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SECOND REGULAR SESSION
HOUSE BILL NO. 2152
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE DA VIS.
5686H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 144.030, RSMo, and to enact in lieu thereof one new section relating to a
sales tax exemption.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 144.030, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 144.030, to read as follows:
144.030. 1. There is hereby specifically exempted from the provisions of sections
2 144.010 to 144.525 and from the computation of the tax levied, assessed or payable pursuant
3 to sections 144.010 to 144.525 such retail sales as may be made in commerce between this
4 state and any other state of the United States, or between this state and any foreign country ,
5 and any retail sale which the state of Missouri is prohibited from taxing pursuant to the
6 Constitution or laws of the United States of America, and such retail sales of tangible
7 personal property which the general assembly of the state of Missouri is prohibited from
8 taxing or further taxing by the constitution of this state.
9 2. There are also specifically exempted from the provisions of the local sales tax law
10 as defined in section 32.085, section 238.235, and sections 144.010 to 144.525 and 144.600 to
11 144.761 and from the computation of the tax levied, assessed or payable pursuant to the local
12 sales tax law as defined in section 32.085, section 238.235, and sections 144.010 to 144.525
13 and 144.600 to 144.745:
14 (1) Motor fuel or special fuel subject to an excise tax of this state, unless all or part of
15 such excise tax is refunded pursuant to section 142.824; or upon the sale at retail of fuel to be
16 consumed in manufacturing or creating gas, power , steam, electrical current or in furnishing
17 water to be sold ultimately at retail; or feed for livestock or poultry; or grain to be converted
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 into foodstuf fs which are to be sold ultimately in processed form at retail; or seed, limestone
19 or fertilizer which is to be used for seeding, liming or fertilizing crops which when harvested
20 will be sold at retail or will be fed to livestock or poultry to be sold ultimately in processed
21 form at retail; economic poisons registered pursuant to the provisions of the Missouri
22 pesticide registration law , sections 281.220 to 281.310, which are to be used in connection
23 with the growth or production of crops, fruit trees or orchards applied before, during, or after
24 planting, the crop of which when harvested will be sold at retail or will be converted into
25 foodstuf fs which are to be sold ultimately in processed form at retail;
26 (2) Materials, manufactured goods, machinery and parts which when used in
27 manufacturing, processing, compounding, mining, producing or fabricating become a
28 component part or ingredient of the new personal property resulting from such
2 9 manufacturing, processing, compounding, mining, producing or fabricating and which new
30 personal property is intended to be sold ultimately for final use or consumption; and
31 materials, including without limitation, gases and manufactured goods, including without
32 limitation slagging materials and firebrick, which are ultimately consumed in the
3 3 manufacturing process by blending, reacting or interacting with or by becoming, in whole
34 or in part, component parts or ingredients of steel products intended to be sold ultimately for
35 final use or consumption;
36 (3) Materials, replacement parts and equipment purchased for use directly upon, and
37 for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling
38 stock or aircraft engaged as common carriers of persons or property;
39 (4) Replacement machinery , equipment, and parts and the materials and supplies
40 solely required for the installation or construction of such replacement machinery , equipment,
41 and parts, used directly in manufacturing, mining, fabricating or producing a product which is
42 intended to be sold ultimately for final use or consumption; and machinery and equipment,
43 and the materials and supplies required solely for the operation, installation or construction of
44 such machinery and equipment, purchased and used to establish new , or to replace or expand
45 existing, material recovery processing plants in this state. For the purposes of this
46 subdivision, a "material recovery processing plant" means a facility that has as its primary
47 purpose the recovery of materials into a usable product or a dif ferent form which is used in
48 producing a new product and shall include a facility or equipment which are used exclusively
49 for the collection of recovered materials for delivery to a material recovery processing plant ,
50 or facilities licensed under section 301.218 but shall not include motor vehicles used on
51 highways. For purposes of this section, the terms motor vehicle and highway shall have the
52 same meaning pursuant to section 301.010. For the purposes of this subdivision, "part"
53 includes pur chases of vehicles which are unusable as a whole. For the purposes of this
54 subdivision, subdivision (5) of this subsection, and section 144.054, as well as the definition
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55 in subdivision (9) of subsection 1 of section 144.010, the term "product" includes
56 telecommunications services and the term "manufacturing" shall include the production, or
57 production and transmission, of telecommunications services. The preceding sentence does
58 not make a substantive change in the law and is intended to clarify that the term
59 "manufacturing" has included and continues to include the production and transmission of
60 "telecommunications services", as enacted in this subdivision and subdivision (5) of this
61 subsection, as well as the definition in subdivision (9) of subsection 1 of section 144.010.
