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SECOND REGULAR SESSION
HOUSE BILL NO. 2258
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE HOVIS.
4938H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal sections 67.782, 67.783, 67.785, 144.030, 144.615, 313.055, and 313.057, RSMo,
and to enact in lieu thereof six new sections relating to sales taxes.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 67.782, 67.783, 67.785, 144.030, 144.615, 313.055, and 313.057,
2 RSMo, are repealed and six new sections enacted in lieu thereof, to be known as sections
3 67.782, 67.783, 67.785, 144.030, 144.615, and 313.057, to read as follows:
67.782. 1. The governing body of the following counties may impose a tax as
2 pr ovided in this section:
3 (1) Any county [ of the third class having a population of ] with more than [ ten
4 thousand and less than fifteen thousand and ] nine thousand nine hundr ed but fewer than
5 eleven thousand inhabitants and with a county seat with mor e than one thousand but
6 fewer than one thousand five hundred inhabitants; or
7 (2) Any county [ of the second class having a population of ] with more than [ fifty-
8 eight thousand and less than seventy thousand adjacent to such third class county , both
9 counties making up the same judicial circuit, ] eighty thousand but fewer than one hundr ed
10 thousand inhabitants and with a county seat with mor e than thirteen thousand but
11 fewer than seventeen thousand inhabitants.
12 2. The governing body of any county listed in subsection 1 of this section may
13 [ jointly ] impose a sales tax [ throughout each of their respective counties ] for public
14 recreational purposes including the financing, acquisition, construction, operation , and
15 maintenance of recreational projects and programs, but the sales taxes authorized by this
16 section shall not become ef fective unless the governing body of [ each ] such county submits to
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.
17 the voters [ of their respective counties ] a proposal to authorize [ the counties to impose ] the
18 sales tax.
19 [ 2. ] 3. The ballot of submission shall be in substantially the following form:
20 Shall the County of ______ impose a sales tax of ______ percent [ in
21 conjunction with the county of ______ ] for the purpose of funding the
22 financing, acquisition, construction, operation , and maintenance of
23 recreational projects and programs, including the acquisition of land
24 for such purposes?
25 YES NO
26
27 If a [ separate ] majority of the votes cast on the proposal by the qualified voters voting thereon
28 [ in each county ] are in favor of the proposal, [ then ] the tax shall be in ef fect [ in both
29 counties ]. If a majority of the votes cast by the qualified voters voting thereon [ in either
30 county ] are opposed to the proposal, [ then ] the governing body of [ neither ] the county shall
31 not have power to impose the sales tax [ authorized by this section ] unless or until the
32 [ governing body of the county that has not approved the tax shall ] prop osal is again [ have ]
33 submitted [ another proposal to authorize the governing body to impose the tax, ] and the
34 proposal is approved by a majority of the qualified voters voting thereon in that county .
35 [ 3. ] 4. The sales tax may be imposed at a rate of one percent on the receipts from the
36 sale at retail of all tangible personal property or taxable service at retail within the county
37 adopting such tax, if such property and services are subject to taxation by the state of
38 Missouri under the provisions of sections 144.010 to 144.525.
39 [ 4. ] 5. All sales taxes collected by the director of revenue under this section on behalf
40 of any county , less one percent for the cost of collection, which shall be deposited in the
41 state's general revenue fund after payment of premiums for surety bonds as provided in
42 section 32.087, shall be deposited with the state treasurer in a special trust fund, which is
43 hereby created, to be known as the "County Recreation Sales T ax T rust Fund". The moneys
44 in the county recreation sales tax trust fund shall not be deemed to be state funds and shall not
45 be commingled with any funds of the state. The director of revenue shall keep accurate
46 records of the amount of money in the trust fund which was collected in each county
47 imposing a sales tax under this section, and the records shall be open to the inspection of
48 of ficers of each county and the general public. Not later than the tenth day of each month, the
49 director of revenue shall distribute all moneys deposited in the trust fund during the preceding
50 month by distributing to the county treasurer , or such other of ficer as may be designated by
51 the county ordinance or order , of each county imposing the tax authorized by this section, the
52 sum, as certified by the director of revenue, due the county .
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53 [ 5. ] 6. The director of revenue may authorize the state treasurer to make refunds from
54 the amounts in the trust fund and credited to any county for erroneous payments and
55 overpayments made, and may redeem dishonored checks and drafts deposited to the credit of
56 such counties. Each county shall notify the director of revenue at least ninety days prior to
57 the ef fective date of the expiration of the sales tax authorized by this section and the director
58 of revenue may order retention in the trust fund, for a period of one year , of two percent of the
59 amount collected after receipt of such notice to cover possible refunds or overpayment of
60 such tax and to redeem dishonored checks and drafts deposited to the credit of such accounts.
61 After one year has elapsed after the date of expiration of the tax authorized by this section in
62 such county , the director of revenue shall remit the balance in the account to the county and
63 close the account of that county . The director of revenue shall notify each county of each
64 instance of any amount refunded or any check redeemed from receipts due the county .
65 [ 6. ] 7. The tax authorized by this section may be imposed, in accordance with this
66 section, by a county in addition to or in lieu of the tax authorized by sections 67.750 to
67 67.780.
68 [ 7. ] 8. Any county imposing a sales tax pursuant to the provisions of this section may
69 contract with the authority of any other county or with any city or political subdivision for the
70 financing, acquisition, operation, construction, maintenance, or utilization of any recreation
71 facility or project or program funded in whole or in part from revenues derived from the tax
72 levied pursuant to the provisions of this section.
73 [ 8. ] 9. The sales tax imposed pursuant to the provisions of this section shall expire
74 twenty-five years from the ef fective date thereof unless an extension of the tax is submitted to
75 and approved by the voters in each county in the manner provided in this section. Each
76 extension of the sales tax shall be for a period of ten years.
