Missouri 2025 Regular Session

Missouri Senate Bill SB496 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	FIRST REGULAR SESSION
3	3	SENATE BILL NO. 496
4	4	103RD GENERAL ASSEMBLY
5	5	INTRODUCED BY SENATOR NURRENBERN.
6	6	1655S.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 a sales
9	9	tax exemption for certain hygiene products.
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12	12	Section A. Section 144.030, RSMo, is repealed and one new 1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 or 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 s ale 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 constitution 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 496 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, unless 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 fertilizin g 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 28 1.220 to 33
48	48	281.310, which are to be 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 resulting 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 496 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 vehi cles, 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 re placement 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, installation 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 subdivisio n, 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 collection 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 301.010. 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 496 4
96	96	in subdivision (9) of subsection 1 of section 144.010, the 82
97	97	term "product" includes telecom munications 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 subsectio n 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 expressed 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 Te l. 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 496 5
128	128	recovered. The material recovery processing plant sha ll 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 or 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. D irector 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, processin g, 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 an y type of sound 143
158	158	or picture transcriptions for public commercial display; 144 SB 496 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 commerce 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 actual 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 de fined 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 electr ical 161
176	176	energy so used or if the raw 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 t hing, 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 h ave a useful life of less than one 175
190	190	year; 176 SB 496 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 po llution, 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 admission 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 subdivision 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 496 8
222	222	(18) All sales of insulin, and all sales, renta ls, 208
223	223	repairs, and parts of durable 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 adminis ter 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 pa rts, and 221
236	236	hospital beds and accessories 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 alternati ve 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 and 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 496 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 functio ns 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 h ave 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 industr ies of the state, and all sales made 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 ma de to a 257
272	272	state relief agency in the 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 ent ry fees to the Missouri state fair 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 496 10
285	285	(22) All sales made to any private not -for-profit 271
286	286	elementary or secondary sch ool, 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 use d 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, natural 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 a irplanes, 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 feedi ng 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 u sed 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, including utility 299
314	314	vehicles used for any agricultural use, and repair or 300
315	315	replacement parts thereon and any accessories for and 301
316	316	upgrades to such farm machinery and equipment and rotary 302 SB 496 11
317	317	mowers used for any agricultural purpo ses. For the purposes 303
318	318	of this subdivision, "utility vehicle" shall mean any 304
319	319	motorized vehicle manufactured and used exclusively for off - 305
320	320	highway use which is more than fifty inches but no more than 306
321	321	eighty inches in width, measured from outside of tire rim to 307
322	322	outside of tire rim, with an unladen dry weight of three 308
323	323	thousand five hundred pounds or less, traveling on four or 309
324	324	six wheels; 310
325	325	(b) Supplies and lubricants used exclusively, solely, 311
326	326	and directly for producing crops, raising and feeding 312
327	327	livestock, fish, poultry, pheasants, chukar, quail, or for 313
328	328	producing milk for ultimate sale at retail, including field 314
329	329	drain tile; and 315
