Missouri Statute | Act | Code |Taxation And Revenue| US Code - US Statute

1. The following words, terms, and phrases when used in sections
144.010 to 144.525 have the meanings ascribed to them in this section,
except when the context indicates a different meaning:

(1) "Admission" includes seats and tables, reserved or otherwise, and
other similar accommodations and charges made therefor and amount paid
for admission, exclusive of any admission tax imposed by the federal
government or by sections 144.010 to 144.525;

(2) "Business" includes any activity engaged in by any person, or caused
to be engaged in by him, with the object of gain, benefit or advantage,
either direct or indirect, and the classification of which business is of
such character as to be subject to the terms of sections 144.010 to
144.525. The isolated or occasional sale of tangible personal property,
service, substance, or thing, by a person not engaged in such business,
does not constitute engaging in business within the meaning of sections
144.010 to 144.525 unless the total amount of the gross receipts from
such sales, exclusive of receipts from the sale of tangible personal
property by persons which property is sold in the course of the partial
or complete liquidation of a household, farm or nonbusiness enterprise,
exceeds three thousand dollars in any calendar year. The provisions of
this subdivision shall not be construed to make any sale of property
which is exempt from sales tax or use tax on June 1, 1977, subject to
that tax thereafter;

(3) "Gross receipts", except as provided in section 144.012, means the
total amount of the sale price of the sales at retail including any
services other than charges incident to the extension of credit that are
a part of such sales made by the businesses herein referred to, capable
of being valued in money, whether received in money or otherwise; except
that, the term "gross receipts" shall not include the sale price of
property returned by customers when the full sale price thereof is
refunded either in cash or by credit. In determining any tax due under
sections 144.010 to 144.525 on the gross receipts, charges incident to
the extension of credit shall be specifically exempted. For the purposes
of sections 144.010 to 144.525 the total amount of the sale price above
mentioned shall be deemed to be the amount received. It shall also
include the lease or rental consideration where the right to continuous
possession or use of any article of tangible personal property is granted
under a lease or contract and such transfer of possession would be
taxable if outright sale were made and, in such cases, the same shall be
taxable as if outright sale were made and considered as a sale of such
article, and the tax shall be computed and paid by the lessee upon the
rentals paid;

(4) "Livestock", cattle, calves, sheep, swine, ratite birds, including
but not limited to, ostrich and emu, aquatic products as defined in
section 277.024, RSMo, llamas, alpaca, buffalo, elk documented as
obtained from a legal source and not from the wild, goats, horses, other
equine, or rabbits raised in confinement for human consumption;

(5) "Motor vehicle leasing company" shall be a company obtaining a permit
from the director of revenue to operate as a motor vehicle leasing
company. Not all persons renting or leasing trailers or motor vehicles
need to obtain such a permit; however, no person failing to obtain such a
permit may avail itself of the optional tax provisions of subsection 5 of
section 144.070, as hereinafter provided;

(6) "Person" includes any individual, firm, copartnership, joint
adventure, association, corporation, municipal or private, and whether
organized for profit or not, state, county, political subdivision, state
department, commission, board, bureau or agency, except the state
transportation department, estate, trust, business trust, receiver or
trustee appointed by the state or federal court, syndicate, or any other
group or combination acting as a unit, and the plural as well as the
singular number;

(7) "Purchaser" means a person who purchases tangible personal property
or to whom are rendered services, receipts from which are taxable under
sections 144.010 to 144.525;

(8) "Research or experimentation activities" are the development of an
experimental or pilot model, plant process, formula, invention or similar
property, and the improvement of existing property of such type. Research
or experimentation activities do not include activities such as ordinary
testing or inspection of materials or products for quality control,
efficiency surveys, advertising promotions or research in connection with
literary, historical or similar projects;

(9) "Sale" or "sales" includes installment and credit sales, and the
exchange of properties as well as the sale thereof for money, every
closed transaction constituting a sale, and means any transfer, exchange
or barter, conditional or otherwise, in any manner or by any means
whatsoever, of tangible personal property for valuable consideration and
the rendering, furnishing or selling for a valuable consideration any of
the substances, things and services herein designated and defined as
taxable under the terms of sections 144.010 to 144.525;

(10) "Sale at retail" means any transfer made by any person engaged in
business as defined herein of the ownership of, or title to, tangible
personal property to the purchaser, for use or consumption and not for
resale in any form as tangible personal property, for a valuable
consideration; except that, for the purposes of sections 144.010 to
144.525 and the tax imposed thereby: (i) purchases of tangible personal
property made by duly licensed physicians, dentists, optometrists and
veterinarians and used in the practice of their professions shall be
deemed to be purchases for use or consumption and not for resale; and
(ii) the selling of computer printouts, computer output or microfilm or
microfiche and computer-assisted photo compositions to a purchaser to
enable the purchaser to obtain for his or her own use the desired
information contained in such computer printouts, computer output on
microfilm or microfiche and computer-assisted photo compositions shall be
considered as the sale of a service and not as the sale of tangible
personal property. Where necessary to conform to the context of sections
144.010 to 144.525 and the tax imposed thereby, the term "sale at retail"
shall be construed to embrace:

(a) Sales of admission tickets, cash admissions, charges and fees to or
in places of amusement, entertainment and recreation, games and athletic
events;

(b) Sales of electricity, electrical current, water and gas, natural or
artificial, to domestic, commercial or industrial consumers;

(c) Sales of local and long distance telecommunications service to
telecommunications subscribers and to others through equipment of
telecommunications subscribers for the transmission of messages and
conversations, and the sale, rental or leasing of all equipment or
services pertaining or incidental thereto;

(d) Sales of service for transmission of messages by telegraph companies;

(e) Sales or charges for all rooms, meals and drinks furnished at any
hotel, motel, tavern, inn, restaurant, eating house, drugstore, dining
car, tourist camp, tourist cabin, or other place in which rooms, meals or
drinks are regularly served to the public;

(f) Sales of tickets by every person operating a railroad, sleeping car,
dining car, express car, boat, airplane, and such buses and trucks as are
licensed by the division of motor carrier and railroad safety of the
department of economic development of Missouri, engaged in the
transportation of persons for hire;

(11) "Seller" means a person selling or furnishing tangible personal
property or rendering services, on the receipts from which a tax is
imposed pursuant to section 144.020;

(12) The noun "tax" means either the tax payable by the purchaser of a
commodity or service subject to tax, or the aggregate amount of taxes due
from the vendor of such commodities or services during the period for
which he or she is required to report his or her collections, as the
context may require;

(13) "Telecommunications service", for the purpose of this chapter, the
transmission of information by wire, radio, optical cable, coaxial cable,
electronic impulses, or other similar means. As used in this definition,
"information" means knowledge or intelligence represented by any form of
writing, signs, signals, pictures, sounds, or any other symbols.
Telecommunications service does not include the following if such
services are separately stated on the customer's bill or on records of
the seller maintained in the ordinary course of business:

(a) Access to the Internet, access to interactive computer services or
electronic publishing services, except the amount paid for the
telecommunications service used to provide such access;

(b) Answering services and one-way paging services;

(c) Private mobile radio services which are not two-way commercial mobile
radio services such as wireless telephone, personal communications
services or enhanced specialized mobile radio services as defined
pursuant to federal law; or

(d) Cable or satellite television or music services; and

(14) "Product which is intended to be sold ultimately for final use or
consumption" means tangible personal property, or any service that is
subject to state or local sales or use taxes, or any tax that is
substantially equivalent thereto, in this state or any other state.

2. For purposes of the taxes imposed under sections 144.010 to 144.525,
and any other provisions of law pertaining to sales or use taxes which
incorporate the provisions of sections 144.010 to 144.525 by reference,
the term "manufactured homes" shall have the same meaning given it in
section 700.010, RSMo.

3. Sections 144.010 to 144.525 may be known and quoted as the "Sales Tax
Law". (RSMo 1939 § 11407, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945
p. 1865, A.L. 1947 V. I p. 535, A.L. 1974 H.B. 1593, A.L. 1975 S.B. 92,
A.L. 1977 S.B. 367, A.L. 1978 H.B. 1634, A.L. 1979 H.B. 59, S.B. 218, et
al., A.L. 1981 S.B. 200, A.L. 1985 S.B. 152, A.L. 1988 H.B. 1335 merged
with H.B. 1400, A.L. 1993 S.B. 52, A.L. 1996 H.B. 1466, A.L. 1998 S.B.
627 merged with S.B. 936, A.L. 1999 H.B. 516, A.L. 2001 S.B. 234, A.L.
2005 S.B. 355)

CROSS REFERENCE:

Division of motor carrier and railroad safety abolished, duties and
functions transferred to highways and transportation commission and
department of transportation, RSMo 226.008

(1988) Income from sales in which both the shipping point and the
destination are outside the state is excluded from the numerator of the
single factor formula in determining income apportionment of income for
state income tax purposes. Wolff Shoe Co. v. Director of Revenue, 762
S.W.2d 29 (Mo. en banc).

(1994) Where marketer purchased packing materials to be used in shipping
merchandise sold through parties or catalog sales and shipping
demonstrator kits to independent contractors, packing materials which
were used to assure marketer and customer that merchandise would arrive
in good condition were exempt from sales and use taxes as property held
solely for resale. House of Lloyd v. Director of Revenue, 884 S.W.2d 271
(Mo. en banc).

1. For purposes of sections 144.010 to 144.525 and 144.600 to
144.748, and the taxes imposed thereby, the definition of "retail sale"
or "sale at retail" shall not be construed to include any of the
following:

(1) The transfer by one corporation of substantially all of its tangible
personal property to another corporation pursuant to a merger or
consolidation effected under the laws of the state of Missouri or any
other jurisdiction;

(2) The transfer of tangible personal property incident to the
liquidation or cessation of a taxpayer's trade or business, conducted in
proprietorship, partnership or corporate form, except to the extent any
transfer is made in the ordinary course of the taxpayer's trade or
business;

(3) The transfer of tangible personal property to a corporation solely in
exchange for its stock or securities;

(4) The transfer of tangible personal property to a corporation by a
shareholder as a contribution to the capital of the transferee
corporation;

(5) The transfer of tangible personal property to a partnership solely in
exchange for a partnership interest therein;

(6) The transfer of tangible personal property by a partner as a
contribution to the capital of the transferee partnership;

(7) The transfer of tangible personal property by a corporation to one or
more of its shareholders as a dividend, return of capital, distribution
in the partial or complete liquidation of the corporation or distribution
in redemption of the shareholder's interest therein;

(8) The transfer of tangible personal property by a partnership to one or
more of its partners as a current distribution, return of capital or
distribution in the partial or complete liquidation of the partnership or
of the partner's interest therein;

(9) The transfer of reusable containers used in connection with the sale
of tangible personal property contained therein for which a deposit is
required and refunded on return;

(10) The purchase by persons operating eating or food service
establishments, of items of a nonreusable nature which are furnished to
the customers of such establishments with or in conjunction with the
retail sales of their food or beverage. Such items shall include, but not
be limited to, wrapping or packaging materials and nonreusable paper,
wood, plastic and aluminum articles such as containers, trays, napkins,
dishes, silverware, cups, bags, boxes, straws, sticks and toothpicks;

(11) The purchase by persons operating hotels, motels or other transient
accommodation establishments, of items of a nonreusable nature which are
furnished to the guests in the guests' rooms of such establishments and
such items are included in the charge made for such accommodations. Such
items shall include, but not be limited to, soap, shampoo, tissue and
other toiletries and food or confectionery items offered to the guests
without charge;

(12) The transfer of a manufactured home other than:

(a) A transfer which involves the delivery of the document known as the
"Manufacturer's Statement of Origin" to a person other than a
manufactured home dealer, as defined in section 700.450, RSMo, for
purposes of allowing such person to obtain a title to the manufactured
home from the department of revenue of this state or the appropriate
agency or officer of any other state;

(b) A transfer which involves the delivery of a "Repossessed Title" to a
resident of this state if the tax imposed by sections 144.010 to 144.525
was not paid on the transfer of the manufactured home described in
paragraph (a) of this subdivision;

(c) The first transfer which occurs after December 31, 1985, if the tax
imposed by sections 144.010 to 144.525 was not paid on any transfer of
the same manufactured home which occurred before December 31, 1985; or

(13) Charges for initiation fees or dues to:

(a) Fraternal beneficiaries societies, or domestic fraternal societies,
orders or associations operating under the lodge system a substantial
part of the activities of which are devoted to religious, charitable,
scientific, literary, educational or fraternal purposes; or

(b) Posts or organizations of past or present members of the armed forces
of the United States or an auxiliary unit or society of, or a trust or
foundation for, any such post or organization substantially all of the
members of which are past or present members of the armed forces of the
United States or who are cadets, spouses, widows, or widowers of past or
present members of the armed forces of the United States, no part of the
net earnings of which inures to the benefit of any private shareholder or
individual.

2. The assumption of liabilities of the transferor by the transferee
incident to any of the transactions enumerated in the above subdivisions
(1) to (8) of subsection 1 of this section shall not disqualify the
transfer from the exclusion described in this section, where such
liability assumption is related to the property transferred and where the
assumption does not have as its principal purpose the avoidance of
Missouri sales or use tax. (L. 1973 H.B. 46, A.L. 1979 S.B. 218, et al.,
A.L. 1985 S.B. 152, A.L. 1992 H.B. 1155 merged with S.B. 831, A.L. 1996
H.B. 1237)

1. Notwithstanding any other provision of law to the contrary,
any sale of tangible personal property, other than photocopies,
cigarettes, cigars, or other tobacco-related products, by a vendor
through a vending machine located in the state of Missouri shall be
deemed a sale at retail occurring at the location of the vending machine
through which the tangible personal property is sold. Such sale by the
vendor shall be subject to the provisions of sections 66.600 to 66.635,
RSMo, sections 67.500 to 67.545, 67.547, 67.548, 67.550 to 67.580,
67.581, 67.582, 67.590 to 67.596, 67.671 to 67.685, 67.700 to 67.729,
67.730 to 67.739, 67.782, RSMo, sections 92.400 to 92.420, RSMo, sections
94.500 to 94.570, 94.577, 94.600 to 94.655, 94.700 to 94.755, RSMo,
sections 144.010 to 144.510, and 144.600 to 144.745. For the purpose of
transactions covered under this section, "gross receipts" means the net
invoice price of the property vended during the reporting period
multiplied by one hundred thirty-five percent. All local sales taxes
shall be based on the location of the vending machines from which the
tangible personal property is sold.

2. The taxes required by the sections listed in subsection 1 of this
section are to be reported directly to the director of revenue and
remitted by the vendor selling tangible personal property.

3. For purposes of this section, the following terms mean:

(1) "Net invoice price", the cost of the products, including freight,
less any timely payment discounts, with no allowance for spoilage or loss;

(2) "Vending machine", a coin or currency operated device which is used
to sell tangible personal property without requiring the vendor's
physical attention at the time of sale;

(3) "Vendor", the person who owns the tangible personal property sold in
the vending machine.

4. In addition to the exemptions granted under the provisions of section
144.030, there is hereby specifically exempted from the provisions of
sections 66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547,
67.548, 67.550 to 67.580, 67.581, 67.582, 67.590 to 67.596, 67.671 to
67.685, 67.700 to 67.729, 67.730 to 67.739, 67.782, RSMo, sections 92.400
to 92.420, RSMo, sections 94.500 to 94.570, 94.577, 94.600 to 94.655,
94.700 to 94.755, RSMo, sections 144.010 to 144.510, and 144.600 to
144.745, and from computation of the tax levied, assessed or payable
under sections 66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547,
67.548, 67.550 to 67.580, 67.581, 67.582, 67.590 to 67.596, 67.671 to
67.685, 67.700 to 67.729, 67.730 to 67.739, 67.782, RSMo, sections 92.400
to 92.420, RSMo, sections 94.500 to 94.570, 94.577, 94.600 to 94.655,
94.700 to 94.755, RSMo, sections 144.010 to 144.510, and 144.600 to
144.745, all sales by a vendor of tangible personal property from vending
machines located on the premises of any organization, institution or
school whose sales are exempt under subdivision (19) of subsection 2 of
section 144.030. (L. 1988 H.B. 1400, A.L. 1989 H.B. 35, et al.)

Effective 7-1-89

Notwithstanding any other provision of this chapter, the tax
imposed on mobile telecommunications services pursuant to section 144.020
shall be imposed in accordance with the federal Mobile Telecommunications
Sourcing Act, 4 U.S.C. Sections 116 through 124, as amended. All terms
used in this section shall have the same meaning attributed to them by
the federal Mobile Telecommunications Sourcing Act, 4 U.S.C. 124, as
amended. (L. 2002 H.B. 1890)

Effective 8-1-02

1. Notwithstanding other provisions of law to the contrary,
beginning October 1, 1997, the tax levied and imposed pursuant to
sections 144.010 to 144.525 and sections 144.600 to 144.746 on all retail
sales of food shall be at the rate of one percent. The revenue derived
from the one percent rate pursuant to this section shall be deposited by
the state treasurer in the school district trust fund and shall be
distributed as provided in section 144.701.

2. For the purposes of this section, the term "food" shall include only
those products and types of food for which food stamps may be redeemed
pursuant to the provisions of the Federal Food Stamp Program as contained
in 7 U.S.C. Section 2012, as that section now reads or as it may be
amended hereafter, and shall include food dispensed by or through vending
machines. For the purpose of this section, except for vending machine
sales, the term "food" shall not include food or drink sold by any
establishment where the gross receipts derived from the sale of food
prepared by such establishment for immediate consumption on or off the
premises of the establishment constitutes more than eighty percent of the
total gross receipts of that establishment, regardless of whether such
prepared food is consumed on the premises of that establishment,
including, but not limited to, sales of food by any restaurant, fast food
restaurant, delicatessen, eating house, or cafe.

3. Any person required to collect and remit the sales or use tax on food
pursuant to the provisions of this section shall be entitled to a refund
from the general revenue fund equal to three percent of all state and
local sales and use taxes collected by such person on or after October 1,
1997, and prior to September 30, 1998, and remitted by such person on or
before the date when the same becomes due in accordance with the
provisions of sections 144.080, 144.081, 144.090 and 144.655, on the
retail sale of food as defined in this section. This refund shall be in
addition to the amount allowed in section 144.140 and shall be made
without interest. Such refund shall be made only if such person files a
correctly completed claim for refund on or before September 30, 1999,
accompanied by such information as the director may require. The director
of revenue shall promulgate such rules and regulations pursuant to the
provisions of section 144.270 as are necessary to facilitate efficient
administration of the refund authorized in this section. For the purposes
of this subsection, "local sales taxes" shall mean any tax levied,
assessed, or payable pursuant to the provisions of the "local sales tax
law" as defined in section 32.085, RSMo, "local use taxes" shall mean any
tax levied, assessed, or payable pursuant to the provisions of sections
144.757 to 144.761, and "state sales and use taxes" shall mean any tax
levied pursuant to the provisions of sections 144.010 to 144.525 and
sections 144.600 to 144.746. (L. 1997 H.B. 491, A.L. 1999 H.B. 548)

No rule or portion of a rule promulgated under the authority of
this chapter shall become effective unless it has been promulgated
pursuant to the provisions of section 536.024, RSMo. (L. 1993 S.B. 52,
A.L. 1995 S.B. 3)

1. A tax is hereby levied and imposed upon all sellers for the
privilege of engaging in the business of selling tangible personal
property or rendering taxable service at retail in this state. The rate
of tax shall be as follows:

(1) Upon every retail sale in this state of tangible personal property,
including but not limited to motor vehicles, trailers, motorcycles,
mopeds, motortricycles, boats and outboard motors, a tax equivalent to
four percent of the purchase price paid or charged, or in case such sale
involves the exchange of property, a tax equivalent to four percent of
the consideration paid or charged, including the fair market value of the
property exchanged at the time and place of the exchange, except as
otherwise provided in section 144.025;

(2) A tax equivalent to four percent of the amount paid for admission and
seating accommodations, or fees paid to, or in any place of amusement,
entertainment or recreation, games and athletic events;

(3) A tax equivalent to four percent of the basic rate paid or charged on
all sales of electricity or electrical current, water and gas, natural or
artificial, to domestic, commercial or industrial consumers;

(4) A tax equivalent to four percent on the basic rate paid or charged on
all sales of local and long distance telecommunications service to
telecommunications subscribers and to others through equipment of
telecommunications subscribers for the transmission of messages and
conversations and upon the sale, rental or leasing of all equipment or
services pertaining or incidental thereto; except that, the payment made
by telecommunications subscribers or others, pursuant to section 144.060,
and any amounts paid for access to the Internet or interactive computer
services shall not be considered as amounts paid for telecommunications
services;

(5) A tax equivalent to four percent of the basic rate paid or charged
for all sales of services for transmission of messages of telegraph
companies;

(6) A tax equivalent to four percent on the amount of sales or charges
for all rooms, meals and drinks furnished at any hotel, motel, tavern,
inn, restaurant, eating house, drugstore, dining car, tourist cabin,
tourist camp or other place in which rooms, meals or drinks are regularly
served to the public;

(7) A tax equivalent to four percent of the amount paid or charged for
intrastate tickets by every person operating a railroad, sleeping car,
dining car, express car, boat, airplane and such buses and trucks as are
licensed by the division of motor carrier and railroad safety of the
department of economic development of Missouri, engaged in the
transportation of persons for hire;

(8) A tax equivalent to four percent of the amount paid or charged for
rental or lease of tangible personal property, provided that if the
lessor or renter of any tangible personal property had previously
purchased the property under the conditions of "sale at retail" as
defined in subdivision (8) of section 144.010 or leased or rented the
property and the tax was paid at the time of purchase, lease or rental,
the lessor, sublessor, renter or subrenter shall not apply or collect the
tax on the subsequent lease, sublease, rental or subrental receipts from
that property. The purchase, rental or lease of motor vehicles, trailers,
motorcycles, mopeds, motortricycles, boats, and outboard motors shall be
taxed and the tax paid as provided in this section and section 144.070.
In no event shall the rental or lease of boats and outboard motors be
considered a sale, charge, or fee to, for or in places of amusement,
entertainment or recreation nor shall any such rental or lease be subject
to any tax imposed to, for, or in such places of amusement, entertainment
or recreation. Rental and leased boats or outboard motors shall be taxed
under the provisions of the sales tax laws as provided under such laws
for motor vehicles and trailers. Tangible personal property which is
exempt from the sales or use tax under section 144.030 upon a sale
thereof is likewise exempt from the sales or use tax upon the lease or
rental thereof.

2. All tickets sold which are sold under the provisions of sections
144.010 to 144.525 which are subject to the sales tax shall have printed,
stamped or otherwise endorsed thereon, the words "This ticket is subject
to a sales tax.". (RSMo 1939 § 11408, A.L. 1941 p. 698, A.L. 1943 p.
1012, A.L. 1945 p. 1865, A.L. 1947 V. I p. 546, A.L. 1963 p. 195, A.L.
1965 p. 261, A.L. 1972 S.B. 407, A.L. 1975 S.B. 92, A.L. 1979 S.B. 218,
et al., A.L. 1982 Adopted by Initiative, Proposition C, November 2, 1982,
A.L. 1985 H.B. 280, et al., A.L. 1996 H.B. 1098, A.L. 1998 S.B. 627, A.L.
2001 H.B. 933)

CROSS REFERENCE:

Division of motor carrier and railroad safety abolished, duties and
functions transferred to highways and transportation commission and
department of transportation, RSMo 226.008

(1975) Sales tax is not due on proceeds of coin operated amusement
machines. L & R Distributing, Inc. v. Missouri Department of Revenue
(Mo.), 529 S.W.2d 375.

(1976) Cabinets made on special order for installation, usually in new
homes, were not subject to sales tax. Marsh v. Spradling (Mo.), 537
S.W.2d 402.

(1977) Held, fees charged for bowling are subject to sales tax. Blue
Springs Bowl v. Spradling (Mo.), 551 S.W.2d 596.

(1978) Title to redi-mix concrete passes to buyer at time materials are
loaded on truck and sales tax is not chargeable on hauling charge. Kurtz
Concrete, Inc. v. Spradling (Mo.), 560 S.W.2d 858.

(1982) Advertising supplement which is printed solely to be inserted into
newspaper and, in fact, is distributed in newspapers is integral part of
newspaper from time it is printed and is entitled to exemption from sales
tax. Daily Record Co. v. James (Mo.), 629 S.W.2d 348.