77 [ 9. ] 10. The governing body of each of the counties imposing a sales tax under the
78 provisions of this section may cooperate with the governing body of any county or other
79 political subdivision of this state in carrying out the provisions of this section, and may
80 establish and conduct jointly a system of public recreation. The respective governing bodies
81 administering programs jointly may provide by agreement among themselves for all matters
82 connected with the programs and determine what items of cost and expense shall be paid by
83 each.
84 [ 10. ] 1 1. The provisions of this section shall not in any way repeal, affect , or limit the
85 powers granted to any county to establish, maintain , and conduct parks and other recreational
86 grounds for public recreation.
87 [ 1 1. ] 12. Except as modified in this section, all provisions of sections 32.085 and
88 32.087 shall apply to the tax imposed under this section.
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67.783. 1. There is hereby created within [ any county of the third class having a
2 population of more than ten thousand and less than fifteen thousand and any county of the
3 second class having a population of more than fifty-eight thousand and less than seventy
4 thousand adjacent to such third class county , both counties making up the same judicial
5 circuit, ] the counties described under subsection 1 of section 67.782 a joint county
6 recreational lake authority , which shall be a body corporate and politic and a political
7 subdivision of this state.
8 2. Subject to the limitations in section 67.788, the authority may exercise its powers
9 over the reservoir area encompassing any recreational lake and within five thousand feet of
10 the conservation storage level of any recreational lake constructed or to be constructed by the
11 authority pursuant to sections 67.781 to 67.790.
12 3. It shall be the purpose of each authority to promote the general welfare, to promote
13 recreation and to encourage private capital investment through the construction, operation ,
14 and maintenance of a recreational lake and related improvements to be located [ jointly in the
15 second class county and the third class county ] in the counties described under subsection
16 1 of section 67.782 .
17 4. The income of the authority and all property at any time owned by the authority
18 shall be exempt from all taxation or any assessments whatsoever to the state or of any
19 political subdivision, municipality , or other governmental agency thereof.
20 5. No county in which an authority is org anized shall be held liable in connection
21 with the construction, operation , or maintenance of any project or program undertaken
22 pursuant to sections 67.781 to 67.790, including any actions taken by the authority in
23 connection with any project or program undertaken pursuant to sections 67.781 to 67.790.
67.785. 1. The authority shall consist of nine members, appointed or elected as
2 follows:
3 (1) W ithin thirty days after approval by the voters of the sales tax authorized in
4 section 67.782, the county commission of [ the second class ] a county described under
5 subdivision (2) of subsection 1 of section 67.782 shall initially appoint six members to the
6 authority , with the terms of members stagger ed such that the terms of two members [ each
7 expiring on December 31, 1992, December 31, 1994, and December 31, 1996 ] expir e on
8 December thirty-first of each even-number ed year . The county commission of [ the third
9 class ] a county described under subdivision (1) of subsection 1 of section 67.782 shall
10 initially appoint three members to the authority , with the terms of members stagger ed such
11 that the term of one member [ each expiring on December 31, 1992, December 31, 1994, and
12 December 31, 1996 ] expir es on December thirty-first of each even-number ed year ;
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13 (2) As the term of each initial member expires, new members shall be elected from
14 each county . Each elected member shall serve a six-year term and until [ his ] the member's
15 successor is duly elected and qualified.
16 2. A person, to be qualified to serve as a member , shall be a voter of the state for more
17 than five years prior to [ his ] the member's election or appointment, shall be a resident in the
18 county which [ he ] the member will represent for more than five years and shall be over the
19 age of twenty-five years. If any member moves outside the county from which [ he ] the
20 member was appointed or elected, [ his ] the member's seat shall be deemed vacant and a
21 new member shall be appointed by the county commission of such county to complete [ his ]
22 the unexpired term.
23 3. A person desiring to become a candidate for the authority shall pay the sum of five
24 dollars as a filing fee to the treasurer of the county in which [ he ] the person resides, and shall
25 file with the election authority a statement under oath that [ he ] the person possesses all of the
26 qualifications set out in sections 67.781 to 67.790 for a member of the authority . Thereafter ,
27 [ he ] such person shall have [ his ] such person's name placed on the ballot as a candidate.
28 4. If six or more persons from [ the second class ] a county described under
29 subdivision (2) of subsection 1 of section 67.782 file as candidates, a primary election shall
30 be held in August, and the four candidates who receive the most votes shall be candidates at
31 the general election. If two or more candidates receive an equal number of votes, and if that
32 number of votes would otherwise qualify each tied candidate for a position on the general
33 election ballot, all such tied candidates shall be included on the general election ballot. The
34 two candidates [ from the second class county ] receiving the most votes in the general election
35 shall be declared the winners.
36 5. If four or more persons from [ the third class ] a county described under
37 subdivision (1) of subsection 1 of section 67.782 file as candidates, a primary election shall
38 be held in August, and the two candidates who receive the most votes shall be candidates at
39 the general election. If two or more candidates receive an equal number of votes, and if that
40 number of votes would otherwise qualify each tied candidate for a position on the general
41 election ballot, all such tied candidates shall be included on the general election ballot. The
42 candidate [ from the second class county ] receiving the most votes in the general election shall
43 be declared the winner .
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
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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
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
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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 but shall not include motor vehicles used on highways. For purposes of this section, the terms
51 motor vehicle and highway shall have the same meaning pursuant to section 301.010. For the
52 purposes of this subdivision, subdivision (5) of this subsection, and section 144.054, as well
53 as the definition in subdivision (9) of subsection 1 of section 144.010, the term "product"
54 includes telecommunications services and the term "manufacturing" shall include the
55 production, or production and transmission, of telecommunications services. The preceding
56 sentence does not make a substantive change in the law and is intended to clarify that the term
57 "manufacturing" has included and continues to include the production and transmission of
58 "telecommunications services", as enacted in this subdivision and subdivision (5) of this
59 subsection, as well as the definition in subdivision (9) of subsection 1 of section 144.010.