330	330	(c) One-half of each purchaser's purchase of diesel 316
331	331	fuel therefor which is: 317
332	332	a. Used exclusively for agricult ural purposes; 318
333	333	b. Used on land owned or leased for the purpose of 319
334	334	producing farm products; and 320
335	335	c. Used directly in producing farm products to be sold 321
336	336	ultimately in processed form or otherwise at retail or in 322
337	337	producing farm products to be fed to livestock or poultry to 323
338	338	be sold ultimately in processed form at retail; 324
339	339	(23) Except as otherwise provided in section 144.032, 325
340	340	all sales of metered water service, electricity, electrical 326
341	341	current, natural, artificial or propane gas, wood, coal o r 327
342	342	home heating oil for domestic use and in any city not within 328
343	343	a county, all sales of metered or unmetered water service 329
344	344	for domestic use: 330
345	345	(a) "Domestic use" means that portion of metered water 331
346	346	service, electricity, electrical current, natural, 332
347	347	artificial or propane gas, wood, coal or home heating oil, 333
348	348	and in any city not within a county, metered or unmetered 334 SB 496 12
349	349	water service, which an individual occupant of a residential 335
350	350	premises uses for nonbusiness, noncommercial or 336
351	351	nonindustrial purposes. Utility service through a single or 337
352	352	master meter for residential apartments or condominiums, 338
353	353	including service for common areas and facilities and vacant 339
354	354	units, shall be deemed to be for domestic use. Each seller 340
355	355	shall establish and maintain a system w hereby individual 341
356	356	purchases are determined as exempt or nonexempt; 342
357	357	(b) Regulated utility sellers shall determine whether 343
358	358	individual purchases are exempt or nonexempt based upon the 344
359	359	seller's utility service rate classifications as contained 345
360	360	in tariffs on file with and approved by the Missouri public 346
361	361	service commission. Sales and purchases made pursuant to 347
362	362	the rate classification "residential" and sales to and 348
363	363	purchases made by or on behalf of the occupants of 349
364	364	residential apartments or condomin iums through a single or 350
365	365	master meter, including service for common areas and 351
366	366	facilities and vacant units, shall be considered as sales 352
367	367	made for domestic use and such sales shall be exempt from 353
368	368	sales tax. Sellers shall charge sales tax upon the entire 354
369	369	amount of purchases classified as nondomestic use. The 355
370	370	seller's utility service rate classification and the 356
371	371	provision of service thereunder shall be conclusive as to 357
372	372	whether or not the utility must charge sales tax; 358
373	373	(c) Each person making domes tic use purchases of 359
374	374	services or property and who uses any portion of the 360
375	375	services or property so purchased for a nondomestic use 361
376	376	shall, by the fifteenth day of the fourth month following 362
377	377	the year of purchase, and without assessment, notice or 363
378	378	demand, file a return and pay sales tax on that portion of 364
379	379	nondomestic purchases. Each person making nondomestic 365
380	380	purchases of services or property and who uses any portion 366 SB 496 13
381	381	of the services or property so purchased for domestic use, 367
382	382	and each person making dome stic purchases on behalf of 368
383	383	occupants of residential apartments or condominiums through 369
384	384	a single or master meter, including service for common areas 370
385	385	and facilities and vacant units, under a nonresidential 371
386	386	utility service rate classification may, betwee n the first 372
387	387	day of the first month and the fifteenth day of the fourth 373
388	388	month following the year of purchase, apply for credit or 374
389	389	refund to the director of revenue and the director shall 375
390	390	give credit or make refund for taxes paid on the domestic 376
391	391	use portion of the purchase. The person making such 377
392	392	purchases on behalf of occupants of residential apartments 378
393	393	or condominiums shall have standing to apply to the director 379
394	394	of revenue for such credit or refund; 380
395	395	(24) All sales of handicraft items made by the seller 381
396	396	or the seller's spouse if the seller or the seller's spouse 382
397	397	is at least sixty-five years of age, and if the total gross 383
398	398	proceeds from such sales do not constitute a majority of the 384
399	399	annual gross income of the seller; 385
400	400	(25) Excise taxes, collected on sales at retail, 386
401	401	imposed by Sections 4041, 4071, 4081, 4091, 4161, 4181, 387
402	402	4251, 4261 and 4271 of Title 26, United States Code. The 388
403	403	director of revenue shall promulgate rules pursuant to 389
404	404	chapter 536 to eliminate all state and local sales ta xes on 390
405	405	such excise taxes; 391
406	406	(26) Sales of fuel consumed or used in the operation 392
407	407	of ships, barges, or waterborne vessels which are used 393
408	408	primarily in or for the transportation of property or cargo, 394
409	409	or the conveyance of persons for hire, on navigable rivers 395
410	410	bordering on or located in part in this state, if such fuel 396
411	411	is delivered by the seller to the purchaser's barge, ship, 397
412	412	or waterborne vessel while it is afloat upon such river; 398 SB 496 14
