Missouri 2025 Regular Session

Missouri Senate Bill SB57 Compare Versions

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

Old	New	Differences
1	1
2	2	EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3	3	and is intended to be omitted in the law.
4	4	FIRST REGULAR SESSION
5	5	SENATE BILL NO. 57
6	6	103RD GENERAL ASSEMBLY
7	7	INTRODUCED BY SENATOR COLEMAN.
8	8	0134S.02I KRISTINA MARTIN, Secretary
9	9	AN ACT
10	10	To repeal sections 144.014 and 144.030, RSMo, and to enact in lieu thereof two new sections
11	11	relating to sales tax exemptions.
12	12
13	13	Be it enacted by the General Assembly of the State of Missouri, as follows:
14	14	Section A. Sections 144.014 and 144.030, RSMo, are 1
15	15	repealed and two new sections enacted in lieu thereof, to be 2
16	16	known as sections 144.014 and 144.030, to read as fol lows:3
17	17	144.014. 1. (1) Notwithstanding other provisions of 1
18	18	law to the contrary, [beginning October 1, 1997, the tax 2
19	19	levied and imposed under this chapter on ] all retail sales 3
20	20	of food shall be [at the rate of one percent. The revenue 4
21	21	derived from the one percent rate pursuant to this section 5
22	22	shall be deposited by the state treasurer in the school 6
23	23	district trust fund and shall be distributed as provided in 7
24	24	section 144.701] exempted from the provisions of and from 8
25	25	the computation of the tax le vied, assessed, or payable 9
26	26	pursuant to this chapter. 10
27	27	(2) Beginning January 1, 2026, the rate of sales tax 11
28	28	imposed on all retail sales of food pursuant to the local 12
29	29	sales tax law as defined in section 32.085, and section 13
30	30	238.235, shall annually be reduced in four equal increments 14
31	31	over a period of four years. Beginning January 1, 2030, 15
32	32	notwithstanding other provisions of law to the contrary, all 16
33	33	retail sales of food shall be exempted from the provisions 17
34	34	of and from the computation of the tax le vied, assessed, or 18 SB 57 2
35	35	payable pursuant to the local sales tax law as defined in 19
36	36	section 32.085, and section 238.235 . 20
37	37	2. For the purposes of this section, the term "food" 21
38	38	shall include only those products and types of food for 22
39	39	which food stamps may b e redeemed pursuant to the provisions 23
40	40	of the Federal Food Stamp Program as contained in 7 U.S.C. 24
41	41	Section 2012, as that section now reads or as it may be 25
42	42	amended hereafter, and shall include food dispensed by or 26
43	43	through vending machines. For the purpose of this section, 27
44	44	except for vending machine sales, the term "food" shall not 28
45	45	include food or drink sold by any establishment where the 29
46	46	gross receipts derived from the sale of food prepared by 30
47	47	such establishment for immediate consumption on or off the 31
48	48	premises of the establishment constitutes more than eighty 32
49	49	percent of the total gross receipts of that establishment, 33
50	50	regardless of whether such prepared food is consumed on the 34
51	51	premises of that establishment, including, but not limited 35
52	52	to, sales of food by any restaurant, fast food restaurant, 36
53	53	delicatessen, eating house, or café. 37
54	54	144.030. 1. There is hereby specifically exempted 1
55	55	from the provisions of sections 144.010 to 144.525 and from 2
56	56	the computation of the tax levied, asse ssed or payable 3
57	57	pursuant to sections 144.010 to 144.525 such retail sales as 4
58	58	may be made in commerce between this state and any other 5
59	59	state of the United States, or between this state and any 6
60	60	foreign country, and any retail sale which the state of 7
61	61	Missouri is prohibited from taxing pursuant to the 8
62	62	Constitution or laws of the United States of America, and 9
63	63	such retail sales of tangible personal property which the 10
64	64	general assembly of the state of Missouri is prohibited from 11
65	65	taxing or further taxing by the constitution of this state. 12 SB 57 3
66	66	2. There are also specifically exempted from the 13
67	67	provisions of the local sales tax law as defined in section 14
68	68	32.085, section 238.235, and sections 144.010 to 144.525 and 15
69	69	144.600 to 144.761 and from the computation of the tax 16
70	70	levied, assessed or payable pursuant to the local sales tax 17
71	71	law as defined in section 32.085, section 238.235, and 18
72	72	sections 144.010 to 144.525 and 144.600 to 144.745: 19
73	73	(1) Motor fuel or special fuel subject to an excise 20
74	74	tax of this state, unless all or part of such excise tax is 21
75	75	refunded pursuant to section 142.824; or upon the sale at 22
76	76	retail of fuel to be consumed in manufacturing or creating 23
77	77	gas, power, steam, electrical current or in furnishing water 24
78	78	to be sold ultimately at retai l; or feed for livestock or 25
79	79	poultry; or grain to be converted into foodstuffs which are 26
80	80	to be sold ultimately in processed form at retail; or seed, 27
81	81	limestone or fertilizer which is to be used for seeding, 28
82	82	liming or fertilizing crops which when harveste d will be 29
83	83	sold at retail or will be fed to livestock or poultry to be 30
84	84	sold ultimately in processed form at retail; economic 31
85	85	poisons registered pursuant to the provisions of the 32
86	86	Missouri pesticide registration [law] act, sections 33
87	87	[281.220] 281.210 to 281.310, which are to be used in 34
88	88	connection with the growth or production of crops, fruit 35
89	89	trees or orchards applied before, during, or after planting, 36
90	90	the crop of which when harvested will be sold at retail or 37
91	91	will be converted into foodstuffs which are to be sold 38