60 The preceding two sentences reaff irm legislative intent consistent with the interpretation of
61 this subdivision and subdivision (5) of this subsection in Southwestern Bell T el. Co. v .
62 Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002) and Southwestern Bell T el. Co. v .
63 Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005), and accordingly abrogates the
64 Missouri supreme court's interpretation of those exemptions in IBM Corporation v . Director
65 of Revenue, 491 S.W .3d 535 (Mo. banc 2016) to the extent inconsistent with this section and
66 Southwestern Bell T el. Co. v . Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002) and
67 Southwestern Bell T el. Co. v . Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005). The
68 construction and application of this subdivision as expressed by the Missouri supreme court
69 in DST Systems, Inc. v . Director of Revenue, 43 S.W .3d 799 (Mo. banc 2001); Southwestern
70 Bell T el. Co. v . Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002); and Southwestern Bell
71 T el. Co. v . Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005), is hereby af firmed.
72 Material recovery is not the reuse of materials within a manufacturing process or the use of a
73 product previously recovered. The material recovery processing plant shall qualify under the
74 provisions of this section regardless of ownership of the material being recovered;
75 (5) Machinery and equipment, and parts and the materials and supplies solely
76 required for the installation or construction of such machinery and equipment, purchased and
77 used to establish new or to expand existing manufacturing, mining or fabricating plants in the
78 state if such machinery and equipment is used directly in manufacturing, mining or
79 fabricating a product which is intended to be sold ultimately for final use or consumption.
80 The construction and application of this subdivision as expressed by the Missouri supreme
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81 court in DST Systems, Inc. v . Director of Revenue, 43 S.W .3d 799 (Mo. banc 2001);
82 Southwestern Bell T el. Co. v . Director of Revenue, 78 S.W .3d 763 (Mo. banc 2002); and
83 Southwestern Bell T el. Co. v . Director of Revenue, 182 S.W .3d 226 (Mo. banc 2005), is
84 hereby af firmed;
85 (6) T angible personal property which is used exclusively in the manufacturing,
86 processing, modification or assembling of products sold to the United States government or to
87 any agency of the United States government;
88 (7) Animals or poultry used for breeding or feeding purposes, or captive wildlife;
89 (8) Newsprint, ink, computers, photosensitive paper and film, toner , printing plates
90 and other machinery , equipment, replacement parts and supplies used in producing
91 newspapers published for dissemination of news to the general public;
92 (9) The rentals of films, records or any type of sound or picture transcriptions for
93 public commercial display;
94 (10) Pumping machinery and equipment used to propel products delivered by
95 pipelines engaged as common carriers;
96 (1 1) Railroad rolling stock for use in transporting persons or property in interstate
97 commerce and motor vehicles licensed for a gross weight of twenty-four thousand pounds or
98 more or trailers used by common carriers, as defined in section 390.020, in the transportation
99 of persons or property;
100 (12) Electrical ener gy used in the actual primary manufacture, processing,
10 1 compounding, mining or producing of a product, or electrical ener gy used in the actual
102 secondary processing or fabricating of the product, or a material recovery processing plant as
103 defined in subdivision (4) of this subsection, in facilities owned or leased by the taxpayer , if
104 the total cost of electrical ener gy so used exceeds ten percent of the total cost of production,
105 either primary or secondary , exclusive of the cost of electrical ener gy so used or if the raw
106 materials used in such processing contain at least twenty-five percent recovered materials as
107 defined in section 260.200. There shall be a rebuttable presumption that the raw materials
108 used in the primary manufacture of automobiles contain at least twenty-five percent
109 recovered materials. For purposes of this subdivision, "processing" means any mode of
110 treatment, act or series of acts performed upon materials to transform and reduce them to a
111 dif ferent state or thing, including treatment necessary to maintain or preserve such processing
112 by the producer at the production facility;
113 (13) Anodes which are used or consumed in manufacturing, processing,
1 1 4 compounding, mining, producing or fabricating and which have a useful life of less than
115 one year;
116 (14) Machinery , equipment, appliances and devices purchased or leased and used
117 solely for the purpose of preventing, abating or monitoring air pollution, and materials and
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118 supplies solely required for the installation, construction or reconstruction of such machinery ,
119 equipment, appliances and devices;
120 (15) Machinery , equipment, appliances and devices purchased or leased and used
121 solely for the purpose of preventing, abating or monitoring water pollution, and materials and
122 supplies solely required for the installation, construction or reconstruction of such machinery ,
123 equipment, appliances and devices;
124 (16) T angible personal property purchased by a rural water district;
125 (17) All amounts paid or char ged for admission or participation or other fees paid by
126 or other char ges to individuals in or for any place of amusement, entertainment or recreation,
127 games or athletic events, including museums, fairs, zoos and planetariums, owned or operated
128 by a municipality or other political subdivision where all the proceeds derived therefrom
129 benefit the municipality or other political subdivision and do not inure to any private person,
130 firm, or corporation, provided, however , that a municipality or other political subdivision may
131 enter into revenue-sharing agreements with private persons, firms, or corporations providing
132 goods or services, including management services, in or for the place of amusement,
133 entertainment or recreation, games or athletic events, and provided further that nothing in this
134 subdivision shall exempt from tax any amounts retained by any private person, firm, or
135 corporation under such revenue-sharing agreement;
136 (18) All sales of insulin, and all sales, rentals, repairs, and parts of durable medical
137 equipment, prosthetic devices, and orthopedic devices as defined [ on January 1, 1980, ] by the
138 federal Medicare program pursuant to T itle XVIII of the Social Security Act of 1965, as
139 amended, including the items specified in Section 1862(a)(12) of that act, and also
140 specifically including hearing aids and hearing aid supplies and all sales of drugs which may
141 be legally dispensed by a licensed pharmacist only upon a lawful prescription of a practitioner
142 licensed to administer those items, including samples and materials used to manufacture
143 samples which may be dispensed by a practitioner authorized to dispense such samples and
144 all sales or rental of medical oxygen, home respiratory equipment and accessories including
145 parts, and hospital beds and accessories and ambulatory aids including parts, and all sales or
146 rental of manual and powered wheelchairs including parts and accessories , and stairway lifts,
147 Braille writers, electronic Braille equipment and, if purchased or rented by or on behalf of a
148 person with one or more physical or mental disabilities to enable them to function more
149 independently , all sales or rental of scooters including parts, and reading machines, electronic