(1993) Sale of architectural illustration is sale of tangible personal
property for purposes of sales tax and not transaction which is
nontaxable as performance of service. Sneary v. Director of Revenue, 865
S.W.2d 342 (Mo. en banc).

(2001) Membership fees of athletic and exercise or fitness clubs are
subject to sales tax; clubs are places of "recreation" within meaning of
section. Wilson's Total Fitness, Inc. v. Director of Revenue, 38 S.W.3d
424 (Mo.banc).

The purpose and intent of sections 144.010 to 144.510 is to
impose a tax upon the privilege of engaging in the business, in this
state, of selling tangible personal property and those services listed in
section 144.020. The primary tax burden is placed upon the seller making
the taxable sales of property or service and is levied at the rate
provided for in section 144.020. Excluding sections 144.070, 144.440 and
144.450, the extent to which a seller is required to collect the tax from
the purchaser of the taxable property or service is governed by section
144.285 and in no way affects sections 144.080 and 144.100, which require
all sellers to report to the director of revenue their "gross receipts",
defined herein to mean the aggregate amount of the sales price of all
sales at retail, and remit tax at four percent of their gross receipts.
(L. 1965 p. 261, A.L. 1982 Adopted by Initiative, Proposition C, November
2, 1982)

Effective 1-1-83

(1982) "Dirt bikes" are motor vehicles for purposes of the sales tax law,
and seller is not required to remit sales tax. Lake & Trail Sports Center
v. Director of Revenue (Mo.), 631 S.W.2d 339.

1. Notwithstanding any other provisions of law to the contrary,
in any retail sale other than retail sales governed by subsections 4 and
5 of this section, where any article on which sales or use tax has been
paid, credited, or otherwise satisfied or which was exempted or excluded
from sales or use tax is taken in trade as a credit or part payment on
the purchase price of the article being sold, the tax imposed by sections
144.020 and 144.440 shall be computed only on that portion of the
purchase price which exceeds the actual allowance made for the article
traded in or exchanged, if there is a bill of sale or other record
showing the actual allowance made for the article traded in or exchanged.
Where the purchaser of a motor vehicle, trailer, boat or outboard motor
receives a rebate from the seller or manufacturer, the tax imposed by
sections 144.020 and 144.440 shall be computed only on that portion of
the purchase price which exceeds the amount of the rebate, if there is a
bill of sale or other record showing the actual rebate given by the
seller or manufacturer. Where the trade-in or exchange allowance plus any
applicable rebate exceeds the purchase price of the purchased article
there shall be no sales or use tax owed. This section shall also apply to
motor vehicles, trailers, boats, and outboard motors sold by the owner or
holder of the properly assigned certificate of ownership if the seller
purchases or contracts to purchase a subsequent motor vehicle, trailer,
boat, or outboard motor within one hundred eighty days before or after
the date of the sale of the original article and a bill of sale showing
the paid sale price is presented to the department of revenue at the time
of licensing. A copy of the bill of sale shall be left with the licensing
office. Where the subsequent motor vehicle, trailer, boat, or outboard
motor is titled more than one hundred eighty days after the sale of the
original motor vehicle, trailer, boat, or outboard motor, the allowance
pursuant to this section shall be made if the person titling such article
establishes that the purchase or contract to purchase was finalized prior
to the expiration of the one hundred eighty-day period.

2. As used in this section, the term "boat" includes all motorboats and
vessels, as the terms "motorboat" and "vessel" are defined in section
306.010, RSMo.

3. As used in this section, the term "motor vehicle" includes motor
vehicles as defined in section 301.010, RSMo, recreational vehicles as
defined in section 700.010, RSMo, or a combination of a truck as defined
in section 301.010, RSMo, and a trailer as defined in section 301.010,
RSMo.

4. The provisions of subsection 1 of this section shall not apply to
retail sales of manufactured homes in which the purchaser receives a
document known as the "Manufacturer's Statement of Origin" for purposes
of obtaining a title to the manufactured home from the department of
revenue of this state or from the appropriate agency or officer of any
other state.

5. Any purchaser of a motor vehicle or trailer used for agricultural use
by the purchaser shall be allowed to use as an allowance to offset the
sales and use tax liability towards the purchase of the motor vehicle or
trailer any grain or livestock produced or raised by the purchaser. The
director of revenue may prescribe forms for compliance with this
subsection. (L. 1963 p. 195, A.L. 1977 S.B. 367, A.L. 1979 S.B. 218, et
al., A.L. 1985 H.B. 280, et al., S.B. 152, A.L. 1986 H.B. 957, A.L. 1994
S.B. 477, et al., A.L. 1998 S.B. 936, A.L. 2003 H.B. 600, A.L. 2004 S.B.
1233, et al. merged with S.B. 1394, A.L. 2005 H.B. 487)

1. When a motor vehicle, trailer, boat or outboard motor for
which all sales or use tax has been paid is replaced due to theft or a
casualty loss in excess of the value of the unit, the director shall
permit the amount of the insurance proceeds plus any owner's deductible
obligation, as certified by the insurance company, to be a credit against
the purchase price of another motor vehicle, trailer, boat or outboard
motor which is purchased or is contracted to purchase within one hundred
eighty days of the date of payment by the insurance company as a
replacement motor vehicle, trailer, boat or outboard motor. As used in
this section, the term "boat" includes all motorboats and vessels, as the
terms "motorboat" and "vessel" are defined in section 306.010, RSMo.

2. If the owner of a motor vehicle, trailer, boat or outboard motor as
described in subsection 1 of this section does not have insurance
coverage for the motor vehicle, trailer, boat or outboard motor, the
director shall permit the fair market value of the motor vehicle,
trailer, boat or outboard motor as determined by the Kelly Blue Book,
NADA Used Car Guide, Abos Blue Book or the average of two appraisals from
licensed motor vehicle or boat dealers to be a credit against the
purchase price of a replacement motor vehicle, trailer, boat or outboard
motor which is purchased or is contracted to purchase within one hundred
eighty days of the date of such loss as certified by a law enforcement
agency or such other evidence as the director may require as proof of the
date of loss of the motor vehicle, trailer, boat or outboard motor. (L.
1983 1st Ex. Sess. H.B. 10, A.L. 1986 H.B. 957, A.L. 1990 S.B. 494, A.L.
1998 S.B. 936)

1. There is hereby specifically exempted from the provisions of
sections 144.010 to 144.525 and from the computation of the tax levied,
assessed or payable pursuant to sections 144.010 to 144.525 such retail
sales as may be made in commerce between this state and any other state
of the United States, or between this state and any foreign country, and
any retail sale which the state of Missouri is prohibited from taxing
pursuant to the Constitution or laws of the United States of America, and
such retail sales of tangible personal property which the general
assembly of the state of Missouri is prohibited from taxing or further
taxing by the constitution of this state.

2. There are also specifically exempted from the provisions of the local
sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo,
and sections 144.010 to 144.525 and 144.600 to 144.761 and from the
computation of the tax levied, assessed or payable pursuant to the local
sales tax law as defined in section 32.085, RSMo, section 238.235, RSMo,
and sections 144.010 to 144.525 and 144.600 to 144.745:

(1) Motor fuel or special fuel subject to an excise tax of this state,
unless all or part of such excise tax is refunded pursuant to section
142.824, RSMo; or upon the sale at retail of fuel to be consumed in
manufacturing or creating gas, power, steam, electrical current or in
furnishing water to be sold ultimately at retail; or feed for livestock
or poultry; or grain to be converted into foodstuffs which are to be sold
ultimately in processed form at retail; or seed, limestone or fertilizer
which is to be used for seeding, liming or fertilizing crops which when
harvested will be sold at retail or will be fed to livestock or poultry
to be sold ultimately in processed form at retail; economic poisons
registered pursuant to the provisions of the Missouri pesticide
registration law (sections 281.220 to 281.310, RSMo) which are to be used
in connection with the growth or production of crops, fruit trees or
orchards applied before, during, or after planting, the crop of which
when harvested will be sold at retail or will be converted into
foodstuffs which are to be sold ultimately in processed form at retail;

(2) Materials, manufactured goods, machinery and parts which when used in
manufacturing, processing, compounding, mining, producing or fabricating
become a component part or ingredient of the new personal property
resulting from such manufacturing, processing, compounding, mining,
producing or fabricating and which new personal property is intended to
be sold ultimately for final use or consumption; and materials, including
without limitation, gases and manufactured goods, including without
limitation, slagging materials and firebrick, which are ultimately
consumed in the manufacturing process by blending, reacting or
interacting with or by becoming, in whole or in part, component parts or
ingredients of steel products intended to be sold ultimately for final
use or consumption;

(3) Materials, replacement parts and equipment purchased for use directly
upon, and for the repair and maintenance or manufacture of, motor
vehicles, watercraft, railroad rolling stock or aircraft engaged as
common carriers of persons or property;

(4) Replacement machinery, equipment, and parts and the materials and
supplies solely required for the installation or construction of such
replacement machinery, equipment, and parts, used directly in
manufacturing, mining, fabricating or producing a product which is
intended to be sold ultimately for final use or consumption; and
machinery and equipment, and the materials and supplies required solely
for the operation, installation or construction of such machinery and
equipment, purchased and used to establish new, or to replace or expand
existing, material recovery processing plants in this state. For the
purposes of this subdivision, a "material recovery processing plant"
means a facility that has as its primary purpose the recovery of
materials into a useable product or a different form which is used in
producing a new product and shall include a facility or equipment which
are used exclusively for the collection of recovered materials for
delivery to a material recovery processing plant but shall not include
motor vehicles used on highways. For purposes of this section, the terms
"motor vehicle" and "highway" shall have the same meaning pursuant to
section 301.010, RSMo. Material recovery is not the reuse of materials
within a manufacturing process or the use of a product previously
recovered. The material recovery processing plant shall qualify under the
provisions of this section regardless of ownership of the material being
recovered;

(5) Machinery and equipment, and parts and the materials and supplies
solely required for the installation or construction of such machinery
and equipment, purchased and used to establish new or to expand existing
manufacturing, mining or fabricating plants in the state if such
machinery and equipment is used directly in manufacturing, mining or
fabricating a product which is intended to be sold ultimately for final
use or consumption;

(6) Tangible personal property which is used exclusively in the
manufacturing, processing, modification or assembling of products sold to
the United States government or to any agency of the United States
government;

(7) Animals or poultry used for breeding or feeding purposes;

(8) Newsprint, ink, computers, photosensitive paper and film, toner,
printing plates and other machinery, equipment, replacement parts and
supplies used in producing newspapers published for dissemination of news
to the general public;

(9) The rentals of films, records or any type of sound or picture
transcriptions for public commercial display;

(10) Pumping machinery and equipment used to propel products delivered by
pipelines engaged as common carriers;

(11) Railroad rolling stock for use in transporting persons or property
in interstate commerce and motor vehicles licensed for a gross weight of
twenty-four thousand pounds or more or trailers used by common carriers,
as defined in section 390.020, RSMo, solely in the transportation of
persons or property in interstate commerce;

(12) Electrical energy used in the actual primary manufacture,
processing, compounding, mining or producing of a product, or electrical
energy used in the actual secondary processing or fabricating of the
product, or a material recovery processing plant as defined in
subdivision (4) of this subsection, in facilities owned or leased by the
taxpayer, if the total cost of electrical energy so used exceeds ten
percent of the total cost of production, either primary or secondary,
exclusive of the cost of electrical energy so used or if the raw
materials used in such processing contain at least twenty-five percent
recovered materials as defined in section 260.200, RSMo. For purposes of
this subdivision, "processing" means any mode of treatment, act or series
of acts performed upon materials to transform and reduce them to a
different state or thing, including treatment necessary to maintain or
preserve such processing by the producer at the production facility;

(13) Anodes which are used or consumed in manufacturing, processing,
compounding, mining, producing or fabricating and which have a useful
life of less than one year;

(14) Machinery, equipment, appliances and devices purchased or leased and
used solely for the purpose of preventing, abating or monitoring air
pollution, and materials and supplies solely required for the
installation, construction or reconstruction of such machinery,
equipment, appliances and devices, and so certified as such by the
director of the department of natural resources, except that any action
by the director pursuant to this subdivision may be appealed to the air
conservation commission which may uphold or reverse such action;

(15) Machinery, equipment, appliances and devices purchased or leased and
used solely for the purpose of preventing, abating or monitoring water
pollution, and materials and supplies solely required for the
installation, construction or reconstruction of such machinery,
equipment, appliances and devices, and so certified as such by the
director of the department of natural resources, except that any action
by the director pursuant to this subdivision may be appealed to the
Missouri clean water commission which may uphold or reverse such action;

(16) Tangible personal property purchased by a rural water district;

(17) All amounts paid or charged for admission or participation or other
fees paid by or other charges to individuals in or for any place of
amusement, entertainment or recreation, games or athletic events,
including museums, fairs, zoos and planetariums, owned or operated by a
municipality or other political subdivision where all the proceeds
derived therefrom benefit the municipality or other political subdivision
and do not inure to any private person, firm, or corporation;

(18) All sales of insulin and prosthetic or orthopedic devices as defined
on January 1, 1980, by the federal Medicare program pursuant to Title
XVIII of the Social Security Act of 1965, including the items specified
in Section 1862(a)(12) of that act, and also specifically including
hearing aids and hearing aid supplies and all sales of drugs which may be
legally dispensed by a licensed pharmacist only upon a lawful
prescription of a practitioner licensed to administer those items,
including samples and materials used to manufacture samples which may be
dispensed by a practitioner authorized to dispense such samples and all
sales of medical oxygen, home respiratory equipment and accessories,
hospital beds and accessories and ambulatory aids, all sales of manual
and powered wheelchairs, stairway lifts, Braille writers, electronic
Braille equipment and, if purchased by or on behalf of a person with one
or more physical or mental disabilities to enable them to function more
independently, all sales of scooters, reading machines, electronic print
enlargers and magnifiers, electronic alternative and augmentative
communication devices, and items used solely to modify motor vehicles to
permit the use of such motor vehicles by individuals with disabilities or
sales of over-the-counter or nonprescription drugs to individuals with
disabilities;

(19) All sales made by or to religious and charitable organizations and
institutions in their religious, charitable or educational functions and
activities and all sales made by or to all elementary and secondary
schools operated at public expense in their educational functions and
activities;

(20) All sales of aircraft to common carriers for storage or for use in
interstate commerce and all sales made by or to not-for-profit civic,
social, service or fraternal organizations, including fraternal
organizations which have been declared tax-exempt organizations pursuant
to Section 501(c)(8) or (10) of the 1986 Internal Revenue Code, as
amended, in their civic or charitable functions and activities and all
sales made to eleemosynary and penal institutions and industries of the
state, and all sales made to any private not-for-profit institution of
higher education not otherwise excluded pursuant to subdivision (19) of
this subsection or any institution of higher education supported by
public funds, and all sales made to a state relief agency in the exercise
of relief functions and activities;

(21) All ticket sales made by benevolent, scientific and educational
associations which are formed to foster, encourage, and promote progress
and improvement in the science of agriculture and in the raising and
breeding of animals, and by nonprofit summer theater organizations if
such organizations are exempt from federal tax pursuant to the provisions
of the Internal Revenue Code and all admission charges and entry fees to
the Missouri state fair or any fair conducted by a county agricultural
and mechanical society organized and operated pursuant to sections
262.290 to 262.530, RSMo;

(22) All sales made to any private not-for-profit elementary or secondary
school, all sales of feed additives, medications or vaccines administered
to livestock or poultry in the production of food or fiber, all sales of
pesticides used in the production of crops, livestock or poultry for food
or fiber, all sales of bedding used in the production of livestock or
poultry for food or fiber, all sales of propane or natural gas,
electricity or diesel fuel used exclusively for drying agricultural
crops, natural gas used in the primary manufacture or processing of fuel
ethanol as defined in section 142.028, RSMo, natural gas, propane, and
electricity used by an eligible new generation cooperative or an eligible
new generation processing entity as defined in section 348.432, RSMo, and
all sales of farm machinery and equipment, other than airplanes, motor
vehicles and trailers. As used in this subdivision, the term "feed
additives" means tangible personal property which, when mixed with feed
for livestock or poultry, is to be used in the feeding of livestock or
poultry. As used in this subdivision, the term "pesticides" includes
adjuvants such as crop oils, surfactants, wetting agents and other
assorted pesticide carriers used to improve or enhance the effect of a
pesticide and the foam used to mark the application of pesticides and
herbicides for the production of crops, livestock or poultry. As used in
this subdivision, the term "farm machinery and equipment" means new or
used farm tractors and such other new or used farm machinery and
equipment and repair or replacement parts thereon, and supplies and
lubricants used exclusively, solely, and directly for producing crops,
raising and feeding livestock, fish, poultry, pheasants, chukar, quail,
or for producing milk for ultimate sale at retail, including field drain
tile, and one-half of each purchaser's purchase of diesel fuel therefor
which is:

(a) Used exclusively for agricultural purposes;

(b) Used on land owned or leased for the purpose of producing farm
products; and

(c) Used directly in producing farm products to be sold ultimately in
processed form or otherwise at retail or in producing farm products to be
fed to livestock or poultry to be sold ultimately in processed form at
retail;

(23) Except as otherwise provided in section 144.032, all sales of
metered water service, electricity, electrical current, natural,
artificial or propane gas, wood, coal or home heating oil for domestic
use and in any city not within a county, all sales of metered or
unmetered water service for domestic use;

(a) "Domestic use" means that portion of metered water service,
electricity, electrical current, natural, artificial or propane gas,
wood, coal or home heating oil, and in any city not within a county,
metered or unmetered water service, which an individual occupant of a
residential premises uses for nonbusiness, noncommercial or nonindustrial
purposes. Utility service through a single or master meter for
residential apartments or condominiums, including service for common
areas and facilities and vacant units, shall be deemed to be for domestic
use. Each seller shall establish and maintain a system whereby individual
purchases are determined as exempt or nonexempt;

(b) Regulated utility sellers shall determine whether individual
purchases are exempt or nonexempt based upon the seller's utility service
rate classifications as contained in tariffs on file with and approved by
the Missouri public service commission. Sales and purchases made pursuant
to the rate classification "residential" and sales to and purchases made
by or on behalf of the occupants of residential apartments or
condominiums through a single or master meter, including service for
common areas and facilities and vacant units, shall be considered as
sales made for domestic use and such sales shall be exempt from sales
tax. Sellers shall charge sales tax upon the entire amount of purchases
classified as nondomestic use. The seller's utility service rate
classification and the provision of service thereunder shall be
conclusive as to whether or not the utility must charge sales tax;

(c) Each person making domestic use purchases of services or property and
who uses any portion of the services or property so purchased for a
nondomestic use shall, by the fifteenth day of the fourth month following
the year of purchase, and without assessment, notice or demand, file a
return and pay sales tax on that portion of nondomestic purchases. Each
person making nondomestic purchases of services or property and who uses
any portion of the services or property so purchased for domestic use,
and each person making domestic purchases on behalf of occupants of
residential apartments or condominiums through a single or master meter,
including service for common areas and facilities and vacant units, under
a nonresidential utility service rate classification may, between the
first day of the first month and the fifteenth day of the fourth month
following the year of purchase, apply for credit or refund to the
director of revenue and the director shall give credit or make refund for
taxes paid on the domestic use portion of the purchase. The person making
such purchases on behalf of occupants of residential apartments or
condominiums shall have standing to apply to the director of revenue for
such credit or refund;

(24) All sales of handicraft items made by the seller or the seller's
spouse if the seller or the seller's spouse is at least sixty-five years
of age, and if the total gross proceeds from such sales do not constitute
a majority of the annual gross income of the seller;

(25) Excise taxes, collected on sales at retail, imposed by Sections
4041, 4061, 4071, 4081, 4091, 4161, 4181, 4251, 4261 and 4271 of Title
26, United States Code. The director of revenue shall promulgate rules
pursuant to chapter 536, RSMo, to eliminate all state and local sales
taxes on such excise taxes;

(26) Sales of fuel consumed or used in the operation of ships, barges, or
waterborne vessels which are used primarily in or for the transportation
of property or cargo, or the conveyance of persons for hire, on navigable
rivers bordering on or located in part in this state, if such fuel is
delivered by the seller to the purchaser's barge, ship, or waterborne
vessel while it is afloat upon such river;

(27) All sales made to an interstate compact agency created pursuant to
sections 70.370 to 70.441, RSMo, or sections 238.010 to 238.100, RSMo, in
the exercise of the functions and activities of such agency as provided
pursuant to the compact;

(28) Computers, computer software and computer security systems purchased
for use by architectural or engineering firms headquartered in this
state. For the purposes of this subdivision, "headquartered in this
state" means the office for the administrative management of at least
four integrated facilities operated by the taxpayer is located in the
state of Missouri;

(29) All livestock sales when either the seller is engaged in the
growing, producing or feeding of such livestock, or the seller is engaged
in the business of buying and selling, bartering or leasing of such
livestock;

(30) All sales of barges which are to be used primarily in the
transportation of property or cargo on interstate waterways;

(31) Electrical energy or gas, whether natural, artificial or propane,
water, or other utilities which are ultimately consumed in connection
with the manufacturing of cellular glass products or in any material
recovery processing plant as defined in subdivision (4) of subsection 2
of this section;

(32) Notwithstanding other provisions of law to the contrary, all sales
of pesticides or herbicides used in the production of crops, aquaculture,
livestock or poultry;

(33) Tangible personal property purchased for use or consumption directly
or exclusively in the research and development of prescription
pharmaceuticals consumed by humans or animals;

(34) All sales of grain bins for storage of grain for resale;

(35) All sales of feed which are developed for and used in the feeding of
pets owned by a commercial breeder when such sales are made to a
commercial breeder, as defined in section 273.325, RSMo, and licensed
pursuant to sections 273.325 to 273.357, RSMo;

(36) All purchases by a contractor on behalf of an entity located in
another state, provided that the entity is authorized to issue a
certificate of exemption for purchases to a contractor under the
provisions of that state's laws. For purposes of this subdivision, the
term "certificate of exemption" shall mean any document evidencing that
the entity is exempt from sales and use taxes on purchases pursuant to
the laws of the state in which the entity is located. Any contractor
making purchases on behalf of such entity shall maintain a copy of the
entity's exemption certificate as evidence of the exemption. If the
exemption certificate issued by the exempt entity to the contractor is
later determined by the director of revenue to be invalid for any reason
and the contractor has accepted the certificate in good faith, neither
the contractor or the exempt entity shall be liable for the payment of
any taxes, interest and penalty due as the result of use of the invalid
exemption certificate. Materials shall be exempt from all state and local
sales and use taxes when purchased by a contractor for the purpose of
fabricating tangible personal property which is used in fulfilling a
contract for the purpose of constructing, repairing or remodeling
facilities for the following:

(a) An exempt entity located in this state, if the entity is one of those
entities able to issue project exemption certificates in accordance with
the provisions of section 144.062; or

(b) An exempt entity located outside the state if the exempt entity is
authorized to issue an exemption certificate to contractors in accordance
with the provisions of that state's law and the applicable provisions of
this section;

(37) Tangible personal property purchased for use or consumption directly
or exclusively in research or experimentation activities performed by
life science companies and so certified as such by the director of the
department of economic development or the director's designees; except
that, the total amount of exemptions certified pursuant to this section
shall not exceed one million three hundred thousand dollars in state and
local taxes per fiscal year. For purposes of this subdivision, the term
"life science companies" means companies whose primary research
activities are in agriculture, pharmaceuticals, biomedical or food
ingredients, and whose North American Industry Classification System
(NAICS) Codes fall under industry 541710 (biotech research or development
laboratories), 621511 (medical laboratories) or 541940 (veterinary
services). The exemption provided by this subdivision shall expire on
June 30, 2003;

(38) All sales or other transfers of tangible personal property to a
lessor who leases the property under a lease of one year or longer
executed or in effect at the time of the sale or other transfer to an
interstate compact agency created pursuant to sections 70.370 to 70.441,
RSMo, or sections 238.010 to 238.100, RSMo; and

(39) Sales of tickets to any collegiate athletic championship event that
is held in a facility owned or operated by a governmental authority or
commission, a quasi-governmental agency, a state university or college or
by the state or any political subdivision thereof, including a
municipality, and that is played on a neutral site and may reasonably be
played at a site located outside the state of Missouri. For purposes of
this subdivision, "neutral site" means any site that is not located on
the campus of a conference member institution participating in the event.
(RSMo 1939 § 11409, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p.
1865, A.L. 1949 p. 620, A.L. 1961 p. 623, A.L. 1965 p. 265, A.L. 1967 p.
226, A.L. 1967 1st Ex. Sess. p. 879, A.L. 1969 p. 253, A.L. 1977 S.B.
104, A.L. 1979 H.B. 726, S.B. 218, et al., A.L. 1980 H.B. 1812, A.L. 1982
S.B. 471, A.L. 1983 1st Ex. Sess. H.B. 9, A.L. 1985 S.B. 363, A.L. 1986
S.B. 669, et al. merged with S.B. 437 merged with H.B. 1554 Revision,
A.L. 1988 H.B. 1629 merged with S.B. 709, A.L. 1989 H.B. 35, et al., A.L.
1991 H.B. 39 & 41, A.L. 1994 S.B. 477, et al., A.L. 1995 H.B. 414, A.L.
1996 H.B. 1237 merged with H.B. 1466, A.L. 1997 H.B. 491, A.L. 1998 S.B.
936, A.L. 1999 H.B. 516, A.L. 2003 H.B. 600 merged with S.B. 11, A.L.
2004 H.B. 795, et al. merged with H.B. 1182, A.L. 2005 H.B. 186 merged
with S.B. 68 merged with S.B. 196 merged with S.B. 355)

CROSS REFERENCE: Economy rate telephone service exemption, RSMo 660.149

(1972) Purchasers of printing presses to replace existing machines
because of changes in design or to expand existing plants who were
commercial printers engaged in "job printing" producing business forms,
stationery, printed advertising, postcards, church bulletins, calendars,
etc., were manufacturers within meaning of subsections (3) and (4) of
this section and therefore purchases were exempt from the tax. Heidelberg
Central, Inc. v. Director of Department of Revenue (Mo.), 476 S.W.2d 502.