92	92	ultimately in processed form at retail; 39
93	93	(2) Materials, manufactured goods, machinery and parts 40
94	94	which when used in manufacturing, processing, compounding, 41
95	95	mining, producing or fabricating become a component part or 42
96	96	ingredient of the ne w personal property resulting from such 43
97	97	manufacturing, processing, compounding, mining, producing or 44 SB 57 4
98	98	fabricating and which new personal property is intended to 45
99	99	be sold ultimately for final use or consumption; and 46
100	100	materials, including without limitation , gases and 47
101	101	manufactured goods, including without limitation slagging 48
102	102	materials and firebrick, which are ultimately consumed in 49
103	103	the manufacturing process by blending, reacting or 50
104	104	interacting with or by becoming, in whole or in part, 51
105	105	component parts or ingredients of steel products intended to 52
106	106	be sold ultimately for final use or consumption; 53
107	107	(3) Materials, replacement parts and equipment 54
108	108	purchased for use directly upon, and for the repair and 55
109	109	maintenance or manufacture of, motor vehicles, water craft, 56
110	110	railroad rolling stock or aircraft engaged as common 57
111	111	carriers of persons or property; 58
112	112	(4) Replacement machinery, equipment, and parts and 59
113	113	the materials and supplies solely required for the 60
114	114	installation or construction of such replacement m achinery, 61
115	115	equipment, and parts, used directly in manufacturing, 62
116	116	mining, fabricating or producing a product which is intended 63
117	117	to be sold ultimately for final use or consumption; and 64
118	118	machinery and equipment, and the materials and supplies 65
119	119	required solely for the operation, installation or 66
120	120	construction of such machinery and equipment, purchased and 67
121	121	used to establish new, or to replace or expand existing, 68
122	122	material recovery processing plants in this state. For the 69
123	123	purposes of this subdivision, a "mater ial recovery 70
124	124	processing plant" means a facility that has as its primary 71
125	125	purpose the recovery of materials into a usable product or a 72
126	126	different form which is used in producing a new product and 73
127	127	shall include a facility or equipment which are used 74
128	128	exclusively for the collection of recovered materials for 75
129	129	delivery to a material recovery processing plant but shall 76 SB 57 5
130	130	not include motor vehicles used on highways. For purposes 77
131	131	of this section, the terms motor vehicle and highway shall 78
132	132	have the same meaning pursuant to section 301.010. For the 79
133	133	purposes of this subdivision, subdivision (5) of this 80
134	134	subsection, and section 144.054, as well as the definition 81
135	135	in subdivision (9) of subsection 1 of section 144.010, the 82
136	136	term "product" includes telecommunications services and the 83
137	137	term "manufacturing" shall include the production, or 84
138	138	production and transmission, of telecommunications 85
139	139	services. The preceding sentence does not make a 86
140	140	substantive change in the law and is intended to clarify 87
141	141	that the term "manufa cturing" has included and continues to 88
142	142	include the production and transmission of 89
143	143	"telecommunications services", as enacted in this 90
144	144	subdivision and subdivision (5) of this subsection, as well 91
145	145	as the definition in subdivision (9) of subsection 1 of 92
146	146	section 144.010. The preceding two sentences reaffirm 93
147	147	legislative intent consistent with the interpretation of 94
148	148	this subdivision and subdivision (5) of this subsection in 95
149	149	Southwestern Bell Tel. Co. v. Director of Revenue , 78 S.W.3d 96
150	150	763 (Mo. banc 2002) and Southwestern Bell Tel. Co. v. 97
151	151	Director of Revenue, 182 S.W.3d 226 (Mo. banc 2005), and 98
152	152	accordingly abrogates the Missouri supreme court's 99
153	153	interpretation of those exemptions in IBM Corporation v. 100
154	154	Director of Revenue, 491 S.W.3d 535 (Mo. banc 2016) to t he 101
155	155	extent inconsistent with this section and Southwestern Bell 102
156	156	Tel. Co. v. Director of Revenue , 78 S.W.3d 763 (Mo. banc 103
157	157	2002) and Southwestern Bell Tel. Co. v. Director of Revenue , 104
158	158	182 S.W.3d 226 (Mo. banc 2005). The construction and 105
159	159	application of this subdivision as expressed by the Missouri 106
160	160	supreme court in DST Systems, Inc. v. Director of Revenue , 107
161	161	43 S.W.3d 799 (Mo. banc 2001); Southwestern Bell Tel. Co. v. 108 SB 57 6
162	162	Director of Revenue, 78 S.W.3d 763 (Mo. banc 2002); and 109
163	163	Southwestern Bell Tel. Co. v. D irector of Revenue, 182 110
164	164	S.W.3d 226 (Mo. banc 2005), is hereby affirmed. Material 111
165	165	recovery is not the reuse of materials within a 112
166	166	manufacturing process or the use of a product previously 113
167	167	recovered. The material recovery processing plant shall 114
168	168	qualify under the provisions of this section regardless of 115
169	169	ownership of the material being recovered; 116
170	170	(5) Machinery and equipment, and parts and the 117
171	171	materials and supplies solely required for the installation 118
172	172	or construction of such machinery and equipme nt, purchased 119
173	173	and used to establish new or to expand existing 120
174	174	manufacturing, mining or fabricating plants in the state if 121
175	175	such machinery and equipment is used directly in 122
176	176	manufacturing, mining or fabricating a product which is 123
177	177	intended to be sold ulti mately for final use or 124