150 print enlar gers and magnifiers, electronic alternative and augmentative communication
151 devices, and items used solely to modify motor vehicles to permit the use of such motor
152 vehicles by individuals with disabilities or sales of over -the-counter or nonprescription drugs
153 to individuals with disabilities, and drugs required by the Food and Drug Administration to
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154 meet the over -the-counter drug product labeling requirements in 21 CFR 201.66, or its
155 successor , as prescribed by a health care practitioner licensed to prescribe;
156 (19) All sales made by or to religious and charitable or ganizations and institutions in
157 their religious, charitable or educational functions and activities and all sales made by or to all
158 elementary and secondary schools operated at public expense in their educational functions
159 and activities;
160 (20) All sales of aircraft to common carriers for storage or for use in interstate
161 commerce and all sales made by or to not-for -profit civic, social, service or fraternal
162 or ganizations, including fraternal or ganizations which have been declared tax-exempt
163 or ganizations pursuant to Section 501(c)(8) or (10) of the 1986 Internal Revenue Code, as
164 amended, in their civic or charitable functions and activities and all sales made to
165 eleemosynary and penal institutions and industries of the state, and all sales made to any
166 private not-for -profit institution of higher education not otherwise excluded pursuant to
167 subdivision (19) of this subsection or any institution of higher education supported by public
168 funds, and all sales made to a state relief agency in the exercise of relief functions and
169 activities;
170 (21) All ticket sales made by benevolent, scientific and educational associations
171 which are formed to foster , encourage, and promote progress and improvement in the science
172 of agriculture and in the raising and breeding of animals, and by nonprofit summer theater
173 or ganizations if such or ganizations are exempt from federal tax pursuant to the provisions of
174 the Internal Revenue Code and all admission char ges and entry fees to the Missouri state fair
175 or any fair conducted by a county agricultural and mechanical society or ganized and operated
176 pursuant to sections 262.290 to 262.530;
177 (22) All sales made to any private not-for- profit elementary or secondary school, all
178 sales of feed additives, medications or vaccines administered to livestock or poultry in the
179 production of food or fiber , all sales of pesticides used in the production of crops, livestock or
180 poultry for food or fiber , all sales of bedding used in the production of livestock or poultry for
181 food or fiber , all sales of propane or natural gas, electricity or diesel fuel used exclusively for
182 drying agricultural crops, natural gas used in the primary manufacture or processing of fuel
183 ethanol as defined in section 142.028, natural gas, propane, and electricity used by an eligible
184 new generation cooperative or an eligible new generation processing entity as defined in
185 section 348.432, and all sales of farm machinery and equipment, other than airplanes, motor
186 vehicles and trailers, and any freight char ges on any exempt item. As used in this
187 subdivision, the term "feed additives" means tangible personal property which, when mixed
188 with feed for livestock or poultry , is to be used in the feeding of livestock or poultry . As used
189 in this subdivision, the term "pesticides" includes adjuvants such as crop oils, surfactants,
190 wetting agents and other assorted pesticide carriers used to improve or enhance the ef fect of a
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191 pesticide and the foam used to mark the application of pesticides and herbicides for the
192 production of crops, livestock or poultry . As used in this subdivision, the term "farm
193 machinery and equipment" shall mean:
194 (a) New or used farm tractors and such other new or used farm machinery and
195 equipment, including utility vehicles used for any agricultural use, and repair or replacement
196 parts thereon and any accessories for and upgrades to such farm machinery and equipment
197 and rotary mowers used for any agricultural purposes. For the purposes of this subdivision,
198 "utility vehicle" shall mean any motorized vehicle manufactured and used exclusively for of f-
199 highway use which is more than fifty inches but no more than eighty inches in width,
200 measured from outside of tire rim to outside of tire rim, with an unladen dry weight of three
201 thousand five hundred pounds or less, traveling on four or six wheels;
202 (b) Supplies and lubricants used exclusively , solely , and directly for producing crops,
203 raising and feeding livestock, fish, poultry , pheasants, chukar , quail, or for producing milk for
204 ultimate sale at retail, including field drain tile; and
205 (c) One-half of each purchaser's purchase of diesel fuel therefor which is:
206 a. Used exclusively for agricultural purposes;
207 b. Used on land owned or leased for the purpose of producing farm products; and
208 c. Used directly in producing farm products to be sold ultimately in processed form or
209 otherwise at retail or in producing farm products to be fed to livestock or poultry to be sold
210 ultimately in processed form at retail;
211 (23) Except as otherwise provided in section 144.032, all sales of metered water
212 service, electricity , electrical current, natural, artificial or propane gas, wood, coal or home
213 heating oil for domestic use and in any city not within a county , all sales of metered or
214 unmetered water service for domestic use:
215 (a) "Domestic use" means that portion of metered water service, electricity , electrical
216 current, natural, artificial or propane gas, wood, coal or home heating oil, and in any city not
217 within a county , metered or unmetered water service, which an individual occupant of a
218 residential premises uses for nonbusiness, noncommercial or nonindustrial purposes. Utility
219 service through a single or master meter for residential apartments or condominiums,
220 including service for common areas and facilities and vacant units, shall be deemed to be for
221 domestic use. Each seller shall establish and maintain a system whereby individual purchases
222 are determined as exempt or nonexempt;
223 (b) Regulated utility sellers shall determine whether individual purchases are exempt
224 or nonexempt based upon the seller's utility service rate classifications as contained in tarif fs
225 on file with and approved by the Missouri public service commission. Sales and purchases
226 made pursuant to the rate classification "residential" and sales to and purchases made by or on
227 behalf of the occupants of residential apartments or condominiums through a single or master
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228 meter , including service for common areas and facilities and vacant units, shall be considered
229 as sales made for domestic use and such sales shall be exempt from sales tax. Sellers shall
230 char ge sales tax upon the entire amount of purchases classified as nondomestic use. The
231 seller's utility service rate classification and the provision of service thereunder shall be
232 conclusive as to whether or not the utility must char ge sales tax;
233 (c) Each person making domestic use purchases of services or property and who uses
234 any portion of the services or property so purchased for a nondomestic use shall, by the
235 fifteenth day of the fourth month following the year of purchase, and without assessment,
236 notice or demand, file a return and pay sales tax on that portion of nondomestic purchases.