62 The preceding two sentences reaff irm legislative intent consistent with the interpretation of
63 this subdivision and subdivision (5) of this subsection in Southwestern Bell T el. Co. v .
64 Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002) and Southwestern Bell T el. Co. v .
65 Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005), and accordingly abrogates the
66 Missouri supreme court's interpretation of those exemptions in IBM Corporation v . Director
67 of Revenue, 491 S.W .3d 535 (Mo. banc 2016) to the extent inconsistent with this section and
68 Southwestern Bell T el. Co. v . Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002) and
69 Southwestern Bell T el. Co. v . Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005). The
70 construction and application of this subdivision as expressed by the Missouri supreme court
71 in DST Systems, Inc. v . Director of Revenue, 43 S.W .3d 799 (Mo. banc 2001); Southwestern
72 Bell T el. Co. v . Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002); and Southwestern Bell
73 T el. Co. v . Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005), is hereby af firmed.
74 Material recovery is not the reuse of materials within a manufacturing process or the use of a
75 product previously recovered. The material recovery processing plant shall qualify under the
76 provisions of this section regardless of ownership of the material being recovered;
77 (5) Machinery and equipment, and parts and the materials and supplies solely
78 required for the installation or construction of such machinery and equipment, purchased and
79 used to establish new or to expand existing manufacturing, mining or fabricating plants in the
80 state if such machinery and equipment is used directly in manufacturing, mining or
81 fabricating a product which is intended to be sold ultimately for final use or consumption.
82 The construction and application of this subdivision as expressed by the Missouri supreme
83 court in DST Systems, Inc. v . Director of Revenue, 43 S.W .3d 799 (Mo. banc 2001);
84 Southwestern Bell T el. Co. v . Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002); and
85 Southwestern Bell T el. Co. v . Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005), is
86 hereby af firmed;
87 (6) T angible personal property which is used exclusively in the manufacturing,
88 processing, modification or assembling of products sold to the United States government or to
89 any agency of the United States government;
90 (7) Animals or poultry used for breeding or feeding purposes, or captive wildlife;
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91 (8) Newsprint, ink, computers, photosensitive paper and film, toner , printing plates
92 and other machinery , equipment, replacement parts and supplies used in producing
93 newspapers published for dissemination of news to the general public;
94 (9) The rentals of films, records or any type of sound or picture transcriptions for
95 public commercial display;
96 (10) Pumping machinery and equipment used to propel products delivered by
97 pipelines engaged as common carriers;
98 (1 1) Railroad rolling stock for use in transporting persons or property in interstate
99 commerce and motor vehicles licensed for a gross weight of twenty-four thousand pounds or
100 more or trailers used by common carriers, as defined in section 390.020, in the transportation
101 of persons or property;
102 (12) Electrical ener gy used in the actual primary manufacture, processing,
10 3 compounding, mining or producing of a product, or electrical ener gy used in the actual
104 secondary processing or fabricating of the product, or a material recovery processing plant as
105 defined in subdivision (4) of this subsection, in facilities owned or leased by the taxpayer , if
106 the total cost of electrical ener gy so used exceeds ten percent of the total cost of production,
107 either primary or secondary , exclusive of the cost of electrical ener gy so used or if the raw
108 materials used in such processing contain at least twenty-five percent recovered materials as
109 defined in section 260.200. There shall be a rebuttable presumption that the raw materials
110 used in the primary manufacture of automobiles contain at least twenty-five percent
111 recovered materials. For purposes of this subdivision, "processing" means any mode of
112 treatment, act or series of acts performed upon materials to transform and reduce them to a
113 dif ferent state or thing, including treatment necessary to maintain or preserve such processing
114 by the producer at the production facility;
115 (13) Anodes which are used or consumed in manufacturing, processing,
1 1 6 compounding, mining, producing or fabricating and which have a useful life of less than
117 one year;
118 (14) Machinery , equipment, appliances and devices purchased or leased and used
119 solely for the purpose of preventing, abating or monitoring air pollution, and materials and
120 supplies solely required for the installation, construction or reconstruction of such machinery ,
121 equipment, appliances and devices;
122 (15) Machinery , equipment, appliances and devices purchased or leased and used