(1975) For discussion of definition of "manufacturing", see State ex rel.
AMF Inc. v. Spradling (Mo.), 518 S.W.2d 58.

(1976) Held that conversion of a live hog into marketable portions of
food is "manufacturing" within the meaning of this section. Wilson
Company, Inc. v. Department of Revenue (Mo.), 531 S.W.2d 752.

(1980) Integrated plant approach must be used to determine whether new
and replacement machinery and equipment is exempt from sales and use tax
on ground that it is used directly in the manufacture of products.
Exemption must not be limited to items of machinery or equipment which
produce a change in raw material process. Floyd Charcoal Co. v. Director
of Revenue (Mo.), 599 S.W.2d 173.

(1982) Advertising supplement which is printed solely to be inserted into
newspaper and, in fact, is distributed in newspapers is integral part of
newspaper from time it is printed and is entitled to exemption from sales
tax. Daily Record Co. v. James (Mo.), 629 S.W.2d 348.

(1987) Additive called Rolfite which public utility interjected into the
combustion process in its electrical generating plant is fuel exempt from
use tax by subdivision (1) of subsection 2 of this section. Missouri
Public Service Company v. Director of Revenue, 733 S.W.2d 448 (Mo. banc
1987).

(1989) "Manufacturing" is the creation of a new product capable of a
different use than the original article. Equipment used to launder
garments was not "used in manufacturing" and was not entitled to
exemption from consumer use tax. (Mo. banc) Unitog Rental Serv. v.
Director of Revenue, 779 S.W.2d 568.

(1989) Regulations purporting to create a newspaper exception from the
statutory newsprint exception are beyond the scope of this statute and
the authority of the Director of Revenue, and, therefore, a nullity. (Mo.
banc) Hearst Corp. v. Director of Revenue, 779 S.W.2d 557.

(1990) Crutches, wheelchairs, beds, exercise machines and similar medical
equipment are not "orthopedic devices", therefore are not exempt from
sales tax. Medic House, Inc. v. Director of Revenue, 799 S.W.2d 80 (Mo.
en banc).

(1990) Sales tax exemption for prescription drugs dispensed only upon a
lawful prescription does not apply to medical grade oxygen distributed
without the involvement of a pharmacist. Oxygen is not a "prosthetic
device" as defined by statutes. Medic House, Inc. v. Director of Revenue,
799 S.W.2d 80 (Mo. en banc).

(1996) Subdivisions (4) and (5) of subsection 2 of this section permit
exemptions for future use as well as present use. Concord Publishing
House, Inc. v. Director of Revenue, 916 S.W.2d 186 (Mo.banc 1996).

(1996) Processing consists of the alteration or physical change of an
object or material in such a way that produces an article with a use,
identity and value different from the use, identity and value of the
original. Mid-America Dairymen v. Director of Revenue, 924 S.W.2d 280
(Mo.banc 1996).

(2003) Amusement park rides and related parts used by taxpayer in
amusement park business are not exempt under manufacturing or producing
exemption. Branson Properties v. Director of Revenue, 110 S.W.3d 824
(Mo.banc).

The provisions of section 144.030 to the contrary
notwithstanding, any city imposing a sales tax under the provisions of
sections 94.500 to 94.570, RSMo, or any county imposing a sales tax under
the provisions of sections 66.600 to 66.635, RSMo, or any county imposing
a sales tax under the provisions of sections 67.500 to 67.729, RSMo, may
by ordinance impose a sales tax upon all sales of metered water services,
electricity, electrical current and natural, artificial or propane gas,
wood, coal, or home heating oil for domestic use only. Such tax shall be
administered by the department of revenue and assessed by the retailer in
the same manner as any other city or county sales tax. Domestic use shall
be determined in the same manner as the determination of domestic use for
exemption of such sales from the state sales tax under the provisions of
section 144.030. (L. 1979 S.B. 218, et al. § 2, A.L. 1986 S.B. 669, et
al., A.L. 1987 H.B. 89)

Effective 6-25-87

The sales of advertising by legal newspapers pursuant to chapter
493, RSMo, advertising agencies, broadcast stations, and standardized
outdoor billboard advertising shall be considered the sale of a service
and not the sale of tangible personal property. Purchases of tangible
personal property which are for use in producing advertising by the
businesses listed in the preceding sentence shall be deemed to be
purchases for use or consumption and not for resale. In addition to the
exemptions granted under the provisions of section 144.030, the sale of
services as defined in this section shall be specifically exempted from
the provisions of sections 66.600 to 66.635, RSMo, sections 67.500 to
67.545, RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570,
RSMo, sections 94.600 to 94.655, RSMo, sections 94.700 to 94.755, RSMo,
and sections 144.010 to 144.510 and 144.600 to 144.745 and from the
computation of the tax levied, assessed or payable under sections 66.600
to 66.635, RSMo, sections 67.500 to 67.545, RSMo, sections 92.400 to
92.420, RSMo, sections 94.500 to 94.570, RSMo, sections 94.600 to 94.655,
RSMo, sections 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745. (L. 1982 S.B. 475 § 1, A.L. 1983 1st Ex. Sess.
H.B. 9)

Effective 1-5-84

1. Beginning January 1, 1994, and ending December 31, 1994, in
addition to the exemptions granted under the provisions of section
144.030, there shall also be specifically exempted from the provisions of
sections 66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547,
67.581, 67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and
67.782, RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570,
94.600 to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to
144.510 and 144.600 to 144.745 and from the computation of the tax
levied, assessed or payable under sections 66.600 to 66.635, RSMo,
sections 67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685,
67.700 to 67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to
92.420, RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to
94.755, RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, one
hundred percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

2. Beginning January 1, 1995, and ending December 31, 1995, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, ninety
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

3. Beginning January 1, 1996, and ending December 31, 1996, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, eighty
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

4. Beginning January 1, 1997, and ending December 31, 1997, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, seventy
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

5. Beginning January 1, 1998, and ending December 31, 1998, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, sixty
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

6. Beginning January 1, 1999, and ending December 31, 1999, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, fifty
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

7. Beginning January 1, 2000, and ending December 31, 2000, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, forty
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

8. Beginning January 1, 2001, and ending December 31, 2001, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, thirty
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

9. Beginning January 1, 2002, and ending December 31, 2002, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, twenty
percent of the cost of electrical energy or gas, whether natural,
artificial, or propane, which is ultimately consumed in connection with
basic steelmaking in Missouri and the processing and fabricating thereof
by the same steelmaker at such maker's integrated plant.

10. Beginning January 1, 2003, and ending December 31, 2003, in addition
to the exemptions granted under the provisions of section 144.030, there
shall also be specifically exempted from the provisions of sections
66.600 to 66.635, RSMo, sections 67.500 to 67.545, 67.547, 67.581,
67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to 67.739, and 67.782,
RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, 94.600
to 94.655, and 94.700 to 94.755, RSMo, and sections 144.010 to 144.510
and 144.600 to 144.745 and from the computation of the tax levied,
assessed or payable under sections 66.600 to 66.635, RSMo, sections
67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to
67.729, 67.730 to 67.739, and 67.782, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.750, 94.600 to 94.655, and 94.700 to 94.755,
RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745, ten percent
of the cost of electrical energy or gas, whether natural, artificial, or
propane, which is ultimately consumed in connection with basic
steelmaking in Missouri and the processing and fabricating thereof by the
same steelmaker at such maker's integrated plant.

11. This section shall expire December 31, 2003. (L. 1985 H.B. 280, et
al. § 4, A.L. 1988 H.B. 1370 merged with S.B. 586, A.L. 1993 S.B. 201)

Effective 12-31-93

Expires 12-31-03

In addition to the exemptions granted under the provisions of
section 144.030, there is hereby specifically exempted from the
provisions of sections 66.600 to 66.635, RSMo, sections 67.500 to 67.545,
RSMo, sections 67.671 to 67.685, RSMo, sections 67.700 to 67.729, RSMo,
sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, RSMo,
sections 94.600 to 94.655, RSMo, sections 94.700 to 94.755, RSMo, and
sections 144.010 to 144.510 and 144.600 to 144.745, and from the
computation of the tax levied, assessed or payable under sections 66.600
to 66.635, RSMo, sections 67.500 to 67.545, RSMo, sections 67.671 to
67.685, RSMo, sections 67.700 to 67.729, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, RSMo, sections 94.600 to 94.655, RSMo,
sections 94.700 to 94.755, RSMo, and sections 144.010 to 144.510 and
144.600 to 144.745, all sales at retail made through the use of federal
food stamp coupons. (L. 1986 H.B. 910 & 1165 § 1)

Effective on 10-1-86 or upon date approved by the U.S. Secretary of
Agriculture, whichever date is later

In addition to the exemptions granted under the provisions of
section 144.030, there is hereby specifically exempted from the
provisions of sections 66.600 to 66.635, RSMo, sections 67.500 to 67.545,
RSMo, sections 67.671 to 67.685, RSMo, sections 67.700 to 67.729, RSMo,
sections 92.400 to 92.420, RSMo, sections 94.500 to 94.570, RSMo,
sections 94.600 to 94.655, RSMo, sections 94.700 to 94.755, RSMo, and
sections 144.010 to 144.510 and 144.600 to 144.745, and from the
computation of the tax levied, assessed or payable under sections 66.600
to 66.635, RSMo, sections 67.500 to 67.545, RSMo, sections 67.671 to
67.685, RSMo, sections 67.700 to 67.729, RSMo, sections 92.400 to 92.420,
RSMo, sections 94.500 to 94.570, RSMo, sections 94.600 to 94.655, RSMo,
sections 94.700 to 94.755, RSMo, and sections 144.010 to 144.510 and
144.600 to 144.745, all sales at retail for which federal government
coupons or vouchers under the supplemental feeding for women, infants and
children program are used as payment. (L. 1986 H.B. 910 & 1165 § 2)

Effective upon passage by U.S. Congress of a law requiring sales tax
exemption for WIC program purchases

In addition to the exemptions granted under the provisions of
section 144.030, there shall also be specifically exempted from the
provisions of sections 66.600 to 66.635, RSMo, sections 67.500 to 67.545,
67.547, 67.581, 67.582, 67.671 to 67.685, 67.700 to 67.729, 67.730 to
67.739, 67.782, RSMo, sections 92.400 to 92.420, RSMo, sections 94.500 to
94.570, 94.600 to 94.655, 94.700 to 94.755, RSMo, and sections 144.010 to
144.510 and 144.600 to 144.745 and from the computation of the tax
levied, assessed or payable under sections 66.600 to 66.635, RSMo,
sections 67.500 to 67.545, 67.547, 67.581, 67.582, 67.671 to 67.685,
67.700 to 67.729, 67.730 to 67.739, 67.782, RSMo, sections 92.400 to
92.420, RSMo, sections 94.500 to 94.570, 94.600 to 94.655, 94.700 to
94.755, RSMo, and sections 144.010 to 144.510 and 144.600 to 144.745,
purchases of all tangible personal property made by, or on behalf of, a
state senator or state representative if such purchases are made from
funds in such state senator's or state representative's state expense
account. (L. 1988 H.B. 957 & 1571 § 2)

In addition to the exemptions granted under the provisions of
section 144.030, there is hereby exempted from any sales and use taxes
levied by the state and any sales taxes levied by any political
subdivision of this state as otherwise authorized by law any charges for
admissions, as defined in section 144.010, to any of the games of the
1994 World Cup Soccer Tournament which are held in any county of the
first classification having a charter form of government which contains
all or any part of a city with a population of at least three hundred
fifty thousand inhabitants.

(L. 1992 S.B. 533)

1. As used in this section, the following terms mean:

(1) "Light aircraft", a light airplane that seats no more than four
persons, with a gross weight of three thousand pounds or less, which is
primarily used for recreational flying or flight training;

(2) "Light aircraft kit", factory manufactured parts and components,
including engine, propeller, instruments, wheels, brakes, and air frame
parts which make up a complete aircraft kit or partial kit designed to be
assembled into a light aircraft and then operated by a qualified
purchaser for recreational and educational purposes;

(3) "Parts and components", manufactured light aircraft parts, including
air frame and engine parts, that are required by the qualified purchaser
to complete a light aircraft kit, or spare or replacement parts for an
already completed light aircraft;

(4) "Qualified purchaser", a purchaser of a light aircraft, light
aircraft kit, parts or components who is nonresident of this state, who
will transport the light aircraft, light aircraft kit, parts or
components outside this state within ten days after the date of purchase,
and who will register any light aircraft so purchased in another state or
country. Such purchaser shall not base such aircraft in this state and
such purchaser shall not be a resident of the state unless such purchaser
has paid sales or use tax on such aircraft in another state.

2. In addition to the exemptions granted under the provisions of section
144.030, there shall also be specifically exempted from the provisions of
sections 144.010 to 144.525, sections 144.600 to 144.748, section
238.235, RSMo, and from the provisions of any local sales tax law, as
defined in section 32.085, RSMo, and from the computation of the tax
levied, assessed or payable under sections 144.010 to 144.525, sections
144.600 to 144.748, section 238.235, RSMo, and under any local sales tax
law, as defined in section 32.085, RSMo, all sales of new light aircraft,
light aircraft kits, parts or components manufactured or substantially
completed within this state, when such new light aircraft, light aircraft
kits, parts or components are sold by the manufacturer to a qualified
purchaser. The director of revenue shall prescribe the manner for a
purchaser of a light aircraft, light aircraft kit, parts or components to
establish that such person is a qualified purchaser and is eligible for
the exemption established in this section. (L. 1994 H.B. 1578 § 1)

Effective 10-1-94

1. As used in this section, the following terms mean:

(1) "Sale of a modular unit", a transfer of a modular unit as defined in
section 700.010, RSMo;

(2) "Sale of a new manufactured home", a transfer of a manufactured home,
as defined in section 700.010, RSMo, which involves the delivery of the
document known as the manufacturer's statement of origin to a person
other than a manufactured home dealer, as dealer is defined in section
700.010, RSMo, for purposes of allowing such person to obtain a title to
the manufactured home from the department of revenue of this state or the
appropriate agency or officer of any other state.

2. In the event of the sale of a new manufactured home, forty percent of
the purchase price, as defined in section 700.320, RSMo, shall be
considered the sale of a service and not the sale of tangible personal
property. In addition to the exemptions granted under the provisions of
section 144.030, the sale of services as defined in this section shall be
specifically exempted from the provisions of sections 238.235 and
238.410, RSMo, the local sales tax law as defined in section 32.085,
RSMo, sections 144.010 to 144.525 and 144.600 to 144.745, and from the
computation of the tax levied, assessed or payable under sections 238.235
and 238.410, RSMo, the local sales tax law as defined in section 32.085,
RSMo, sections 144.010 to 144.525 and 144.600 to 144.745, and section
238.235, RSMo.

3. In the event of the sale of a new modular unit, forty percent of the
retail sale of the unit or forty percent of the manufacturer's sales
price of the unit if the manufacturer makes a sale to a consumer that is
not a retail sale, plus any carrier charge and freight charges shall be
considered the sale of a service and sixty percent shall be the retail
sale of tangible personal property. In addition to the exemptions granted
under the provisions of section 144.030, the sale of services as defined
in this section shall be specifically exempted from the provisions of
sections 238.235 and 238.410, RSMo, the local sales tax law as defined in
section 32.085, RSMo, sections 144.010 to 144.525 and 144.600 to 144.745,
and from the computation of the tax levied, assessed, or payable under
sections 238.235 and 238.410, RSMo, the local sales tax law as defined in
section 32.085, RSMo, sections 144.010 to 144.525 and 144.600 to 144.745,
and section 238.235, RSMo. (L. 1994 S.B. 477, et al. § 2, A.L. 2005 H.B.
186)

1. Notwithstanding any other provision of law to the contrary,
the department of revenue shall not consider the transfer for
consideration of court transcripts, depositions, compressed transcripts,
exhibits, computer disks containing any such item, or copies of any such
item which are prepared by a court reporter as tangible personal
property, but rather as a nontaxable service for purposes of
administrative interpretation. In addition, the department of revenue
shall, for purposes of administrative interpretation, consider as
nontaxable any machinery or equipment meeting the definition of "farm
machinery" under subdivision (22) of subsection 2 of section 144.030,
whether or not such machinery or equipment is attached to a vehicle or
real property.

2. In addition to the exemptions granted under the provisions of section
144.030, there shall also be specifically exempted from the provisions of
sections 144.010 to 144.525, sections 144.600 to 144.748, section
238.235, RSMo, and from the provisions of any local sales tax law, as
defined in section 32.085, RSMo, and from the computation of the tax
levied, assessed or payable under sections 144.010 to 144.525, sections
144.600 to 144.748, section 238.235, RSMo, and under any local sales tax
law, as defined in section 32.085, RSMo, all sales of court transcripts,
depositions, compressed transcripts, exhibits, computer disks containing
any such item, and all copies of any such item, which are prepared by a
court reporter. (L. 1995 H.B. 414 § 3 merged with S.B. 374 § 1 subsec. 1)

In addition to the exemptions granted under the provisions of
section 144.030, there is hereby specifically exempted from the
provisions of sections 144.010 to 144.525 and sections 144.600 to 144.748
and from the computation of the tax levied, assessed or payable under
sections 144.010 to 144.525 and sections 144.600 to 144.748, the sale at
retail of separately measured electrical current to manufacturers of
batteries in this state for conversion to stored chemical energy in new
lead-acid storage batteries solely for the purpose of providing an
initial charge in such batteries during the manufacturing process but not
for the purpose of recharging any previously manufactured batteries. The
sale at retail of such separately measured electrical current described
in this section shall not be exempted from any local sales tax imposed
under a local sales tax law, as defined in section 32.085, RSMo. (L. 1995
H.B. 414)

Effective 1-1-96

Notwithstanding any other provision of law to the contrary, for
purposes of department of revenue administrative interpretation, all
sales of aircraft used solely for aerial application of agricultural
chemicals shall be considered farm machinery and therefore, exempt from
state and local sales and use tax, as provided for other farm machinery
in subdivision (22) of subsection 2 of section 144.030. (L. 1995 S.B. 374
§ 3)

Notwithstanding provisions of the law to the contrary, the
director of revenue shall not assess state and local sales or use taxes,
penalties or interest on any sales of nondomestic game birds sold for the
purpose of sport hunting prior to January 1, 1995. For the purpose of
this section, "nondomestic game birds" shall include, but not limited to,
pheasant, quail, dove, pigeon, prairie chicken, wild turkey and grouse.
(L. 1995 S.B. 374 § 2)

1. For purposes of this section, the following terms mean:

(1) "Clothing", any article of wearing apparel, including footwear,
intended to be worn on or about the human body. The term shall include
but not be limited to cloth and other material used to make school
uniforms or other school clothing. Items normally sold in pairs shall not
be separated to qualify for the exemption. The term shall not include
watches, watchbands, jewelry, handbags, handkerchiefs, umbrellas,
scarves, ties, headbands, or belt buckles; and

(2) "Personal computers", a laptop, desktop, or tower computer system
which consists of a central processing unit, random access memory, a
storage drive, a display monitor, and a keyboard and devices designed for
use in conjunction with a personal computer, such as a disk drive, memory
module, compact disk drive, daughterboard, digitalizer, microphone,
modem, motherboard, mouse, multimedia speaker, printer, scanner,
single-user hardware, single-user operating system, soundcard, or video
card;

(3) "School supplies", any item normally used by students in a standard
classroom for educational purposes, including but not limited to
textbooks, notebooks, paper, writing instruments, crayons, art supplies,
rulers, book bags, backpacks, handheld calculators, chalk, maps, and
globes. The term shall not include watches, radios, CD players,
headphones, sporting equipment, portable or desktop telephones, copiers
or other office equipment, furniture, or fixtures. School supplies shall
also include computer software having a taxable value of three hundred
fifty dollars or less.

2. In each year beginning on or after January 1, 2005, there is hereby
specifically exempted from state sales tax law all retail sales of any
article of clothing having a taxable value of one hundred dollars or
less, all retail sales of school supplies not to exceed fifty dollars per
purchase, all computer software with a taxable value of three hundred
fifty dollars or less, and all retail sales of personal computers or
computer peripheral devices not to exceed three thousand five hundred
dollars, during a three-day period beginning at 12:01 a.m. on the first
Friday in August and ending at midnight on the Sunday following.

3. If the governing body of any political subdivision adopted an
ordinance that applied to the 2004 sales tax holiday to prohibit the
provisions of this section from allowing the sales tax holiday to apply
to such political subdivision's local sales tax, then, notwithstanding
any provision of a local ordinance to the contrary, the 2005 sales tax
holiday shall not apply to such political subdivision's local sales tax.
However, any such political subdivision may enact an ordinance to allow
the 2005 sales tax holiday to apply to its local sales taxes. A political
subdivision must notify the department of revenue not less than
forty-five calendar days prior to the beginning date of the sales tax
holiday occurring in that year of any ordinance or order rescinding an
ordinance or order to opt out.

4. This section shall not apply to any sales which take place within the
Missouri state fairgrounds.

5. This section applies to sales of items bought for personal use only.

6. After the 2005 sales tax holiday, any political subdivision may, by
adopting an ordinance or order, choose to prohibit future annual sales
tax holidays from applying to its local sales tax. After opting out, the
political subdivision may rescind the ordinance or order. The political
subdivision must notify the department of revenue not less than
forty-five calendar days prior to the beginning date of the sales tax
holiday occurring in that year of any ordinance or order rescinding an
ordinance or order to opt out.

7. This section may not apply to any retailer when less than two percent
of the retailer's merchandise offered for sale qualifies for the sales
tax holiday. The retailer shall offer a sales tax refund in lieu of the
sales tax holiday. (L. 2003 S.B. 11, A.L. 2005 H.B. 64)

Effective 7-6-05

The tax imposed by sections 144.010 to 144.510 shall be in
addition to any and all other taxes and licenses except as herein
otherwise provided. (RSMo 1939 § 11410, A.L. 1941 p. 698, A.L. 1943 p.
1012, A.L. 1945 p. 1865)

It shall be the duty of every person making any purchase or
receiving any service upon which a tax is imposed by sections 144.010 to
144.510 to pay, to the extent possible under the provisions of section
144.285, the amount of such tax to the person making such sale or
rendering such service; any person who shall willfully and intentionally
refuse to pay such tax shall be guilty of a misdemeanor; provided,
however, that the provisions of this section shall not apply to any
person making any purchase or sale of a motor vehicle subject to sales
tax as provided by the Missouri sales tax law. (RSMo 1939 § 11412, A.L.
1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. II p.
431, A.L. 1951 p. 854, A.L. 1965 p. 261)

(1973) Property consisting of tools, materials and construction supplies
purchased by independent contractor to be used in fulfilling a "cost-plus
a fixed-fee" construction contract with the U.S. Government held taxable
under this section even though contract provided that title to such
property would vest in U.S. Government upon delivery of such property to
the contractor. State ex rel. Thompson-Stearns-Roger v. Schaffner (Mo.),
489 S.W.2d 207.