237 Each person making nondomestic purchases of services or property and who uses any portion
238 of the services or property so purchased for domestic use, and each person making domestic
239 purchases on behalf of occupants of residential apartments or condominiums through a single
240 or master meter , including service for common areas and facilities and vacant units, under a
241 nonresidential utility service rate classification may , between the first day of the first month
242 and the fifteenth day of the fourth month following the year of purchase, apply for credit or
243 refund to the director of revenue and the director shall give credit or make refund for taxes
244 paid on the domestic use portion of the purchase. The person making such purchases on
245 behalf of occupants of residential apartments or condominiums shall have standing to apply to
246 the director of revenue for such credit or refund;
247 (24) All sales of handicraft items made by the seller or the seller's spouse if the seller
248 or the seller's spouse is at least sixty-five years of age, and if the total gross proceeds from
249 such sales do not constitute a majority of the annual gross income of the seller;
250 (25) Excise taxes, collected on sales at retail, imposed by Sections 4041, 4071, 4081,
251 [ 4091, ] 4161, 4181, 4251, 4261 and 4271 of T itle 26, United States Code. The director of
252 revenue shall promulgate rules pursuant to chapter 536 to eliminate all state and local sales
253 taxes on such excise taxes;
254 (26) Sales of fuel consumed or used in the operation of ships, bar ges, or waterborne
255 vessels which are used primarily in or for the transportation of property or car go, or the
256 conveyance of persons for hire, on navigable rivers bordering on or located in part in this
257 state, if such fuel is delivered by the seller to the purchaser's bar ge, ship, or waterborne vessel
258 while it is afloat upon such river;
259 (27) All sales made to an interstate compact agency created pursuant to sections
260 70.370 to 70.441 or sections 238.010 to 238.100 in the exercise of the functions and activities
261 of such agency as provided pursuant to the compact;
262 (28) Computers, computer software and computer security systems purchased for use
263 by architectural or engineering firms headquartered in this state. For the purposes of this
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264 subdivision, "headquartered in this state" means the office for the administrative management
265 of at least four integrated facilities operated by the taxpayer is located in the state of Missouri;
266 (29) All livestock sales when either the seller is engaged in the growing, producing or
267 feeding of such livestock, or the seller is engaged in the business of buying and selling,
268 bartering or leasing of such livestock;
269 (30) All sales of bar ges which are to be used primarily in the transportation of
270 property or car go on interstate waterways;
271 (31) Electrical ener gy or gas, whether natural, artificial or propane, water , or other
272 utilities which are ultimately consumed in connection with the manufacturing of cellular glass
273 products or in any material recovery processing plant as defined in subdivision (4) of this
274 subsection;
275 (32) Notwithstanding other provisions of law to the contrary , all sales of pesticides or
276 herbicides used in the production of crops, aquaculture, livestock or poultry;
277 (33) T angible personal property and utilities purchased for use or consumption
278 directly or exclusively in the research and development of agricultural/biotechnology and
279 plant genomics products and prescription pharmaceuticals consumed by humans or animals;
280 (34) All sales of grain bins for storage of grain for resale;
281 (35) All sales of feed which are developed for and used in the feeding of pets owned
282 by a commercial breeder when such sales are made to a commercial breeder , as defined in
283 section 273.325, and licensed pursuant to sections 273.325 to 273.357;
284 (36) All purchases by a contractor on behalf of an entity located in another state,
285 provided that the entity is authorized to issue a certificate of exemption for purchases to a
286 contractor under the provisions of that state's laws. For purposes of this subdivision, the term
287 "certificate of exemption" shall mean any document evidencing that the entity is exempt from
288 sales and use taxes on purchases pursuant to the laws of the state in which the entity is
289 located. Any contractor making purchases on behalf of such entity shall maintain a copy of
290 the entity's exemption certificate as evidence of the exemption. If the exemption certificate
291 issued by the exempt entity to the contractor is later determined by the director of revenue to
292 be invalid for any reason and the contractor has accepted the certificate in good faith, neither
293 the contractor or the exempt entity shall be liable for the payment of any taxes, interest and
294 penalty due as the result of use of the invalid exemption certificate. Materials shall be exempt
295 from all state and local sales and use taxes when purchased by a contractor for the purpose of
296 fabricating tangible personal property which is used in fulfilling a contract for the purpose of
297 constructing, repairing or remodeling facilities for the following:
298 (a) An exempt entity located in this state, if the entity is one of those entities able to
299 issue project exemption certificates in accordance with the provisions of section 144.062; or
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300 (b) An exempt entity located outside the state if the exempt entity is authorized to
301 issue an exemption certificate to contractors in accordance with the provisions of that state's
302 law and the applicable provisions of this section;
303 (37) All sales or other transfers of tangible personal property to a lessor who leases
304 the property under a lease of one year or longer executed or in ef fect at the time of the sale or
305 other transfer to an interstate compact agency created pursuant to sections 70.370 to 70.441 or
306 sections 238.010 to 238.100;
307 (38) Sales of tickets to any collegiate athletic championship event that is held in a
308 facility owned or operated by a governmental authority or commission, a quasi-governmental
309 agency , a state university or college or by the state or any political subdivision thereof,
310 including a municipality , and that is played on a neutral site and may reasonably be played at
311 a site located outside the state of Missouri. For purposes of this subdivision, "neutral site"
312 means any site that is not located on the campus of a conference member institution
313 participating in the event;
314 (39) All purchases by a sports complex authority created under section 64.920, and all
