Read the full stored bill text
EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 1707
103RD GENERAL ASSEMBLY
3897S.03C KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 144.010 and 144.805, RSMo, and to enact in lieu thereof three new sections
relating to the exclusion of certain transactions from sales tax.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 144.010 and 144.805, RSMo, are 1
repealed and three new sections enacted in lieu thereof, to be 2
known as sections 144.010, 144.052, and 144.805, to read as 3
follows:4
144.010. 1. The following words, terms, and phrases 1
when used in sections 144.010 to 144.525 have the meanings 2
ascribed to them in this section, except when the context 3
indicates a different meaning: 4
(1) "Admission" includes seats and tables, reserved or 5
otherwise, and other similar accommodations and charges made 6
therefor and amount paid for admission, exclusive of any 7
admission tax imposed by the federal government or by 8
sections 144.010 to 144.525; 9
(2) "Business" includes any activity engaged in by any 10
person, or caused to be engaged in by him, with the object 11
of gain, benefit or advantage, either direct or indirect, 12
and the classification of which business is of such 13
character as to be subject to the terms of sections 144.010 14
to 144.525. A person is "engaging in business" in this state 15
for purposes of sections 144.010 to 144.525 if such person 16
SCS HB 1707 2
engages in business activities within this state or 17
maintains a place of business in this state under section 18
144.605. The isolated or occasional sale of tangible 19
personal property, service, substance, or thing, by a person 20
not engaged in such business, does not constitute engaging 21
in business within the meaning of sections 144.010 to 22
144.525 unless the total amount of the gross receipts from 23
such sales, exclusive of receipts from the sale of tangible 24
personal property by persons which property is sold in the 25
course of the partial or complete liquidation of a 26
household, farm or nonbusiness enterprise, exceeds three 27
thousand dollars in any calendar year. The provisions of 28
this subdivision shall not be construed to make any sale of 29
property which is exempt from sales tax or use tax on June 30
1, 1977, subject to that tax thereafter; 31
(3) "Captive wildlife", includes but is not limited to 32
exotic partridges, gray partridge, northern bobwhite quail, 33
ring-necked pheasant, captive waterfowl, captive white- 34
tailed deer, captive elk, and captive furbearers held under 35
permit issued by the Missouri department of conservation for 36
hunting purposes. The provisions of this subdivision shall 37
not apply to sales tax on a harvested animal; 38
(4) "Gross receipts", except as provided in section 39
144.012, means the total amount of the sale price of the 40
sales at retail including any services other than charges 41
incident to the extension of credit that are a part of such 42
sales made by the businesses herein referred to, capable of 43
being valued in money, whether received in money or 44
otherwise; except that, the term gross receipts shall not 45
include the sale price of property returned by customers 46
when the full sale price thereof is refunded either in cash 47
or by credit. In determining any tax due under sections 48
SCS HB 1707 3
144.010 to 144.525 on the gross receipts, charges incident 49
to the extension of credit shall be specifically exempted. 50
Charges incident to the extension of credit shall include 51
credit card and debit card processing fees. For the 52
purposes of sections 144.010 to 144.525 the total amount of 53
the sale price above mentioned shall be deemed to be the 54
amount received. It shall also include the lease or rental 55
consideration where the right to continuous possession or 56
use of any article of tangible personal property is granted 57
under a lease or contract and such transfer of possession 58
would be taxable if outright sale were made and, in such 59
cases, the same shall be taxable as if outright sale were 60
made and considered as a sale of such article, and the tax 61
shall be computed and paid by the lessee upon the rentals 62
paid. The term gross receipts shall not include usual and 63
customary delivery charges that are stated separately from 64
the sale price; 65
(5) "Instructional class", includes any class, lesson, 66
or instruction intended or used for teaching; 67
(6) "Livestock", cattle, calves, sheep, swine, ratite 68
birds, including but not limited to, ostrich and emu, 69
aquatic products as described in section 277.024, llamas, 70
alpaca, buffalo, bison, elk documented as obtained from a 71
legal source and not from the wild, goats, horses, other 72
equine, honey bees, or rabbits raised in confinement for 73
human consumption; 74
(7) "Motor vehicle leasing company" shall be a company 75
obtaining a permit from the director of revenue to operate 76
as a motor vehicle leasing company. Not all persons renting 77
or leasing trailers or motor vehicles need to obtain such a 78
permit; however, no person failing to obtain such a permit 79
SCS HB 1707 4
may avail itself of the optional tax provisions of 80
subsection 5 of section 144.070, as hereinafter provided; 81
(8) "Person" includes any individual, firm, 82
copartnership, joint adventure, association, corporation, 83
municipal or private, and whether organized for profit or 84