123 solely for the purpose of preventing, abating or monitoring water pollution, and materials and
124 supplies solely required for the installation, construction or reconstruction of such machinery ,
125 equipment, appliances and devices;
126 (16) T angible personal property purchased by a rural water district;
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127 (17) All amounts paid or char ged for admission or participation or other fees paid by
128 or other char ges to individuals in or for any place of amusement, entertainment or recreation,
129 games or athletic events, including museums, fairs, zoos and planetariums, owned or operated
130 by a municipality or other political subdivision where all the proceeds derived therefrom
131 benefit the municipality or other political subdivision and do not inure to any private person,
132 firm, or corporation, provided, however , that a municipality or other political subdivision may
133 enter into revenue-sharing agreements with private persons, firms, or corporations providing
134 goods or services, including management services, in or for the place of amusement,
135 entertainment or recreation, games or athletic events, and provided further that nothing in this
136 subdivision shall exempt from tax any amounts retained by any private person, firm, or
137 corporation under such revenue-sharing agreement;
138 (18) All sales of insulin, and all sales, rentals, repairs, and parts of durable medical
139 equipment, prosthetic devices, and orthopedic devices as defined on January 1, 1980, by the
140 federal Medicare program pursuant to T itle XVIII of the Social Security Act of 1965,
141 including the items specified in Section 1862(a)(12) of that act, and also specifically
142 including hearing aids and hearing aid supplies and all sales of drugs which may be legally
143 dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner licensed
144 to administer those items, including samples and materials used to manufacture samples
145 which may be dispensed by a practitioner authorized to dispense such samples and all sales or
146 rental of medical oxygen, home respiratory equipment and accessories including parts, and
147 hospital beds and accessories and ambulatory aids including parts, and all sales or rental of
148 manual and powered wheelchairs including parts, and stairway lifts, Braille writers, electronic
149 Braille equipment and, if purchased or rented by or on behalf of a person with one or more
150 physical or mental disabilities to enable them to function more independently , all sales or
151 rental of scooters including parts, and reading machines, electronic print enlar gers and
152 magnifiers, electronic alternative and augmentative communication devices, and items used
153 solely to modify motor vehicles to permit the use of such motor vehicles by individuals with
154 disabilities or sales of over -the-counter or nonprescription drugs to individuals with
155 disabilities, and drugs required by the Food and Drug Administration to meet the over -the-
156 counter drug product labeling requirements in 21 CFR 201.66, or its successor , as prescribed
157 by a health care practitioner licensed to prescribe;
158 (19) All sales made by or to religious and charitable or ganizations and institutions in
159 their religious, charitable or educational functions and activities and all sales made by or to all
160 elementary and secondary schools operated at public expense in their educational functions
161 and activities;
162 (20) All sales of aircraft to common carriers for storage or for use in interstate
163 commerce and all sales made by or to not-for -profit civic, social, service or fraternal
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164 or ganizations, including fraternal or ganizations which have been declared tax-exempt
165 or ganizations pursuant to Section 501(c)(8) or (10) of the 1986 Internal Revenue Code, as
166 amended, in their civic or charitable functions and activities and all sales made to
167 eleemosynary and penal institutions and industries of the state, and all sales made to any
168 private not-for -profit institution of higher education not otherwise excluded pursuant to
169 subdivision (19) of this subsection or any institution of higher education supported by public
170 funds, and all sales made to a state relief agency in the exercise of relief functions and
171 activities;
172 (21) All ticket sales made by benevolent, scientific and educational associations
173 which are formed to foster , encourage, and promote progress and improvement in the science
174 of agriculture and in the raising and breeding of animals, and by nonprofit summer theater
175 or ganizations if such or ganizations are exempt from federal tax pursuant to the provisions of
176 the Internal Revenue Code and all admission char ges and entry fees to the Missouri state fair
177 or any fair conducted by a county agricultural and mechanical society or ganized and operated
178 pursuant to sections 262.290 to 262.530;
179 (22) All sales made to any private not-for- profit elementary or secondary school, all
180 sales of feed additives, medications or vaccines administered to livestock or poultry in the