315 sales of utilities by such authority at the authority's cost that are consumed in connection with
316 the operation of a sports complex leased to a professional sports team;
317 (40) All materials, replacement parts, and equipment purchased for use directly upon,
318 and for the modification, replacement, repair , and maintenance of aircraft, aircraft power
319 plants, and aircraft accessories;
320 (41) Sales of sporting clays, wobble, skeet, and trap tar gets to any shooting range or
321 similar places of business for use in the normal course of business and money received by a
322 shooting range or similar places of business from patrons and held by a shooting range or
323 similar place of business for redistribution to patrons at the conclusion of a shooting event;
324 (42) All sales of motor fuel, as defined in section 142.800, used in any watercraft, as
325 defined in section 306.010;
326 (43) Any new or used aircraft sold or delivered in this state to a person who is not a
327 resident of this state or a corporation that is not incorporated in this state, and such aircraft is
328 not to be based in this state and shall not remain in this state more than ten business days
329 subsequent to the last to occur of:
330 (a) The transfer of title to the aircraft to a person who is not a resident of this state or a
331 corporation that is not incorporated in this state; or
332 (b) The date of the return to service of the aircraft in accordance with 14 CFR 91.407
333 for any maintenance, preventive maintenance, rebuilding, alterations, repairs, or installations
334 that are completed contemporaneously with the transfer of title to the aircraft to a person who
335 is not a resident of this state or a corporation that is not incorporated in this state;
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336 (44) Motor vehicles registered in excess of fifty-four thousand pounds, and the
337 trailers pulled by such motor vehicles, that are actually used in the normal course of business
338 to haul property on the public highways of the state, and that are capable of hauling loads
339 commensurate with the motor vehicle's registered weight; and the materials, replacement
340 parts, and equipment purchased for use directly upon, and for the repair and maintenance or
341 manufacture of such vehicles. For purposes of this subdivision, "motor vehicle" and "public
342 highway" shall have the meaning as ascribed in section 390.020;
343 (45) All internet access or the use of internet access regardless of whether the tax is
344 imposed on a provider of internet access or a buyer of internet access. For purposes of this
345 subdivision, the following terms shall mean:
346 (a) "Direct costs", costs incurred by a governmental authority solely because of an
347 internet service provider's use of the public right-of-way . The term shall not include costs that
348 the governmental authority would have incurred if the internet service provider did not make
349 such use of the public right-of-way . Direct costs shall be determined in a manner consistent
350 with generally accepted accounting principles;
351 (b) "Internet", computer and telecommunications facilities, including equipment and
352 operating software, that comprises the interconnected worldwide network that employ the
353 transmission control protocol or internet protocol, or any predecessor or successor protocols
354 to that protocol, to communicate information of all kinds by wire or radio;
355 (c) "Internet access", a service that enables users to connect to the internet to access
356 content, information, or other services without regard to whether the service is referred to as
357 telecommunications, communications, transmission, or similar services, and without regard to
358 whether a provider of the service is subject to regulation by the Federal Communications
359 Commission as a common carrier under 47 U.S.C. Section 201, et seq. For purposes of this
360 subdivision, internet access also includes: the purchase, use, or sale of communications
361 services, including telecommunications services as defined in section 144.010, to the extent
362 the communications services are purchased, used, or sold to provide the service described in
363 this subdivision or to otherwise enable users to access content, information, or other services
364 of fered over the internet; services that are incidental to the provision of a service described in
365 this subdivision, when furnished to users as part of such service, including a home page,
366 electronic mail, and instant messaging, including voice-capable and video-capable electronic
367 mail and instant messaging, video clips, and personal electronic storage capacity; a home
368 page electronic mail and instant messaging, including voice-capable and video-capable
369 electronic mail and instant messaging, video clips, and personal electronic storage capacity
370 that are provided independently or that are not packed with internet access. As used in this
371 subdivision, internet access does not include voice, audio, and video programming or other
372 products and services, except services described in this paragraph or this subdivision, that use
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373 internet protocol or any successor protocol and for which there is a char ge, regardless of
374 whether the char ge is separately stated or aggregated with the charg e for services described in
375 this paragraph or this subdivision;
376 (d) "T ax", any char ge imposed by the state or a political subdivision of the state for
377 the purpose of generating revenues for governmental purposes and that is not a fee imposed
378 for a specific privilege, service, or benefit conferred, except as described as otherwise under
379 this subdivision, or any obligation imposed on a seller to collect and to remit to the state or a
380 political subdivision of the state any gross retail tax, sales tax, or use tax imposed on a buyer
381 by such a governmental entity . The term tax shall not include any franchise fee or similar fee
382 imposed or authorized under sections 67.1830 to 67.1846 or section 67.2689; Section 622 or
383 653 of the Communications Act of 1934, 47 U.S.C. Section 542 and 47 U.S.C. Section 573;
384 or any other fee related to obligations of telecommunications carriers under the
3 8 5 Communications Act of 1934, 47 U.S.C. Section 151, et seq., except to the extent that:
386 a. The fee is not imposed for the purpose of recovering direct costs incurred by the
387 franchising or other governmental authority from providing the specific privilege, service, or
388 benefit conferred to the payer of the fee; or
389 b. The fee is imposed for the use of a public right-of-way based on a percentage of the
390 service revenue, and the fee exceeds the incremental direct costs incurred by the
391 governmental authority associated with the provision of that right-of-way to the provider
392 of internet access service.
