Missouri 2025 Regular Session

Missouri Senate Bill SB393 Compare Versions

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Old	New	Differences
1	1
2	2	FIRST REGULAR SESSION
3	3	SENATE BILL NO. 393
4	4	103RD GENERAL ASSEMBLY
5	5	INTRODUCED BY SENATOR CARTER.
6	6	0465S.01I KRISTINA MARTIN, Secretary
7	7	AN ACT
8	8	To repeal section 144.030, RSMo, and to enact in lieu thereof one new section relating to vehicle
9	9	sales tax.
10	10
11	11	Be it enacted by the General Assembly of the State of Missouri, as follows:
12	12	Section A. Section 144.030, RSMo, is repealed and on e new 1
13	13	section enacted in lieu thereof, to be known as section 144.030, 2
14	14	to read as follows:3
15	15	144.030. 1. There is hereby specifically exempted 1
16	16	from the provisions of sections 144.010 to 144.525 and from 2
17	17	the computation of the tax levied, assessed o r payable 3
18	18	pursuant to sections 144.010 to 144.525 such retail sales as 4
19	19	may be made in commerce between this state and any other 5
20	20	state of the United States, or between this state and any 6
21	21	foreign country, and any retail sale which the state of 7
22	22	Missouri is prohibited from taxing pursuant to the 8
23	23	Constitution or laws of the United States of America, and 9
24	24	such retail sales of tangible personal property which the 10
25	25	general assembly of the state of Missouri is prohibited from 11
26	26	taxing or further taxing by the c onstitution of this state. 12
27	27	2. There are also specifically exempted from the 13
28	28	provisions of the local sales tax law as defined in section 14
29	29	32.085, section 238.235, and sections 144.010 to 144.525 and 15
30	30	144.600 to 144.761 and from the computation of the tax 16
31	31	levied, assessed or payable pursuant to the local sales tax 17 SB 393 2
32	32	law as defined in section 32.085, section 238.235, and 18
33	33	sections 144.010 to 144.525 and 144.600 to 144.745: 19
34	34	(1) Motor fuel or special fuel subject to an excise 20
35	35	tax of this state, unl ess all or part of such excise tax is 21
36	36	refunded pursuant to section 142.824; or upon the sale at 22
37	37	retail of fuel to be consumed in manufacturing or creating 23
38	38	gas, power, steam, electrical current or in furnishing water 24
39	39	to be sold ultimately at retail; or feed for livestock or 25
40	40	poultry; or grain to be converted into foodstuffs which are 26
41	41	to be sold ultimately in processed form at retail; or seed, 27
42	42	limestone or fertilizer which is to be used for seeding, 28
43	43	liming or fertilizing crops which when harvested will be 29
44	44	sold at retail or will be fed to livestock or poultry to be 30
45	45	sold ultimately in processed form at retail; economic 31
46	46	poisons registered pursuant to the provisions of the 32
47	47	Missouri pesticide registration law, sections 281.220 to 33
48	48	281.310, which are to b e used in connection with the growth 34
49	49	or production of crops, fruit trees or orchards applied 35
50	50	before, during, or after planting, the crop of which when 36
51	51	harvested will be sold at retail or will be converted into 37
52	52	foodstuffs which are to be sold ultimately in processed form 38
53	53	at retail; 39
54	54	(2) Materials, manufactured goods, machinery and parts 40
55	55	which when used in manufacturing, processing, compounding, 41
56	56	mining, producing or fabricating become a component part or 42
57	57	ingredient of the new personal property re sulting from such 43
58	58	manufacturing, processing, compounding, mining, producing or 44
59	59	fabricating and which new personal property is intended to 45
60	60	be sold ultimately for final use or consumption; and 46
61	61	materials, including without limitation, gases and 47
62	62	manufactured goods, including without limitation slagging 48
63	63	materials and firebrick, which are ultimately consumed in 49 SB 393 3
64	64	the manufacturing process by blending, reacting or 50
65	65	interacting with or by becoming, in whole or in part, 51
66	66	component parts or ingredients of steel products intended to 52
67	67	be sold ultimately for final use or consumption; 53
68	68	(3) Materials, replacement parts and equipment 54
69	69	purchased for use directly upon, and for the repair and 55
70	70	maintenance or manufacture of, motor vehicles, watercraft, 56
71	71	railroad rolling stock or aircraft engaged as common 57
72	72	carriers of persons or property; 58
73	73	(4) Replacement machinery, equipment, and parts and 59
74	74	the materials and supplies solely required for the 60
75	75	installation or construction of such replacement machinery, 61
76	76	equipment, and parts, used directly in manufacturing, 62
77	77	mining, fabricating or producing a product which is intended 63
78	78	to be sold ultimately for final use or consumption; and 64
79	79	machinery and equipment, and the materials and supplies 65
80	80	required solely for the operation, i nstallation or 66
81	81	construction of such machinery and equipment, purchased and 67
82	82	used to establish new, or to replace or expand existing, 68
83	83	material recovery processing plants in this state. For the 69
84	84	purposes of this subdivision, a "material recovery 70
85	85	processing plant" means a facility that has as its primary 71
86	86	purpose the recovery of materials into a usable product or a 72