413	413	(27) All sales made to an interstate compact agency 399
414	414	created pursuant to sections 70.370 to 70.441 or sections 400
415	415	238.010 to 238.100 in the exercise of the functions and 401
416	416	activities of such agency as provided pursuant to the 402
417	417	compact; 403
418	418	(28) Computers, computer software and computer 404
419	419	security systems purchased for u se by architectural or 405
420	420	engineering firms headquartered in this state. For the 406
421	421	purposes of this subdivision, "headquartered in this state" 407
422	422	means the office for the administrative management of at 408
423	423	least four integrated facilities operated by the taxpaye r is 409
424	424	located in the state of Missouri; 410
425	425	(29) All livestock sales when either the seller is 411
426	426	engaged in the growing, producing or feeding of such 412
427	427	livestock, or the seller is engaged in the business of 413
428	428	buying and selling, bartering or leasing of such livestock; 414
429	429	(30) All sales of barges which are to be used 415
430	430	primarily in the transportation of property or cargo on 416
431	431	interstate waterways; 417
432	432	(31) Electrical energy or gas, whether natural, 418
433	433	artificial or propane, water, or other utilities which ar e 419
434	434	ultimately consumed in connection with the manufacturing of 420
435	435	cellular glass products or in any material recovery 421
436	436	processing plant as defined in subdivision (4) of this 422
437	437	subsection; 423
438	438	(32) Notwithstanding other provisions of law to the 424
439	439	contrary, all sales of pesticides or herbicides used in the 425
440	440	production of crops, aquaculture, livestock or poultry; 426
441	441	(33) Tangible personal property and utilities 427
442	442	purchased for use or consumption directly or exclusively in 428
443	443	the research and development of agric ultural/biotechnology 429 SB 496 15
444	444	and plant genomics products and prescription pharmaceuticals 430
445	445	consumed by humans or animals; 431
446	446	(34) All sales of grain bins for storage of grain for 432
447	447	resale; 433
448	448	(35) All sales of feed which are developed for and 434
449	449	used in the feeding of pets owned by a commercial breeder 435
450	450	when such sales are made to a commercial breeder, as defined 436
451	451	in section 273.325, and licensed pursuant to sections 437
452	452	273.325 to 273.357; 438
453	453	(36) All purchases by a contractor on behalf of an 439
454	454	entity located in another state, provided that the entity is 440
455	455	authorized to issue a certificate of exemption for purchases 441
456	456	to a contractor under the provisions of that state's laws. 442
457	457	For purposes of this subdivision, the term "certificate of 443
458	458	exemption" shall mean any document evidencing that the 444
459	459	entity is exempt from sales and use taxes on purchases 445
460	460	pursuant to the laws of the state in which the entity is 446
461	461	located. Any contractor making purchases on behalf of such 447
462	462	entity shall maintain a copy of the entity's exempt ion 448
463	463	certificate as evidence of the exemption. If the exemption 449
464	464	certificate issued by the exempt entity to the contractor is 450
465	465	later determined by the director of revenue to be invalid 451
466	466	for any reason and the contractor has accepted the 452
467	467	certificate in good faith, neither the contractor or the 453
468	468	exempt entity shall be liable for the payment of any taxes, 454
469	469	interest and penalty due as the result of use of the invalid 455
470	470	exemption certificate. Materials shall be exempt from all 456
471	471	state and local sales and use ta xes when purchased by a 457
472	472	contractor for the purpose of fabricating tangible personal 458
473	473	property which is used in fulfilling a contract for the 459
474	474	purpose of constructing, repairing or remodeling facilities 460
475	475	for the following: 461 SB 496 16
476	476	(a) An exempt entity locate d in this state, if the 462
477	477	entity is one of those entities able to issue project 463
478	478	exemption certificates in accordance with the provisions of 464
479	479	section 144.062; or 465
480	480	(b) An exempt entity located outside the state if the 466
481	481	exempt entity is authorized to iss ue an exemption 467
482	482	certificate to contractors in accordance with the provisions 468
483	483	of that state's law and the applicable provisions of this 469
484	484	section; 470
485	485	(37) All sales or other transfers of tangible personal 471
486	486	property to a lessor who leases the property un der a lease 472
487	487	of one year or longer executed or in effect at the time of 473
488	488	the sale or other transfer to an interstate compact agency 474
489	489	created pursuant to sections 70.370 to 70.441 or sections 475
490	490	238.010 to 238.100; 476
491	491	(38) Sales of tickets to any collegiat e athletic 477
492	492	championship event that is held in a facility owned or 478
493	493	operated by a governmental authority or commission, a quasi - 479
494	494	governmental agency, a state university or college or by the 480
495	495	state or any political subdivision thereof, including a 481
496	496	municipality, and that is played on a neutral site and may 482
497	497	reasonably be played at a site located outside the state of 483
498	498	Missouri. For purposes of this subdivision, "neutral site" 484