178	178	consumption. The construction and application of this 125
179	179	subdivision as expressed by the Missouri supreme court in 126
180	180	DST Systems, Inc. v. Director of Revenue , 43 S.W.3d 799 (Mo. 127
181	181	banc 2001); Southwestern Bell Tel. Co. v. Director of 128
182	182	Revenue, 78 S.W.3d 763 (Mo. banc 2002); and Southwestern 129
183	183	Bell Tel. Co. v. Director of Revenue , 182 S.W.3d 226 (Mo. 130
184	184	banc 2005), is hereby affirmed; 131
185	185	(6) Tangible personal property which is used 132
186	186	exclusively in the manufacturing, processing, modifica tion 133
187	187	or assembling of products sold to the United States 134
188	188	government or to any agency of the United States government; 135
189	189	(7) Animals or poultry used for breeding or feeding 136
190	190	purposes, or captive wildlife; 137
191	191	(8) Newsprint, ink, computers, photosens itive paper 138
192	192	and film, toner, printing plates and other machinery, 139
193	193	equipment, replacement parts and supplies used in producing 140 SB 57 7
194	194	newspapers published for dissemination of news to the 141
195	195	general public; 142
196	196	(9) The rentals of films, records or any type of s ound 143
197	197	or picture transcriptions for public commercial display; 144
198	198	(10) Pumping machinery and equipment used to propel 145
199	199	products delivered by pipelines engaged as common carriers; 146
200	200	(11) Railroad rolling stock for use in transporting 147
201	201	persons or property in interstate commerce and motor 148
202	202	vehicles licensed for a gross weight of twenty -four thousand 149
203	203	pounds or more or trailers used by common carriers, as 150
204	204	defined in section 390.020, in the transportation of persons 151
205	205	or property; 152
206	206	(12) Electrical energy used in the actual primary 153
207	207	manufacture, processing, compounding, mining or producing of 154
208	208	a product, or electrical energy used in the actual secondary 155
209	209	processing or fabricating of the product, or a material 156
210	210	recovery processing plant as defined in su bdivision (4) of 157
211	211	this subsection, in facilities owned or leased by the 158
212	212	taxpayer, if the total cost of electrical energy so used 159
213	213	exceeds ten percent of the total cost of production, either 160
214	214	primary or secondary, exclusive of the cost of electrical 161
215	215	energy so used or if the raw materials used in such 162
216	216	processing contain at least twenty -five percent recovered 163
217	217	materials as defined in section 260.200. There shall be a 164
218	218	rebuttable presumption that the raw materials used in the 165
219	219	primary manufacture of automob iles contain at least twenty - 166
220	220	five percent recovered materials. For purposes of this 167
221	221	subdivision, "processing" means any mode of treatment, act 168
222	222	or series of acts performed upon materials to transform and 169
223	223	reduce them to a different state or thing, inclu ding 170
224	224	treatment necessary to maintain or preserve such processing 171
225	225	by the producer at the production facility; 172 SB 57 8
226	226	(13) Anodes which are used or consumed in 173
227	227	manufacturing, processing, compounding, mining, producing or 174
228	228	fabricating and which have a usefu l life of less than one 175
229	229	year; 176
230	230	(14) Machinery, equipment, appliances and devices 177
231	231	purchased or leased and used solely for the purpose of 178
232	232	preventing, abating or monitoring air pollution, and 179
233	233	materials and supplies solely required for the installatio n, 180
234	234	construction or reconstruction of such machinery, equipment, 181
235	235	appliances and devices; 182
236	236	(15) Machinery, equipment, appliances and devices 183
237	237	purchased or leased and used solely for the purpose of 184
238	238	preventing, abating or monitoring water pollution, an d 185
239	239	materials and supplies solely required for the installation, 186
240	240	construction or reconstruction of such machinery, equipment, 187
241	241	appliances and devices; 188
242	242	(16) Tangible personal property purchased by a rural 189
243	243	water district; 190
244	244	(17) All amounts paid or charged for admission or 191
245	245	participation or other fees paid by or other charges to 192
246	246	individuals in or for any place of amusement, entertainment 193
247	247	or recreation, games or athletic events, including museums, 194
248	248	fairs, zoos and planetariums, owned or operated b y a 195
249	249	municipality or other political subdivision where all the 196
250	250	proceeds derived therefrom benefit the municipality or other 197
251	251	political subdivision and do not inure to any private 198
252	252	person, firm, or corporation, provided, however, that a 199
253	253	municipality or other political subdivision may enter into 200
254	254	revenue-sharing agreements with private persons, firms, or 201
255	255	corporations providing goods or services, including 202
256	256	management services, in or for the place of amusement, 203
257	257	entertainment or recreation, games or athleti c events, and 204 SB 57 9
258	258	provided further that nothing in this subdivision shall 205
259	259	exempt from tax any amounts retained by any private person, 206
260	260	firm, or corporation under such revenue -sharing agreement; 207
261	261	(18) All sales of insulin, and all sales, rentals, 208
262	262	repairs, and parts of durable medical equipment, prosthetic 209
263	263	devices, and orthopedic devices as defined on January 1, 210
264	264	1980, by the federal Medicare program pursuant to Title 211
265	265	XVIII of the Social Security Act of 1965, including the 212