87	87	different form which is used in producing a new product and 73
88	88	shall include a facility or equipment which are used 74
89	89	exclusively for the collect ion of recovered materials for 75
90	90	delivery to a material recovery processing plant but shall 76
91	91	not include motor vehicles used on highways. For purposes 77
92	92	of this section, the terms motor vehicle and highway shall 78
93	93	have the same meaning pursuant to section 30 1.010. For the 79
94	94	purposes of this subdivision, subdivision (5) of this 80
95	95	subsection, and section 144.054, as well as the definition 81 SB 393 4
96	96	in subdivision (9) of subsection 1 of section 144.010, the 82
97	97	term "product" includes telecommunications services and the 83
98	98	term "manufacturing" shall include the production, or 84
99	99	production and transmission, of telecommunications 85
100	100	services. The preceding sentence does not make a 86
101	101	substantive change in the law and is intended to clarify 87
102	102	that the term "manufacturing" has included and continues to 88
103	103	include the production and transmission of 89
104	104	"telecommunications services", as enacted in this 90
105	105	subdivision and subdivision (5) of this subsection, as well 91
106	106	as the definition in subdivision (9) of subsection 1 of 92
107	107	section 144.010. The preceding two sentences reaffirm 93
108	108	legislative intent consistent with the interpretation of 94
109	109	this subdivision and subdivision (5) of this subsection in 95
110	110	Southwestern Bell Tel. Co. v. Director of Revenue , 78 S.W.3d 96
111	111	763 (Mo. banc 2002) and Southwestern Bell Tel . Co. v. 97
112	112	Director of Revenue, 182 S.W.3d 226 (Mo. banc 2005), and 98
113	113	accordingly abrogates the Missouri supreme court's 99
114	114	interpretation of those exemptions in IBM Corporation v. 100
115	115	Director of Revenue, 491 S.W.3d 535 (Mo. banc 2016) to the 101
116	116	extent inconsistent with this section and Southwestern Bell 102
117	117	Tel. Co. v. Director of Revenue , 78 S.W.3d 763 (Mo. banc 103
118	118	2002) and Southwestern Bell Tel. Co. v. Director of Revenue , 104
119	119	182 S.W.3d 226 (Mo. banc 2005). The construction and 105
120	120	application of this subdivision as exp ressed by the Missouri 106
121	121	supreme court in DST Systems, Inc. v. Director of Revenue , 107
122	122	43 S.W.3d 799 (Mo. banc 2001); Southwestern Bell Tel. Co. v. 108
123	123	Director of Revenue, 78 S.W.3d 763 (Mo. banc 2002); and 109
124	124	Southwestern Bell Tel. Co. v. Director of Revenue , 182 110
125	125	S.W.3d 226 (Mo. banc 2005), is hereby affirmed. Material 111
126	126	recovery is not the reuse of materials within a 112
127	127	manufacturing process or the use of a product previously 113 SB 393 5
128	128	recovered. The material recovery processing plant shall 114
129	129	qualify under the provisions of this section regardless of 115
130	130	ownership of the material being recovered; 116
131	131	(5) Machinery and equipment, and parts and the 117
132	132	materials and supplies solely required for the installation 118
133	133	or construction of such machinery and equipment, purchased 119
134	134	and used to establish new or to expand existing 120
135	135	manufacturing, mining or fabricating plants in the state if 121
136	136	such machinery and equipment is used directly in 122
137	137	manufacturing, mining or fabricating a product which is 123
138	138	intended to be sold ultimately for final use o r 124
139	139	consumption. The construction and application of this 125
140	140	subdivision as expressed by the Missouri supreme court in 126
141	141	DST Systems, Inc. v. Director of Revenue , 43 S.W.3d 799 (Mo. 127
142	142	banc 2001); Southwestern Bell Tel. Co. v. Director of 128
143	143	Revenue, 78 S.W.3d 763 (Mo. banc 2002); and Southwestern 129
144	144	Bell Tel. Co. v. Director of Revenue , 182 S.W.3d 226 (Mo. 130
145	145	banc 2005), is hereby affirmed; 131
146	146	(6) Tangible personal property which is used 132
147	147	exclusively in the manufacturing, processing, modification 133
148	148	or assembling of products sold to the United States 134
149	149	government or to any agency of the United States government; 135
150	150	(7) Animals or poultry used for breeding or feeding 136
151	151	purposes, or captive wildlife; 137
152	152	(8) Newsprint, ink, computers, photosensitive paper 138
153	153	and film, toner, printing plates and other machinery, 139
154	154	equipment, replacement parts and supplies used in producing 140
155	155	newspapers published for dissemination of news to the 141
156	156	general public; 142
157	157	(9) The rentals of films, records or any type of sound 143
158	158	or picture transcriptions for public commercial display; 144 SB 393 6
159	159	(10) Pumping machinery and equipment used to propel 145
160	160	products delivered by pipelines engaged as common carriers; 146
161	161	(11) Railroad rolling stock for use in transporting 147
162	162	persons or property in interstate com merce and motor 148
163	163	vehicles licensed for a gross weight of twenty -four thousand 149
164	164	pounds or more or trailers used by common carriers, as 150
165	165	defined in section 390.020, in the transportation of persons 151
166	166	or property; 152
167	167	(12) Electrical energy used in the actua l primary 153
168	168	manufacture, processing, compounding, mining or producing of 154