not, state, county, political subdivision, state department, 85
commission, board, bureau or agency, except the state 86
transportation department, estate, trust, business trust, 87
receiver or trustee appointed by the state or federal court, 88
syndicate, or any other group or combination acting as a 89
unit, and the plural as well as the singular number; 90
(9) "Product which is intended to be sold ultimately 91
for final use or consumption" means tangible personal 92
property, or any service that is subject to state or local 93
sales or use taxes, or any tax that is substantially 94
equivalent thereto, in this state or any other state; 95
(10) "Purchaser" means a person who purchases tangible 96
personal property or to whom are rendered services, receipts 97
from which are taxable under sections 144.010 to 144.525; 98
(11) "Research or experimentation activities" are the 99
development of an experimental or pilot model, plant 100
process, formula, invention or similar property, and the 101
improvement of existing property of such type. Research or 102
experimentation activities do not include activities such as 103
ordinary testing or inspection of materials or products for 104
quality control, efficiency surveys, advertising promotions 105
or research in connection with literary, historical or 106
similar projects; 107
(12) "Sale" or "sales" includes installment and credit 108
sales, and the exchange of properties as well as the sale 109
thereof for money, every closed transaction constituting a 110
sale, and means any transfer, exchange or barter, 111
SCS HB 1707 5
conditional or otherwise, in any manner or by any means 112
whatsoever, of tangible personal property for valuable 113
consideration and the rendering, furnishing or selling for a 114
valuable consideration any of the substances, things and 115
services herein designated and defined as taxable under the 116
terms of sections 144.010 to 144.525; 117
(13) "Sale at retail" means any transfer made by any 118
person engaged in business as defined herein of the 119
ownership of, or title to, tangible personal property to the 120
purchaser, for use or consumption and not for resale in any 121
form as tangible personal property, for a valuable 122
consideration; except that, for the purposes of sections 123
144.010 to 144.525 and the tax imposed thereby: (i) 124
purchases of tangible personal property made by duly 125
licensed physicians, dentists, optometrists and 126
veterinarians and used in the practice of their professions 127
shall be deemed to be purchases for use or consumption and 128
not for resale; and (ii) the selling of computer printouts, 129
computer output or microfilm or microfiche and computer- 130
assisted photo compositions to a purchaser to enable the 131
purchaser to obtain for his or her own use the desired 132
information contained in such computer printouts, computer 133
output on microfilm or microfiche and computer-assisted 134
photo compositions shall be considered as the sale of a 135
service and not as the sale of tangible personal property. 136
Where necessary to conform to the context of sections 137
144.010 to 144.525 and the tax imposed thereby, the term 138
sale at retail shall be construed to embrace: 139
(a) Sales of admission tickets, cash admissions, 140
charges and fees to or in places of amusement, entertainment 141
and recreation, games and athletic events, except amounts 142
paid for any instructional class; 143
SCS HB 1707 6
(b) Sales of electricity, electrical current, water 144
and gas, natural or artificial, to domestic, commercial or 145
industrial consumers, except as provided in subdivision (12) 146
of subsection 1 of section 144.011; 147
(c) Sales of local and long distance 148
telecommunications service to telecommunications subscribers 149
and to others through equipment of telecommunications 150
subscribers for the transmission of messages and 151
conversations, and the sale, rental or leasing of all 152
equipment or services pertaining or incidental thereto; 153
(d) Sales of service for transmission of messages by 154
telegraph companies; 155
(e) Sales or charges for all rooms, meals and drinks 156
furnished at any hotel, motel, tavern, inn, restaurant, 157
eating house, drugstore, dining car, tourist camp, tourist 158
cabin, or other place in which rooms, meals or drinks are 159
regularly served to the public; 160
(f) Sales of tickets by every person operating a 161
railroad, sleeping car, dining car, express car, boat, 162
airplane, and such buses and trucks as are licensed by the 163
division of motor carrier and railroad safety of the 164
department of economic development of Missouri, engaged in 165
the transportation of persons for hire; 166
(14) "Seller" means a person selling or furnishing 167
tangible personal property or rendering services, on the 168
receipts from which a tax is imposed pursuant to section 169
144.020; 170
(15) The noun "tax" means either the tax payable by 171
the purchaser of a commodity or service subject to tax, or 172
the aggregate amount of taxes due from the vendor of such 173
commodities or services during the period for which he or 174
SCS HB 1707 7
she is required to report his or her collections, as the 175
context may require; and 176
(16) "Telecommunications service", for the purpose of 177
this chapter, the transmission of information by wire, 178
radio, optical cable, coaxial cable, electronic impulses, or 179
other similar means. As used in this definition, 180