181 production of food or fiber , all sales of pesticides used in the production of crops, livestock or
182 poultry for food or fiber , all sales of bedding used in the production of livestock or poultry for
183 food or fiber , all sales of propane or natural gas, electricity or diesel fuel used exclusively for
184 drying agricultural crops, natural gas used in the primary manufacture or processing of fuel
185 ethanol as defined in section 142.028, natural gas, propane, and electricity used by an eligible
186 new generation cooperative or an eligible new generation processing entity as defined in
187 section 348.432, and all sales of farm machinery and equipment, other than airplanes, motor
188 vehicles and trailers, and any freight char ges on any exempt item. As used in this
189 subdivision, the term "feed additives" means tangible personal property which, when mixed
190 with feed for livestock or poultry , is to be used in the feeding of livestock or poultry . As used
191 in this subdivision, the term "pesticides" includes adjuvants such as crop oils, surfactants,
192 wetting agents and other assorted pesticide carriers used to improve or enhance the ef fect of a
193 pesticide and the foam used to mark the application of pesticides and herbicides for the
194 production of crops, livestock or poultry . As used in this subdivision, the term "farm
195 machinery and equipment" shall mean:
196 (a) New or used farm tractors and such other new or used farm machinery and
197 equipment, including utility vehicles used for any agricultural use, and repair or replacement
198 parts thereon and any accessories for and upgrades to such farm machinery and equipment
199 and rotary mowers used for any agricultural purposes. For the purposes of this subdivision,
200 "utility vehicle" shall mean any motorized vehicle manufactured and used exclusively for of f-
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201 highway use which is more than fifty inches but no more than eighty inches in width,
202 measured from outside of tire rim to outside of tire rim, with an unladen dry weight of three
203 thousand five hundred pounds or less, traveling on four or six wheels;
204 (b) Supplies and lubricants used exclusively , solely , and directly for producing crops,
205 raising and feeding livestock, fish, poultry , pheasants, chukar , quail, or for producing milk for
206 ultimate sale at retail, including field drain tile; and
207 (c) One-half of each purchaser's purchase of diesel fuel therefor which is:
208 a. Used exclusively for agricultural purposes;
209 b. Used on land owned or leased for the purpose of producing farm products; and
210 c. Used directly in producing farm products to be sold ultimately in processed form or
211 otherwise at retail or in producing farm products to be fed to livestock or poultry to be sold
212 ultimately in processed form at retail;
213 (23) Except as otherwise provided in section 144.032, all sales of metered water
214 service, electricity , electrical current, natural, artificial or propane gas, wood, coal or home
215 heating oil for domestic use and in any city not within a county , all sales of metered or
216 unmetered water service for domestic use:
217 (a) "Domestic use" means that portion of metered water service, electricity , electrical
218 current, natural, artificial or propane gas, wood, coal or home heating oil, and in any city not
219 within a county , metered or unmetered water service, which an individual occupant of a
220 residential premises uses for nonbusiness, noncommercial or nonindustrial purposes. Utility
221 service through a single or master meter for residential apartments or condominiums,
222 including service for common areas and facilities and vacant units, shall be deemed to be for
223 domestic use. Each seller shall establish and maintain a system whereby individual purchases
224 are determined as exempt or nonexempt;
225 (b) Regulated utility sellers shall determine whether individual purchases are exempt
226 or nonexempt based upon the seller's utility service rate classifications as contained in tarif fs
227 on file with and approved by the Missouri public service commission. Sales and purchases
228 made pursuant to the rate classification "residential" and sales to and purchases made by or on
229 behalf of the occupants of residential apartments or condominiums through a single or master
230 meter , including service for common areas and facilities and vacant units, shall be considered
231 as sales made for domestic use and such sales shall be exempt from sales tax. Sellers shall
232 char ge sales tax upon the entire amount of purchases classified as nondomestic use. The
233 seller's utility service rate classification and the provision of service thereunder shall be
234 conclusive as to whether or not the utility must char ge sales tax;
235 (c) Each person making domestic use purchases of services or property and who uses
236 any portion of the services or property so purchased for a nondomestic use shall, by the
237 fifteenth day of the fourth month following the year of purchase, and without assessment,
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238 notice or demand, file a return and pay sales tax on that portion of nondomestic purchases.
