Section 144.054

Title X TAXATION AND REVENUE

Chapter 144

Effective - 28 Aug 2024, 6 histories   

  144.054.  Additional sales tax exemptions for various industries and political subdivisions. — 1.  As used in this section, the following terms mean:

  (1)  "Nuclear security enterprise", the same meaning as defined in 50 U.S.C. Section 2501, inclusive of buildings, structures, and infrastructure constructed for use as a defense nuclear facility as defined in 50 U.S.C. Section 2501;

  (2)  "Processing", any mode of treatment, act, or series of acts performed upon materials to transform or reduce them to a different state or thing, including treatment necessary to maintain or preserve such processing by the producer at the production facility;

  (3)  "Producing" includes, but is not limited to, the production of, including the production and transmission of, telecommunication services;

  (4)  "Product" includes, but is not limited to, telecommunications services;

  (5)  "Recovered materials", those materials which have been diverted or removed from the solid waste stream for sale, use, reuse, or recycling, whether or not they require subsequent separation and processing.

  2.  In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of this chapter and the local sales tax law as defined in section 32.085 and from the computation of the tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, electrical energy and gas, whether natural, artificial, or propane, water, coal, and energy sources, chemicals, machinery, equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product, or used or consumed in the processing of recovered materials, or used in research and development related to manufacturing, processing, compounding, mining, or producing any product.  The construction and application of this subsection as expressed by the Missouri supreme court in DST Systems, Inc. v. Director of Revenue, 43 S.W.3d 799 (Mo. banc 2001); Southwestern Bell Tel. Co. v. Director of Revenue, 78 S.W.3d 763 (Mo. banc 2002); and Southwestern Bell Tel. Co. v. Director of Revenue, 182 S.W.3d 226 (Mo. banc 2005), is hereby affirmed.

  3.  In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of this chapter and the local sales tax law as defined in section 32.085, and from the computation of the tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, all utilities, machinery, and equipment used or consumed directly in television or radio broadcasting and all sales and purchases of tangible personal property, utilities, services, or any other transaction that would otherwise be subject to the state or local sales or use tax when such sales are made to or purchases are made by a contractor for use in fulfillment of any obligation under a defense contract with the United States government, and all sales and leases of tangible personal property by any county, city, incorporated town, or village, provided such sale or lease is authorized under chapter 100, and such transaction is certified for sales tax exemption by the department of economic development, and tangible personal property used for railroad infrastructure brought into this state for processing, fabrication, or other modification for use outside the state in the regular course of business.

  4.  In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of this chapter and the local sales tax law as defined in section 32.085, and from the computation of the tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, all sales and purchases of tangible personal property, utilities, services, or any other transaction that would otherwise be subject to the state or local sales or use tax when such sales are made to or purchases are made by a private partner for use in completing a project under sections 227.600 to 227.669.

  5.  In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of this chapter and the local sales tax law as defined in section 32.085, and from the computation of the tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, all materials, manufactured goods, machinery and parts, electrical energy and gas, whether natural, artificial or propane, water, coal and other energy sources, chemicals, soaps, detergents, cleaning and sanitizing agents, and other ingredients and materials inserted by commercial or industrial laundries to treat, clean, and sanitize textiles in facilities which process at least five hundred pounds of textiles per hour and at least sixty thousand pounds per week.

  ^*6.  In addition to all other exemptions granted pursuant to this chapter, there is hereby exempted from the provisions of and the computation of the tax levied, assessed, or payable pursuant to this chapter and the local sales tax law as defined in section 32.085, all sales and purchases of tangible personal property, building materials, equipment, fixtures, manufactured goods, machinery, and parts for the purposes of constructing all or any portion of a nuclear security enterprise located in any city with more than four hundred thousand inhabitants and located in more than one county.  This subsection shall expire on August 28, 2034.

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(L. 2007 S.B. 30, A.L. 2009 H.B. 683, A.L. 2015 S.B. 20, A.L. 2018 S.B. 768, A.L. 2021 S.B. 153 & 97, A.L. 2024 S.B. 1388)

*Subsection 6 of this section expires 8-28-34

(2023) Replacement telecommunications equipment used to transform an input (the caller's voice) into an output with a separate and distinct value from the original was used directly in manufacturing and thus qualified for tax exemption under section.  Charter Communications Entertainment 1, LLC v. Director of Revenue, 667 S.W.3d 84 (Mo.banc).