SALES & TAX EXEMPTIONS

There are many exemptions to sales and use taxes in Missouri. The following represent a few of the major exemptions.

• Machinery and equipment used to establish a new or expand an existing manufacturing facility, provided such machinery or equipment is used directly to manufacture a product ultimately intended for sale.
• Replacement machinery and equipment used directly in manufacturing a product ultimately intended for sale, provided their acquisition is necessary because of a change in design or product (as opposed to obsolescence).
• Manufacturers' raw materials (i.e., materials, manufactured goods, machines, and parts) that become a component part of tangible personal property intended to be sold for final use or consumption.
• Machinery, equipment, and devices that abate air or water pollution.
• Machinery and equipment used to establish or expand a material recovery processing plant.
• All materials and supplies used to install tax exempt machinery and equipment.
• Electricity consumed in the manufacturing process, provided the cost of electricity exceeds 10% of total production costs; and anodes, with a useful life of less than one year, used in manufacturing or production.
• Materials, replacement parts, and equipment used directly upon and for the repair and maintenance or manufacture of common carriers.
• Tangible personal property purchased for use or consumption in research and development of prescription pharmaceuticals for humans or animals or in research and experimentation activities performed by life sciences companies.
• Computers, computer software, and computer security systems purchased for use by architectural or engineering firms headquartered in Missouri.