239 Each person making nondomestic purchases of services or property and who uses any portion
240 of the services or property so purchased for domestic use, and each person making domestic
241 purchases on behalf of occupants of residential apartments or condominiums through a single
242 or master meter , including service for common areas and facilities and vacant units, under a
243 nonresidential utility service rate classification may , between the first day of the first month
244 and the fifteenth day of the fourth month following the year of purchase, apply for credit or
245 refund to the director of revenue and the director shall give credit or make refund for taxes
246 paid on the domestic use portion of the purchase. The person making such purchases on
247 behalf of occupants of residential apartments or condominiums shall have standing to apply to
248 the director of revenue for such credit or refund;
249 (24) All sales of handicraft items made by the seller or the seller's spouse if the seller
250 or the seller's spouse is at least sixty-five years of age, and if the total gross proceeds from
251 such sales do not constitute a majority of the annual gross income of the seller;
252 (25) Excise taxes, collected on sales at retail, imposed by Sections 4041, 4071, 4081,
253 [ 4091, ] 4161, 4181, 4251, 4261 and 4271 of T itle 26, United States Code. The director of
254 revenue shall promulgate rules pursuant to chapter 536 to eliminate all state and local sales
255 taxes on such excise taxes;
256 (26) Sales of fuel consumed or used in the operation of ships, bar ges, or waterborne
257 vessels which are used primarily in or for the transportation of property or car go, or the
258 conveyance of persons for hire, on navigable rivers bordering on or located in part in this
259 state, if such fuel is delivered by the seller to the purchaser's bar ge, ship, or waterborne vessel
260 while it is afloat upon such river;
261 (27) All sales made to an interstate compact agency created pursuant to sections
262 70.370 to 70.441 or sections 238.010 to 238.100 in the exercise of the functions and activities
263 of such agency as provided pursuant to the compact;
264 (28) Computers, computer software and computer security systems purchased for use
265 by architectural or engineering firms headquartered in this state. For the purposes of this
266 subdivision, "headquartered in this state" means the office for the administrative management
267 of at least four integrated facilities operated by the taxpayer is located in the state of Missouri;
268 (29) All livestock sales when either the seller is engaged in the growing, producing or
269 feeding of such livestock, or the seller is engaged in the business of buying and selling,
270 bartering or leasing of such livestock;
271 (30) All sales of bar ges which are to be used primarily in the transportation of
272 property or car go on interstate waterways;
273 (31) Electrical ener gy or gas, whether natural, artificial or propane, water , or other
274 utilities which are ultimately consumed in connection with the manufacturing of cellular glass
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275 products or in any material recovery processing plant as defined in subdivision (4) of this
276 subsection;
277 (32) Notwithstanding other provisions of law to the contrary , all sales of pesticides or
278 herbicides used in the production of crops, aquaculture, livestock or poultry;
279 (33) T angible personal property and utilities purchased for use or consumption
280 directly or exclusively in the research and development of agricultural/biotechnology and
281 plant genomics products and prescription pharmaceuticals consumed by humans or animals;
282 (34) All sales of grain bins for storage of grain for resale;
283 (35) All sales of feed which are developed for and used in the feeding of pets owned
284 by a commercial breeder when such sales are made to a commercial breeder , as defined in
285 section 273.325, and licensed pursuant to sections 273.325 to 273.357;
286 (36) All purchases by a contractor on behalf of an entity located in another state,
287 provided that the entity is authorized to issue a certificate of exemption for purchases to a
288 contractor under the provisions of that state's laws. For purposes of this subdivision, the term
289 "certificate of exemption" shall mean any document evidencing that the entity is exempt from
290 sales and use taxes on purchases pursuant to the laws of the state in which the entity is
291 located. Any contractor making purchases on behalf of such entity shall maintain a copy of
292 the entity's exemption certificate as evidence of the exemption. If the exemption certificate
293 issued by the exempt entity to the contractor is later determined by the director of revenue to
294 be invalid for any reason and the contractor has accepted the certificate in good faith, neither
295 the contractor or the exempt entity shall be liable for the payment of any taxes, interest and
296 penalty due as the result of use of the invalid exemption certificate. Materials shall be exempt
297 from all state and local sales and use taxes when purchased by a contractor for the purpose of