266	266	items specified in Section 18 62(a)(12) of that act (42 213
267	267	U.S.C. Section 1395y, as amended) , and also specifically 214
268	268	including hearing aids and hearing aid supplies and all 215
269	269	sales of drugs which may be legally dispensed by a licensed 216
270	270	pharmacist only upon a lawful prescription of a pract itioner 217
271	271	licensed to administer those items, including samples and 218
272	272	materials used to manufacture samples which may be dispensed 219
273	273	by a practitioner authorized to dispense such samples and 220
274	274	all sales or rental of medical oxygen, home respiratory 221
275	275	equipment and accessories including parts, and hospital beds 222
276	276	and accessories and ambulatory aids including parts, and all 223
277	277	sales or rental of manual and powered wheelchairs including 224
278	278	parts, and stairway lifts, Braille writers, electronic 225
279	279	Braille equipment and, if purchased or rented by or on 226
280	280	behalf of a person with one or more physical or mental 227
281	281	disabilities to enable them to function more independently, 228
282	282	all sales or rental of scooters including parts, and reading 229
283	283	machines, electronic print enlargers and magni fiers, 230
284	284	electronic alternative and augmentative communication 231
285	285	devices, and items used solely to modify motor vehicles to 232
286	286	permit the use of such motor vehicles by individuals with 233
287	287	disabilities or sales of over -the-counter or nonprescription 234
288	288	drugs to individuals with disabilities, and drugs required 235
289	289	by the Food and Drug Administration to meet the over -the- 236 SB 57 10
290	290	counter drug product labeling requirements in 21 CFR 201.66, 237
291	291	or its successor, as prescribed by a health care 238
292	292	practitioner licensed to prescribe; 239
293	293	(19) All sales made by or to religious and charitable 240
294	294	organizations and institutions in their religious, 241
295	295	charitable or educational functions and activities and all 242
296	296	sales made by or to all elementary and secondary schools 243
297	297	operated at public expense in their educational functions 244
298	298	and activities; 245
299	299	(20) All sales of aircraft to common carriers for 246
300	300	storage or for use in interstate commerce and all sales made 247
301	301	by or to not-for-profit civic, social, service or fraternal 248
302	302	organizations, including fra ternal organizations which have 249
303	303	been declared tax-exempt organizations pursuant to Section 250
304	304	501(c)(8) or (10) of the 1986 Internal Revenue Code, as 251
305	305	amended, in their civic or charitable functions and 252
306	306	activities and all sales made to eleemosynary and pen al 253
307	307	institutions and industries of the state, and all sales made 254
308	308	to any private not-for-profit institution of higher 255
309	309	education not otherwise excluded pursuant to subdivision 256
310	310	(19) of this subsection or any institution of higher 257
311	311	education supported by pu blic funds, and all sales made to a 258
312	312	state relief agency in the exercise of relief functions and 259
313	313	activities; 260
314	314	(21) All ticket sales made by benevolent, scientific 261
315	315	and educational associations which are formed to foster, 262
316	316	encourage, and promote progr ess and improvement in the 263
317	317	science of agriculture and in the raising and breeding of 264
318	318	animals, and by nonprofit summer theater organizations if 265
319	319	such organizations are exempt from federal tax pursuant to 266
320	320	the provisions of the Internal Revenue Code and al l 267
321	321	admission charges and entry fees to the Missouri state fair 268 SB 57 11
322	322	or any fair conducted by a county agricultural and 269
323	323	mechanical society organized and operated pursuant to 270
324	324	sections 262.290 to 262.530; 271
325	325	(22) All sales made to any private not -for-profit 272
326	326	elementary or secondary school, all sales of feed additives, 273
327	327	medications or vaccines administered to livestock or poultry 274
328	328	in the production of food or fiber, all sales of pesticides 275
329	329	used in the production of crops, livestock or poultry for 276
330	330	food or fiber, all sales of bedding used in the production 277
331	331	of livestock or poultry for food or fiber, all sales of 278
332	332	propane or natural gas, electricity or diesel fuel used 279
333	333	exclusively for drying agricultural crops, natural gas used 280
334	334	in the primary manufacture or pr ocessing of fuel ethanol as 281
335	335	defined in section 142.028, natural gas, propane, and 282
336	336	electricity used by an eligible new generation cooperative 283
337	337	or an eligible new generation processing entity as defined 284
338	338	in section 348.432, and all sales of farm machinery and 285
339	339	equipment, other than airplanes, motor vehicles and 286
340	340	trailers, and any freight charges on any exempt item. As 287
341	341	used in this subdivision, the term "feed additives" means 288
342	342	tangible personal property which, when mixed with feed for 289
343	343	livestock or poultry , is to be used in the feeding of 290
344	344	livestock or poultry. As used in this subdivision, the term 291
345	345	"pesticides" includes adjuvants such as crop oils, 292
346	346	surfactants, wetting agents and other assorted pesticide 293
347	347	carriers used to improve or enhance the effect of a 294
348	348	pesticide and the foam used to mark the application of 295
349	349	pesticides and herbicides for the production of crops, 296