1. With respect to exempt sales at retail of tangible personal
property and materials for the purpose of constructing, repairing or
remodeling facilities for: (1) a county, other political subdivision or
instrumentality thereof exempt from taxation under subdivision (10) of
section 39 of article III of the Constitution of Missouri; or (2) an
organization sales to which are exempt from taxation under the provisions
of subdivision (19) of subsection 2 of section 144.030; or (3) any
institution of higher education supported by public funds or any private
not-for-profit institution of higher education, exempt from taxation
under subdivision (20) of subsection 2 of section 144.030; or (4) any
private not-for-profit elementary or secondary school exempt from
taxation under subdivision (22) of subsection 2 of section 144.030,
hereinafter collectively referred to as exempt entities, such exemptions
shall be allowed for such purchases if the purchases are related to the
entities' exempt functions and activities. In addition, the sales shall
not be rendered nonexempt nor shall any material supplier or contractor
be obligated to pay, collect or remit sales tax with respect to such
purchases made by or on behalf of an exempt entity due to such purchases
being billed to or paid for by a contractor or the exempt entity
contracting with any entity to render any services in relation to such
purchases, including but not limited to selection of materials, ordering,
pickup, delivery, approval on delivery, taking of delivery,
transportation, storage, assumption of risk of loss to materials or
providing warranties on materials as specified by contract, use of
materials or other purchases for construction of the building or other
facility, providing labor, management services, administrative services,
design or technical services or advice to the exempt entity, whether or
not the contractor or other entity exercises dominion or control in any
other manner over the materials in conjunction with services or labor
provided to the exempt entity.

2. When any exempt entity contracts for the purpose of constructing,
repairing or remodeling facilities, and purchases of tangible personal
property and materials to be incorporated into or consumed in the
construction of the project are to be made on a tax-exempt basis, such
entity shall furnish to the contractor an exemption certificate
authorizing such purchases for the construction, repair or remodeling
project. The form and content of such project exemption certificate shall
be approved by the director of revenue. The project exemption certificate
shall include but not be limited to:

(1) The exempt entity's name, address, Missouri tax identification number
and signature of authorized representative;

(2) The project location, description, and unique identification number;

(3) The date the contract is entered into, which is the earliest date
materials may be purchased for the project on a tax-exempt basis;

(4) The estimated project completion date; and

(5) The certificate expiration date. Such certificate is renewable for a
given project at the option of the exempt entity, only for the purpose of
revising the certificate expiration date as necessary to complete the
project.

3. The contractor shall furnish the certificate prescribed in subsection
2 of this section to all subcontractors, and any contractor purchasing
materials shall present such certificate to all material suppliers as
authorization to purchase, on behalf of the exempt entity, all tangible
personal property and materials to be incorporated into or consumed in
the construction of that project and no other on a tax-exempt basis. Such
suppliers shall execute to the purchasing contractor invoices bearing the
name of the exempt entity and the project identification number. Nothing
in this section shall be deemed to exempt the purchase of any
construction machinery, equipment or tools used in constructing,
repairing or remodeling facilities for the exempt entity. All invoices
for all personal property and materials purchased under a project
exemption certificate shall be retained by the purchasing contractor for
a period of five years and shall be subject to audit by the director of
revenue.

4. Any excess resalable tangible personal property or materials which
were purchased for the project by a contractor under a project exemption
certificate but which were not incorporated into or consumed in the
construction of the project shall either be returned to the supplier for
credit or the appropriate sales or use tax on such excess property or
materials shall be reported on a return and paid by such contractor not
later than the due date of the contractor's Missouri sales or use tax
return following the month in which it was determined that the materials
were not to be used in the project.

5. No contractor or material supplier shall, upon audit, be required to
pay tax on tangible personal property and materials incorporated into or
consumed in the construction of the project, due to the failure of the
exempt entity to revise the certificate expiration date as necessary to
complete any work required by the contract. If it is determined that tax
is owed on such property and materials due to the failure of the exempt
entity to revise such certificate expiration date, the exempt entity
shall be liable for the tax owed.

6. If an entity issues exemption certificates for the purchase of
tangible personal property and materials which are incorporated into or
consumed in the construction of its project and such entity is found not
to have had the authority granted by this section to issue such exemption
certificates, then such entity shall be liable for the tax owed on such
personal property and materials. In addition, if an entity which does
have the authority granted by this section to issue exemption
certificates issues such certificates for the purchase of tangible
personal property and materials which are incorporated into or consumed
in the construction of a project, or part of a project, which is found
not to be related to such entity's exempt functions and activities, then
such entity shall be liable for the tax owed on such personal property
and materials. (L. 1988 H.B. 957 & 1571 § 1, A.L. 1994 S.B. 477, et al.,
A.L. 1998 S.B. 558)

All sales of motor vehicles, trailers, boats and outboard motors
shall be deemed to be consummated at the address of the owner thereof,
and all leases of over sixty-day duration of motor vehicles, trailers,
boats and outboard motors subject to sales taxes under this chapter shall
be deemed to be consummated unless the vehicle, trailer, boat or motor
has been registered and sales taxes have been paid prior to the
consummation of the lease agreement at the address of the lessee thereof
on the date the lease is consummated, and all applicable sales taxes
levied by any political subdivision shall be collected on such sales by
the state department of revenue on that basis. (L. 1986 H.B. 1367 & 1573
§ 1, A.L. 1996 H.B. 1223)

Effective 1-1-97

1. At the time the owner of any new or used motor vehicle,
trailer, boat, or outboard motor which was acquired in a transaction
subject to sales tax under the Missouri sales tax law makes application
to the director of revenue for an official certificate of title and the
registration of the automobile, trailer, boat, or outboard motor as
otherwise provided by law, he shall present to the director of revenue
evidence satisfactory to the director of revenue showing the purchase
price exclusive of any charge incident to the extension of credit paid by
or charged to the applicant in the acquisition of the motor vehicle,
trailer, boat, or outboard motor, or that no sales tax was incurred in
its acquisition, and if sales tax was incurred in its acquisition, the
applicant shall pay or cause to be paid to the director of revenue the
sales tax provided by the Missouri sales tax law in addition to the
registration fees now or hereafter required according to law, and the
director of revenue shall not issue a certificate of title for any new or
used motor vehicle, trailer, boat, or outboard motor subject to sales tax
as provided in the Missouri sales tax law until the tax levied for the
sale of the same under sections 144.010 to 144.510 has been paid as
herein provided or is registered under the provisions of subsection 5 of
this section.

2. As used above, the term "purchase price" shall mean the total amount
of the contract price agreed upon between the seller and the applicant in
the acquisition of the motor vehicle, trailer, boat, or outboard motor,
regardless of the medium of payment therefor.

3. In the event that the purchase price is unknown or undisclosed, or
that the evidence thereof is not satisfactory to the director of revenue,
the same shall be fixed by appraisement by the director.

4. The director of the department of revenue shall endorse upon the
official certificate of title issued by him upon such application an
entry showing that such sales tax has been paid or that the vehicle,
trailer, boat, or outboard motor represented by such certificate is
exempt from sales tax and state the ground for such exemption.

5. Any person, company, or corporation engaged in the business of renting
or leasing motor vehicles, trailers, boats, or outboard motors, which are
to be used exclusively for rental or lease purposes, and not for resale,
may apply to the director of revenue for authority to operate as a
leasing company. Any company approved by the director of revenue may pay
the tax due on any motor vehicle, trailer, boat, or outboard motor as
required in section 144.020 at the time of registration thereof or in
lieu thereof may pay a sales tax as provided in sections 144.010,
144.020, 144.070 and 144.440. A sales tax shall be charged to and paid by
a leasing company which does not exercise the option of paying in
accordance with section 144.020, on the amount charged for each rental or
lease agreement while the motor vehicle, trailer, boat, or outboard motor
is domiciled in this state. Any motor vehicle, boat, or outboard motor
which is leased as the result of a contract executed in this state shall
be presumed to be domiciled in this state.

6. Any corporation may have one or more of its divisions separately apply
to the director of revenue for authorization to operate as a leasing
company, provided that the corporation:

(1) Has filed a written consent with the director authorizing any of its
divisions to apply for such authority;

(2) Is authorized to do business in Missouri;

(3) Has agreed to treat any sale of a motor vehicle, trailer, boat, or
outboard motor from one of its divisions to another of its divisions as a
sale at retail within the meaning of subdivision (9) of subsection 1 of
section 144.010;

(4) Has registered under the fictitious name provisions of sections
417.200 to 417.230, RSMo, each of its divisions doing business in
Missouri as a leasing company; and

(5) Operates each of its divisions on a basis separate from each of its
other divisions.

However, when the transfer of a motor vehicle, trailer, boat or outboard
motor occurs within a corporation which holds a license to operate as a
motor vehicle or boat dealer pursuant to sections 301.550 to 301.575*,
RSMo, the provisions in subdivision (3) of this subsection shall not
apply.

7. If the owner of any motor vehicle, trailer, boat, or outboard motor
desires to charge and collect sales tax as provided hereinabove, he shall
make application to the director of revenue for a permit to operate as a
motor vehicle, trailer, boat, or outboard motor leasing company. The
director of revenue shall promulgate rules and regulations determining
the qualifications of such a company, and the method of collection and
reporting of sales tax charged and collected. Such regulations shall
apply only to owners of motor vehicles, trailers, boats, or outboard
motors, electing to qualify as motor vehicle, trailer, boat, or outboard
motor leasing companies under the provisions of subsection 5 of this
section, and no motor vehicle renting or leasing, trailer renting or
leasing, or boat or outboard motor renting or leasing company can come
under sections 144.010, 144.020, 144.070 and 144.440 unless all vehicles,
trailers, boats, and outboard motors held for renting and leasing are
included. (RSMo 1939 § 11412, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L.
1945 p. 1865, A.L. 1947 V. II p. 431, A.L. 1951 p. 854, A.L. 1961 p. 627,
A.L. 1974 H.B. 1593, A.L. 1975 S.B. 92, A.L. 1977 S.B. 367, A.L. 1985
H.B. 280, et al., A.L. 1997 H.B. 394)

*Section 301.575 was repealed by S.B. 52 § A, 1993.

(1978) Constitutional provision imposing additional sales tax on sellers
shall apply to tax on motor vehicles and trailers, for it is not a
different type of sales tax but only provides for different manner of
collection. State ex rel. Conservation Commission v. LePage (Mo.), 566
S.W.2d 209.

(1982) "Dirt bikes" are motor vehicles for purposes of the sales tax law,
and seller is not required to remit sales tax. Lake & Trail Sports Center
v. Director of Revenue (Mo.), 631 S.W.2d 339.

(1993) Amount of rebate or other manufacturer's incentive allowance for
purchase of an automobile is included in purchase price for purposes of
sales tax statute which provides for sales tax computation based on total
amount of contract price regardless of medium of payment. Ortbals v.
Director of Revenue, 871 S.W.2d 435 (Mo. en banc).

(1994) Where lessees of motor vehicles were billed annually for personal
property tax separately from monthly rental or lease payments and leasing
companies paid that amount to county collector, director of revenue is
not authorized to assess sales tax on separate personal property tax
payments made to motor vehicle leasing companies. Moore Leasing, Inc. v.
Director of Revenue, 869 S.W.2d 760 (Mo. en banc).

1. In all cases where the purchaser of a motor vehicle, trailer,
boat or outboard motor rescinds the sale of that motor vehicle, trailer,
boat or outboard motor and receives a refund of the purchase price and
returns the motor vehicle, trailer, boat or outboard motor to the seller
within sixty calendar days from the date of the sale, the sales or use
tax paid to the department of revenue shall be refunded to the purchaser
upon proper application to the director of revenue.

2. In any rescission whereby a seller reacquires title to the motor
vehicle, trailer, boat or outboard motor sold by him and the
reacquisition is within sixty calendar days from the date of the original
sale, the person reacquiring the motor vehicle, trailer, boat or outboard
motor shall be entitled to a refund of any sales or use tax paid as a
result of the reacquisition of the motor vehicle, trailer, boat or
outboard motor, upon proper application to the director of revenue.

3. Any city or county sales or use tax refunds shall be deducted by the
director of revenue from the next remittance made to that city or county.

4. Each claim for refund must be made within one year after payment of
the tax on which the refund is claimed.

5. As used in this section, the term "boat" includes all motorboats and
vessels as the terms "motorboat" and "vessel" are defined in section
306.010, RSMo. (L. 1977 S.B. 367, A.L. 1990 S.B. 494)

1. Every person receiving any payment or consideration upon the
sale of property or rendering of service, subject to the tax imposed by
the provisions of sections 144.010 to 144.525, is exercising the taxable
privilege of selling the property or rendering the service at retail and
is subject to the tax levied in section 144.020. The person shall be
responsible not only for the collection of the amount of the tax imposed
on the sale or service to the extent possible under the provisions of
section 144.285, but shall, on or before the last day of the month
following each calendar quarterly period of three months, file a return
with the director of revenue showing the person's gross receipts and the
amount of tax levied in section 144.020 for the preceding quarter, and
shall remit to the director of revenue, with the return, the taxes levied
in section 144.020, except as provided in subsections 2 and 3 of this
section. The director of revenue may promulgate rules or regulations
changing the filing and payment requirements of sellers, but shall not
require any seller to file and pay more frequently than required in this
section.

2. Where the aggregate amount levied and imposed upon a seller by section
144.020 is in excess of two hundred and fifty dollars for either the
first or second month of a calendar quarter, the seller shall file a
return and pay such aggregate amount for such months to the director of
revenue by the twentieth day of the succeeding month.

3. Where the aggregate amount levied and imposed upon a seller by section
144.020 is less than forty-five dollars in a calendar quarter, the
director of revenue shall by regulation permit the seller to file a
return for a calendar year. The return shall be filed and the taxes paid
on or before January thirty-first of the succeeding year.

4. The seller of any property or person rendering any service, subject to
the tax imposed by sections 144.010 to 144.525, shall collect the tax
from the purchaser of such property or the recipient of the service to
the extent possible under the provisions of section 144.285, but the
seller's inability to collect any part or all of the tax does not relieve
the seller of the obligation to pay to the state the tax imposed by
section 144.020; except that the collection of the tax imposed by
sections 144.010 to 144.525 on motor vehicles and trailers shall be made
as provided in sections 144.070 and 144.440.

5. It shall be unlawful for any person to advertise or hold out or state
to the public or to any customer directly or indirectly that the tax or
any part thereof imposed by sections 144.010 to 144.525, and required to
be collected by the person, will be assumed or absorbed by the person, or
that it will not be separately stated and added to the selling price of
the property sold or service rendered, or if added, that it or any part
thereof will be refunded. Any person violating any of the provisions of
this section shall be guilty of a misdemeanor. (RSMo 1939 § 11411, A.L.
1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. I p. 553,
A.L. 1947 V. II p. 431, A.L. 1951 p. 854, A.L. 1963 p. 198, A.L. 1965 p.
261, A.L. 1969 H.B. 537, A.L. 1979 S.B. 218, et al., A.L. 1994 S.B. 477,
et al., A.L. 1998 H.B. 1301)

(1976) Officer of corporation in charge of corporate sales tax matters
personally liable for failing to file sales tax returns even though
officer acted in representative capacity. State v. Longstreet (A.), 536
S.W.2d 185.

(1982) "Dirt bikes" are motor vehicles for purposes of the sales tax law,
and seller is not required to remit sales tax. Lake & Trail Sports Center
v. Director of Revenue (Mo.), 631 S.W.2d 339.

1. The director of revenue, by regulation, may require a seller
to timely remit the unpaid state sales tax for each quarter-monthly
period, only if the seller's aggregate state sales tax was ten thousand
dollars or more in each of at least six months during the prior twelve
months. The term "state sales tax" as used in this section means the tax
imposed by sections 144.010 to 144.510 and the additional sales tax
imposed by sections 43(a) to 43(c) and 47(a) to 47(c) of article IV of
the Missouri Constitution and does not include any sales taxes imposed by
political subdivisions of the state pursuant to other provisions of law.

2. The director may increase the monthly requirement to more than ten
thousand dollars or otherwise narrow the application of the
quarter-monthly remittance system authorized by this section. The
director may not require the remittance of state sales taxes more often
than monthly unless authorized by this section.

3. A remittance shall be timely if mailed as provided in section 143.851,
RSMo, within three banking days after the end of the quarter-monthly
period or if received by the director or deposited in a depository
designated by the director within four banking days after the end of the
quarter-monthly period.

4. The unpaid amount shall be after a reduction for the compensation
provided by section 144.140. The unpaid amount at the end of a
quarter-monthly period shall not include unpaid amounts for a prior
quarter-monthly period only if the seller made a remittance with respect
to the prior quarter-monthly period. The excess, if any, of a remittance
over the actual amount for a period shall be applied in order of time to
each of the seller's succeeding remittances with respect to the same
return period.

5. For purposes of this section, "quarter-monthly period" means:

(1) The first seven days of a calendar month;

(2) The eighth to fifteenth day of a calendar month;

(3) The sixteenth to twenty-second day of a calendar month; and

(4) The portion following the twenty-second of a calendar month.

6. (1) In the case of an underpayment of any amount required to be paid
pursuant to this section, a seller shall be liable for a penalty in lieu
of all other penalties, interest or additions to tax imposed by this
chapter for violating this section. The penalty shall be five percent of
the amount of the underpayment determined under subdivision (2) of this
subsection.

(2) The amount of the underpayment shall be the excess of:

(a) Ninety percent of the unpaid amount at the end of a quarter-monthly
period, over

(b) The amount, if any, of the timely remittance for the quarter-monthly
period.

7. (1) The penalty with respect to any quarter-monthly period shall not
be imposed if the seller's timely remittance for the quarter-monthly
period equals or exceeds one-fourth of the average monthly state sales
tax liability of the seller for the preceding calendar year. The month of
highest liability and the month of lowest liability shall be excluded in
computing the average. This subdivision shall apply only to a seller who
had a state sales tax liability for at least six months of the previous
calendar year.

(2) The penalty shall not be imposed if the seller establishes that the
failure to make a timely remittance of at least ninety percent was due to
reasonable cause, and not due to willful neglect.

(3) The penalty shall not be imposed against any seller for the first two
months the seller is obligated to make quarter-monthly remittance of
state sales taxes.

8. Tax amounts remitted under this section shall be treated as payments
on the seller's monthly return required by sections 144.080 and 144.090.
Tax amounts remitted under this section shall be deemed to have been paid
on the last day prescribed for filing the return. The preceding sentence
shall apply in computing compensation under section 144.140, interest,
penalties and additions to tax and for purposes of all sections of this
chapter, except this section.

9. The director of revenue may prescribe the use of an electronic funds
payment system for the payment of sales and use taxes by any seller
subject to the requirement of quarter-monthly remittance as provided in
this section. (L. 1983 1st Ex. Sess. H.B. 10, A.L. 1986 S.B. 669, et al.,
A.L. 2003 H.B. 600)

Effective 7-1-03

1. The director of revenue shall require all persons who are
responsible for the collection of taxes under the provisions of section
144.080 to procure a retail sales license at no cost to the licensee
which shall be prominently displayed at his place of business, and the
license is valid until revoked by the director or surrendered by the
person to whom issued when sales are discontinued. The director shall
issue the retail sales license within ten working days following the
receipt of a properly completed application. Any person applying for a
retail sales license or reinstatement of a revoked sales tax license who
owes any tax under sections 144.010 to 144.510 or sections 143.191 to
143.261, RSMo, must pay the amount due plus interest and penalties before
the department may issue the applicant a license or reinstate the revoked
license. All persons beginning business subsequent to August 13, 1986,
and who are required to collect the sales tax shall secure a retail sales
license prior to making sales at retail. Such license may, after ten
days' notice, be revoked by the director of revenue only in the event the
licensee shall be in default for a period of sixty days in the payment of
any taxes levied under section 144.020 or sections 143.191 to 143.261,
RSMo.

2. The possession of a retail sales license shall be a prerequisite to
the issuance of any city or county occupation license or any state
license which is required for conducting any business where goods are
sold at retail. The revocation of a retailer's license by the director
shall render the occupational license or the state license null and void.

3. No person responsible for the collection of taxes under section
144.080 shall make sales at retail unless such person is the holder of a
valid retail sales license. After all appeals have been exhausted, the
director of revenue may notify the county or city law enforcement agency
representing the area in which the former licensee's business is located
that the retail sales license of such person has been revoked, and that
any county or city occupation license of such person is also revoked. The
county or city may enforce the provisions of this section, and may
prohibit further sales at retail by such person. (L. 1961 p. 629 § 1,
A.L. 1965 p. 261, A.L. 1986 S.B. 669, et al., A.L. 2004 S.B. 1394)

CROSS REFERENCE: Injunction or writs of attachment authorized for
businesses or transient employer not in compliance, RSMo 144.512

1. The director of revenue shall require all applicants for
retail sales licenses and all licensees in default in filing a return and
paying their taxes when due to file a bond in an amount to be determined
by the director, which may be a corporate surety bond or a cash bond, but
such bond shall not be more than three times the average monthly tax
liability of the taxpayer, estimated in the case of a new applicant,
otherwise based on the previous twelve months' experience. At such time
as the director of revenue shall deem the amount of a bond required by
this section to be insufficient to cover the average monthly tax
liability of a given taxpayer, he may require such taxpayer to adjust the
amount of the bond to the level satisfactory to the director which will
cover the amount of such liability. The director shall, after a
reasonable period of satisfactory tax compliance for two years from the
initial date of bonding, release such taxpayer from the bonding
requirement as set forth in this section. All itinerant or temporary
businesses shall be required to procure the license and post the bond
required under the provisions of sections 144.083 and 144.087 prior to
the selling of goods at retail, and in the event that such business is to
be conducted for less than one month, the amount of the bond shall be
determined by the director.

2. All cash bonds shall be deposited by the director of revenue into the
state general revenue fund, and shall be released to the taxpayer
pursuant to subsection 1 of this section from funds appropriated by the
general assembly for such purpose. If appropriated funds are available,
the commissioner of administration and the state treasurer shall cause
such refunds to be paid within thirty days of the receipt of a warrant
request for such payment from the director of the department of revenue.

3. An applicant or licensee in default may, in lieu of filing any bond
required under this section, provide the director of revenue with an
irrevocable letter of credit, as defined in section 400.5-103, RSMo,
issued by any state or federally chartered financial institution, in an
amount to be determined by the director or may obtain a certificate of
deposit issued by any state or federally chartered financial institution,
in an amount to be determined by the director, where such certificate of
deposit is pledged to the department of revenue until released by the
director in the same manner as bonds are released pursuant to subsection
1 of this section. As used in this subsection, the term "certificate of
deposit" means a certificate representing any deposit of funds in a state
or federally chartered financial institution for a specified period of
time which earns interest at a fixed or variable rate, where such funds
cannot be withdrawn prior to a specified time without forfeiture of some
or all of the earned interest. (L. 1961 p. 629 § 2, A.L. 1974 H.B. 978,
A.L. 1982 S.B. 471, A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1985 H.B. 321,
A.L. 1986 S.B. 669, et al., A.L. 1990 H.B. 960, A.L. 1994 S.B. 477, et
al.)

1. The director of revenue, if deemed necessary in order to
ensure payment to or facilitate the collection by the state of the amount
of taxes, or if the revenue needs of the state demand it, may require
returns and payment of the amount of taxes for monthly or annual periods
instead of calendar quarters.

2. In all cases where monthly or annual payments are required by the
director of revenue under the provisions of this section, such payments
shall be made on or before the last day of each month following the
period in which the tax is required to be collected. The provisions of
this subsection shall not apply when the taxpayer is required to file a
monthly or annual return due to the amount of sales taxes collected
during the reporting period pursuant to section 144.080. (L. 1947 V. I p.
553 § 11411A, A.L. 1951 p. 854, A.L. 1961 p. 630, A.L. 1963 p. 198, A.L.
1979 S.B. 218, et al., A.L. 1994 S.B. 477, et al.)