"information" means knowledge or intelligence represented by 181
any form of writing, signs, signals, pictures, sounds, or 182
any other symbols. Telecommunications service does not 183
include the following if such services are separately stated 184
on the customer's bill or on records of the seller 185
maintained in the ordinary course of business: 186
(a) Access to the internet, access to interactive 187
computer services or electronic publishing services, except 188
the amount paid for the telecommunications service used to 189
provide such access; 190
(b) Answering services and one-way paging services; 191
(c) Private mobile radio services which are not two- 192
way commercial mobile radio services such as wireless 193
telephone, personal communications services or enhanced 194
specialized mobile radio services as defined pursuant to 195
federal law; or 196
(d) Cable or satellite television or music services. 197
2. For purposes of the taxes imposed under sections 198
144.010 to 144.525, and any other provisions of law 199
pertaining to sales or use taxes which incorporate the 200
provisions of sections 144.010 to 144.525 by reference, the 201
term manufactured homes shall have the same meaning given it 202
in section 700.010. 203
3. Sections 144.010 to 144.525 may be known and quoted 204
as the "Sales Tax Law". 205
SCS HB 1707 8
144.052. 1. As used in this section, the term 1
"campground" shall mean any parcel or tract of land, 2
including buildings and other structures, where five or more 3
campsites are made available for use as temporary living 4
quarters for recreational, camping, travel, or seasonal 5
use. The term "campground" shall also include recreational 6
vehicle parks. 7
2. Notwithstanding any other law to the contrary, in 8
addition to all other exemptions granted under this chapter, 9
there is hereby specifically exempted from the provisions of 10
sections 144.010 to 144.525 and sections 144.600 to 144.761 11
and the local sales tax law as defined in section 32.085 and 12
from the computation of the tax levied, assessed, or payable 13
under sections 144.010 to 144.525 and sections 144.600 to 14
144.761 and the local sales tax law as defined in section 15
32.085, fees or charges for rental of lots, buildings, other 16
structures, and amenities in a campground. The provisions 17
of this section shall be in addition to any other sales or 18
use tax exemptions provided by law. 19
144.805. 1. In addition to the exemptions granted 1
pursuant to the provisions of section 144.030, there shall 2
also be specifically exempted from the provisions of 3
sections 144.010 to 144.525, sections 144.600 to 144.746, 4
and section 238.235, and the provisions of any local sales 5
tax law, as defined in section 32.085, and from the 6
computation of the tax levied, assessed or payable pursuant 7
to sections 144.010 to 144.525, sections 144.600 to 144.746, 8
and section 238.235, and the provisions of any local sales 9
tax law, as defined in section 32.085, all sales of aviation 10
jet fuel in a given calendar year to common carriers engaged 11
in the interstate air transportation of passengers and 12
cargo, and the storage, use and consumption of such aviation 13
SCS HB 1707 9
jet fuel by such common carriers, if such common carrier has 14
first paid to the state of Missouri, in accordance with the 15
provisions of this chapter, state sales and use taxes 16
pursuant to the foregoing provisions and applicable to the 17
purchase, storage, use or consumption of such aviation jet 18
fuel in a maximum and aggregate amount of one million five 19
hundred thousand dollars of state sales and use taxes in 20
such calendar year. 21
2. To qualify for the exemption prescribed in 22
subsection 1 of this section, the common carrier shall 23
furnish to the seller a certificate in writing to the effect 24
that an exemption pursuant to this section is applicable to 25
the aviation jet fuel so purchased, stored, used and 26
consumed. The director of revenue shall permit any such 27
common carrier to enter into a direct-pay agreement with the 28
department of revenue, pursuant to which such common carrier 29
may pay directly to the department of revenue any applicable 30
sales and use taxes on such aviation jet fuel up to the 31
maximum aggregate amount of one million five hundred 32
thousand dollars in each calendar year. The director of 33
revenue shall adopt appropriate rules and regulations to 34
implement the provisions of this section, and to permit 35
appropriate claims for refunds of any excess sales and use 36
taxes collected in calendar year 1993 or any subsequent year 37
with respect to any such common carrier and aviation jet 38
fuel. 39
3. The provisions of this section shall apply to all 40
purchases and deliveries of aviation jet fuel from and after 41
May 10, 1993. 42
4. All sales and use tax revenues upon aviation jet 43
fuel received pursuant to this chapter, less the amounts 44
specifically designated pursuant to the constitution or 45
SCS HB 1707 10
pursuant to section 144.701 for other purposes, shall be 46
deposited to the credit of the aviation trust fund 47
established pursuant to section 155.090; provided however, 48
the amount of such state sales and use tax revenues 49
deposited to the credit of such aviation trust fund shall 50
not exceed ten million dollars in each calendar year. 51
5. The provisions of this section and section 144.807 52
shall expire on December 31, [2033] 2043. 53
✓