350	350	livestock or poultry. As used in this subdivision, the term 297
351	351	"farm machinery and equipment" shall mean: 298
352	352	(a) New or used farm tractors and such other new or 299
353	353	used farm machinery and equipment, including utility 300 SB 57 12
354	354	vehicles used for any agricultural use, and repair or 301
355	355	replacement parts thereon and any accessories for and 302
356	356	upgrades to such farm machinery and equipment and rotary 303
357	357	mowers used for any agricultural purposes. For the purposes 304
358	358	of this subdivision, "utility vehicle" shall mean any 305
359	359	motorized vehicle manufactured and used exclusively for off - 306
360	360	highway use which is more than fifty inches but no more than 307
361	361	eighty inches in width, me asured from outside of tire rim to 308
362	362	outside of tire rim, with an unladen dry weight of three 309
363	363	thousand five hundred pounds or less, traveling on four or 310
364	364	six wheels; 311
365	365	(b) Supplies and lubricants used exclusively, solely, 312
366	366	and directly for producing cr ops, raising and feeding 313
367	367	livestock, fish, poultry, pheasants, chukar, quail, or for 314
368	368	producing milk for ultimate sale at retail, including field 315
369	369	drain tile; and 316
370	370	(c) One-half of each purchaser's purchase of diesel 317
371	371	fuel therefor which is: 318
372	372	a. Used exclusively for agricultural purposes; 319
373	373	b. Used on land owned or leased for the purpose of 320
374	374	producing farm products; and 321
375	375	c. Used directly in producing farm products to be sold 322
376	376	ultimately in processed form or otherwise at retail or in 323
377	377	producing farm products to be fed to livestock or poultry to 324
378	378	be sold ultimately in processed form at retail; 325
379	379	(23) Except as otherwise provided in section 144.032, 326
380	380	all sales of metered water service, electricity, electrical 327
381	381	current, natural, artificial or propane gas, wood, coal or 328
382	382	home heating oil for domestic use and in any city not within 329
383	383	a county, all sales of metered or unmetered water service 330
384	384	for domestic use: 331 SB 57 13
385	385	(a) "Domestic use" means that portion of metered water 332
386	386	service, electricity, el ectrical current, natural, 333
387	387	artificial or propane gas, wood, coal or home heating oil, 334
388	388	and in any city not within a county, metered or unmetered 335
389	389	water service, which an individual occupant of a residential 336
390	390	premises uses for nonbusiness, noncommercial or 337
391	391	nonindustrial purposes. Utility service through a single or 338
392	392	master meter for residential apartments or condominiums, 339
393	393	including service for common areas and facilities and vacant 340
394	394	units, shall be deemed to be for domestic use. Each seller 341
395	395	shall establish and maintain a system whereby individual 342
396	396	purchases are determined as exempt or nonexempt; 343
397	397	(b) Regulated utility sellers shall determine whether 344
398	398	individual purchases are exempt or nonexempt based upon the 345
399	399	seller's utility service rate classifi cations as contained 346
400	400	in tariffs on file with and approved by the Missouri public 347
401	401	service commission. Sales and purchases made pursuant to 348
402	402	the rate classification "residential" and sales to and 349
403	403	purchases made by or on behalf of the occupants of 350
404	404	residential apartments or condominiums through a single or 351
405	405	master meter, including service for common areas and 352
406	406	facilities and vacant units, shall be considered as sales 353
407	407	made for domestic use and such sales shall be exempt from 354
408	408	sales tax. Sellers shall charge sales tax upon the entire 355
409	409	amount of purchases classified as nondomestic use. The 356
410	410	seller's utility service rate classification and the 357
411	411	provision of service thereunder shall be conclusive as to 358
412	412	whether or not the utility must charge sales tax; 359
413	413	(c) Each person making domestic use purchases of 360
414	414	services or property and who uses any portion of the 361
415	415	services or property so purchased for a nondomestic use 362
416	416	shall, by the fifteenth day of the fourth month following 363 SB 57 14
417	417	the year of purchase, and without as sessment, notice or 364
418	418	demand, file a return and pay sales tax on that portion of 365
419	419	nondomestic purchases. Each person making nondomestic 366
420	420	purchases of services or property and who uses any portion 367
421	421	of the services or property so purchased for domestic use, 368
422	422	and each person making domestic purchases on behalf of 369
423	423	occupants of residential apartments or condominiums through 370
424	424	a single or master meter, including service for common areas 371
425	425	and facilities and vacant units, under a nonresidential 372
426	426	utility service rate classification may, between the first 373
427	427	day of the first month and the fifteenth day of the fourth 374
428	428	month following the year of purchase, apply for credit or 375
429	429	refund to the director of revenue and the director shall 376
430	430	give credit or make refund for taxes p aid on the domestic 377
431	431	use portion of the purchase. The person making such 378
432	432	purchases on behalf of occupants of residential apartments 379
433	433	or condominiums shall have standing to apply to the director 380
434	434	of revenue for such credit or refund; 381
435	435	(24) All sales of handicraft items made by the seller 382
436	436	or the seller's spouse if the seller or the seller's spouse 383