393
394 Nothing in this subdivision shall be interpreted as an exemption from taxes due on goods or
395 services that were subject to tax on January 1, 2016;
396 (46) All purchases by a company of solar photovoltaic ener gy systems, components
397 used to construct a solar photovoltaic ener gy system, and all purchases of materials and
398 supplies used directly to construct or make improvements to such systems, provided that such
399 systems:
400 (a) Are sold or leased to an end user; or
401 (b) Are used to produce, collect and transmit electricity for resale or retail ;
402 (47) Used tangible personal pr operty pur chased at an auction of used tangible
403 personal pro perty . The term "used tangible personal prop erty" means any tangible
404 personal pr operty upon which a sales or use tax has pr eviously been imposed. The term
405 "used tangible personal prop erty" shall not include motor vehicles, trailers, boats, or
406 outboard motors pur chased or acquired for use on the highways or waters of this state
407 and requ ired to be titled under the laws of the state of Missouri .
408 3. Any ruling, agreement, or contract, whether written or oral, express or implied,
409 between a person and this state's executive branch, or any other state agency or department,
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410 stating, agreeing, or ruling that such person is not required to collect sales and use tax in this
411 state despite the presence of a warehouse, distribution center , or fulfillment center in this state
412 that is owned or operated by the person or an af filiated person shall be null and void unless it
413 is specifically approved by a majority vote of each of the houses of the general assembly . For
414 purposes of this subsection, an "af filiated person" means any person that is a member of the
415 same controlled group of corporations as defined in Section 1563(a) of the Internal Revenue
416 Code of 1986, as amended, as the vendor or any other entity that, notwithstanding its form of
417 or ganization, bears the same ownership relationship to the vendor as a corporation that is a
418 member of the same controlled group of corporations as defined in Section 1563(a) of the
419 Internal Revenue Code, as amended.
144.615. There are specifically exempted from the taxes levied in sections 144.600 to
2 144.745:
3 (1) Property , the storage, use or consumption of which this state is prohibited from
4 taxing pursuant to the constitution or laws of the United States or of this state;
5 (2) Property , the gross receipts from the sale of which are required to be included in
6 the measure of the tax imposed pursuant to the Missouri sales tax law;
7 (3) T angible personal property , the sale or other transfer of which, if made in this
8 state, would be exempt from or not subject to the Missouri sales tax pursuant to the provisions
9 of subsection 2 of section 144.030;
10 (4) Motor vehicles, trailers, boats, and outboard motors subject to the tax imposed by
11 section 144.020;
12 (5) T angible personal property which has been subjected to a tax by any other state in
13 this respect to its sales or use; provided, if such tax is less than the tax imposed by sections
14 144.600 to 144.745, such property , if otherwise taxable, shall be subject to a tax equal to the
15 dif ference between such tax and the tax imposed by sections 144.600 to 144.745;
16 (6) T angible personal property held by processors, retailers, importers, manufacturers,
17 wholesalers, or jobbers solely for resale in the regular course of business;
18 (7) Personal and household ef fects and farm machinery used while an individual was
19 a bona fide resident of another state and who thereafter became a resident of this state, or
20 tangible personal property brought into the state by a nonresident for his own storage, use or
21 consumption while temporarily within the state ;
22 (8) Used tangible personal pr operty pur chased at an auction of used tangible
23 personal pro perty . The term "used tangible personal prop erty" means any tangible
24 personal pr operty upon which a sales or use tax has pr eviously been imposed. The term
25 "used tangible personal prop erty" shall not include motor vehicles, trailers, boats, or
26 outboard motors pur chased or acquired for use on the highways or waters of this state
27 and requ ired to be titled under the laws of the state of Missouri .
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313.057. 1. It is unlawful for any person, either as an owner , lessee or employee, to
2 operate, carry on, conduct or maintain any form of manufacturing, selling, leasing or
3 distribution of any bingo equipment or supplies without having first procured and maintained
4 a Missouri bingo equipment and supplies manufacturer or supplier license.
5 2. The commission shall submit two sets of fingerprints for each key person, as
6 defined in commission rules and regulations, of an entity or or ganization seeking issuance or
7 renewal of a Missouri bingo equipment and supplies manufacturer or supplier license, for the
8 purpose of checking the person's prior criminal history when the commission determines a
9 nationwide check is warranted. The fingerprint cards and any required fees shall be sent to
10 the Missouri state highway patrol's criminal records division. The first set of fingerprints
11 shall be used for searching the state repository of criminal history information. The second
12 set of fingerprints shall be forwarded to the Federal Bureau of Investigation, Identification
13 Division, for the searching of the federal criminal history files. The patrol shall notify the
14 commission of any criminal history information or lack of criminal history information
15 discovered on the individual. Notwithstanding the provisions of section 610.120, all records
16 related to any criminal history information discovered shall be accessible and available to the
17 commission.
18 3. The holder of a state bingo license may , within two years of cessation of
19 conducting bingo or upon specific approval by the commission, dispose of by sale in a
20 manner approved by the commission, any or all of his bingo equipment and supplies, without
21 a supplier's license. In case of foreclosure of a lien by a bank or other person holding a
22 security interest for which bingo equipment is security in whole or in part for the lien, the
23 commission may authorize the disposition of the bingo equipment without requiring a
24 supplier's license.
