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Section A. Section 144.030, RSMo, is repealed and on e new 1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