437	437	is at least sixty-five years of age, and if the total gross 384
438	438	proceeds from such sales do not constitute a majority of the 385
439	439	annual gross income of the selle r; 386
440	440	(25) Excise taxes, collected on sales at retail, 387
441	441	imposed by Sections 4041, 4071, 4081, [4091,]4161, 4181, 388
442	442	4251, 4261 and 4271 of Title 26, United States Code. The 389
443	443	director of revenue shall promulgate rules pursuant to 390
444	444	chapter 536 to eliminate all state and local sales taxes on 391
445	445	such excise taxes; 392
446	446	(26) Sales of fuel consumed or used in the operation 393
447	447	of ships, barges, or waterborne vessels which are used 394
448	448	primarily in or for the transportation of property or cargo, 395 SB 57 15
449	449	or the conveyance of p ersons for hire, on navigable rivers 396
450	450	bordering on or located in part in this state, if such fuel 397
451	451	is delivered by the seller to the purchaser's barge, ship, 398
452	452	or waterborne vessel while it is afloat upon such river; 399
453	453	(27) All sales made to an intersta te compact agency 400
454	454	created pursuant to sections 70.370 to 70.441 or sections 401
455	455	238.010 to 238.100 in the exercise of the functions and 402
456	456	activities of such agency as provided pursuant to the 403
457	457	compact; 404
458	458	(28) Computers, computer software and computer 405
459	459	security systems purchased for use by architectural or 406
460	460	engineering firms headquartered in this state. For the 407
461	461	purposes of this subdivision, "headquartered in this state" 408
462	462	means the office for the administrative management of at 409
463	463	least four integrated facil ities operated by the taxpayer is 410
464	464	located in the state of Missouri; 411
465	465	(29) All livestock sales when either the seller is 412
466	466	engaged in the growing, producing or feeding of such 413
467	467	livestock, or the seller is engaged in the business of 414
468	468	buying and selling, bartering or leasing of such livestock; 415
469	469	(30) All sales of barges which are to be used 416
470	470	primarily in the transportation of property or cargo on 417
471	471	interstate waterways; 418
472	472	(31) Electrical energy or gas, whether natural, 419
473	473	artificial or propane, water , or other utilities which are 420
474	474	ultimately consumed in connection with the manufacturing of 421
475	475	cellular glass products or in any material recovery 422
476	476	processing plant as defined in subdivision (4) of this 423
477	477	subsection; 424
478	478	(32) Notwithstanding other provision s of law to the 425
479	479	contrary, all sales of pesticides or herbicides used in the 426
480	480	production of crops, aquaculture, livestock or poultry; 427 SB 57 16
481	481	(33) Tangible personal property and utilities 428
482	482	purchased for use or consumption directly or exclusively in 429
483	483	the research and development of agricultural/biotechnology 430
484	484	and plant genomics products and prescription pharmaceuticals 431
485	485	consumed by humans or animals; 432
486	486	(34) All sales of grain bins for storage of grain for 433
487	487	resale; 434
488	488	(35) All sales of feed which are dev eloped for and 435
489	489	used in the feeding of pets owned by a commercial breeder 436
490	490	when such sales are made to a commercial breeder, as defined 437
491	491	in section 273.325, and licensed pursuant to sections 438
492	492	273.325 to 273.357; 439
493	493	(36) All purchases by a contractor on behalf of an 440
494	494	entity located in another state, provided that the entity is 441
495	495	authorized to issue a certificate of exemption for purchases 442
496	496	to a contractor under the provisions of that state's laws. 443
497	497	For purposes of this subdivision, the term "certificate o f 444
498	498	exemption" shall mean any document evidencing that the 445
499	499	entity is exempt from sales and use taxes on purchases 446
500	500	pursuant to the laws of the state in which the entity is 447
501	501	located. Any contractor making purchases on behalf of such 448
502	502	entity shall maintain a copy of the entity's exemption 449
503	503	certificate as evidence of the exemption. If the exemption 450
504	504	certificate issued by the exempt entity to the contractor is 451
505	505	later determined by the director of revenue to be invalid 452
506	506	for any reason and the contractor has ac cepted the 453
507	507	certificate in good faith, neither the contractor or the 454
508	508	exempt entity shall be liable for the payment of any taxes, 455
509	509	interest and penalty due as the result of use of the invalid 456
510	510	exemption certificate. Materials shall be exempt from all 457
511	511	state and local sales and use taxes when purchased by a 458
512	512	contractor for the purpose of fabricating tangible personal 459 SB 57 17
513	513	property which is used in fulfilling a contract for the 460
514	514	purpose of constructing, repairing or remodeling facilities 461
515	515	for the following: 462
516	516	(a) An exempt entity located in this state, if the 463
517	517	entity is one of those entities able to issue project 464
518	518	exemption certificates in accordance with the provisions of 465
519	519	section 144.062; or 466
520	520	(b) An exempt entity located outside the state if the 467
521	521	exempt entity is authorized to issue an exemption 468
522	522	certificate to contractors in accordance with the provisions 469
523	523	of that state's law and the applicable provisions of this 470
524	524	section; 471
525	525	(37) All sales or other transfers of tangible personal 472
526	526	property to a lessor who leases the property under a lease 473