25 4. Any person whom the commission determines to be a suitable person to receive a
26 license pursuant to the provisions of this section may be issued a manufacturer's or supplier's
27 license. The commission may require suppliers to post a bond with the commission in an
28 amount and in the manner prescribed by the commission. The burden of proving his
29 qualification to receive or hold a license pursuant to this section is at all times on the applicant
30 or licensee.
31 5. The commission shall char ge and collect from each applicant for a supplier's
32 license a one-time application fee set by the commission, not to exceed five thousand dollars.
33 The commission shall char ge and collect an annual renewal fee for each supplier licensee not
34 to exceed one thousand dollars. The applicant shall be responsible for the total cost of the
35 criminal history investigation. If the cost of the investigation exceeds the total amount of fees
36 filed by the applicant in this subsection, the commission may assess additional fees as it
37 deems appropriate.
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38 6. The commission shall char ge and collect from each applicant for a manufacturer's
39 license a one-time application fee set by the commission, not to exceed five thousand dollars.
40 The commission shall char ge and collect an annual renewal fee for each manufacturer
41 licensee not to exceed one thousand dollars. The applicant shall be responsible for the total
42 cost of the criminal history investigation. If the cost of the investigation exceeds the total
43 amount of fees filed by the applicant in this subsection, the commission may assess additional
44 fees as it deems appropriate.
45 7. The commission shall char ge and collect from each applicant for a hall provider's
46 license a one-time application fee set by the commission, not to exceed seven hundred fifty
47 dollars. The commission shall char ge and collect an annual renewal fee for each hall provider
48 licensee not to exceed five hundred dollars.
49 8. All licenses issued pursuant to this section shall be issued for the calendar year and
50 shall expire on December thirty-first of each year . Regardless of the date of application or
51 issuance of the license, the fee to be char ged and collected pursuant to this section shall be the
52 full annual fee.
53 9. All license fees collected pursuant to this section shall be paid over immediately to
54 the state treasurer to be deposited to the credit of the gaming commission fund.
55 10. All licensees pursuant to this section shall maintain for a period of not less than
56 three years full and complete records of all business carried on in this state and shall make
57 same available for inspection to any duly authorized representative of the commission. If a
58 supplier does not receive payment in full from an or ganization within thirty days of the
59 delivery of bingo supplies, the supplier shall notify the commission in writing, or in a manner
60 specified by the commission in its rules and regulations, of the delinquency . Upon receipt of
61 the notice of delinquency , the commission shall notify all suppliers that until further notice
62 from the commission, all sales of bingo supplies to the delinquent org anizations shall be on a
63 cash-only basis. Upon receipt of the notice from the commission, no supplier may extend
64 credit to the delinquent or ganization until such time as the commission approves credit sales.
65 If a manufacturer does not receive payment in full from a supplier within ninety days of the
66 delivery of bingo supplies, the manufacturer shall notify the commission in writing, or in a
67 manner specified by the commission in its rules and regulations, of the delinquency . Upon
68 receipt of the notice of delinquency , the commission shall notify all manufacturers that until
69 further notice from the commission, all sales of bingo supplies to the delinquent supplier shall
70 be on a cash-only basis. Upon receipt of the notice from the commission, no manufacturer
71 may extend credit to the delinquent supplier until such time as the commission approves
72 credit sales.
73 1 1. [ Until January 1, 1995, all suppliers shall pay a tax on all pull-tab cards
74 distributed by them in the amount of ten dollars per box when sold by any or ganization
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75 licensed to conduct bingo pursuant to the provisions of sections 313.005 to 313.080 . No box
76 sold shall contain more than twenty-four hundred pull-tab cards. Beginning January 1, 1995,
77 a tax is hereby imposed in the amount of two percent of the gross receipts of the retail sales
78 value char ged for each pull-tab card sold in Missouri to be paid by the supplier . The taxes,
79 less two percent of the total amount paid which may be retained by the supplier , if timely filed
80 and paid, shall be paid on a monthly basis to the commission by each supplier of pull-tabs and
81 shall be due on the last day of each month following the month in which the pull-tabs were
82 sold. The taxes shall be deposited in the state treasury , credited to the bingo proceeds for
83 education fund. ] All pull-tab cards sold by suppliers in this state shall bear on the face thereof
84 the amount for which such pull-tab cards will be sold. Each unit container shall contain cards
85 printed in such a manner as to ensure that at least sixty percent of the gross revenues
86 generated by the ultimate sale of such cards shall be returned to the final purchasers of such
87 cards. [ Any supplier who fails to pay the tax imposed pursuant to this subsection shall have
88 his license issued pursuant to this section revoked and shall be guilty of a class A
89 misdemeanor . ]
[ 313.055. 1. A tax is hereby imposed on each or ganization conducting
2 the game of bingo which awards to winners of bingo games prizes or
3 merchandise having an aggregate retail value of more than five thousand
4 dollars annually and more than one hundred dollars in any single day . The tax
5 shall be in the amount of two-tenths of one cent upon each bingo card and
6 progressive bingo game card sold in Missouri to be paid by the supplier . The
7 taxes, less two percent of the total amount paid which may be retained by the
8 supplier , shall be paid on a monthly basis to the commission, by each supplier
9 of bingo supplies and shall be due on the last day of the month following the
10 month in which the bingo card was sold, with the date of sale being the date on
11 the invoice evidencing the sale, along with such reports as may be required by
12 the commission. The taxes shall be deposited in the state treasury , credited to
13 the bingo proceeds for education fund.
14 2. All taxes not paid to the commission by the person or licensee
15 required to remit the same on the date when the same becomes due and
16 payable to the commission under the provisions of sections 313.005 to
17 313.085 shall bear interest at the rate to be set by the commission not to exceed
18 two percent per calendar month, or fraction thereof, from and after such date
19 until paid. In addition, the commission may impose a penalty not to exceed
20 three times the amount of taxes due for failure to submit the reports required
21 by this section and pay the taxes due. ]
✔
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