Effective 12-31-94, and shall apply to all tax periods beginning on or
after 1-1-95 (S.B. 477 § C, 1994)

1. Every person making any taxable sales of property or service,
except transactions provided for in sections 144.070 and 144.440,
individually or by duly authorized officer or agent, shall make and file
a written return with the director of revenue in such manner as he may
prescribe.

2. The returns shall be on blanks designed and furnished by the director
of the department of revenue and shall be filed at the times provided in
sections 144.080 and 144.090. The returns shall show the amount of gross
receipts from sales of taxable property and services by the person and
the amount of tax due thereon by that person during and for the period
covered by the return. With each return, the person shall remit to the
director of revenue the full amount of the tax due.

3. In case of charge and time sales the gross receipts thereof shall be
included as sales in the returns as and when payments are received by the
person, without any deduction therefrom whatsoever.

4. If an error or omission is discovered in a return or a change be
necessary to show the true facts, the error may be corrected, the
omission supplied, or the change made in the return next filed with the
director for the filing period immediately following the filing period in
which the error was made or the omission occurred, as prescribed by law,
except that no refund under this chapter shall be allowed for any amount
of tax paid by a seller which is based upon charges incident to credit
card discounts. Any other omission or error must be corrected by filing
an amended return for the erroneously reported period if the amount of
tax is less than that originally reported, or an additional return if the
amount of tax is greater than that originally reported. An additional
return shall be deemed filed on the date the envelope in which it is
mailed is postmarked or the date it* is received by the director,
whichever is earlier. Any payment of tax, interest, penalty or additions
to tax shall be deemed filed on the date the envelope containing the
payment is postmarked or the date the payment is received by the
director, whichever is earlier. If a refund or credit results from the
filing of an amended return, no refund or credit shall be allowed unless
an application for refund or credit is properly completed and submitted
to the director pursuant to section 144.190.

5. The amount of gross receipts from sales and the amount of tax due
returned by the person, as well as all matters contained in the return,
is subject to review and revision in the manner herein provided for the
correction of the returns. (RSMo 1939 § 11416, A.L. 1941 p. 698, A.L.
1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. I p. 553, A.L. 1947 V. II
p. 431, A. 1949 S.B. 1027, A.L. 1951 p. 854, A.L. 1957 p. 803, A.L. 1965
p. 261, A.L. 1974 H.B. 1593, A.L. 1994 S.B. 477, et al.)

Effective 12-31-94, and shall apply to all tax periods beginning on or
after 1-1-95 (S.B. 477 § C, 1994)

*Word "it" does not appear in original rolls.

The director of revenue shall keep sales and use tax returns on
file in his custody for a period of four years after the sales or use tax
becomes due. At the end of four years, the director of revenue may
destroy the returns; but no return shall be destroyed until the tax has
been paid. The director of revenue, at the end of two years, may cause
the returns to be reproduced and destroyed in the manner provided by
sections 109.120 to 109.140, RSMo. (L. 1957 p. 802 § 1)

1. Any business or individual engaged in the business of selling
of tangible personal property within the state without a valid Missouri
retail sales tax license shall be assessed a penalty in the amount of up
to five hundred dollars for the first day and one hundred dollars for
each day thereafter, not to exceed ten thousand dollars, in addition to
any other penalties or interest as prescribed in chapter 144. For the
first twenty days this penalty shall not apply to persons opening a
business in the state of Missouri for the first time.

2. The department of revenue must show by a preponderance of evidence
that the business or individual did, in fact, operate without a valid
Missouri retail sales tax license before final assessment of the
penalties as prescribed in subsection 1 of this section can be made. (L.
1986 S.B. 669, et al. § 1)

CROSS REFERENCE: Injunction or writs of attachment authorized for
businesses or transient employer not in compliance, RSMo 144.512

1. Notwithstanding the provisions of section 32.057, RSMo, any
county or other political subdivision imposing a sales tax which is
administered by the state department of revenue, and any political
subdivision which is part of group A or group B, as defined in section
66.620, RSMo, may inspect or audit any and all records of the state
director of revenue pertaining to the administration, collection and
enforcement of its sales taxes, or, in the case of a political
subdivision which is a part of group A or group B, of the sales taxes
imposed pursuant to sections 66.600 to 66.630, RSMo, and section 94.577
or 94.850 to 94.857, RSMo. The request for inspection or audit of sales
tax records and reports shall be made by written application signed by
the chief executive of the county or other political subdivision and
shall be filed with the director of revenue. The date for the inspection
or audit shall be determined by the director of revenue and the
inspection or audit shall be performed in the premises of the director of
revenue and during normal office hours. The date set shall be no more
than thirty days after receipt by the director of revenue of such written
application. The director of revenue shall notify the county or other
political subdivision in writing of the date and place for the inspection
or audit. Any county or other political subdivision may make as many
requests for inspection of the sales tax records as it deems necessary.
The director of revenue may make a charge of not more than fifty dollars
per day for each of the facilities of the department which are used in
connection with such an inspection or audit. The director of revenue is
authorized to provide reports of sales tax data to any county or other
political subdivision filing requests according to the provisions of this
section and section 32.057, RSMo.

2. If the duties of the director of revenue with respect to the
allocation, division and distribution of sales and use tax proceeds
determined to be due within a county of the first classification having a
charter form of government and having a population of nine hundred
thousand or more inhabitants are delegated to the county as provided in
section 66.601, RSMo, any city, town or village within such county may
inspect and audit all records of the county relating to allocation,
division and distribution of sales and use tax proceeds in the same
manner and on the same conditions as provided for taxing entities in
subsection 1 of this section. (L. 1973 H.B. 46, A.L. 1979 H.B. 296, A.L.
1980 S.B. 910, A.L. 1993 H.B. 618, A.L. 1994 S.B. 685)

Effective 5-10-94

Any county or other political subdivision in violation of the
provisions of sections 32.057, RSMo, 144.121 and 144.122 as determined by
the director of revenue shall be ineligible to require disclosure of
information from the state director of revenue; provided, however, that
nothing herein shall be construed to prohibit a county imposing a sales
tax pursuant to sections 66.600 to 66.635, RSMo, from allowing any
political subdivision which is a part of group B, as defined in section
66.620, RSMo, to inspect* such sales tax information on the premises of
the county seat of such county at such times as may be set by the chief
executive officer of such county. (L. 1973 H.B. 46, A.L. 1980 S.B. 910)

Effective 1-1-81

*Original rolls contain word "inspection".

Refunds made by the person during the preceding calendar month
or calendar quarter to purchasers, on account of tangible personal
property, substances, services and things returned to the persons shall
be allowed as a deduction from the gross receipts required to be stated
in the returns filed with the director of revenue; provided, the person
had theretofore included the said refunded receipts in a return made by
such person and had paid the amount imposed by sections 144.010 to
144.510 with respect thereto; provided, the seller has returned to the
purchaser any and all tax previously paid by the purchaser at the time of
the purchase. (RSMo 1939 § 11418, A.L. 1941 p. 698, A.L. 1943 p. 1012,
A.L. 1945 p. 1865, A.L. 1947 V. I p. 553)

From every remittance to the director of revenue made on or
before the date when the same becomes due, the person required to remit
the same shall be entitled to deduct and retain an amount equal to two
percent thereof. (RSMo 1939 § 11431, A.L. 1941 p. 698, A.L. 1943 p. 1012,
A.L. 1945 p. 1865, A.L. 1961 p. 630, A.L. 1963 p. 195)

(1976) Buyer remitting use tax is not entitled to retain 2% of the tax
paid. Farm and Home Savings Ass'n. v. Spradling (Mo.), 538 S.W.2d 313.

1. If any person required to remit a tax levied hereunder or his
successors shall sell all or substantially all of his or their business
or stock of goods or shall quit the business, such person or successor
shall file a final return under oath within fifteen days after the date
of selling or quitting business.

2. If any person required to remit a tax levied hereunder or his
successors shall contract to sell all or substantially all of his or
their business, the seller shall request from the director of revenue a
statement or certificate as provided in subsection 4 of this section. The
seller shall present such statement or certificate to the purchaser prior
to consummation of the sale and secure the purchaser's signature thereon
as validation of receipt. Failure to comply with this provision shall
result in the seller being liable for an additional penalty equal to
twenty-five percent of the seller's delinquency at the time of the sale.
The provisions of this section to the contrary notwithstanding, this
additional penalty shall be the sole liability of the seller and shall
not be a liability of the purchaser.

3. Except as provided in subsections 4, 5 and 6 of this section, all
successors, if any, shall be required to withhold sufficient of the
purchase money to cover the amount of such taxes and interest, additions
to tax or penalties due and unpaid until such time as the former owner or
predecessor, whether immediate or not, shall produce a receipt from the
director of revenue showing that the taxes have been paid, or a
certificate stating that no taxes are due. If the purchaser of a business
or stock of goods shall fail to withhold the purchase money as provided
in this section and remit at the time of purchase all amounts so withheld
to the director to pay all unpaid taxes, interest, additions to tax and
penalties due from the former owner or predecessor, the purchaser shall
be personally liable for the payment of the taxes, interest, additions to
tax and penalties accrued and unpaid on account of the operation of the
business by the former owner and person.

4. The director of revenue shall, notwithstanding the provisions of
section 32.057, RSMo, upon written request, furnish within fifteen
business days from the receipt of such request by certified mail, return
receipt requested, or such other methods as may be mutually agreed upon,
to any owner, successor, secured creditor, purchaser, or in the case of a
proposed purchaser if joined in writing by the owner, a statement showing
the amount of taxes, interest, additions to tax or penalties due and
owing or a certificate showing that no taxes, interest, additions to tax
or penalties are due under this chapter, including the date of the last
payment for such taxes, interest, additions to tax or penalties as shown
by the records of the director of revenue. The person obtaining a
certificate from the director of revenue under this section may rely on
such certificate for a period of one hundred twenty days.

5. A secured creditor who shall enforce a lien against a business or a
stock and goods of a business subject to the provisions of this chapter
shall be entitled to obtain from the director of revenue a statement of
sales tax due and the status of the sales tax payments from the director
of revenue in accordance with subsection 4 of this section. If the
director of revenue does not respond within fifteen business days from
the date of receipt of such request by the secured creditor seeking to
enforce its lien, it shall be conclusively presumed that all such sales
taxes have been paid as to the secured creditor or any successor of the
secured creditor, whether such successor be immediate or not. Nothing in
this section shall eliminate the liability of the owner of the business
owing sales tax from the liability to pay such sales tax. Any purchaser
who acquires the business or stock of goods as a result of an enforcement
action by a creditor, including the creditor, shall be exempt from the
liability set forth in subsection 3 of this section, whether such
purchaser be immediate or subsequent thereto.

6. Any such creditor who shall enforce a lien against the business or
stock of goods subject to the provisions of this section shall be
entitled to be paid the principal sums due, all accrued interest to the
date of payment, and the expenses of enforcing the lien of the secured
creditor including its attorney's fees. The balance, if any, shall be
paid to creditors having a priority interest thereto under the laws of
the state of Missouri or the United States of America. Any balance then
remaining, up to the amount of the tax, interest, additions to tax and
penalties then due, shall be remitted to the director of revenue as
provided by this section. Nothing in this section shall affect the
priority of any lien filed by the director of revenue against the former
owner or predecessor.

7. Mailing of notices or requests, by first class mail, postage prepaid,
certified with return receipt requested, or such other methods as may be
mutually agreed upon, shall be prima facie evidence that the party to
whom it is addressed received the correspondence, notice or request.
(RSMo 1939 § 11436, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p.
1865, A.L. 1961 p. 630, A.L. 1987 S.B. 282, A.L. 1990 H.B. 960, A.L. 1994
S.B. 477, et al.)

Effective 12-31-94, and shall apply to all tax periods beginning on or
after 1-1-95 (S.B. 477 § C, 1994)

1. The liability at law or in equity of a transferee of property
of a taxpayer for any tax, addition to tax, penalty or interest due under
sections 144.010 to 144.510 and 144.600 to 144.745, shall be assessed,
paid and collected in the same manner and subject to the same provisions
and limitations as in the case of the tax to which the liability relates
except as hereinafter provided in this section. The term "transferee"
includes donee, heir, legatee, devisee and distributee.

2. In the case of the liability of an initial transferee, the period of
limitation for assessment of any liability expires one year after the
expiration of the period of limitation against the transferor; in the
case of the liability of a transferee of a transferee, it expires one
year after the expiration of the period of limitation against the
preceding transferee, but not more than three years after the expiration
of the period of limitation for assessment against the original
transferor.

3. If, before the expiration of the time provided in this section for the
assessment of the liability, the director of revenue and the transferee
have consented in writing to its assessment after such time, the
liability may be assessed at any time prior to the expiration of the
period agreed upon or an extension thereof.

4. If any person is deceased, the period of limitation for assessment
against such person shall be the period that would be in effect had death
not occurred. (L. 1983 1st Ex. Sess. H.B. 10)

Effective 1-1-84

1. Any person required to collect, truthfully account for and
pay over any tax imposed by sections 67.1170 to 67.1180, RSMo, sections
94.800 to 94.825, RSMo, and sections 144.010 to 144.525 and 144.600 to
144.745 who willfully fails to collect such tax or truthfully account for
and pay over such tax or willfully attempts in any manner to evade or
defeat the tax or the payment thereof, or who shall willfully and
knowingly overcharge or overcollect such tax with intent to make claim to
any such overcharged or overcollected amounts under section 144.190,
shall, in addition to other penalties provided by law, be liable to a
penalty equal to the total amount of the tax evaded, or not collected, or
not accounted for and paid over, or overcharged or overcollected.

2. For purposes of this section, the term "person" includes an individual
or an officer or employee of any corporation, including an
administratively dissolved corporation or a foreign corporation that has
had its certificate of authority revoked, or a member or employee of any
partnership, who, as such officer, employee or member, is under a duty to
perform the act in respect of which the violation occurs.

3. Any officers, directors, or statutory trustees of any corporation,
including administratively dissolved corporations or foreign corporations
that have had their certificate of authority revoked, subject to the
provisions of sections 144.010 to 144.745, who has the direct control,
supervision or responsibility for filing returns and making payment of
the amount of tax imposed in accordance with sections 144.010 to 144.745,
and who fails to file such return or make payment of all taxes due with
the director of revenue shall be personally assessed for such amounts,
including interest, additions to tax and penalties thereon. This
assessment shall be imposed only in the event that the assessment on the
corporation is final, and such corporation fails to pay such amounts to
the director of revenue. Notice shall be given of the director of
revenue's intent to make the assessment against such officers, directors,
statutory trustees or employees. The personal liability of such officers,
directors, statutory trustees or employees as provided in this section
shall survive the administrative dissolution of the corporation or, if a
foreign corporation, the revocation of the corporation's certificate of
authority. (L. 1983 1st Ex. Sess. H.B. 10, A.L. 1990 H.B. 960, A.L. 1991
H.B. 219, A.L. 1994 S.B. 477, et al., A.L. 2000 H.B. 1659 merged with
S.B. 724, A.L. 2004 S.B. 1394)

The director of revenue for good cause may extend, for not to
exceed sixty days, the time for making any return or paying any tax
required under the provisions of sections 144.010 to 144.510. (RSMo 1939
§ 11419, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865)

All taxes not paid to the director of revenue by the person
required to remit the same on the date when the same becomes due and
payable to the director of revenue shall bear interest at the rate
determined by section 32.065, RSMo, from and after such date until paid.
(RSMo 1939 § 11430, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p.
1865, A.L. 1972 S.B. 407, A.L. 1982 H.B. 1351, et al.)

1. If a tax has been incorrectly computed by reason of a
clerical error or mistake on the part of the director of revenue, such
fact shall be set forth in the records of the director of revenue, and
the amount of the overpayment shall be credited on any taxes then due
from the person legally obligated to remit the tax pursuant to sections
144.010 to 144.525, and the balance shall be refunded to the person
legally obligated to remit the tax, such person's administrators or
executors, as provided for in section 144.200.

2. If any tax, penalty or interest has been paid more than once, or has
been erroneously or illegally collected, or has been erroneously or
illegally computed, such sum shall be credited on any taxes then due from
the person legally obligated to remit the tax pursuant to sections
144.010 to 144.525, and the balance, with interest as determined by
section 32.065, RSMo, shall be refunded to the person legally obligated
to remit the tax, but no such credit or refund shall be allowed unless
duplicate copies of a claim for refund are filed within three years from
date of overpayment.

3. Every claim for refund must be in writing and signed by the applicant,
and must state the specific grounds upon which the claim is founded. Any
refund or any portion thereof which is erroneously made, and any credit
or any portion thereof which is erroneously allowed, may be recovered in
any action brought by the director of revenue against the person legally
obligated to remit the tax. In the event that a tax has been illegally
imposed against a person legally obligated to remit the tax, the director
of revenue shall authorize the cancellation of the tax upon the
director's record.

4. Notwithstanding the provisions of this section, the director of
revenue shall authorize direct-pay agreements to purchasers which have
annual purchases in excess of seven hundred fifty thousand dollars
pursuant to rules and regulations adopted by the director of revenue. For
the purposes of such direct-pay agreements, the taxes authorized pursuant
to chapters 66, 67, 70, 92, 94, 162, 190, 238, 321, and 644, RSMo, shall
be remitted based upon the location of the place of business of the
purchaser.

5. Special rules applicable to error corrections requested by customers
of mobile telecommunications service are as follows:

(1) For purposes of this subsection, the terms "customer", "home service
provider", "place of primary use", "electronic database", and "enhanced
zip code" shall have the same meanings as defined in the Mobile
Telecommunications Sourcing Act incorporated by reference in section
144.013;

(2) Notwithstanding the provisions of this section, if a customer of
mobile telecommunications services believes that the amount of tax, the
assignment of place of primary use or the taxing jurisdiction included on
a billing is erroneous, the customer shall notify the home service
provider, in writing, within three years from the date of the billing
statement. The customer shall include in such written notification the
street address for the customer's place of primary use, the account name
and number for which the customer seeks a correction of the tax
assignment, a description of the error asserted by the customer and any
other information the home service provider reasonably requires to
process the request;

(3) Within sixty days of receiving the customer's notice, the home
service provider shall review its records and the electronic database or
enhanced zip code to determine the customer's correct taxing
jurisdiction. If the home service provider determines that the review
shows that the amount of tax, assignment of place of primary use or
taxing jurisdiction is in error, the home service provider shall correct
the error and, at its election, either refund or credit the amount of tax
erroneously collected to the customer for a period of up to three years
from the last day of the home service provider's sixty-day review period.
If the home service provider determines that the review shows that the
amount of tax, the assignment of place of primary use or the taxing
jurisdiction is correct, the home service provider shall provide a
written explanation of its determination to the customer.

6. For all refund claims submitted to the department of revenue on or
after September 1, 2003, notwithstanding any provision of this section to
the contrary, if a person legally obligated to remit the tax levied
pursuant to sections 144.010 to 144.525 has received a refund of such
taxes for a specific issue and submits a subsequent claim for refund of
such taxes on the same issue for a tax period beginning on or after the
date the original refund check issued to such person, no refund shall be
allowed. This subsection shall not apply and a refund shall be allowed if
an additional refund claim is filed due to any of the following:

(1) Receipt of additional information or an exemption certificate from
the purchaser of the item at issue;

(2) A decision of a court of competent jurisdiction or the administrative
hearing commission; or

(3) Changes in regulations or policy by the department of revenue.

7. Notwithstanding any provision of law to the contrary, the director of
revenue shall respond to a request for a binding letter ruling filed in
accordance with section 536.021, RSMo, within sixty days of receipt of
such request. If the director of revenue fails to respond to such letter
ruling request within sixty days of receipt by the director, the director
of revenue shall be barred from pursuing collection of any assessment of
sales or use tax with respect to the issue which is the subject of the
letter ruling request. For purposes of this subsection, the term "letter
ruling" means a written interpretation of law by the director to a
specific set of facts provided by a specific taxpayer or his or her agent.

8. If any tax was paid more than once, was incorrectly collected, or was
incorrectly computed, such sum shall be credited on any taxes then due
from the person legally obligated to remit the tax pursuant to sections
144.010 to 144.510, against any deficiency or tax due discovered through
an audit of the person by the department of revenue through adjustment
during the same tax filing period for which the audit applied. (RSMo 1939
§ 11432, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L.
1979 S.B. 218, et al., A.L. 1986 S.B. 669, et al., A.L. 1988 S.B. 586,
A.L. 1991 H.B. 219, A.L. 1999 H.B. 139, A.L. 2001 H.B. 816, A.L. 2002
H.B. 1890, A.L. 2003 H.B. 600)

Effective 7-1-03

(1998) Refund claims made prior to repeal of section 144.748, RSMo, on
May 21, 1996, may proceed under this section. Refund claims made after
May 21, 1996, may only proceed under section 136.035, RSMo. St. Charles
Co. v. Director of Revenue, 961 S.W.2d 44 (Mo.banc).

(2003) Three-year limitations period starts when the taxpayer remits
payment of tax on the transactions that generate the issue of
overpayment; deadline is not extended by subsequent payments for other
transactions even if occurring within the same tax period. Ford Motor Co.
v. Director of Revenue, 97 S.W.3d 458 (Mo.banc).

It shall be the duty of the general assembly to appropriate and
set aside funds sufficient for the use of the director of revenue to make
any refund of taxes required by sections 144.010 to 144.510, by final
decision of the administrative hearing commission or by final judgment of
court. (RSMo 1939 § 11441, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945
p. 1865, A.L. 1978 S.B. 661)

1. The burden of proving that a sale of tangible personal
property, services, substances or things was not a sale at retail shall
be upon the person who made the sale, except that with respect to sales,
services, or transactions provided for in section 144.070. The seller
shall obtain and maintain exemption certificates signed by the purchaser
or his agent as evidence for any exempt sales claimed; provided, however,
that before any administrative tribunal of this state, a seller may prove
that sale is exempt from tax under this chapter in accordance with proof
admissible under the applicable rules of evidence; except that when a
purchaser has purchased tangible personal property or services sales tax
free under a claim of exemption which is found to be improper, the
director of revenue may collect the proper amount of tax, interest,
additions to tax and penalty from the purchaser directly. Any tax,
interest, additions to tax or penalty collected by the director from the
purchaser shall be credited against the amount otherwise due from the
seller on the purchases or sales where the exemption was claimed.

2. If the director of revenue is not satisfied with the return and
payment of the tax made by any person, he is hereby authorized and
empowered to make an additional assessment of tax due from such person,
based upon the facts contained in the return or upon any information
within his possession or that shall come into his possession.

3. The director of revenue shall give to the person written notice of
such additional or revised assessment by certified or registered mail to
the person at his or its last known address. (RSMo 1939 § 11420, A.L.
1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. II p.
431, A.L. 1951 p. 854, A.L. 1961 p. 630, A.L. 1978 S.B. 661, A.L. 1990
H.B. 960, A.L. 1991 H.B. 219)

Effective 5-29-91

1. In the case of a fraudulent return or of neglect or refusal
to make a return with respect to any tax under this chapter, there is no
limitation on the period of time the director has to assess.

2. Where a statute or a rule promulgated by the director has exempted or
excepted any person from the payment of tax under this chapter and is
thereafter held by a final decision of the Missouri supreme court to be
invalid, the director shall not be entitled to make an original or
additional assessment of taxes which result from such court decision, nor
shall the person be entitled to any refund or credit resulting from such
court decision, for any period occurring prior to the date of the court's
mandate or the implementation of regulations interpreting such court
decision, whichever is later.

3. In other cases, every notice of additional amount proposed to be
assessed under this chapter shall be mailed to the person within three
years after the return was filed or required to be filed.

4. (1) In those cases in which, within three years prior to June 12,
1990, a statute or a rule promulgated by the director has exempted or
excepted any person from the payment of tax under this chapter and such
statute or rule promulgated by the director is thereafter held by a final
decision of the Missouri supreme court to be invalid, and such decision
by the court has created significant claims for credits or refunds among
substantial numbers of persons where quantifying such claims would
reasonably require additional litigation or auditing by the state, or the
amount which would be owed by such persons within the three-year period
specified in subsection 3 of this section is not readily determinable
with reasonable accuracy because of the lack of records or differing
contractual relationships between the sellers and resellers, the
director, or any person authorized in writing by him, shall offer to
enter into an agreement with any person relating to the liability of such
person in respect to the tax imposed by this chapter for any taxable
period, which agreement shall contain the terms set out in subdivisions
(2) through (5) of this subsection.

