Our Missouri Predominant Use Studies will determine the maximum percentage, on per-meter basis, allowed to be claimed for the utility sales tax exemption. In addition to removing that percentage of sales taxes from the qualified electricity, natural gas, and water meter(s), a refund going back as far as 10 years (effective August 28, 2019) may also be claimed. See below to view the law as of 09/06/19 pertaining to the sales tax exemptions for electricity, natural gas, and water in Missouri or contact us for a no-obligation consultation. The law pertaining to the Missouri utility sales tax exemption can also be viewed at the Missouri Department of Revenue.
Contact us with any questions regarding the predominant use studies or the utility sales tax exemptions in Missouri. Our PE-certified Predominant Use Studies will maximize the actual percentage of exempt usage for the partial sales tax exemption without over claiming the exemption/refund.
We will also handle the filing of the (partial) sales tax exemption with the utility provider as well as the Missouri DOR for the refund (when needed).
Effective 28 Aug 2018
Title X TAXATION AND REVENUE
144.054. Additional sales tax exemptions for various industries and political subdivisions. — 1. As used in this section, the following terms mean:
(1) “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;
(2) “Producing” includes, but is not limited to, the production of, including the production and transmission of, telecommunication services;
(3) “Product” includes, but is not limited to, telecommunications services;
(4) “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 sections 144.010 to 144.525 and 144.600 to 144.761, and from the computation of the tax levied, assessed, or payable under sections 144.010 to 144.525 and 144.600 to 144.761, 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 exemptions granted in this subsection shall not apply to local sales taxes as defined in section 32.085 and the provisions of this subsection shall be in addition to any state and local sales tax exemption provided in section 144.030. 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 sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, and the local sales tax law as defined in section 32.085, and from the computation of the tax levied, assessed, or payable under sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, 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 sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, and the local sales tax law as defined in section 32.085, and from the computation of the tax levied, assessed, or payable under sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, 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 sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, and the local sales tax law as defined in section 32.085, and from the computation of the tax levied, assessed, or payable under sections 144.010 to 144.525 and 144.600 to 144.761, and section 238.235, 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.
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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)
(2016) Use of computer hardware and software allowing merchants to check customer credit information while completing and approving purchases did not qualify as manufacturing under section and thus was not exempt from use tax. IBM Corp. v Director of Revenue, 491 S.W.3d 535 (Mo.).