527	527	of one year or longer executed or in effect at the time of 474
528	528	the sale or other transfer to an interstate compact agency 475
529	529	created pursuant to sections 70.370 to 70.441 or sections 476
530	530	238.010 to 238.100; 477
531	531	(38) Sales of tickets to any collegiate athletic 478
532	532	championship event that is held in a facility owned or 479
533	533	operated by a governmental authority or commission, a quasi - 480
534	534	governmental agency, a state university or college or by the 481
535	535	state or any political subdivision t hereof, including a 482
536	536	municipality, and that is played on a neutral site and may 483
537	537	reasonably be played at a site located outside the state of 484
538	538	Missouri. For purposes of this subdivision, "neutral site" 485
539	539	means any site that is not located on the campus of a 486
540	540	conference member institution participating in the event; 487
541	541	(39) All purchases by a sports complex authority 488
542	542	created under section 64.920, and all sales of utilities by 489
543	543	such authority at the authority's cost that are consumed in 490 SB 57 18
544	544	connection with the operation of a sports complex leased to 491
545	545	a professional sports team; 492
546	546	(40) All materials, replacement parts, and equipment 493
547	547	purchased for use directly upon, and for the modification, 494
548	548	replacement, repair, and maintenance of aircraft, aircraft 495
549	549	power plants, and aircraft accessories; 496
550	550	(41) Sales of sporting clays, wobble, skeet, and trap 497
551	551	targets to any shooting range or similar places of business 498
552	552	for use in the normal course of business and money received 499
553	553	by a shooting range or similar places of business from 500
554	554	patrons and held by a shooting range or similar place of 501
555	555	business for redistribution to patrons at the conclusion of 502
556	556	a shooting event; 503
557	557	(42) All sales of motor fuel, as defined in section 504
558	558	142.800, used in any watercraft, as define d in section 505
559	559	306.010; 506
560	560	(43) Any new or used aircraft sold or delivered in 507
561	561	this state to a person who is not a resident of this state 508
562	562	or a corporation that is not incorporated in this state, and 509
563	563	such aircraft is not to be based in this state and sh all not 510
564	564	remain in this state more than ten business days subsequent 511
565	565	to the last to occur of: 512
566	566	(a) The transfer of title to the aircraft to a person 513
567	567	who is not a resident of this state or a corporation that is 514
568	568	not incorporated in this state; or 515
569	569	(b) The date of the return to service of the aircraft 516
570	570	in accordance with 14 CFR 91.407 for any maintenance, 517
571	571	preventive maintenance, rebuilding, alterations, repairs, or 518
572	572	installations that are completed contemporaneously with the 519
573	573	transfer of title to the aircraft to a person who is not a 520
574	574	resident of this state or a corporation that is not 521
575	575	incorporated in this state; 522 SB 57 19
576	576	(44) Motor vehicles registered in excess of fifty -four 523
577	577	thousand pounds, and the trailers pulled by such motor 524
578	578	vehicles, that are actually used in the normal course of 525
579	579	business to haul property on the public highways of the 526
580	580	state, and that are capable of hauling loads commensurate 527
581	581	with the motor vehicle's registered weight; and the 528
582	582	materials, replacement parts, and equipment pu rchased for 529
583	583	use directly upon, and for the repair and maintenance or 530
584	584	manufacture of such vehicles. For purposes of this 531
585	585	subdivision, "motor vehicle" and "public highway" shall have 532
586	586	the meaning as ascribed in section 390.020; 533
587	587	(45) All internet access or the use of internet access 534
588	588	regardless of whether the tax is imposed on a provider of 535
589	589	internet access or a buyer of internet access. For purposes 536
590	590	of this subdivision, the following terms shall mean: 537
591	591	(a) "Direct costs", costs incurred by a governmental 538
592	592	authority solely because of an internet service provider's 539
593	593	use of the public right -of-way. The term shall not include 540
594	594	costs that the governmental authority would have incurred if 541
595	595	the internet service provider did not make such use of the 542
596	596	public right-of-way. Direct costs shall be determined in a 543
597	597	manner consistent with generally accepted accounting 544
598	598	principles; 545
599	599	(b) "Internet", computer and telecommunications 546
600	600	facilities, including equipment and operating software, that 547
601	601	comprises the interconnected worldwide network that employ 548
602	602	the transmission control protocol or internet protocol, or 549
603	603	any predecessor or successor protocols to that protocol, to 550
604	604	communicate information of all kinds by wire or radio; 551
605	605	(c) "Internet access", a service that enables users to 552
606	606	connect to the internet to access content, information, or 553
607	607	other services without regard to whether the service is 554 SB 57 20
608	608	referred to as telecommunications, communications, 555
609	609	transmission, or similar services, and without regard to 556
610	610	whether a provider of the service is subject to regulation 557
611	611	by the Federal Communications Commission as a common carrier 558
612	612	under 47 U.S.C. Section 201, et seq. For purposes of this 559
613	613	subdivision, internet access also includes: the purchase, 560
