivision,
internet access does n ot include voice, audio, and video
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programming or other products and services, except services
described in this paragraph or this subdivision, that use
internet protocol or any successor protocol and for which
there is a charge, regardless of whether the charge is
separately stated or aggregated with the charge for services
described in this paragraph or this subdivision;
(d) "Tax", any charge imposed by the state or a
political subdivision of the state for the purpose of
generating revenues for governmental purposes and that is
not a fee imposed for a specific privilege, service, or
benefit conferred, except as described as otherwise under
this subdivision, or any obligation imposed on a seller to
collect and to remit to the state or a po litical subdivision
of the state any gross retail tax, sales tax, or use tax
imposed on a buyer by such a governmental entity. The term
tax shall not include any franchise fee or similar fee
imposed or authorized under sections 67.1830 to 67.1846 or
section 67.2689; Section 622 or 653 of the Communications
Act of 1934, 47 U.S.C. Section 542 and 47 U.S.C. Section
573; or any other fee related to obligations of
telecommunications carriers under the Communications Act of
1934, 47 U.S.C. Section 151, et seq., except to the extent
that:
a. The fee is not imposed for the purpose of
recovering direct costs incurred by the franchising or other
governmental authority from providing the specific
privilege, service, or benefit conferred to the payer of the
fee; or
b. The fee is imposed for the use of a public right -of-
way based on a percentage of the service revenue, and the
fee exceeds the incremental direct costs incurred by the
governmental authority associated with the provision of that
right-of-way to the provider of internet access service.
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Nothing in this subdivision shall be interpreted as an
exemption from taxes due on goods or services that were
subject to tax on January 1, 2016;
(46) All purchases by a company of solar ph otovoltaic
energy systems, components used to construct a solar
photovoltaic energy system, and all purchases of materials
and supplies used directly to construct or make improvements
to such systems, provided that such systems:
(a) Are sold or leased to an end user; or
(b) Are used to produce, collect and transmit
electricity for resale or retail ;
(47) All sales of used tangible personal property
purchased by a consumer for use or consumption, and not for
resale, for valuable consi deration directly from a seller at
an auction of used tangible personal property or from
another consumer. For the purposes of this section, "used
tangible personal property" is any tangible personal
property that is sold a second time at an auction o r any
number of additional subsequent times after the initial
point of sale at an auction, upon which a sales tax is
levied. The term "used tangible personal property" shall
not include motor vehicles, trailers, boats, or outboard
motors purchased or acquired for use on the highways or
waters of this state that are required to be titled under
the laws of the state of Missouri .
3. Any ruling, agreement, or contract, whether written
or oral, express or implied, between a person and this
state's executive branch, or any other state agency or
department, stating, agreeing, or ruling that such person is
not required to collect sales and use tax in this state
despite the presence of a warehouse, distribution center, or
fulfillment center in thi s state that is owned or operated
by the person or an affiliated person shall be null and void
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unless it is specifically approved by a majority vote of
each of the houses of the general assembly. For purposes of
this subsection, an "affiliated person" means any person
that is a member of the same controlled group of
corporations as defined in Section 1563(a) of the Internal
Revenue Code of 1986, as amended, as the vendor or any other
entity that, notwithstanding its form of organization, bears
the same ownership relationship to the vendor as a
corporation that is a member of the same controlled group of
corporations as defined in Section 1563(a) of the Internal
Revenue Code, as amended.
144.615. There are specifically exempted f rom the
taxes levied in sections 144.600 to 144.745:
(1) Property, the storage, use or consumption of which
this state is prohibited from taxing pursuant to the
constitution or laws of the United States or of this state;
(2) Property, the gross receipts from the sale of
which are required to be included in the measure of the tax
imposed pursuant to the Missouri sales tax law;
(3) Tangible personal property, the sale or other
transfer of which, if made in this state, would be exempt
from or not subject to the Missouri sales tax pursuant to
the provisions of subsection 2 of section 144.030;
(4) Motor vehicles, trailers, boats, and outboard
motors subject to the tax imposed by section 144.020;
(5) Tangible personal propert y which has been
subjected to a tax by any other state in this respect to its
sales or use; provided, if such tax is less than the tax
imposed by sections 144.600 to 144.745, such property, if
otherwise taxable, shall be subject to a tax equal to the
difference between such tax and the tax imposed by sections
144.600 to 144.745;
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(6) Tangible personal property held by processors,
retailers, importers, manufacturers, wholesalers, or jobbers
solely for resale in the regular course of business;
(7) Personal and household effects and farm machinery
used while an individual was a bona fide resident of another
state and who thereafter became a resident of this state, or
tangible personal property brought into the state by a
nonresident for his own storage, use or consumption while
temporarily within the state ;
(8) Used tangible personal property purchased by a
consumer for use or consumption, and not for resale, for
valuable consideration directly from a seller at an auction
of used tangible personal property or from another
consumer. For the purposes of this section, "used tangible
personal property" is any tangible personal property that is
sold a second time at an auction or any number of additional
subsequent times after the initial point of sale at an
auction, upon which a sales tax is levied. The term "used
tangible personal property" shall not include motor
vehicles, trailers, boats, or outboard motors purchased or
acquired for use on the highways or waters of this st ate
that are required to be titled under the laws of the state
of Missouri.