(2) The director shall accept as adequate consideration for an agreement
the person's agreement to:

(a) Waive all claims for refund or credit of sales or use taxes which
claims result from such court decision for tax periods beginning prior to
the later of the date of the court's decision holding that the statute or
rule promulgated by the director is invalid or the implementation of
regulations interpreting that decision;

(b) Not initiate or intervene in as a party, for the two-year period
following the date of the agreement, in the administrative hearing
commission or any federal or state court, any cause of action attacking
the constitutionality or general validity of taxes imposed upon the
person by chapter 144; provided, however, that such agreement shall not
prevent the person from initiating claims such as those based upon
clerical or mathematical errors or double payment and claims based upon
the application to the person of exceptions or exemptions provided for by
rule or statute and provided further that if, for such two-year period,
the person obtains a refund or credit as a result of a decision that the
taxes imposed upon the person by chapter 144, are unconstitutional or of
general invalidity, the person will take reasonable steps to return to
identifiable purchasers from whom the person originally collected the tax
under a written or oral contract the moneys refunded or credited and
moneys not refunded or credited to identifiable purchasers, except those
moneys resulting from vending machine sales, shall be returned to the
state treasury less a ten percent fee to be retained by that person; and

(c) Waive the limitation period specified in subsection 3 of this section
as to the three-year period preceding the date of the agreement in the
event that the person breaches the provisions of this subdivision.

(3) The director shall agree not to seek an original or additional
assessment for any period occurring prior to the later of the date of the
court's decision holding that the statute or rule promulgated by the
director is invalid or the implementation of regulations interpreting
that decision except as provided in subdivision (2).

(4) The case shall not be reopened as to matters agreed upon or the
agreement modified by any officer, employee, or agent of this state.

(5) Such agreement shall be binding upon the personal representatives,
successors, and assigns of the person. (RSMo 1939 § 11429, A.L. 1941 p.
698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1983 1st Ex. Sess. H.B.
10, A.L. 1990 H.B. 1554)

Effective 6-12-90

(1980) Statutory provisions setting out limitation periods for
commencement of actions have no application to authority of Director of
Revenue to assess additional sales tax, interest, and fraud penalties.
Excel Drug Co., Inc. v. Mo. Dept. of Revenue (Mo.), 609 S.W.2d 404.

(1981) "Neglect . . . to make a return", as used in this section means a
negligent or careless failure to file a return, not a "mere failure".
Lora v. Director of Revenue (Mo.), 618 S.W.2d 630.

Any amount assessed or any additional amount assessed by the
director of revenue under the provisions of sections 144.010 to 144.525,
together with the penalty, if any there be, shall be due and payable from
the person to the director of revenue sixty days after the service upon
or mailing to the person of notice of such assessment or such additional
assessment, except only for such amounts as to which the person has filed
a petition for review with the administrative hearing commission. (RSMo
1939 § 11427, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865,
A.L. 1978 S.B. 661, A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1994 S.B. 477,
et al.)

1. An additional assessment shall be a final decision of the
director of revenue. Notwithstanding the provisions of section 621.050,
RSMo, to the contrary, an additional assessment may be appealed to the
administrative hearing commission within sixty days after the date the
assessment is delivered in person or is sent by certified mail, whichever
is earlier.

2. Within sixty days after the date on which an additional assessment is
delivered in person or is sent by certified mail, whichever is earlier,
the taxpayer may request an informal review of the assessment by the
director of revenue. The informal review shall not affect the time within
which the taxpayer may appeal the assessment to the administrative
hearing commission and any such appeal must be filed within sixty days
after the date the assessment is delivered in person or is sent by
certified mail, whichever is earlier. If such an informal review is
requested by a taxpayer, the director of revenue shall informally review
the assessment. The informal review shall not require findings of fact or
conclusions of law. If the taxpayer proves to the director's satisfaction
that the assessment is incorrect, the assessment shall be cancelled and a
revised assessment may be made against the taxpayer for the same period,
notwithstanding the provisions of section 144.220 to the contrary.

3. The taxpayer may request and the director may enter into a payment
agreement with any taxpayer against which an assessment has been made, if
the director determines that such agreement is in the best interest of
the state. (RSMo 1939 § 11428, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L.
1945 p. 1865, A.L. 1978 S.B. 661, A.L. 1994 S.B. 477, et al.)

(1979) Director of Revenue is an indispensable party in proceeding on
petition for writ of prohibition against conducting formal hearing on
reassessment of corporations' tax liability; director had to be joined in
proceeding with writ directed to him, rather than to hearing officer.
Payless Pharmacy, Inc., et al. v. Hoffert (A.), 589 S.W.2d 623.

(1980) Sales tax law established mandatory procedure for the assessment
of sales tax and state has no right to commence an action for taxes due
and payable until this procedure is exhausted, including administrative
and judicial review. Excel Drug Co., Inc. v. Mo. Dept. of Revenue (Mo.),
609 S.W.2d 404.

1. In case of failure to file any return required under sections
144.010 to 144.525 on or before the date prescribed therefor, determined
with regard to any extension of time for making a return, unless it is
shown that such failure is due to reasonable cause and not the result of
willful neglect, evasion or fraudulent intent, there shall be added to
the amount required to be shown as tax on such return five percent of the
amount of such tax if the failure is not for more than one month, with an
additional five percent for each additional month or fraction thereof
during which such failure continues, not exceeding twenty-five percent in
the aggregate, except that when the gross sales tax exceeds two hundred
fifty dollars in any one month, requiring the taxpayer to file a monthly
return, there shall be no late penalty assessed for the first month in
which the return is due. For purposes of this section, the amount of tax
required to be shown on the return shall be reduced by the amount of any
part of the tax which is paid on or before the date prescribed for
payment of the tax.

2. In case of failure to pay the full amount of tax required under
sections 144.010 to 144.525 on or before the date prescribed therefor,
determined with regard to any extension of time for payment, unless it is
shown that such failure is due to reasonable cause and not the result of
willful neglect, evasion or fraudulent intent, there shall be added to
the tax an amount equal to five percent of the deficiency. If additions
to tax are assessed under authority of this subsection, additions to tax
may not be assessed by the director under authority of subsection 3 of
this section.

3. In the case of failure to pay the full amount of tax required under
sections 144.010 to 144.525 on or before the date prescribed therefor,
determined with regard to any extension of time for payment, due to
negligence or intentional disregard of rules and regulations, but without
intent to defraud, there shall be added to the tax an amount equal to
five percent of the deficiency. The director shall, upon request by a
taxpayer, apprise the taxpayer of the factual basis for the finding of
negligence, or the specific rules or regulations disregarded if the
director assesses a penalty under this subsection. Rules or regulations
which have been determined to be inconsistent with the laws of this
state, by either the courts of this state or the administrative hearing
commission, may not be cited as the basis for an addition to tax under
this section. If additions to tax are assessed under authority of this
subsection, additions to tax may not be assessed by the director under
authority of subsection 2 of this section.

4. Except in cases of fraud or evasion, if a person neglects or refuses
to make a return and payment as required by sections 144.010 to 144.525,
the director of revenue shall make an estimate based upon any information
in his possession or that may come into his possession of the amount of
the gross receipts of the delinquent for the period in respect to which
he failed to make return and payment, and upon the basis of said
estimated amount compute and assess the tax payable by the delinquent;
such estimate may be reconstructed for that period of time for which the
tax may be collected as prescribed by law.

5. Promptly thereafter, the director of revenue shall give to the
delinquent written notice of such estimated assessment, the notice to be
served personally or by certified or registered mail at his or its last
known address.

6. The penalties and additions to tax authorized under this section shall
be in addition to the interest provided for in this chapter.

7. The penalties or additions to tax authorized pursuant to this section
for all taxes on motor vehicles, trailers, motorcycles, mopeds,
motortricycles, boats, and outboard motors pursuant to subdivision (1) of
subsection 1 of section 144.020 and section 144.440 shall be doubled as
of November 1, 2003. (RSMo 1939 § 11426, A.L. 1941 p. 698, A.L. 1943 p.
1012, A.L. 1945 p. 1865, A.L. 1978 S.B. 661, A.L. 1979 S.B. 218, et al.,
A.L. 1986 S.B. 669, et al., A.L. 1994 S.B. 477, et al., A.L. 2003 H.B.
600)

Effective 7-1-03

Final decisions of the director under the provisions of this
chapter are reviewable by the filing of a petition with the
administrative hearing commission in the manner provided in section
621.050, RSMo; except that, notwithstanding the provisions of section
621.050, RSMo, to the contrary, such petition must be filed within sixty
days after the mailing or delivery of such decision, whichever is
earlier. (L. 1955 p. 833 § 1, A.L. 1961 p. 630, A.L. 1978 S.B. 661, A.L.
1994 S.B. 477, et al.)

(1980) Sales tax law established mandatory procedure for the assessment
of sales tax and state has no right to commence an action for taxes due
and payable until this procedure is exhausted, including administrative
and judicial review. Excel Drug Co., Inc. v. Mo. Dept. of Revenue (Mo.),
609 S.W.2d 404.

For the purpose of more efficiently securing the payment of and
accounting for the tax imposed by sections 144.010 to 144.510, the
director of revenue shall make, promulgate and enforce reasonable rules
and regulations for the administration and enforcement of the provisions
of sections 144.010 to 144.510. (RSMo 1939 § 11413, A.L. 1941 p. 698,
A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. I p. 553, A.L. 1955 p.
829, A.L. 1961 p. 633)

1. In order to permit sellers required to collect and report the
sales tax to collect the amount required to be reported and remitted, but
not to change the requirements of reporting or remitting tax or to serve
as a levy of the tax, and in order to avoid fractions of pennies, the
director of revenue shall establish brackets, showing the amounts of tax
to be collected on sales of specified amounts, which shall be applicable
to all taxable transactions.

2. In all instances where statements covering taxable purchases are
rendered to the taxpayer on a monthly or other periodic basis, the amount
of tax shall be determined by applying the applicable tax rate to the
taxable purchases represented on the statement, rounded to the nearest
whole cent, or by application of the brackets established by the director
of revenue, at the option of the retail vendor.

3. No vendor or seller shall knowingly charge or receive from a purchaser
as a sales tax any sum in excess of the sums provided for in this section.

4. A vendor may, at his option, determine the amount charged to and
received from each purchaser by use of a formula which applies the
applicable tax rate to each taxable purchase, rounded to the nearest
whole cent. The formula shall be uniformly and consistently applied to
all purchases similarly situated.

5. Amounts which a vendor charges to and receives from the purchaser in
accordance with this section shall not be includable in his gross
receipts if the amounts are separately charged or stated.

6. If sales tax for one or more local political subdivisions is owed by a
taxpayer pursuant to chapter 66, 67, 92, or 94, RSMo, and that taxpayer
remits less than all sales tax due for a filing period specified in
section 144.080, the director of revenue shall deposit the tax remitted
proportionately to each taxing jurisdiction in accordance with the
percentage that each such jurisdiction's share of the tax due for the
filing period bears to the total tax due from such taxpayer for such
period. The unpaid balance due along with penalties and interest shall be
similarly prorated among the state and all local jurisdictions for which
tax was due during the filing period for which an underpayment occurs.
The provisions of this subsection shall apply to all returns or
remittances relating to sales made on or after January 1, 1984. (L. 1961
p. 633, A.L. 1963 p. 195, A.L. 1965 p. 266, A.L. 1977 S.B. 344, A.L. 1978
S.B. 490, A.L. 1982 Adopted by Initiative, Proposition C, November 2,
1982, A.L. 1983 1st Ex. Sess. H.B. 10)

Effective 1-1-84

1. If the director of revenue believes that the collection of
any tax or any amount of tax required to be collected and paid under
sections 144.010 to 144.510 to the state by any itinerant seller or other
seller having no regularly established place of business, or by any
seller who the director of revenue has reason to believe is about to
discontinue business and dispose of his property or assets, will be
jeopardized by delay, he shall thereupon make a determination of such
amount of tax to be collected and paid under sections 144.010 to 144.510,
noting that fact upon such determination and the amount thereof shall be
immediately due and payable. Such person shall have the right to stay
collection and prevent the jeopardy assessment from becoming final by
filing, within ten days after the date of mailing or issuing the notice
of jeopardy assessment, a request for reassessment, accompanied by such
reasonable security as the director of revenue may deem necessary to
insure compliance with the provisions of sections 144.010 to 144.510.

2. If a request for reassessment, accompanied by the required security,
is filed within a ten-day period, the director of revenue shall
reconsider the assessment. The director of revenue's action on the
request for reassessment becomes final upon the expiration of thirty days
from the date when he mails notice of his action to the person, unless
within that thirty-day period such person files a petition for review
with the administrative hearing commission under section 144.261.

3. In the event that the security filed with the director is in cash, the
director shall deposit such security in the state general revenue fund
and such security shall be released to the taxpayer pursuant to sections
144.010 to 144.050 from funds appropriated by the general assembly for
such purpose. If appropriated funds are available, the commissioner of
administration and the state treasurer shall cause such refunds to be
paid within thirty days of the receipt of a warrant request for such
payment from the director of the department of revenue. (RSMo 1939 §
11450, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1978
S.B. 661, A.L. 1983 1st Ex. Sess. H.B. 10)

Effective 1-1-84

For the purpose of carrying out the provisions of sections
144.010 to 144.510, the director of revenue is hereby authorized and
empowered to demand of any agency or department of the state government,
or of any officer of any political subdivision of the state, any and all
information necessary to properly administer any and all provisions of
sections 144.010 to 144.510. (RSMo 1939 § 11415, A.L. 1941 p. 698, A.L.
1943 p. 1012, A.L. 1945 p. 1865)

The director of revenue shall keep a record of every tax,
interest, penalty, and security imposed, paid, or deposited under
sections 144.010 to 144.510. (RSMo 1939 § 11434, A.L. 1941 p. 698, A.L.
1943 p. 1012, A.L. 1945 p. 1865, A.L. 1983 1st Ex. Sess. H.B. 10)

Effective 1-1-84

Every person engaged in the business as defined in section
144.010 of this chapter in this state shall keep such records and books
as may be required by title 26, the United States Code, for federal
income tax purposes. Such books and records and other papers and
documents shall, at all times during business hours of the day, be
subject to inspection by the director of revenue or his duly authorized
agents and employees. Such books and records shall be preserved for a
period of at least three years, unless the director of revenue, in
writing, authorized their destruction or disposal at any earlier date.
(RSMo 1939 § 11421, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p.
1865, A.L. 1977 S.B. 367, A.L. 1986 S.B. 669, et al.)

For the purpose of ascertaining the correctness of any return or
for the purpose of determining the amount of tax due from any person, the
director of revenue or any employee of the director of revenue designated
in writing by the director of revenue, may hold investigations and
hearings concerning any matters covered by sections 144.010 to 144.510,
and may examine any books, papers, records or memoranda bearing upon such
sales by any such person and may require within the county where the
person resides or does business the attendance of such person or any
officer or employee of such person, or of any person having knowledge of
such sales, and may take testimony and require proof for his information.
In the conduct of any investigation or hearing, neither the director of
revenue nor any employee thereof shall be bound by the technical rules of
evidence and no informality in any proceeding, or in the manner of taking
testimony, shall invalidate any order, decision, rule or regulation made
or approved or confirmed by the director of revenue. The director of
revenue or any employee thereof holding such investigation shall have
power to administer oaths to such person or witnesses. (RSMo 1939 §
11422, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865)

No person shall be excused from testifying or from producing any
books, papers, records or memoranda in any investigation or upon any
hearing, when ordered to do so by the director of revenue or any employee
of the director of revenue, upon the ground that the testimony or
evidence, documentary or otherwise, may tend to incriminate him or
subject him to a criminal penalty, but no person shall be prosecuted or
subjected to any criminal penalty for or on account of any transaction
made or thing concerning which he may testify or produce evidence,
documentary or otherwise, before the director of revenue or employee of
the director of revenue; provided, that such immunity shall extend only
to a natural person who, in obedience to a subpoena, gives testimony
under oath or produces evidence, documentary or otherwise, under oath. No
person so testifying shall be exempt from prosecution and punishment for
perjury committed in so testifying. (RSMo 1939 § 11452, A.L. 1941 p. 698,
A.L. 1943 p. 1012, A.L. 1945 p. 1865)

If any person summoned as a witness by the director of revenue
or such employee of the director of revenue shall fail to obey such
summons or shall refuse to testify or answer any material question or
shall refuse to produce any book, record, paper or other data when
required so to do, he shall be deemed guilty of a misdemeanor and
punished as provided by law. (RSMo 1939 § 11423, A.L. 1941 p. 698, A.L.
1943 p. 1012, A.L. 1945 p. 1865)

1. In any case in which any assessment of tax, interest,
additions to tax or penalty imposed under sections 144.010 to 144.510 has
been made and has become final, the director of revenue may file for
record in the recorder's office of any county in which the taxpayer owing
such tax, interest, additions to tax or penalty resides, owns property or
has a place of business a certificate of lien specifying the amount of
the tax, additions to tax, interest or penalty due and the name of the
person liable for the same. Included in the assessment, the director
shall notify the taxpayer of the department's intent to file prior to the
filing of such certificate. Such notification shall contain an
explanation of the taxpayer's right to protest or contest such proposed
assessment. The director shall within twenty days after filing such
certificate notify the taxpayer by first class mail postage prepaid.

(1) The lien shall arise on the date such assessment becomes final and
shall be continuing and shall attach to real or personal property or
interest in real or personal property owned by the taxpayer or acquired
in any manner by the taxpayer after the filing of the certificate of
lien. Unless sooner released or discharged, the lien shall expire ten
years after the certificate of lien was filed, unless within such
ten-year period, the certificate of lien has been refiled by the director
of revenue with the recorder. Unless sooner released or discharged, a
timely refiled certificate of lien shall be treated as if filed on the
date of filing of the original certificate of lien and shall expire ten
years after the refiling. A certificate of lien may not be refiled more
than one time.

(2) If any taxpayer fails to pay any tax, interest, additions to tax or
penalties imposed by sections 144.010 to 144.525 when due and the
assessment for which has become final, the director may file for record
in the office of the clerk of the circuit court of any county in which
the taxpayer resides, or has a place of business, or owns property, a
certificate of lien specifying the amount of the tax, interest, additions
to tax and penalties due and the name of the liable taxpayer. The clerk
of the circuit court shall file such certificate and enter it in the
record of the circuit court for judgments and decrees under the procedure
prescribed for filing transcripts of judgments. If the taxpayer does not
reside, have a place of business or own property in the state of
Missouri, the director may file for record a certificate of delinquency
in the office of the clerk of the circuit court of Cole County. From the
time of the filing of the certificate of lien or certificate of
delinquency with the clerk of the circuit court, the amount of the tax,
interest, additions to tax and penalties specified therein shall have the
full force and effect of a default judgment of the circuit court until
satisfied. Execution shall issue at the request of the director of
revenue or his agent as is provided in the case of other judgments. No
exemption shall be allowed from the levy of an execution issued for such
delinquent tax, interest, additions to tax or penalties and no bond shall
be required of the director of revenue, his agent or of the sheriff
before making the levy.

(3) The remedies in this subsection are cumulative and in addition to
other collection methods given the director of revenue. No action taken
shall be construed as an election on the part of the state or any of its
officers to pursue any remedy or action hereunder to the exclusion of any
other remedy or action for which provision is made.

(4) If any certificate of lien has been erroneously or improvidently
filed, the taxpayer or any other person affected by the lien may notify
the director of revenue. The taxpayer or other affected person shall
provide the director with the reasons the filing of the certificate of
lien is erroneous or improvident as to such person (including that the
affected person's name or other identification is similar to the
taxpayer's) and a list of creditors with current addresses who are
affected by the department's action. Upon receipt of the creditor list,
reasons and verification of the erroneous or improvident filing, the
director shall release the lien as to the taxpayer or the affected
person, as necessary, and notify all creditors, stating the certificate
of lien was filed erroneously or improvidently. If the certificate of
lien was erroneously or improvidently filed after August 13, 1987, the
director shall forthwith make a determination in writing which shall
become a public record in the same place the certificate of lien is noted
under subsection 5 of this section that the same be expunged from the
record and give written notice thereof, duly certified, by certified mail
to the recorder of deeds in the county where the same is recorded and
upon receipt by the recorder of deeds of the certification the recorder
shall immediately cause such record to be expunged. The director shall
take whatever steps are necessary to ensure the lien is expunged. The
director shall pay a three-dollar fee charged by the recorder when an
erroneously or improvidently filed lien is expunged.

2. The lien imposed under subsection 1 of this section may be wholly or
partly released by filing for record in the office of the county recorder
a release thereof executed by the director of revenue upon payment of the
tax, interest, additions to tax and penalties or upon receipt by the
director of revenue of security sufficient to secure payment thereof, or
by final judgment holding such certificate of lien to have been
erroneously or improvidently imposed.

3. The director may release any part of the property subject to the lien
by filing with the county recorder a copy of the original lien document
and an affidavit containing a legal description of the property and
stating that the property is to be released from the lien. The county
recorder shall note the partial release in the same manner as provided in
section 443.090, RSMo. The release of any specific property shall not
affect in any manner other property subject to lien.

4. Each county recorder shall receive a fee of three dollars which shall
be charged for the filing of each certificate of lien and a fee of one
dollar and fifty cents for each release of lien filed for record. Such
amounts shall be paid to the county recorder from funds appropriated to
the department of revenue for that purpose. The county recorder shall be
reimbursed by presenting a statement, showing the number of certificates
and releases filed, to the department of revenue each calendar quarter.
The department of revenue is authorized to collect an additional penalty
from each taxpayer equal to the cost of filing a certificate of lien or
release of lien with respect to such taxpayer.

5. The director of revenue shall establish and maintain records for all
certificates of lien filed under this section. The director shall also
maintain records of all releases of lien filed under this section. The
provisions of section 32.057, RSMo, to the contrary notwithstanding, the
records prepared by the director under this section, to the extent such
information is or may be on file with the recorder, shall be open to
public inspection. Such records established and maintained by the
director shall not be the official record and are not conclusive evidence
of any liability of any taxpayer to this state.

6. If any action is taken by the director under the provisions of this
chapter; including, but not limited to, section 144.425, to alter or
abate any assessment upon which a judgment has been filed under the
provisions of subsection 1 of this section, the director is authorized to
file a modification or satisfaction of such judgment. (RSMo 1939 § 11435,
A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1985 H.B.
320, H.B. 717 & 741, A.L. 1988 H.B. 1335, A.L. 1992 H.B. 1155)

1. Any tax due and unpaid under the provisions of sections
144.010 to 144.510 shall constitute a debt due the state and in any case
of failure to pay the tax, or any portion thereof, or any penalty or
interest provided for in sections 144.010 to 144.510, when due, the
director of revenue in the name of the state may recover the amount of
such tax, penalty and interest by an action at law or other appropriate
judicial proceedings. The collection of such tax, penalty and interest
shall not be a bar to any prosecution under sections 144.010 to 144.510.

2. In every such action the writ of attachment may issue, and no bond
previous or subsequent to the issuance of said attachment shall be
required.

3. In every such action, a certificate by the director of revenue or his
agent showing the name of the person, the date and amount of the
assessment and the delinquency of the tax sued for, shall be prima facie
evidence of the levy of said tax, of the delinquency, of the liability of
the person and the nonpayment thereof, and of compliance by the director
of revenue with all the provisions of sections 144.010 to 144.510 with
respect to the computation and levy of this tax, and in every such suit
the process, pleadings and practice shall be, except as in sections
144.010 to 144.510 otherwise specifically provided, according to the
provisions of the code of civil procedure. (RSMo 1939 § 11437, A.L. 1941
p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865)

(1974) Contention by state that merchant becomes trustee for the state of
money due was rejected by court. State v. Kerr (Mo.), 509 S.W.2d 61.