499	499	means any site that is not located on the campus of a 485
500	500	conference member instituti on participating in the event; 486
501	501	(39) All purchases by a sports complex authority 487
502	502	created under section 64.920, and all sales of utilities by 488
503	503	such authority at the authority's cost that are consumed in 489
504	504	connection with the operation of a sports compl ex leased to 490
505	505	a professional sports team; 491
506	506	(40) All materials, replacement parts, and equipment 492
507	507	purchased for use directly upon, and for the modification, 493 SB 496 17
508	508	replacement, repair, and maintenance of aircraft, aircraft 494
509	509	power plants, and aircraft accesso ries; 495
510	510	(41) Sales of sporting clays, wobble, skeet, and trap 496
511	511	targets to any shooting range or similar places of business 497
512	512	for use in the normal course of business and money received 498
513	513	by a shooting range or similar places of business from 499
514	514	patrons and held by a shooting range or similar place of 500
515	515	business for redistribution to patrons at the conclusion of 501
516	516	a shooting event; 502
517	517	(42) All sales of motor fuel, as defined in section 503
518	518	142.800, used in any watercraft, as defined in section 504
519	519	306.010; 505
520	520	(43) Any new or used aircraft sold or delivered in 506
521	521	this state to a person who is not a resident of this state 507
522	522	or a corporation that is not incorporated in this state, and 508
523	523	such aircraft is not to be based in this state and shall not 509
524	524	remain in this state more than ten business days subsequent 510
525	525	to the last to occur of: 511
526	526	(a) The transfer of title to the aircraft to a person 512
527	527	who is not a resident of this state or a corporation that is 513
528	528	not incorporated in this state; or 514
529	529	(b) The date of the return to service of the aircraft 515
530	530	in accordance with 14 CFR 91.407 for any maintenance, 516
531	531	preventive maintenance, rebuilding, alterations, repairs, or 517
532	532	installations that are completed contemporaneously with the 518
533	533	transfer of title to the aircraft to a person who is not a 519
534	534	resident of this state or a corporation that is not 520
535	535	incorporated in this state; 521
536	536	(44) Motor vehicles registered in excess of fifty -four 522
537	537	thousand pounds, and the trailers pulled by such motor 523
538	538	vehicles, that are actually used in the normal course of 524
539	539	business to haul property on the public highways of the 525 SB 496 18
540	540	state, and that are capable of hauling loads commensurate 526
541	541	with the motor vehicle's registered weight; and the 527
542	542	materials, replacement parts, and equipment purchased for 528
543	543	use directly upon, and for the repair and maintenance or 529
544	544	manufacture of such vehicles. For purposes of this 530
545	545	subdivision, "motor vehicle" and "public highway" shall have 531
546	546	the meaning as ascribed in section 390.020; 532
547	547	(45) All internet access or the use of internet a ccess 533
548	548	regardless of whether the tax is imposed on a provider of 534
549	549	internet access or a buyer of internet access. For purposes 535
550	550	of this subdivision, the following terms shall mean: 536
551	551	(a) "Direct costs", costs incurred by a governmental 537
552	552	authority solely because of an internet service provider's 538
553	553	use of the public right -of-way. The term shall not include 539
554	554	costs that the governmental authority would have incurred if 540
555	555	the internet service provider did not make such use of the 541
556	556	public right-of-way. Direct costs shall be determined in a 542
557	557	manner consistent with generally accepted accounting 543
558	558	principles; 544
559	559	(b) "Internet", computer and telecommunications 545
560	560	facilities, including equipment and operating software, that 546
561	561	comprises the interconnected worldwide n etwork that employ 547
562	562	the transmission control protocol or internet protocol, or 548
563	563	any predecessor or successor protocols to that protocol, to 549
564	564	communicate information of all kinds by wire or radio; 550
565	565	(c) "Internet access", a service that enables users to 551
566	566	connect to the internet to access content, information, or 552
567	567	other services without regard to whether the service is 553
568	568	referred to as telecommunications, communications, 554
569	569	transmission, or similar services, and without regard to 555
570	570	whether a provider of the s ervice is subject to regulation 556
571	571	by the Federal Communications Commission as a common carrier 557 SB 496 19
572	572	under 47 U.S.C. Section 201, et seq. For purposes of this 558
573	573	subdivision, internet access also includes: the purchase, 559
574	574	use, or sale of communications services, including 560
575	575	telecommunications services as defined in section 144.010, 561
576	576	to the extent the communications services are purchased, 562
577	577	used, or sold to provide the service described in this 563
578	578	subdivision or to otherwise enable users to access content, 564
579	579	information, or other services offered over the internet; 565
580	580	services that are incidental to the provision of a service 566
581	581	described in this subdivision, when furnished to users as 567