169	169	a product, or electrical energy used in the actual secondary 155
170	170	processing or fabricating of the product, or a material 156
171	171	recovery processing plant as defined in subdivision (4) of 157
172	172	this subsection, in facilities owned or leased by the 158
173	173	taxpayer, if the total cost of electrical energy so used 159
174	174	exceeds ten percent of the total cost of production, either 160
175	175	primary or secondary, exclusive of the cost of electrical 161
176	176	energy so used or if the ra w materials used in such 162
177	177	processing contain at least twenty -five percent recovered 163
178	178	materials as defined in section 260.200. There shall be a 164
179	179	rebuttable presumption that the raw materials used in the 165
180	180	primary manufacture of automobiles contain at least twenty- 166
181	181	five percent recovered materials. For purposes of this 167
182	182	subdivision, "processing" means any mode of treatment, act 168
183	183	or series of acts performed upon materials to transform and 169
184	184	reduce them to a different state or thing, including 170
185	185	treatment necessary to maintain or preserve such processing 171
186	186	by the producer at the production facility; 172
187	187	(13) Anodes which are used or consumed in 173
188	188	manufacturing, processing, compounding, mining, producing or 174
189	189	fabricating and which have a useful life of less than on e 175
190	190	year; 176 SB 393 7
191	191	(14) Machinery, equipment, appliances and devices 177
192	192	purchased or leased and used solely for the purpose of 178
193	193	preventing, abating or monitoring air pollution, and 179
194	194	materials and supplies solely required for the installation, 180
195	195	construction or reconstruction of such machinery, equipment, 181
196	196	appliances and devices; 182
197	197	(15) Machinery, equipment, appliances and devices 183
198	198	purchased or leased and used solely for the purpose of 184
199	199	preventing, abating or monitoring water pollution, and 185
200	200	materials and supplies solely required for the installation, 186
201	201	construction or reconstruction of such machinery, equipment, 187
202	202	appliances and devices; 188
203	203	(16) Tangible personal property purchased by a rural 189
204	204	water district; 190
205	205	(17) All amounts paid or charged for admissio n or 191
206	206	participation or other fees paid by or other charges to 192
207	207	individuals in or for any place of amusement, entertainment 193
208	208	or recreation, games or athletic events, including museums, 194
209	209	fairs, zoos and planetariums, owned or operated by a 195
210	210	municipality or other political subdivision where all the 196
211	211	proceeds derived therefrom benefit the municipality or other 197
212	212	political subdivision and do not inure to any private 198
213	213	person, firm, or corporation, provided, however, that a 199
214	214	municipality or other political subdivis ion may enter into 200
215	215	revenue-sharing agreements with private persons, firms, or 201
216	216	corporations providing goods or services, including 202
217	217	management services, in or for the place of amusement, 203
218	218	entertainment or recreation, games or athletic events, and 204
219	219	provided further that nothing in this subdivision shall 205
220	220	exempt from tax any amounts retained by any private person, 206
221	221	firm, or corporation under such revenue -sharing agreement; 207 SB 393 8
222	222	(18) All sales of insulin, and all sales, rentals, 208
223	223	repairs, and parts of durabl e medical equipment, prosthetic 209
224	224	devices, and orthopedic devices as defined on January 1, 210
225	225	1980, by the federal Medicare program pursuant to Title 211
226	226	XVIII of the Social Security Act of 1965, including the 212
227	227	items specified in Section 1862(a)(12) of that act, and also 213
228	228	specifically including hearing aids and hearing aid supplies 214
229	229	and all sales of drugs which may be legally dispensed by a 215
230	230	licensed pharmacist only upon a lawful prescription of a 216
231	231	practitioner licensed to administer those items, including 217
232	232	samples and materials used to manufacture samples which may 218
233	233	be dispensed by a practitioner authorized to dispense such 219
234	234	samples and all sales or rental of medical oxygen, home 220
235	235	respiratory equipment and accessories including parts, and 221
236	236	hospital beds and acces sories and ambulatory aids including 222
237	237	parts, and all sales or rental of manual and powered 223
238	238	wheelchairs including parts, and stairway lifts, Braille 224
239	239	writers, electronic Braille equipment and, if purchased or 225
240	240	rented by or on behalf of a person with one or more physical 226
241	241	or mental disabilities to enable them to function more 227
242	242	independently, all sales or rental of scooters including 228
243	243	parts, and reading machines, electronic print enlargers and 229
244	244	magnifiers, electronic alternative and augmentative 230
245	245	communication devices, and items used solely to modify motor 231
246	246	vehicles to permit the use of such motor vehicles by 232
247	247	individuals with disabilities or sales of over -the-counter 233
248	248	or nonprescription drugs to individuals with disabilities, 234