Except as in sections 144.010 to 144.510 otherwise provided, all
suits for taxes herein required to be filed shall be filed in the county
wherein the person resides or has a place of business or agent for the
transaction of business in this state or where he or it may be found. If
such suit be by attachment it shall be brought in the county wherein the
property attached is located. Such suits may be heard by circuit or
associate circuit judges in the same manner as other civil cases, with
the amount of the tax being the amount demanded for purposes of
determining whether the case may be heard and determined by an associate
circuit judge without special assignment. (RSMo 1939 § 11438, A.L. 1941
p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1978 H.B. 1634)

Effective 1-2-79

It is expressly provided that the foregoing remedies of the
state shall be cumulative, and that no action taken by the director of
revenue or the attorney general shall be construed to be an election on
the part of the state or any of its officers to pursue any remedy
hereunder to the exclusion of any other remedy for which provision is
made in sections 144.010 to 144.510. (RSMo 1939 § 11439, A.L. 1941 p.
698, A.L. 1943 p. 1012, A.L. 1945 p. 1865)

The director of revenue may certify under seal to the attorney
general the names and addresses of all persons required to remit any tax,
interest and penalties under the provisions of sections 144.010 to
144.510 for the preceding calendar month, or calendar quarter, who are
delinquent in the payment of said tax, interest and penalties, together
with the amount due from each delinquent and it shall be the duty of the
attorney general, and, upon his request, the duty of each prosecuting and
circuit attorney to forthwith institute and prosecute suits for the
collection thereof as herein provided. (RSMo 1939 § 11446, A.L. 1941 p.
698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. I p. 553)

1. Upon the filing by a taxpayer in the office of the attorney
general of a verified declaration that the taxpayer has insufficient
funds available to pay sales taxes due and owed to the state which have
been certified by the department of revenue to the attorney general as
delinquent and of an offer to compromise such taxes and pay the amount
agreed upon, the attorney general may agree to compromise the taxes and
accept payment in an amount which shall be not less than seventy-five
percent of the total amount of the taxes due and owed. The amount agreed
upon in the compromise shall be paid within three years from the date of
the agreement.

2. The taxpayer so desiring to compromise payment of taxes shall furnish
all information requested by the attorney general in order that it may be
determined that the offer of compromise is made in good faith. (L. 1982
S.B. 471 § 1)

1. As part of the consideration for compromise of the taxes, the
taxpayer shall agree:

(1) That the state of Missouri shall keep all payments and other credits
made to the accounts for the periods covered by the offer; and

(2) That the state of Missouri shall keep any and all amounts to which
the taxpayer may otherwise be entitled under the tax laws of this state,
due through overpayments of any tax or other liability, including
interest and penalties, for periods ending before or within or as of the
end of the calendar year in which the offer is accepted (and which are
not in excess of the difference between the liability sought to be
compromised and the amount offered).

2. Payments made under the terms of an offer to compromise shall be
applied first to tax and penalty, in that order, due for the earliest
taxable period, then to tax and penalty, in that order, for each
succeeding taxable period with no amount to be allocated to interest
until the liabilities for taxes and penalties for all taxable periods
sought to be compromised have been satisfied.

3. If an agreement of compromise is reached, the taxpayer shall have no
right to contest in court or otherwise the amount of the liability sought
to be compromised. If there is a default in payment of any lump sum
amount agreed upon or of any installment of principal or interest due
under terms of the agreement of compromise, the state of Missouri, at the
option of the attorney general and the director of revenue, may:

(1) Proceed immediately by suit to collect the entire unpaid balance of
the amount agreed upon; or

(2) Proceed immediately by suit to collect as liquidated damages an
amount equal to the liability sought to be compromised, minus any
deposits already received under the terms of the agreement, with interest
on the unpaid balance at the maximum annual rate, from the date of
default; or

(3) Disregard the amount of the offer and apply all amounts previously
deposited under the agreement against the amount of the liability sought
to be compromised and, without further notice of any kind, assess and
collect by levy or suit the balance of the liability.

4. If compromise of delinquent taxes is agreed upon, any statute of
limitations applicable to the assessment and collection of the liability
sought to be compromised shall be tolled during the period commencing at
the time agreement is reached and ending one year after any lump sum
payment of the amount agreed upon is due pursuant to the agreement, or
one year after the last installment payment of the amount agreed upon is
due pursuant to the agreement, as the case may be. (L. 1982 S.B. 471 § 2)

The expenses necessarily incurred by the director of revenue,
and by the attorney general, and his assistants in charge of litigation
that may arise hereunder, shall be paid out of appropriations made by the
general assembly for that purpose. (RSMo 1939 § 11447, A.L. 1941 p. 698,
A.L. 1943 p. 1012, A.L. 1945 p. 1865)

1. In addition to all other taxes now or hereafter levied and
imposed upon every person for the privilege of using the highways or
waterways of this state, there is hereby levied and imposed a tax
equivalent to four percent of the purchase price, as defined in section
144.070, which is paid or charged on new and used motor vehicles,
trailers, boats, and outboard motors purchased or acquired for use on the
highways or waters of this state which are required to be registered
under the laws of the state of Missouri.

2. At the time the owner of any such motor vehicle, trailer, boat, or
outboard motor makes application to the director of revenue for an
official certificate of title and the registration of the same as
otherwise provided by law, he shall present to the director of revenue
evidence satisfactory to the director showing the purchase price paid by
or charged to the applicant in the acquisition of the motor vehicle,
trailer, boat, or outboard motor, or that the motor vehicle, trailer,
boat, or outboard motor is not subject to the tax herein provided and, if
the motor vehicle, trailer, boat, or outboard motor is subject to the tax
herein provided, the applicant shall pay or cause to be paid to the
director of revenue the tax provided herein.

3. In the event that the purchase price is unknown or undisclosed, or
that the evidence thereof is not satisfactory to the director of revenue,
the same shall be fixed by appraisement by the director.

4. No certificate of title shall be issued for such motor vehicle,
trailer, boat, or outboard motor unless the tax for the privilege of
using the highways or waters of this state has been paid or the vehicle,
trailer, boat, or outboard motor is registered under the provisions of
subsection 5 of this section.

5. The owner of any motor vehicle, trailer, boat, or outboard motor which
is to be used exclusively for rental or lease purposes may pay the tax
due thereon required in section 144.020 at the time of registration or in
lieu thereof may pay a use tax as provided in sections 144.010, 144.020,
144.070 and 144.440. A use tax shall be charged and paid on the amount
charged for each rental or lease agreement while the motor vehicle,
trailer, boat, or outboard motor is domiciled in the state. If the owner
elects to pay upon each rental or lease, he shall make an affidavit to
that effect in such form as the director of revenue shall require and
shall remit the tax due at such times as the director of revenue shall
require.

6. In the event that any leasing company which rents or leases motor
vehicles, trailers, boats, or outboard motors elects to collect a use
tax, all of its lease receipt would be subject to the use tax, regardless
of whether or not the leasing company previously paid a sales tax when
the vehicle, trailer, boat, or outboard motor was originally purchased.

7. The provisions of this section, and the tax imposed by this section,
shall not apply to manufactured homes. (RSMo 1939 § 11412, A.L. 1941 p.
698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1947 V. II p. 431, A.L.
1951 p. 854, A.L. 1961 p. 627, A.L. 1963 p. 195, A.L. 1975 S.B. 92, A.L.
1982 Adopted by Initiative, Proposition C, November 2, 1982, A.L. 1985
H.B. 280, et al. merged with S.B. 152)

Effective 4-1-86 (H.B. 280, et al.) 12-31-85 (S.B. 152)

In order to avoid double taxation under the provisions of
sections 144.010 to 144.510, any person who purchases a motor vehicle,
trailer, manufactured home, boat, or outboard motor in any other state
and seeks to register or obtain a certificate of title for it in this
state shall be credited with the amount of any sales tax or use tax shown
to have been previously paid by him on the purchase price of such motor
vehicle, trailer, boat, or outboard motor in such other state. The tax
imposed by section 144.440 shall not apply:

(1) To motor vehicles, trailers, boats, or outboard motors on account of
which the sales tax provided by sections 144.010 to 144.510 shall have
been paid;

(2) To motor vehicles, trailers, boats, or outboard motors brought into
this state by a person moving any such vehicle, trailer, boat, or
outboard motor into Missouri from another state who shall have registered
and in good faith regularly operated any such motor vehicle, trailer,
boat, or outboard motor in such other state at least ninety days prior to
the time it is registered in this state;

(3) To motor vehicles, trailers, boats, or outboard motors acquired by
registered dealers for resale;

(4) To motor vehicles, trailers, boats, or outboard motors purchased,
owned or used by any religious, charitable or eleemosynary institution
for use in the conduct of regular religious, charitable or eleemosynary
functions and activities;

(5) To motor vehicles owned and used by religious organizations in
transferring pupils to and from schools supported by such organization;

(6) Where the motor vehicle, trailer, boat, or outboard motor has been
acquired by the applicant for a certificate of title therefor by gift or
under a will or by inheritance, and the tax hereby imposed has been paid
by the donor or decedent;

(7) To any motor vehicle, trailer, boat, or outboard motor owned or used
by the state of Missouri or any other political subdivision thereof, or
by an educational institution supported by public funds; or

(8) To farm tractors. (RSMo 1939 § 11412, A.L. 1941 p. 698, A.L. 1943 p.
1012, A.L. 1945 p. 1865, A.L. 1947 V. II p. 431, A.L. 1951 p. 854, A.L.
1961 p. 627, A.L. 1985 H.B. 280, et al. merged with S.B. 152)

Effective 12-31-85 (S.B. 152) 4-1-86 (H.B. 280, et al.)

The tax imposed by section 144.440 on motor vehicles and
trailers is levied for the purpose of providing revenue to be used by
this state to defray in whole or in part the cost of constructing,
widening, reconstructing, maintaining, resurfacing and repairing the
public highways, roads and streets of this state, and the cost and
expenses incurred in the administration and enforcement of sections
144.440 to 144.455, and for no other purpose whatsoever, and all revenue
collected or received by the director of revenue from the tax imposed by
section 144.440 on motor vehicles and trailers shall be promptly
deposited in the state treasury to the credit of the state highway
department fund. (L. 1951 p. 854 § 144.451, A.L. 1959 S.B. 80, A.L. 1985
H.B. 280, et al.)

Effective 4-1-86

Nothing contained in sections 144.010 to 144.510 shall prevent
the levying or collecting by any city, town, or village of any tax or
license now authorized by any ordinance of such city, town or village.
(RSMo 1939 § 11455, A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p.
1865)

Any person required under sections 144.010 to 144.510 to pay any
tax, or required by sections 144.010 to 144.510 to make a return, keep
any records or supply any information, who with intent to defraud
willfully fails to pay such tax, make such return, keep such records or
supply such information, at the time or times required by law, shall, in
addition to other penalties provided by law and, upon conviction thereof,
be fined not more than ten thousand dollars, or be imprisoned in the
county jail for not more than one year or by not less than two nor more
than five years in the state penitentiary or by both fine and
imprisonment together with the cost of prosecution. (RSMo 1939 § 11442,
A.L. 1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865, A.L. 1974 H.B.
1288)

Any person who willfully makes a false return, or who willfully
makes a false statement in any return under oath or otherwise filed with
or transmitted to the director of revenue relating to the amount of any
sales or tax due under sections 144.010 to 144.510, shall, in addition to
other penalties provided by law and, upon conviction thereof, be fined
not more than ten thousand dollars, or be imprisoned in the county jail
for not more than one year or by not less than two nor more than five
years in the state penitentiary or by both fine and imprisonment together
with the cost of prosecution. (RSMo 1939 § 11433, A.L. 1941 p. 698, A.L.
1943 p. 1012, A.L. 1945 p. 1865, A.L. 1974 H.B. 1288)

If fraud or evasion on the part of a person is discovered by the
director of revenue, he shall determine the amount of which the state has
been defrauded, shall add to the amount so determined a penalty equal to
twenty-five percent thereof, and shall assess the same against the
person. The amount so assessed shall be immediately due and payable;
provided, however, that the director of revenue shall promptly thereafter
give to said person written notice of such assessment and penalty, which
notice shall be served personally on such person, or by registered mail.
Such person shall have the right to petition for hearing of such
assessment, as is provided herein. (RSMo 1939 § 11433, A.L. 1941 p. 698,
A.L. 1943 p. 1012, A.L. 1945 p. 1865)

Any person, officer, agent or employee of any firm, corporation,
association, joint adventure, estate, trust, receiver or syndicate
violating any of the provisions of sections 144.010 to 144.510 shall be
deemed guilty of a misdemeanor, and, where punishment is not otherwise
provided for herein, shall be punished for such. (RSMo 1939 § 11444, A.L.
1941 p. 698, A.L. 1943 p. 1012, A.L. 1945 p. 1865)

In addition to all other penalties, interest and remedies as
prescribed in this chapter, the director of revenue may petition any
circuit court in the state to issue a writ of attachment as provided for
in chapter 521, RSMo, or other injunctive relief against any business or
individual engaged in making sales at retail, including transient
employers as defined in chapter 285, RSMo, if such business or individual
made sales at retail at any time after receiving notice from the director
that their retail sales tax license has been revoked. The provisions of
this section shall also apply to any business or individual, including
transient employers as defined in chapter 285, RSMo, which has not
previously obtained a retail sales license but is discovered by the
director to be making sales at retail until such business or individual
comes into full compliance with the law. (L. 1991 H.B. 80 § 1)

Notwithstanding the provisions of section 144.030 to the
contrary, sales by institutions of higher education in retail
establishments, including, but not limited to, those commonly known as
bookstores shall be subject to sales taxes as provided in this chapter.
(L. 1992 H.B. 1155 § 1 merged with S.B. 716 § 1)

CROSS REFERENCE: Textbooks, sales and use tax exemption, exceptions, RSMo
144.517

In addition to the exemptions granted under the provisions of
section 144.030, there is hereby exempted from any sales and use taxes
levied by the state and any sales taxes levied by any political
subdivision of this state as otherwise authorized by law any charges for
admissions as defined in section 144.010, to any of the events of the
United States Olympic Festival to be held in 1994 in the state of
Missouri. (L. 1993 S.B. 155 § 2)

In addition to the exemptions granted pursuant to section
144.030, there shall also be exempted from state sales and use taxes all
sales of textbooks, as defined by section 170.051, RSMo, when such
textbook is purchased by a student who possesses proof of current
enrollment at any Missouri public or private university, college or other
postsecondary institution of higher learning offering a course of study
leading to a degree in the liberal arts, humanities or sciences or in a
professional, vocational or technical field, provided that the books
which are exempt from state sales tax are those required or recommended
for a class. Upon request the institution or department must provide at
least one list of textbooks to the bookstore each semester. Alternately,
the student may provide to the bookstore a list from the instructor,
department or institution of his or her required or recommended
textbooks. This exemption shall not apply to any locally imposed sales or
use tax. (L. 1998 S.B. 936 § 1, A.L. 1999 S.B. 33)

In addition to the exemptions granted pursuant to section
144.030, there is hereby specifically exempted from the provisions of
sections 66.600 to 66.635, RSMo, sections 67.391 to 67.395, RSMo,
sections 67.500 to 67.545, RSMo, section 67.547, RSMo, sections 67.550 to
67.594, RSMo, sections 67.665 to 67.667, RSMo, sections 67.671 to 67.685,
RSMo, sections 67.700 to 67.727, RSMo, section 67.729, RSMo, sections
67.730 to 67.739, RSMo, sections 67.1000 to 67.1012, RSMo, section
82.850, RSMo, sections 92.325 to 92.340, RSMo, sections 92.400 to 92.421,
RSMo, sections 94.500 to 94.570, RSMo, section 94.577, RSMo, sections
94.600 to 94.655, RSMo, section 94.660, RSMo, sections 94.700 to 94.755,
RSMo, sections 94.800 to 94.825, RSMo, section 94.830, RSMo, sections
94.850 to 94.857, RSMo, sections 94.870 to 94.881, RSMo, section 94.890,
RSMo, sections 144.010 to 144.525, and sections 144.600 to 144.761,
sections 190.335 to 190.337, RSMo, sections 238.235 and 238.410, RSMo,
section 321.242, RSMo, section 573.505, RSMo, and section 644.032, RSMo,
and from the computation of the tax levied, assessed or payable pursuant
to sections 66.600 to 66.635, RSMo, sections 67.391 to 67.395, RSMo,
sections 67.500 to 67.545, RSMo, section 67.547, RSMo, sections 67.550 to
67.594, RSMo, sections 67.665 to 67.667, RSMo, sections 67.671 to 67.685,
RSMo, sections 67.700 to 67.727, RSMo, section 67.729, RSMo, sections
67.730 to 67.739, RSMo, sections 67.1000 to 67.1012, RSMo, section
82.850, RSMo, sections 92.325 to 92.340, RSMo, sections 92.400 to 92.421,
RSMo, sections 94.500 to 94.570, RSMo, section 94.577, RSMo, sections
94.600 to 94.655, RSMo, section 94.660, RSMo, sections 94.700 to 94.755,
RSMo, sections 94.800 to 94.825, RSMo, section 94.830, RSMo, sections
94.850 to 94.857, RSMo, sections 94.870 to 94.881, RSMo, section 94.890,
RSMo, sections 144.010 to 144.525, sections 144.600 to 144.761, sections
190.335 to 190.337, RSMo, sections 238.235 and 238.410, RSMo, section
321.242, RSMo, section 573.505, RSMo, and section 644.032, RSMo, machines
or parts for machines used in a commercial, coin-operated amusement and
vending business where sales tax is paid on the gross receipts derived
from the use of commercial, coin-operated amusement and vending machines.
(L. 1999 H.B. 516, A.L. 2005 H.B. 186 merged with S.B. 431)

Effective 7-14-05 (S.B. 431) 8-28-05 (H.B. 186)

Notwithstanding any other provision of law, the amount of any
state and local sales or use taxes due on the purchase of a motor
vehicle, trailer, boat or outboard motor required to be registered under
the provisions of sections 301.001 to 301.660, RSMo, and sections 306.010
to 306.900, RSMo, shall be computed on the rate of such taxes in effect
on the date the purchaser submits application for a certificate of
ownership to the director of revenue; except that, in the case of a sale
at retail, of an outboard motor by a retail business which is not
required to be registered under the provisions of section 301.251, RSMo,
the amount of state and local sales and use taxes due shall be computed
on the rate of such taxes in effect as of the calendar date of the retail
sale. (L. 1987 S.B. 3 § 1)

This law may be cited as the "Compensating Use Tax Law". (L.
1959 H.B. 35 § 1)

The following words and phrases as used in sections 144.600 to
144.745 mean and include:

(1) "Calendar quarter", the period of three consecutive calendar months
ending on March thirty-first, June thirtieth, September thirtieth or
December thirty-first;

(2) "Engages in business activities within this state" includes:

(a) Purposefully or systematically exploiting the market provided by this
state by any media-assisted, media-facilitated, or media-solicited means,
including, but not limited to, direct mail advertising, distribution of
catalogs, computer-assisted shopping, telephone, television, radio, or
other electronic media, or magazine or newspaper advertisements, or other
media; or

(b) Being owned or controlled by the same interests which own or control
any seller engaged in the same or similar line of business in this state;
or

(c) Maintaining or having a franchisee or licensee operating under the
seller's trade name in this state if the franchisee or licensee is
required to collect sales tax pursuant to sections 144.010 to 144.525; or

(d) Soliciting sales or taking orders by sales agents or traveling
representatives;

(3) "Maintains a place of business in this state" includes maintaining,
occupying, or using, permanently or temporarily, directly or indirectly,
or through a subsidiary, or agent, by whatever name called, an office,
place of distribution, sales or sample room or place, warehouse or
storage place, or other place of business;

(4) "Person", any individual, firm, copartnership, joint venture,
association, corporation, municipal or private, and whether organized for
profit or not, state, county, political subdivision, state department,
commission, board, bureau or agency, except the state transportation
department, estate, trust, business trust, receiver or trustee appointed
by the state or federal court, syndicate, or any other group or
combination acting as a unit, and the plural as well as the singular
number;

(5) "Purchase", the acquisition of the ownership of, or title to,
tangible personal property, through a sale, as defined herein, for the
purpose of storage, use or consumption in this state;

(6) "Purchaser", any person who is the recipient for a valuable
consideration of any sale of tangible personal property acquired for use,
storage or consumption in this state;

(7) "Sale", any transfer, barter or exchange of the title or ownership of
tangible personal property, or the right to use, store or consume the
same, for a consideration paid or to be paid, and any transaction whether
called leases, rentals, bailments, loans, conditional sales or otherwise,
and notwithstanding that the title or possession of the property or both
is retained for security. For the purpose of this law the place of
delivery of the property to the purchaser, user, storer or consumer is
deemed to be the place of sale, whether the delivery be by the vendor or
by common carriers, private contractors, mails, express, agents,
salesmen, solicitors, hawkers, representatives, consignors, peddlers,
canvassers or otherwise;

(8) "Sales price", the consideration including the charges for services,
except charges incident to the extension of credit, paid or given, or
contracted to be paid or given, by the purchaser to the vendor for the
tangible personal property, including any services that are a part of the
sale, valued in money, whether paid in money or otherwise, and any amount
for which credit is given to the purchaser by the vendor, without any
deduction therefrom on account of the cost of the property sold, the cost
of materials used, labor or service cost, losses or any other expenses
whatsoever, except that cash discounts allowed and taken on sales shall
not be included and "sales price" shall not include the amount charged
for property returned by customers upon rescission of the contract of
sales when the entire amount charged therefor is refunded either in cash
or credit or the amount charged for labor or services rendered in
installing or applying the property sold, the use, storage or consumption
of which is taxable pursuant to sections 144.600 to 144.745. In
determining the amount of tax due pursuant to sections 144.600 to
144.745, any charge incident to the extension of credit shall be
specifically exempted;

(9) "Selling agent", every person acting as a representative of a
principal, when such principal is not registered with the director of
revenue of the state of Missouri for the collection of the taxes imposed
pursuant to sections 144.010 to 144.525 or sections 144.600 to 144.745
and who receives compensation by reason of the sale of tangible personal
property of the principal, if such property is to be stored, used, or
consumed in this state;

(10) "Storage", any keeping or retention in this state of tangible
personal property purchased from a vendor, except property for sale or
property that is temporarily kept or retained in this state for
subsequent use outside the state;

(11) "Tangible personal property", all items subject to the Missouri
sales tax as provided in subdivisions (1) and (3) of section 144.020;

(12) "Taxpayer", any person remitting the tax or who should remit the tax
levied by sections 144.600 to 144.745;

(13) "Use", the exercise of any right or power over tangible personal
property incident to the ownership or control of that property, except
that it does not include the temporary storage of property in this state
for subsequent use outside the state, or the sale of the property in the
regular course of business;

(14) "Vendor", every person engaged in making sales of tangible personal
property by mail order, by advertising, by agent or peddling tangible
personal property, soliciting or taking orders for sales of tangible
personal property, for storage, use or consumption in this state, all
salesmen, solicitors, hawkers, representatives, consignees, peddlers or
canvassers, as agents of the dealers, distributors, consignors,
supervisors, principals or employers under whom they operate or from whom
they obtain the tangible personal property sold by them, and every person
who maintains a place of business in this state, maintains a stock of
goods in this state, or engages in business activities within this state
and every person who engages in this state in the business of acting as a
selling agent for persons not otherwise vendors as defined in this
subdivision. Irrespective of whether they are making sales on their own
behalf or on behalf of the dealers, distributors, consignors,
supervisors, principals or employers, they must be regarded as vendors
and the dealers, distributors, consignors, supervisors, principals or
employers must be regarded as vendors for the purposes of sections
144.600 to 144.745. A person shall not be considered a vendor for the
purposes of sections 144.600 to 144.745 if all of the following apply:

(a) The person's total gross receipts did not exceed five hundred
thousand dollars in this state, or twelve and one-half million dollars in
the entire United States, in the immediately preceding calendar year;

(b) The person maintains no place of business in this state; and

(c) The person has no selling agents in this state. (L. 1959 H.B. 35 § 3,
A.L. 1961 p. 623, A.L. 1969 p. 78, A.L. 1974 H.B. 1593, A.L. 1990 H.B.
960, A.L. 1994 H.B. 1578, A.L. 1999 H.B. 139)

1. A tax is imposed for the privilege of storing, using or
consuming within this state any article of tangible personal property
purchased on or after the effective date of sections 144.600 to 144.745
in an amount equivalent to the percentage imposed on the sales price in
the sales tax law in section 144.020. This tax does not apply with
respect to the storage, use or consumption of any article of tangible
personal property purchased, produced or manufactured outside this state
until the transportation of the article has finally come to rest within
this state or until the article has become commingled with the general
mass of property of this state.