614	614	use, or sale of communications services, including 561
615	615	telecommunications services as defined in section 144.010, 562
616	616	to the extent the communications services are purchased, 563
617	617	used, or sold to provide the service described in this 564
618	618	subdivision or to otherwise enable users t o access content, 565
619	619	information, or other services offered over the internet; 566
620	620	services that are incidental to the provision of a service 567
621	621	described in this subdivision, when furnished to users as 568
622	622	part of such service, including a home page, electronic 569
623	623	mail, and instant messaging, including voice -capable and 570
624	624	video-capable electronic mail and instant messaging, video 571
625	625	clips, and personal electronic storage capacity; a home page 572
626	626	electronic mail and instant messaging, including voice - 573
627	627	capable and video-capable electronic mail and instant 574
628	628	messaging, video clips, and personal electronic storage 575
629	629	capacity that are provided independently or that are not 576
630	630	packed with internet access. As used in this subdivision, 577
631	631	internet access does not include voice, audio, a nd video 578
632	632	programming or other products and services, except services 579
633	633	described in this paragraph or this subdivision, that use 580
634	634	internet protocol or any successor protocol and for which 581
635	635	there is a charge, regardless of whether the charge is 582
636	636	separately stated or aggregated with the charge for services 583
637	637	described in this paragraph or this subdivision; 584
638	638	(d) "Tax", any charge imposed by the state or a 585
639	639	political subdivision of the state for the purpose of 586 SB 57 21
640	640	generating revenues for governmental purposes and that is 587
641	641	not a fee imposed for a specific privilege, service, or 588
642	642	benefit conferred, except as described as otherwise under 589
643	643	this subdivision, or any obligation imposed on a seller to 590
644	644	collect and to remit to the state or a political subdivision 591
645	645	of the state any gross retail tax, sales tax, or use tax 592
646	646	imposed on a buyer by such a governmental entity. The term 593
647	647	tax shall not include any franchise fee or similar fee 594
648	648	imposed or authorized under sections 67.1830 to 67.1846 or 595
649	649	section 67.2689; Section 6 22 or 653 of the Communications 596
650	650	Act of 1934, 47 U.S.C. Section 542 and 47 U.S.C. Section 597
651	651	573; or any other fee related to obligations of 598
652	652	telecommunications carriers under the Communications Act of 599
653	653	1934, 47 U.S.C. Section 151, et seq., except to the ext ent 600
654	654	that: 601
655	655	a. The fee is not imposed for the purpose of 602
656	656	recovering direct costs incurred by the franchising or other 603
657	657	governmental authority from providing the specific 604
658	658	privilege, service, or benefit conferred to the payer of the 605
659	659	fee; or 606
660	660	b. The fee is imposed for the use of a public right -of- 607
661	661	way based on a percentage of the service revenue, and the 608
662	662	fee exceeds the incremental direct costs incurred by the 609
663	663	governmental authority associated with the provision of that 610
664	664	right-of-way to the provider of internet access service. 611
665	665	Nothing in this subdivision shall be interpreted as an 612
666	666	exemption from taxes due on goods or services that were 613
667	667	subject to tax on January 1, 2016; 614
668	668	(46) All purchases by a company of solar photovoltaic 615
669	669	energy systems, components used to construct a solar 616
670	670	photovoltaic energy system, and all purchases of materials 617 SB 57 22
671	671	and supplies used directly to construct or make improvements 618
672	672	to such systems, provided that such systems: 619
673	673	(a) Are sold or leased to an end user; or 620
674	674	(b) Are used to produce, collect and transmit 621
675	675	electricity for resale or retail ; 622
676	676	(47) All sales of diapers. For the purposes of this 623
677	677	subdivision, "diapers" means absorbent garments worn by 624
678	678	infants or toddlers who are not toilet -trained or by 625
679	679	individuals who are incapable of controlling their bladder 626
680	680	or bowel movements. 627
681	681	3. Any ruling, agreement, or contract, whether written 628
682	682	or oral, express or implied, between a person and this 629
683	683	state's executive branch, or any other state agency or 630
684	684	department, stating, agreeing, or ruling that such person is 631
685	685	not required to collect sales and use tax in this state 632
686	686	despite the presence of a warehouse, distribution center, or 633
687	687	fulfillment center in this state that is owned or operated 634
688	688	by the person or an affiliated person shall be null and void 635
689	689	unless it is specifically approved by a majority vote of 636
690	690	each of the houses of the general assembly. For purposes of 637
691	691	this subsection, an "affiliated person" means any person 638
692	692	that is a member of the same con trolled group of 639
693	693	corporations as defined in Section 1563(a) of the Internal 640
694	694	Revenue Code of 1986, as amended, as the vendor or any other 641
695	695	entity that, notwithstanding its form of organization, bears 642
696	696	the same ownership relationship to the vendor as a 643
697	697	corporation that is a member of the same controlled group of 644
698	698	corporations as defined in Section 1563(a) of the Internal 645
699	699	Revenue Code, as amended. 646
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