249	249	and drugs required by the Food a nd Drug Administration to 235
250	250	meet the over-the-counter drug product labeling requirements 236
251	251	in 21 CFR 201.66, or its successor, as prescribed by a 237
252	252	health care practitioner licensed to prescribe; 238 SB 393 9
253	253	(19) All sales made by or to religious and charitable 239
254	254	organizations and institutions in their religious, 240
255	255	charitable or educational functions and activities and all 241
256	256	sales made by or to all elementary and secondary schools 242
257	257	operated at public expense in their educational functions 243
258	258	and activities; 244
259	259	(20) All sales of aircraft to common carriers for 245
260	260	storage or for use in interstate commerce and all sales made 246
261	261	by or to not-for-profit civic, social, service or fraternal 247
262	262	organizations, including fraternal organizations which have 248
263	263	been declared tax-exempt organizations pursuant to Section 249
264	264	501(c)(8) or (10) of the 1986 Internal Revenue Code, as 250
265	265	amended, in their civic or charitable functions and 251
266	266	activities and all sales made to eleemosynary and penal 252
267	267	institutions and industries of the state, and all sales m ade 253
268	268	to any private not-for-profit institution of higher 254
269	269	education not otherwise excluded pursuant to subdivision 255
270	270	(19) of this subsection or any institution of higher 256
271	271	education supported by public funds, and all sales made to a 257
272	272	state relief agency in t he exercise of relief functions and 258
273	273	activities; 259
274	274	(21) All ticket sales made by benevolent, scientific 260
275	275	and educational associations which are formed to foster, 261
276	276	encourage, and promote progress and improvement in the 262
277	277	science of agriculture and in the raising and breeding of 263
278	278	animals, and by nonprofit summer theater organizations if 264
279	279	such organizations are exempt from federal tax pursuant to 265
280	280	the provisions of the Internal Revenue Code and all 266
281	281	admission charges and entry fees to the Missouri state fai r 267
282	282	or any fair conducted by a county agricultural and 268
283	283	mechanical society organized and operated pursuant to 269
284	284	sections 262.290 to 262.530; 270 SB 393 10
285	285	(22) All sales made to any private not -for-profit 271
286	286	elementary or secondary school, all sales of feed additives, 272
287	287	medications or vaccines administered to livestock or poultry 273
288	288	in the production of food or fiber, all sales of pesticides 274
289	289	used in the production of crops, livestock or poultry for 275
290	290	food or fiber, all sales of bedding used in the production 276
291	291	of livestock or poultry for food or fiber, all sales of 277
292	292	propane or natural gas, electricity or diesel fuel used 278
293	293	exclusively for drying agricultural crops, natural gas used 279
294	294	in the primary manufacture or processing of fuel ethanol as 280
295	295	defined in section 142.028, natu ral gas, propane, and 281
296	296	electricity used by an eligible new generation cooperative 282
297	297	or an eligible new generation processing entity as defined 283
298	298	in section 348.432, and all sales of farm machinery and 284
299	299	equipment, other than airplanes, motor vehicles and 285
300	300	trailers, and any freight charges on any exempt item. As 286
301	301	used in this subdivision, the term "feed additives" means 287
302	302	tangible personal property which, when mixed with feed for 288
303	303	livestock or poultry, is to be used in the feeding of 289
304	304	livestock or poultry. As used in this subdivision, the term 290
305	305	"pesticides" includes adjuvants such as crop oils, 291
306	306	surfactants, wetting agents and other assorted pesticide 292
307	307	carriers used to improve or enhance the effect of a 293
308	308	pesticide and the foam used to mark the application of 294
309	309	pesticides and herbicides for the production of crops, 295
310	310	livestock or poultry. As used in this subdivision, the term 296
311	311	"farm machinery and equipment" shall mean: 297
312	312	(a) New or used farm tractors and such other new or 298
313	313	used farm machinery and equipment, in cluding utility 299
314	314	vehicles and all-terrain vehicles used for any agricultural 300
315	315	use, and repair or replacement parts thereon and any 301
316	316	accessories for and upgrades to such farm machinery and 302 SB 393 11
317	317	equipment and rotary mowers used for any agricultural 303
318	318	purposes. For the purposes of this subdivision, "utility 304
319	319	vehicle" shall mean any motorized vehicle manufactured and 305
320	320	used exclusively for off -highway use which is more than 306
321	321	fifty inches but no more than eighty inches in width, 307
322	322	measured from outside of tire rim to outside of tire rim, 308
323	323	with an unladen dry weight of three thousand five hundred 309
324	324	pounds or less, traveling on four or six wheels . For 310
325	325	purposes of this subdivision, "all -terrain vehicle" shall 311
326	326	have the same meaning as is ascribed to such term in section 312
327	327	301.010; 313
328	328	(b) Supplies and lubricants used exclusively, solely, 314
329	329	and directly for producing crops, raising and feeding 315