298 fabricating tangible personal property which is used in fulfilling a contract for the purpose of
299 constructing, repairing or remodeling facilities for the following:
300 (a) An exempt entity located in this state, if the entity is one of those entities able to
301 issue project exemption certificates in accordance with the provisions of section 144.062; or
302 (b) An exempt entity located outside the state if the exempt entity is authorized to
303 issue an exemption certificate to contractors in accordance with the provisions of that state's
304 law and the applicable provisions of this section;
305 (37) All sales or other transfers of tangible personal property to a lessor who leases
306 the property under a lease of one year or longer executed or in ef fect at the time of the sale or
307 other transfer to an interstate compact agency created pursuant to sections 70.370 to 70.441 or
308 sections 238.010 to 238.100;
309 (38) Sales of tickets to any collegiate athletic championship event that is held in a
310 facility owned or operated by a governmental authority or commission, a quasi-governmental
311 agency , a state university or college or by the state or any political subdivision thereof,
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312 including a municipality , and that is played on a neutral site and may reasonably be played at
313 a site located outside the state of Missouri. For purposes of this subdivision, "neutral site"
314 means any site that is not located on the campus of a conference member institution
315 participating in the event;
316 (39) All purchases by a sports complex authority created under section 64.920, and all
317 sales of utilities by such authority at the authority's cost that are consumed in connection with
318 the operation of a sports complex leased to a professional sports team;
319 (40) All materials, replacement parts, and equipment purchased for use directly upon,
320 and for the modification, replacement, repair , and maintenance of aircraft, aircraft power
321 plants, and aircraft accessories;
322 (41) Sales of sporting clays, wobble, skeet, and trap tar gets to any shooting range or
323 similar places of business for use in the normal course of business and money received by a
324 shooting range or similar places of business from patrons and held by a shooting range or
325 similar place of business for redistribution to patrons at the conclusion of a shooting event;
326 (42) All sales of motor fuel, as defined in section 142.800, used in any watercraft, as
327 defined in section 306.010;
328 (43) Any new or used aircraft sold or delivered in this state to a person who is not a
329 resident of this state or a corporation that is not incorporated in this state, and such aircraft is
330 not to be based in this state and shall not remain in this state more than ten business days
331 subsequent to the last to occur of:
332 (a) The transfer of title to the aircraft to a person who is not a resident of this state or a
333 corporation that is not incorporated in this state; or
334 (b) The date of the return to service of the aircraft in accordance with 14 CFR 91.407
335 for any maintenance, preventive maintenance, rebuilding, alterations, repairs, or installations
336 that are completed contemporaneously with the transfer of title to the aircraft to a person who
337 is not a resident of this state or a corporation that is not incorporated in this state;
338 (44) Motor vehicles registered in excess of fifty-four thousand pounds, and the
339 trailers pulled by such motor vehicles, that are actually used in the normal course of business
340 to haul property on the public highways of the state, and that are capable of hauling loads
341 commensurate with the motor vehicle's registered weight; and the materials, replacement
342 parts, and equipment purchased for use directly upon, and for the repair and maintenance or
343 manufacture of such vehicles. For purposes of this subdivision, "motor vehicle" and "public
344 highway" shall have the meaning as ascribed in section 390.020;
345 (45) All internet access or the use of internet access regardless of whether the tax is
346 imposed on a provider of internet access or a buyer of internet access. For purposes of this
347 subdivision, the following terms shall mean:
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348 (a) "Direct costs", costs incurred by a governmental authority solely because of an
349 internet service provider's use of the public right-of-way . The term shall not include costs that
350 the governmental authority would have incurred if the internet service provider did not make
351 such use of the public right-of-way . Direct costs shall be determined in a manner consistent
352 with generally accepted accounting principles;
353 (b) "Internet", computer and telecommunications facilities, including equipment and
354 operating software, that comprises the interconnected worldwide network that employ the
355 transmission control protocol or internet protocol, or any predecessor or successor protocols
356 to that protocol, to communicate information of all kinds by wire or radio;