582	582	part of such service, including a home page, electronic 568
583	583	mail, and instant messaging, in cluding voice-capable and 569
584	584	video-capable electronic mail and instant messaging, video 570
585	585	clips, and personal electronic storage capacity; a home page 571
586	586	electronic mail and instant messaging, including voice - 572
587	587	capable and video-capable electronic mail and insta nt 573
588	588	messaging, video clips, and personal electronic storage 574
589	589	capacity that are provided independently or that are not 575
590	590	packed with internet access. As used in this subdivision, 576
591	591	internet access does not include voice, audio, and video 577
592	592	programming or other products and services, except services 578
593	593	described in this paragraph or this subdivision, that use 579
594	594	internet protocol or any successor protocol and for which 580
595	595	there is a charge, regardless of whether the charge is 581
596	596	separately stated or aggregated with the charge for services 582
597	597	described in this paragraph or this subdivision; 583
598	598	(d) "Tax", any charge imposed by the state or a 584
599	599	political subdivision of the state for the purpose of 585
600	600	generating revenues for governmental purposes and that is 586
601	601	not a fee imposed for a specific privilege, service, or 587
602	602	benefit conferred, except as described as otherwise under 588
603	603	this subdivision, or any obligation imposed on a seller to 589 SB 496 20
604	604	collect and to remit to the state or a political subdivision 590
605	605	of the state any gross retail tax, sales tax, or use tax 591
606	606	imposed on a buyer by such a governmental entity. The term 592
607	607	tax shall not include any franchise fee or similar fee 593
608	608	imposed or authorized under sections 67.1830 to 67.1846 or 594
609	609	section 67.2689; Section 622 or 653 of the Communicatio ns 595
610	610	Act of 1934, 47 U.S.C. Section 542 and 47 U.S.C. Section 596
611	611	573; or any other fee related to obligations of 597
612	612	telecommunications carriers under the Communications Act of 598
613	613	1934, 47 U.S.C. Section 151, et seq., except to the extent 599
614	614	that: 600
615	615	a. The fee is not imposed for the purpose of 601
616	616	recovering direct costs incurred by the franchising or other 602
617	617	governmental authority from providing the specific 603
618	618	privilege, service, or benefit conferred to the payer of the 604
619	619	fee; or 605
620	620	b. The fee is imposed for the us e of a public right-of- 606
621	621	way based on a percentage of the service revenue, and the 607
622	622	fee exceeds the incremental direct costs incurred by the 608
623	623	governmental authority associated with the provision of that 609
624	624	right-of-way to the provider of internet access servi ce. 610
625	625	Nothing in this subdivision shall be interpreted as an 611
626	626	exemption from taxes due on goods or services that were 612
627	627	subject to tax on January 1, 2016; 613
628	628	(46) All purchases by a company of solar photovoltaic 614
629	629	energy systems, components used to construc t a solar 615
630	630	photovoltaic energy system, and all purchases of materials 616
631	631	and supplies used directly to construct or make improvements 617
632	632	to such systems, provided that such systems: 618
633	633	(a) Are sold or leased to an end user; or 619 SB 496 21
634	634	(b) Are used to produce, collect and transmit 620
635	635	electricity for resale or retail ; 621
636	636	(47) All sales of diapers, incontinence products, and 622
637	637	feminine hygiene products. For the purposes of this 623
638	638	subdivision, the following terms shall mean: 624
639	639	(a) "Diapers", absorbent garments worn by infants or 625
640	640	toddlers who are not toilet -trained or by individuals who 626
641	641	are incapable of controlling their bladder or bowel 627
642	642	movements; 628
643	643	(b) "Feminine hygiene products", tampons, pads, 629
644	644	liners, and cups; 630
645	645	(c) "Incontinence products", prod ucts designed 631
646	646	specifically for hygiene matters related to urinary 632
647	647	incontinence. 633
648	648	3. Any ruling, agreement, or contract, whether written 634
649	649	or oral, express or implied, between a person and this 635
650	650	state's executive branch, or any other state agency or 636
651	651	department, stating, agreeing, or ruling that such person is 637
652	652	not required to collect sales and use tax in this state 638
653	653	despite the presence of a warehouse, distribution center, or 639
654	654	fulfillment center in this state that is owned or operated 640
655	655	by the person or an affiliated person shall be null and void 641
656	656	unless it is specifically approved by a majority vote of 642
657	657	each of the houses of the general assembly. For purposes of 643
658	658	this subsection, an "affiliated person" means any person 644
659	659	that is a member of the same co ntrolled group of 645
660	660	corporations as defined in Section 1563(a) of the Internal 646
661	661	Revenue Code of 1986, as amended, as the vendor or any other 647
662	662	entity that, notwithstanding its form of organization, bears 648
663	663	the same ownership relationship to the vendor as a 649
664	664	corporation that is a member of the same controlled group of 650 SB 496 22
665	665	corporations as defined in Section 1563(a) of the Internal 651
666	666	Revenue Code, as amended. 652
667	667	