330	330	livestock, fish, poultry, pheasants, chukar, quail, or for 316
331	331	producing milk for ultimate sale at retail, including field 317
332	332	drain tile; and 318
333	333	(c) One-half of each purchaser's purchase of diesel 319
334	334	fuel therefor which is: 320
335	335	a. Used exclusively for agricultural purposes; 321
336	336	b. Used on land owned or leased for the purpose of 322
337	337	producing farm products; and 323
338	338	c. Used directly in producing farm products to be sold 324
339	339	ultimately in processed form or otherwise at retail or in 325
340	340	producing farm products to be fed to livestock or poultry to 326
341	341	be sold ultimately in processed form at retail; 327
342	342	(23) Except as otherwise provided in section 1 44.032, 328
343	343	all sales of metered water service, electricity, electrical 329
344	344	current, natural, artificial or propane gas, wood, coal or 330
345	345	home heating oil for domestic use and in any city not within 331
346	346	a county, all sales of metered or unmetered water service 332
347	347	for domestic use: 333 SB 393 12
348	348	(a) "Domestic use" means that portion of metered water 334
349	349	service, electricity, electrical current, natural, 335
350	350	artificial or propane gas, wood, coal or home heating oil, 336
351	351	and in any city not within a county, metered or unmetered 337
352	352	water service, which an individual occupant of a residential 338
353	353	premises uses for nonbusiness, noncommercial or 339
354	354	nonindustrial purposes. Utility service through a single or 340
355	355	master meter for residential apartments or condominiums, 341
356	356	including service for common areas and facilities and vacant 342
357	357	units, shall be deemed to be for domestic use. Each seller 343
358	358	shall establish and maintain a system whereby individual 344
359	359	purchases are determined as exempt or nonexempt; 345
360	360	(b) Regulated utility sellers shall determine whether 346
361	361	individual purchases are exempt or nonexempt based upon the 347
362	362	seller's utility service rate classifications as contained 348
363	363	in tariffs on file with and approved by the Missouri public 349
364	364	service commission. Sales and purchases made pursuant to 350
365	365	the rate classification "residential" and sales to and 351
366	366	purchases made by or on behalf of the occupants of 352
367	367	residential apartments or condominiums through a single or 353
368	368	master meter, including service for common areas and 354
369	369	facilities and vacant units, shall be considered as sales 355
370	370	made for domestic use and such sales shall be exempt from 356
371	371	sales tax. Sellers shall charge sales tax upon the entire 357
372	372	amount of purchases classified as nondomestic use. The 358
373	373	seller's utility service rate classification and the 359
374	374	provision of service thereunder shall be conclusive as to 360
375	375	whether or not the utility must charge sales tax; 361
376	376	(c) Each person making domestic use purchases of 362
377	377	services or property and who uses any portion of the 363
378	378	services or property so purchased for a nondomestic u se 364
379	379	shall, by the fifteenth day of the fourth month following 365 SB 393 13
380	380	the year of purchase, and without assessment, notice or 366
381	381	demand, file a return and pay sales tax on that portion of 367
382	382	nondomestic purchases. Each person making nondomestic 368
383	383	purchases of service s or property and who uses any portion 369
384	384	of the services or property so purchased for domestic use, 370
385	385	and each person making domestic purchases on behalf of 371
386	386	occupants of residential apartments or condominiums through 372
387	387	a single or master meter, including ser vice for common areas 373
388	388	and facilities and vacant units, under a nonresidential 374
389	389	utility service rate classification may, between the first 375
390	390	day of the first month and the fifteenth day of the fourth 376
391	391	month following the year of purchase, apply for credit o r 377
392	392	refund to the director of revenue and the director shall 378
393	393	give credit or make refund for taxes paid on the domestic 379
394	394	use portion of the purchase. The person making such 380
395	395	purchases on behalf of occupants of residential apartments 381
396	396	or condominiums shall have standing to apply to the director 382
397	397	of revenue for such credit or refund; 383
398	398	(24) All sales of handicraft items made by the seller 384
399	399	or the seller's spouse if the seller or the seller's spouse 385
400	400	is at least sixty-five years of age, and if the total gr oss 386
401	401	proceeds from such sales do not constitute a majority of the 387
402	402	annual gross income of the seller; 388
403	403	(25) Excise taxes, collected on sales at retail, 389
404	404	imposed by Sections 4041, 4071, 4081, 4091, 4161, 4181, 390
405	405	4251, 4261 and 4271 of Title 26, United S tates Code. The 391
406	406	director of revenue shall promulgate rules pursuant to 392
407	407	chapter 536 to eliminate all state and local sales taxes on 393
408	408	such excise taxes; 394
409	409	(26) Sales of fuel consumed or used in the operation 395
410	410	of ships, barges, or waterborne vessels wh ich are used 396