357 (c) "Internet access", a service that enables users to connect to the internet to access
358 content, information, or other services without regard to whether the service is referred to as
359 telecommunications, communications, transmission, or similar services, and without regard to
360 whether a provider of the service is subject to regulation by the Federal Communications
361 Commission as a common carrier under 47 U.S.C. Section 201, et seq. For purposes of this
362 subdivision, internet access also includes: the purchase, use, or sale of communications
363 services, including telecommunications services as defined in section 144.010, to the extent
364 the communications services are purchased, used, or sold to provide the service described in
365 this subdivision or to otherwise enable users to access content, information, or other services
366 of fered over the internet; services that are incidental to the provision of a service described in
367 this subdivision, when furnished to users as part of such service, including a home page,
368 electronic mail, and instant messaging, including voice-capable and video-capable electronic
369 mail and instant messaging, video clips, and personal electronic storage capacity; a home
370 page electronic mail and instant messaging, including voice-capable and video-capable
371 electronic mail and instant messaging, video clips, and personal electronic storage capacity
372 that are provided independently or that are not packed with internet access. As used in this
373 subdivision, internet access does not include voice, audio, and video programming or other
374 products and services, except services described in this paragraph or this subdivision, that use
375 internet protocol or any successor protocol and for which there is a char ge, regardless of
376 whether the char ge is separately stated or aggregated with the charg e for services described in
377 this paragraph or this subdivision;
378 (d) "T ax", any char ge imposed by the state or a political subdivision of the state for
379 the purpose of generating revenues for governmental purposes and that is not a fee imposed
380 for a specific privilege, service, or benefit conferred, except as described as otherwise under
381 this subdivision, or any obligation imposed on a seller to collect and to remit to the state or a
382 political subdivision of the state any gross retail tax, sales tax, or use tax imposed on a buyer
383 by such a governmental entity . The term tax shall not include any franchise fee or similar fee
384 imposed or authorized under sections 67.1830 to 67.1846 or section 67.2689; Section 622 or
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385 653 of the Communications Act of 1934, 47 U.S.C. Section 542 and 47 U.S.C. Section 573;
386 or any other fee related to obligations of telecommunications carriers under the
3 8 7 Communications Act of 1934, 47 U.S.C. Section 151, et seq., except to the extent that:
388 a. The fee is not imposed for the purpose of recovering direct costs incurred by the
389 franchising or other governmental authority from providing the specific privilege, service, or
390 benefit conferred to the payer of the fee; or
391 b. The fee is imposed for the use of a public right-of-way based on a percentage of the
392 service revenue, and the fee exceeds the incremental direct costs incurred by the
393 governmental authority associated with the provision of that right-of-way to the provider
394 of internet access service.
395
396 Nothing in this subdivision shall be interpreted as an exemption from taxes due on goods or
397 services that were subject to tax on January 1, 2016;
398 (46) All purchases by a company of solar photovoltaic ener gy systems, components
399 used to construct a solar photovoltaic ener gy system, and all purchases of materials and
400 supplies used directly to construct or make improvements to such systems, provided that such
401 systems:
402 (a) Are sold or leased to an end user; or
403 (b) Are used to produce, collect and transmit electricity for resale or retail.
404 3. Any ruling, agreement, or contract, whether written or oral, express or implied,
405 between a person and this state's executive branch, or any other state agency or department,
406 stating, agreeing, or ruling that such person is not required to collect sales and use tax in this
407 state despite the presence of a warehouse, distribution center , or fulfillment center in this state
408 that is owned or operated by the person or an af filiated person shall be null and void unless it
409 is specifically approved by a majority vote of each of the houses of the general assembly . For
410 purposes of this subsection, an "af filiated person" means any person that is a member of the
411 same controlled group of corporations as defined in Section 1563(a) of the Internal Revenue
412 Code of 1986, as amended, as the vendor or any other entity that, notwithstanding its form of
413 or ganization, bears the same ownership relationship to the vendor as a corporation that is a
414 member of the same controlled group of corporations as defined in Section 1563(a) of the
415 Internal Revenue Code, as amended.
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