411	411	primarily in or for the transportation of property or cargo, 397 SB 393 14
412	412	or the conveyance of persons for hire, on navigable rivers 398
413	413	bordering on or located in part in this state, if such fuel 399
414	414	is delivered by the seller to the purchaser's barge, ship, 400
415	415	or waterborne vessel while it is afloat upon such river; 401
416	416	(27) All sales made to an interstate compact agency 402
417	417	created pursuant to sections 70.370 to 70.441 or sections 403
418	418	238.010 to 238.100 in the exercise of the functions and 404
419	419	activities of such agen cy as provided pursuant to the 405
420	420	compact; 406
421	421	(28) Computers, computer software and computer 407
422	422	security systems purchased for use by architectural or 408
423	423	engineering firms headquartered in this state. For the 409
424	424	purposes of this subdivision, "headquartered in this state" 410
425	425	means the office for the administrative management of at 411
426	426	least four integrated facilities operated by the taxpayer is 412
427	427	located in the state of Missouri; 413
428	428	(29) All livestock sales when either the seller is 414
429	429	engaged in the growing, produci ng or feeding of such 415
430	430	livestock, or the seller is engaged in the business of 416
431	431	buying and selling, bartering or leasing of such livestock; 417
432	432	(30) All sales of barges which are to be used 418
433	433	primarily in the transportation of property or cargo on 419
434	434	interstate waterways; 420
435	435	(31) Electrical energy or gas, whether natural, 421
436	436	artificial or propane, water, or other utilities which are 422
437	437	ultimately consumed in connection with the manufacturing of 423
438	438	cellular glass products or in any material recovery 424
439	439	processing plant as defined in subdivision (4) of this 425
440	440	subsection; 426
441	441	(32) Notwithstanding other provisions of law to the 427
442	442	contrary, all sales of pesticides or herbicides used in the 428
443	443	production of crops, aquaculture, livestock or poultry; 429 SB 393 15
444	444	(33) Tangible personal property and utilities 430
445	445	purchased for use or consumption directly or exclusively in 431
446	446	the research and development of agricultural/biotechnology 432
447	447	and plant genomics products and prescription pharmaceuticals 433
448	448	consumed by humans or animals; 434
449	449	(34) All sales of grain bins for storage of grain for 435
450	450	resale; 436
451	451	(35) All sales of feed which are developed for and 437
452	452	used in the feeding of pets owned by a commercial breeder 438
453	453	when such sales are made to a commercial breeder, as defined 439
454	454	in section 273.325, a nd licensed pursuant to sections 440
455	455	273.325 to 273.357; 441
456	456	(36) All purchases by a contractor on behalf of an 442
457	457	entity located in another state, provided that the entity is 443
458	458	authorized to issue a certificate of exemption for purchases 444
459	459	to a contractor unde r the provisions of that state's laws. 445
460	460	For purposes of this subdivision, the term "certificate of 446
461	461	exemption" shall mean any document evidencing that the 447
462	462	entity is exempt from sales and use taxes on purchases 448
463	463	pursuant to the laws of the state in which the entity is 449
464	464	located. Any contractor making purchases on behalf of such 450
465	465	entity shall maintain a copy of the entity's exemption 451
466	466	certificate as evidence of the exemption. If the exemption 452
467	467	certificate issued by the exempt entity to the contractor is 453
468	468	later determined by the director of revenue to be invalid 454
469	469	for any reason and the contractor has accepted the 455
470	470	certificate in good faith, neither the contractor or the 456
471	471	exempt entity shall be liable for the payment of any taxes, 457
472	472	interest and penalty due as the result of use of the invalid 458
473	473	exemption certificate. Materials shall be exempt from all 459
474	474	state and local sales and use taxes when purchased by a 460
475	475	contractor for the purpose of fabricating tangible personal 461 SB 393 16
476	476	property which is used in fulfilling a cont ract for the 462
477	477	purpose of constructing, repairing or remodeling facilities 463
478	478	for the following: 464
479	479	(a) An exempt entity located in this state, if the 465
480	480	entity is one of those entities able to issue project 466
481	481	exemption certificates in accordance with the pro visions of 467
482	482	section 144.062; or 468
483	483	(b) An exempt entity located outside the state if the 469
484	484	exempt entity is authorized to issue an exemption 470
485	485	certificate to contractors in accordance with the provisions 471
486	486	of that state's law and the applicable provisions of this 472
487	487	section; 473
488	488	(37) All sales or other transfers of tangible personal 474
489	489	property to a lessor who leases the property under a lease 475
490	490	of one year or longer executed or in effect at the time of 476
491	491	the sale or other transfer to an interstate compact agen cy 477
492	492	created pursuant to sections 70.370 to 70.441 or sections 478
493	493	238.010 to 238.100; 479
494	494	(38) Sales of tickets to any collegiate athletic 480
495	495	championship event that is held in a facility owned or 481
496	496	operated by a governmental authority or commission, a quasi - 482
497	497	governmental agency, a state university or college or by the 483
498	498	state or any political subdivision thereof, including a 484
499	499	municipality, and that is played on a neutral site and may 485
500	500	reasonably be played at a site located outside the state of 486
501	501	Missouri. For purposes of this subdivision, "neutral site" 487
502	502	means any site that is not located on the campus of a 488
503	503	conference member institution participating in the event; 489
504	504	(39) All purchases by a sports complex authority 490
505	505	created under section 64.920, and all sale s of utilities by 491
506	506	such authority at the authority's cost that are consumed in 492 SB 393 17
507	507	connection with the operation of a sports complex leased to 493
508	508	a professional sports team; 494
509	509	(40) All materials, replacement parts, and equipment 495
510	510	purchased for use directly upon, and for the modification, 496
511	511	replacement, repair, and maintenance of aircraft, aircraft 497
512	512	power plants, and aircraft accessories; 498
513	513	(41) Sales of sporting clays, wobble, skeet, and trap 499
514	514	targets to any shooting range or similar places of business 500
515	515	for use in the normal course of business and money received 501
516	516	by a shooting range or similar places of business from 502
517	517	patrons and held by a shooting range or similar place of 503
518	518	business for redistribution to patrons at the conclusion of 504
519	519	a shooting event; 505
520	520	(42) All sales of motor fuel, as defined in section 506
521	521	142.800, used in any watercraft, as defined in section 507
522	522	306.010; 508
523	523	(43) Any new or used aircraft sold or delivered in 509
524	524	this state to a person who is not a resident of this state 510
525	525	or a corporation that is not incorporated in this state, and 511
526	526	such aircraft is not to be based in this state and shall not 512
527	527	remain in this state more than ten business days subsequent 513
528	528	to the last to occur of: 514
529	529	(a) The transfer of title to the aircraft to a person 515
530	530	who is not a resident of this state or a corporation that is 516
531	531	not incorporated in this state; or 517
532	532	(b) The date of the return to service of the aircraft 518
533	533	in accordance with 14 CFR 91.407 for any maintenance, 519
534	534	preventive maintenance, rebuilding, alteratio ns, repairs, or 520
535	535	installations that are completed contemporaneously with the 521
536	536	transfer of title to the aircraft to a person who is not a 522
537	537	resident of this state or a corporation that is not 523
538	538	incorporated in this state; 524 SB 393 18
539	539	(44) Motor vehicles registered in excess of fifty-four 525
540	540	thousand pounds, and the trailers pulled by such motor 526
541	541	vehicles, that are actually used in the normal course of 527
542	542	business to haul property on the public highways of the 528
543	543	state, and that are capable of hauling loads commensurate 529
544	544	with the motor vehicle's registered weight; and the 530
545	545	materials, replacement parts, and equipment purchased for 531
546	546	use directly upon, and for the repair and maintenance or 532
547	547	manufacture of such vehicles. For purposes of this 533
548	548	subdivision, "motor vehicle" and " public highway" shall have 534
549	549	the meaning as ascribed in section 390.020; 535
550	550	(45) All internet access or the use of internet access 536
551	551	regardless of whether the tax is imposed on a provider of 537
552	552	internet access or a buyer of internet access. For purposes 538
553	553	of this subdivision, the following terms shall mean: 539
554	554	(a) "Direct costs", costs incurred by a governmental 540
555	555	authority solely because of an internet service provider's 541
556	556	use of the public right -of-way. The term shall not include 542
557	557	costs that the governme ntal authority would have incurred if 543
558	558	the internet service provider did not make such use of the 544
559	559	public right-of-way. Direct costs shall be determined in a 545
560	560	manner consistent with generally accepted accounting 546
561	561	principles; 547
562	562	(b) "Internet", computer and telecommunications 548
563	563	facilities, including equipment and operating software, that 549
564	564	comprises the interconnected worldwide network that employ 550
565	565	the transmission control protocol or internet protocol, or 551
566	566	any predecessor or successor protocols to that pr otocol, to 552
567	567	communicate information of all kinds by wire or radio; 553
568	568	(c) "Internet access", a service that enables users to 554
569	569	connect to the internet to access content, information, or 555
570	570	other services without regard to whether the service is 556 SB 393 19
571	571	referred to as telecommunications, communications, 557
572	572	transmission, or similar services, and without regard to 558
573	573	whether a provider of the service is subject to regulation 559
574	574	by the Federal Communications Commission as a common carrier 560
575	575	under 47 U.S.C. Section 201, et se q. For purposes of this 561
576	576	subdivision, internet access also includes: the purchase, 562
577	577	use, or sale of communications services, including 563
578	578	telecommunications services as defined in section 144.010, 564
579	579	to the extent the communications services are purchased, 565
580	580	used, or sold to provide the service described in this 566
581	581	subdivision or to otherwise enable users to access content, 567
582	582	information, or other services offered over the internet; 568
583	583	services that are incidental to the provision of a service 569
584	584	described in this su bdivision, when furnished to users as 570
585	585	part of such service, including a home page, electronic 571
586	586	mail, and instant messaging, including voice -capable and 572
587	587	video-capable electronic mail and instant messaging, video 573
588	588	clips, and personal electronic storage cap acity; a home page 574
589	589	electronic mail and instant messaging, including voice - 575
590	590	capable and video-capable electronic mail and instant 576
591	591	messaging, video clips, and personal electronic storage 577
592	592	capacity that are provided independently or that are not 578
593	593	packed with internet access. As used in this subdivision, 579
594	594	internet access does not include voice, audio, and video 580
595	595	programming or other products and services, except services 581
596	596	described in this paragraph or this subdivision, that use 582
597	597	internet protocol or any suc cessor protocol and for which 583
598	598	there is a charge, regardless of whether the charge is 584
599	599	separately stated or aggregated with the charge for services 585
600	600	described in this paragraph or this subdivision; 586
601	601	(d) "Tax", any charge imposed by the state or a 587
602	602	political subdivision of the state for the purpose of 588 SB 393 20
603	603	generating revenues for governmental purposes and that is 589
604	604	not a fee imposed for a specific privilege, service, or 590
605	605	benefit conferred, except as described as otherwise under 591
606	606	this subdivision, or any obli gation imposed on a seller to 592
607	607	collect and to remit to the state or a political subdivision 593
608	608	of the state any gross retail tax, sales tax, or use tax 594
609	609	imposed on a buyer by such a governmental entity. The term 595
610	610	tax shall not include any franchise fee or s imilar fee 596
611	611	imposed or authorized under sections 67.1830 to 67.1846 or 597
612	612	section 67.2689; Section 622 or 653 of the Communications 598
613	613	Act of 1934, 47 U.S.C. Section 542 and 47 U.S.C. Section 599
614	614	573; or any other fee related to obligations of 600
615	615	telecommunications carriers under the Communications Act of 601
616	616	1934, 47 U.S.C. Section 151, et seq., except to the extent 602
617	617	that: 603
618	618	a. The fee is not imposed for the purpose of 604
619	619	recovering direct costs incurred by the franchising or other 605
620	620	governmental authority from provi ding the specific 606
621	621	privilege, service, or benefit conferred to the payer of the 607
622	622	fee; or 608
623	623	b. The fee is imposed for the use of a public right -of- 609
624	624	way based on a percentage of the service revenue, and the 610
625	625	fee exceeds the incremental direct costs incur red by the 611
626	626	governmental authority associated with the provision of that 612
627	627	right-of-way to the provider of internet access service. 613
628	628	Nothing in this subdivision shall be interpreted as an 614
629	629	exemption from taxes due on goods or services that were 615
630	630	subject to tax on January 1, 2016; 616
631	631	(46) All purchases by a company of solar photovoltaic 617
632	632	energy systems, components used to construct a solar 618
633	633	photovoltaic energy system, and all purchases of materials 619 SB 393 21
634	634	and supplies used directly to construct or make improvemen ts 620
635	635	to such systems, provided that such systems: 621
636	636	(a) Are sold or leased to an end user; or 622
637	637	(b) Are used to produce, collect and transmit 623
638	638	electricity for resale or retail. 624
639	639	3. Any ruling, agreement, or contract, whether written 625
640	640	or oral, express or implied, between a person and this 626
641	641	state's executive branch, or any other state agency or 627
642	642	department, stating, agreeing, or ruling that such person is 628
643	643	not required to collect sales and use tax in this state 629
644	644	despite the presence of a warehouse , distribution center, or 630
645	645	fulfillment center in this state that is owned or operated 631
646	646	by the person or an affiliated person shall be null and void 632
647	647	unless it is specifically approved by a majority vote of 633
648	648	each of the houses of the general assembly. For purposes of 634
649	649	this subsection, an "affiliated person" means any person 635
650	650	that is a member of the same controlled group of 636
651	651	corporations as defined in Section 1563(a) of the Internal 637
652	652	Revenue Code of 1986, as amended, as the vendor or any other 638
653	653	entity that, notwithstanding its form of organization, bears 639
654	654	the same ownership relationship to the vendor as a 640
655	655	corporation that is a member of the same controlled group of 641
656	656	corporations as defined in Section 1563(a) of the Internal 642
657	657	Revenue Code, as amended. 643
658	658	