2. Every person storing, using or consuming in this state tangible
personal property is liable for the tax imposed by this law, and the
liability shall not be extinguished until the tax is paid to this state,
but a receipt from a vendor authorized by the director of revenue under
the rules and regulations that he prescribes to collect the tax, given to
the purchaser in accordance with the provisions of section 144.650,
relieves the purchaser from further liability for the tax to which
receipt refers. (L. 1959 H.B. 35 § 4, A.L. 1961 p. 623, A.L. 1994 H.B.
1578)

(1977) Held, a period of three days from time of delivery in Missouri
until an aircraft was put into service in interstate commerce was a
sufficient "taxable moment" to authorize imposition of a use tax, held
further that the phrase "solely outside the state" is not synonymous with
"use which is wholly interstate in character". Management Services, Inc.
v. Spradling (Mo.), 547 S.W.2d 466.

(1994) Where legislature did not expressly exempt foreign insurance
companies from use tax, the provisions of section 148.340, RSMo, that
provide for the imposition of tax on premiums received by foreign
insurance companies in lieu of all other taxes, do not exempt foreign
insurance companies from use tax liability. Prudential Insurance Company
of America v. Director of Revenue, 885 S.W.2d 337 (Mo. en banc).

Notwithstanding the provisions of section 144.655, at the time
the owner of any new or used boat or boat motor which was acquired after
December 31, 1979, in a transaction subject to use tax under the Missouri
use tax law makes application to the director of revenue for the
registration of the boat or boat motor, he shall present to the director
of revenue evidence satisfactory to the director of revenue showing the
purchase price, exclusive of any charge incident to the extension of
credit, paid by or charged to the applicant in the acquisition of the
boat or boat motor, or that no sales or use tax was incurred in its
acquisition, and, if sales or use tax was incurred in its acquisition,
that the same has been paid, or the applicant shall pay or cause to be
paid to the director of revenue the use tax provided by the Missouri use
tax law in addition to the registration fees now or hereafter required
according to law, and the director of revenue shall not issue a
registration for any new or used boat or boat motor subject to use tax as
provided in the Missouri use tax law until the tax levied for the use of
the same under sections 144.600 to 144.748 has been paid. (L. 1979 H.B.
59, A.L. 1994 H.B. 1578)

CROSS REFERENCE: Registration of boats, RSMo 306.030

There are specifically exempted from the taxes levied in
sections 144.600 to 144.745:

(1) Property, the storage, use or consumption of which this state is
prohibited from taxing pursuant to the constitution or laws of the United
States or of this state;

(2) Property, the gross receipts from the sale of which are required to
be included in the measure of the tax imposed pursuant to the Missouri
sales tax law;

(3) Tangible personal property, the sale or other transfer of which, if
made in this state, would be exempt from or not subject to the Missouri
sales tax pursuant to the provisions of subsection 2 of section 144.030;

(4) Motor vehicles, trailers, boats, and outboard motors subject to the
tax imposed by section 144.440;

(5) Tangible personal property which has been subjected to a tax by any
other state in this respect to its sales or use; provided, if such tax is
less than the tax imposed by sections 144.600 to 144.745, such property,
if otherwise taxable, shall be subject to a tax equal to the difference
between such tax and the tax imposed by sections 144.600 to 144.745;

(6) Tangible personal property held by processors, retailers, importers,
manufacturers, wholesalers, or jobbers solely for resale in the regular
course of business;

(7) Personal and household effects and farm machinery used while an
individual was a bona fide resident of another state and who thereafter
became a resident of this state, or tangible personal property brought
into the state by a nonresident for his own storage, use or consumption
while temporarily within the state. (L. 1959 H.B. 35 § 5, A.L. 1961 p.
623, A.L. 1985 H.B. 280, et al., A.L. 1986 H.B. 1554 Revision, A.L. 2003
S.B. 11, A.L. 2004 H.B. 795, et al. merged with H.B. 1182)

Effective 6-23-04 (H.B. 1182) 7-02-04 (H.B. 795, et al.)

CROSS REFERENCE: Economy rate telephone service exemption, RSMo 660.149

(1962) Section 144.615 specifically exempts motor vehicles subject to the
motor vehicle use tax from the compensating use tax law and the exemption
extends to the motor vehicle not just to certain transactions pertaining
to the motor vehicle. Federhofer, Inc. v. Morris (Mo.), 364 S.W.2d 524.

(1994) Where marketer purchased packing materials to be used in shipping
merchandise sold through parties or catalog sales and shipping
demonstrator kits to independent contractors, packing materials which
were used to assure marketer and customer that merchandise would arrive
in good condition were exempt from sales and use taxes as property held
solely for resale. House of Lloyd v. Director of Revenue, 884 S.W.2d 271
(Mo. en banc).

1. For purposes of section 144.440 and sections 144.600 to
144.745, and the taxes imposed thereby, the definition of "storing",
"using" or "consuming" shall not be construed to include any of the
following:

(1) The transfer by one corporation of substantially all of its tangible
personal property to another corporation pursuant to a merger or
consolidation effected under the laws of the state of Missouri or any
other jurisdiction;

(2) The transfer of tangible personal property incident to the
liquidation or cessation to a taxpayer's trade or business, conducted in
proprietorship, partnership or corporate form, except to the extent any
transfer is made in the ordinary course of the taxpayer's trade or
business;

(3) The transfer of tangible personal property to a corporation solely in
exchange for its stock or securities;

(4) The transfer of tangible personal property to a corporation by a
shareholder as a contribution to the capital of the transferee
corporation;

(5) The transfer of tangible personal property to a partnership solely in
exchange for a partnership interest therein;

(6) The transfer of tangible personal property by a partner as a
contribution to the capital of the transferee partnership;

(7) The transfer of tangible personal property by a corporation to one or
more of its shareholders as a dividend, return of capital, distribution
in the partial or complete liquidation of the corporation or distribution
in redemption of the shareholder's interest therein;

(8) The transfer of tangible personal property by a partnership to one or
more of its partners as a current distribution, return of capital or
distribution in the partial or complete liquidation of the partnership or
of the partner's interest therein.

2. The assumption of liabilities of the transferor by the transferee
incident to any of the transactions enumerated in subdivisions (1)
through (8) of subsection 1 of this section, shall not disqualify the
transfer from the exclusion described herein provided such liability
assumption is related to the property transferred and, further provided,
that the assumption does not have as its principal purpose the avoidance
of Missouri sales or use tax. (L. 1984 H.B. 1533, et al.)

For the purpose of the proper administration of sections 144.600
to 144.745 and to prevent evasion of the tax and the duty to collect the
tax, it shall be presumed that tangible personal property sold by any
vendor for delivery in this state or transportation to this state is sold
for storage, use or consumption in this state unless the vendor takes
from the purchaser a certificate signed by and bearing the name and
address of the purchaser to the effect that the property was purchased
for resale, and it shall also be presumed that tangible personal property
shipped, mailed, expressed, transported or brought to this state by the
purchaser was purchased from a vendor after the effective date of this
law for storage, use or consumption in this state. (L. 1959 H.B. 35 § 11)

To secure the payment of the tax, interest and penalties, which
may become due from a vendor as provided in sections 144.600 to 144.745,
the director of revenue may, where necessary to secure the payment of the
tax, interest, and penalties require all vendors to file a bond or a
letter of credit in an amount to be determined by the director, under the
same requirements as provided in section 144.087. (L. 1959 H.B. 35 § 8,
A.L. 1986 S.B. 669, et al.)

1. Every vendor shall designate with the director of revenue an
agent for service within this state for the purpose of enforcing sections
144.600 to 144.745. If a vendor fails to designate with the director of
revenue an agent for service within this state, the doing of business as
a vendor as defined herein shall be deemed

(1) An agreement by him that he, his executor, administrator or other
legal representative shall be subject to the jurisdiction of the courts
of this state in all civil actions and proceedings brought against him,
his executor, administrator or other legal representative by the state
for the enforcement of this section in connection with such business;

(2) An appointment by him, his executor, administrator or other legal
representative of the secretary of state of Missouri as his lawful
attorney and agent upon whom may be served all process in suits
pertaining to such actions and proceedings;

(3) An agreement by the vendor that any process in any suit so served
shall be of the same legal force and validity as if personally served in
this state.

2. Service of process under this section shall be made by delivering a
copy of the summons, with a copy of the petition attached, to the
secretary of state of Missouri at his office or, in his absence, to the
deputy secretary of state at his office, and the service shall be
sufficient service upon the nonresident vendor.

3. The secretary of state shall immediately mail to the defendant, by
restricted registered mail, addressed to the defendant at his last known
address, residence or place of abode a notice of the service and a copy
of the process and petition. (L. 1959 H.B. 35 § 13, A.L. 1961 p. 630)

Every vendor making a sale of tangible personal property for the
purpose of storage, use or consumption in this state shall collect from
the purchaser an amount equal to the percentage on the sale price imposed
by the sales tax law in section 144.020 and give the purchaser a receipt
therefor. The required amount of the tax collected by the vendor from the
purchaser shall be shown separately upon the sales slip or other evidence
of sale. If a vendor is a selling agent as defined in section 144.605,
and receives compensation by reason of a sale made pursuant to an order
given directly to his principal by the purchaser, of which the selling
agent had no knowledge at the time of the sale, and in which the selling
agent did not actively or inactively participate, the selling agent shall
be relieved of all liability for the collection and remittance of the
taxes imposed under sections 144.600 to 144.745. Furthermore, if payment
is made by the purchaser directly to the principal and the selling agent
is unable to collect the tax from the purchaser, the selling agent will
be relieved from all liability for the collection of the tax imposed
under sections 144.600 to 144.745 from the purchaser. Selling agents may
avoid all responsibility for collection of the taxes imposed under
sections 144.600 to 144.745, if their principal is a vendor registered
with the director of revenue for the collection of such taxes. (L. 1959
H.B. 35 § 7, A.L. 1961 p. 623, A.L. 1990 H.B. 960)

Effective 10-1-90

Every taxpayer subject to the tax imposed by this law shall keep
and preserve suitable records and other books and accounts necessary to
determine the amount of tax for which he is liable under the provisions
of this law. Every taxpayer shall preserve the books and records for a
period of three years unless the director of revenue, in writing,
authorizes their destruction at an earlier date. The books and records
shall be open for examination at any time by the director of revenue or
his agent during the business hours of the day. (L. 1959 H.B. 35 § 21,
A.L. 1986 S.B. 669, et al.)

For the purpose of ascertaining the correctness of any return,
or determining the amount of tax due from any taxpayer, the director of
revenue or any employee designated in writing by the director of revenue
may hold investigations and hearings concerning any matters covered by
this law and may examine any books, papers, records or memoranda of any
taxpayer bearing upon the amount of business done and may require of any
person the production of books, papers and records bearing upon the tax
levied by this law or the attendance of any person for the purpose of
taking his testimony with respect to any matter within the purview of the
director of revenue. In the conduct of any investigation or hearing,
neither the director of revenue nor any employee thereof is bound by the
technical rules of evidence and no informality in any proceeding, or in
the manner of taking testimony, shall invalidate any order, decision,
rule or regulation made or confirmed by the director of revenue. The
director of revenue or any person designated by him may administer oaths
in all matters relating to the administration of this law. (L. 1959 H.B.
35 § 22)

Every vendor selling tangible personal property for storage, use
or consumption in this state shall, immediately after the effective date
of sections 144.600 to 144.745, register with the director of revenue and
give the names and addresses of all agents operating in this state, the
location of all distribution or sales houses or offices or other places
of business in this state and other information that the director of
revenue requires. Every vendor shall furnish all agents with a statement
to the effect that his principal has been and is complying with the
provisions of sections 144.600 to 144.745. (L. 1959 H.B. 35 § 6)

1. Every vendor, on or before the last day of the month
following each calendar quarterly period of three months, shall file with
the director of revenue a return of all taxes collected for the preceding
quarter in the form prescribed by the director of revenue, showing the
total sales price of the tangible personal property sold by the vendor,
the storage, use or consumption of which is subject to the tax levied by
this law, and other information the director of revenue deems necessary.
The return shall be accompanied by a remittance of the amount of the tax
required to be collected by the vendor during the period covered by the
return. Returns shall be signed by the vendor or the vendor's authorized
agent. The director of revenue may promulgate rules or regulations
changing the filing and payment requirements of vendors, but shall not
require any vendor to file and pay more frequently than required in this
section.

2. Where the aggregate amount of tax required to be collected by a vendor
is in excess of two hundred and fifty dollars for either the first or
second month of a calendar quarter, the vendor shall pay such aggregate
amount for such months to the director of revenue by the twentieth day of
the succeeding month. The amount so paid shall be allowed as a credit
against the liability shown on the vendor's quarterly return required by
this section.

3. Where the aggregate amount of tax required to be collected by a vendor
is less than forty-five dollars in a calendar quarter, the director of
revenue shall by regulation permit the vendor to file a return for a
calendar year. The return shall be filed and the taxes paid on or before
January thirty-first of the succeeding year.

4. Except as provided in subsection 5 of this section, every person
purchasing tangible personal property, the storage, use or consumption of
which is subject to the tax levied by sections 144.600 to 144.748, who
has not paid the tax due to a vendor registered in accordance with the
provisions of section 144.650, shall file with the director of revenue a
return for the preceding reporting period in the form and manner that the
director of revenue prescribes, showing the total sales price of the
tangible property purchased during the preceding reporting period and any
other information that the director of revenue deems necessary for the
proper administration of sections 144.600 to 144.748. The return shall be
accompanied by a remittance of the amount of the tax required by sections
144.600 to 144.748 to be paid by the person. Returns shall be signed by
the person liable for the tax or such person's duly authorized agent. For
purposes of this subsection, the reporting period shall be determined by
the director of revenue and may be a calendar quarter or a calendar year.
Annual returns and payments required by the director pursuant to this
subsection shall be due on or before April fifteenth of the year for the
preceding calendar year and quarterly returns and payments shall be due
on or before the last day of the month following each calendar period of
three months. Upon the taxpayer's request, the director may allow the
filing of such returns and payments on a monthly basis. If a taxpayer
elects to file a monthly return and payment, such return and payment
shall be due on or before the twentieth day of the succeeding month.

5. Any person purchasing tangible personal property subject to the taxes
imposed by sections 144.600 to 144.748 shall not be required to file a
use tax return with the director of revenue if such purchases on which
such taxes were not paid do not exceed in the aggregate two thousand
dollars in any calendar year.

6. Nothing in subsection 5 of this section shall relieve a vendor of
liability to collect the tax imposed pursuant to sections 144.600 to
144.748 on the total gross receipts of all sales of tangible personal
property used, stored or consumed in this state and to remit all taxes
collected to the director of revenue in accordance with the provisions of
this section nor shall it relieve a purchaser from paying such taxes to a
vendor registered in accordance with the provisions of section 144.650.
(L. 1959 H.B. 35 § 9, A.L. 1969 p. 255, A.L. 1983 1st Ex. Sess. H.B. 10,
A.L. 1994 H.B. 1578, A.L. 1998 H.B. 1301, A.L. 1999 H.B. 399)

The director of revenue has all the powers with regard to
requiring monthly returns and extending the time for the payment of the
tax levied by sections 144.600 to 144.745 that are provided in sections
144.090 and 144.160 with regard to the Missouri sales tax. (L. 1959 H.B.
35 § 12)

1. In case of failure to file any return required under sections
144.600 to 144.745 on or before the date prescribed therefor (determined
with regard to any extension of time for making a return), unless it is
shown that such failure is due to reasonable cause and not the result of
willful neglect, evasion, or fraudulent intent, there shall be added to
the amount required to be shown as tax on such return five percent of the
amount of such tax if the failure is not for more than one month, with an
additional five percent for each additional month, or fraction thereof,
during which such failure continues, not exceeding twenty-five percent in
the aggregate; except that, when the gross sales tax exceeds two hundred
fifty dollars in any one month for which a taxpayer must file a monthly
return, there shall be no late penalty assessed for the first month in
which the return is due. For purposes of this section, the amount of tax
required to be shown on the return shall be reduced by the amount of any
part of the tax which is paid on or before the date prescribed for
payment of the tax.

2. In case of failure to pay any tax required under sections 144.600 to
144.745 on or before the date prescribed therefor (determined with regard
to any extension of time for payment), unless it is shown that such
failure is due to reasonable cause and not the result of willful neglect,
evasion, or fraudulent intent, there shall be added to the tax an amount
equal to five percent of the deficiency.

3. The provisions in subsections 1 and 2 of this section shall be in
addition to any interest provided for in this chapter. (L. 1983 1st Ex.
Sess. H.B. 10)

Effective 1-1-84

*No continuity with § 144.665 as repealed by L. 1983 H.B. 10.

If the director is not satisfied with the return payment of tax
made by any taxpayer, he shall make an additional assessment based upon
the facts contained in any returns or upon any information in his
possession, and the director shall give the taxpayer written notice in
person or by certified mail of the amount of the additional tax. The
director may only base an additional assessment upon an estimate of the
taxpayer's liability under sections 144.600 to 144.748, if:

(1) The taxpayer fails to file a return; or

(2) The taxpayer's books and records are incomplete or illegible in the
opinion of the director when conducting an examination of the accuracy of
any return filed by the taxpayer; or

(3) The taxpayer denies the director access to the taxpayer's books and
records for the purpose of conducting an examination of the accuracy of
any return filed by the taxpayer. (L. 1959 H.B. 35 § 16, A.L. 1994 S.B.
477, et al.)

If fraud or evasion on the part of a person is discovered by the
director of revenue, he shall determine the amount of which the state has
been defrauded, shall add to the amount so determined a penalty equal to
twenty-five percent thereof, and shall assess the same against the
person. The director of revenue shall promptly thereafter give to the
person written notice of the assessment and penalty, which shall be
served personally or by certified mail. (L. 1959 H.B. 35 § 17)

1. If any taxpayer refuses or neglects to pay any tax, interest
or penalty imposed by this law when due and the assessment of which has
become final, the director may file for record in the office of the clerk
of the circuit court in any county in which the taxpayer owing the tax,
interest or penalty resides, or has a place of business or in which he
has property, or all of them, a certificate specifying the amount of the
tax, interest and penalties due and the name of the taxpayer liable. The
clerk of the circuit court shall file the certificate of record and enter
it in the record of the circuit court for judgments and decrees under the
procedure prescribed for filing transcripts of judgments. From the time
of the filing of the certificate, the amount of the tax, interest and
penalties specified therein shall have the force and effect of a judgment
of the circuit court until satisfied by the director of revenue through
his duly authorized agents. Execution shall issue at the request of the
director of revenue or his agent as is provided in the case of other
judgments. No exemption shall be allowed from the levy of an execution
issued for the tax, interest and penalties and no indemnifying bond is
required by the sheriff before making levy.

2. The foregoing remedy is cumulative and in addition to the methods
given the director of revenue for the collection of the Missouri sales
tax which are here made available to him in the collections of the tax,
interest and penalties imposed by sections 144.600 to 144.745. No action
taken shall be construed as an election on the part of the state or any
of its officers to pursue any remedy or action hereunder to the exclusion
of any other remedy or action for which provision is made. (L. 1959 H.B.
35 § 24)

If, upon examination of any return, it appears that the taxpayer
has paid an amount in excess of that properly due, the amount of the
excess shall be credited by the director of revenue against any tax
installment thereafter due from the taxpayer under the provisions of this
law or refunded. The general assembly shall appropriate and set aside
funds sufficient for the use of the director of revenue to make any
refund of taxes required by this section. (L. 1959 H.B. 35 § 14)

Section 144.190, pertaining to the refund of overpayments,
claims for refund, and the time within which refunds shall be claimed, is
applicable to the tax levied under the compensating use tax law. (L. 1986
S.B. 669, et al. § 4)

1. All revenue received by the director of revenue from the tax
imposed by sections 144.010 to 144.430 and 144.600 to 144.745, except
that revenue derived from the rate of one cent on the dollar of the tax
which shall be held and distributed in the manner provided in sections
144.701 and 163.031, RSMo, shall be deposited in the state general
revenue fund, including any payments of the taxes made under protest.

2. The director of revenue shall keep accurate records of any payment of
the tax made under protest. In the event any payment shall be made under
protest:

(1) A protest affidavit shall be submitted to the director of revenue
within thirty days after the payment is made; and

(2) An appeal shall be taken in the manner provided in section 144.261
from any decision of the director of revenue disallowing the making of
the payment under protest or an application shall be filed by a
protesting taxpayer with the director of revenue for a stay of the period
for appeal on the ground that a case is presently pending in the courts
involving the same question, with an agreement by the taxpayer to be
bound by the final decision in the pending case.

3. Nothing in this section shall be construed to apply to any refund to
which the taxpayer would be entitled under any applicable provision of
law.

4. All payments deposited in the state general revenue fund that are made
under protest shall be retained in the state treasury if the taxpayer
does not prevail. If the taxpayer prevails, then taxes paid under protest
shall be refunded to the taxpayer, with all interest income derived
therefrom, from funds appropriated by the general assembly for such
purpose. (L. 1959 H.B. 35 § 26, A.L. 1961 p. 630, A.L. 1978 S.B. 661,
A.L. 1981 H.B. 129, A.L. 1982 Adopted by Initiative, Proposition C,
November 2, 1982, A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1993 S.B. 380)

The revenue derived from the rate of one cent on the dollar of
the tax imposed by sections 144.010 to 144.430 and sections 144.600 to
144.745 which shall be deemed to be local tax revenue, shall be deposited
by the state treasurer in a special trust fund, which is hereby created,
to be known as the "School District Trust Fund". The money in the fund
shall be distributed to the public school districts of the state in the
manner provided in sections 163.031 and 163.087, RSMo, and shall be
appropriated and used for no other purpose; except that, of all refunds
made of taxes collected under the provisions of sections 144.010 to
144.430 and sections 144.600 to 144.745, the appropriate percentage of
any refund shall be paid from the school district trust fund, and except
that the state may retain a fee as a charge for collecting and disbursing
moneys so deposited, and transfers may be made from the fund as provided
in section 164.013, RSMo. The state collection fee shall not exceed two
and one-half million dollars or one percent of the amount deposited in
the fund, whichever is less. The fee shall be negotiated annually through
the appropriation process. Any balance remaining in the fund at the end
of an appropriation period shall not be transferred to general revenue,
and the provisions of section 33.080, RSMo, shall not apply to the fund.
Moneys in the trust fund shall be invested by the state treasurer in the
same deposits and obligations in which state funds are authorized by law
to be invested, except that the deposits and obligations shall mature and
become payable in time for distribution of the funds as provided in
sections 163.031 and 163.087, RSMo. (L. 1982 Adopted by Initiative,
Proposition C, November 2, 1982, A.L. 1983 H.B. 310, A.L. 1993 S.B. 380)

1. The director of revenue shall make and enforce reasonable
rules and regulations and prescribe forms for the administration and
enforcement of this law and may require the services of the attorney
general and the prosecuting or circuit attorney of any county or city.

2. The rules, regulations and forms shall be dated and issued under a
systematic method of numbering and copies made available to any person
requesting them. A complete file of all the rules, regulations and forms
shall be kept in the office of the director. (L. 1959 H.B. 35 § 2)

From every remittance made by a vendor as required by sections
144.600 to 144.745 to the director of revenue on or before the date when
the remittance becomes due, the vendor may deduct and retain an amount
equal to two percent thereof. (L. 1959 H.B. 35 § 10, A.L. 1984 H.B. 1533,
et al.)

All notices required or authorized by sections 144.600 to
144.745 to be given by mail to any taxpayer shall be addressed to him at
his last known address. (L. 1959 H.B. 35 § 25, A.L. 1978 S.B. 661)

Sections 144.170, 144.220, 144.230, and 144.240, pertaining to
interest on delinquent taxes, the time within which additional
assessments shall be made, the time within which assessed penalties and
taxes shall be paid and the procedure for requesting review of additional
assessments are applicable to the assessment and payment of the tax
levied by this law. (L. 1959 H.B. 35 § 18, A.L. 1994 S.B. 477, et al.)

If any person summoned as a witness by the director or by the
designee of the director fails to obey the summons or refuses to testify
or answer any material question or refuses to produce any book, record,
paper or other data when required so to do, he is guilty of a
misdemeanor. Nothing in this section shall be construed to deprive a
person of any right, privilege or immunity guaranteed by the Constitution
of the United States or the Constitution of the State of Missouri. (L.
1959 H.B. 35 § 23)

No vendor shall advertise or hold out or state to the public or
to any customer, directly or indirectly, that the tax or any part thereof
imposed by sections 144.600 to 144.745, and required to be collected by
him, will be assumed or absorbed by him, or that it will not be added to
the selling price of the property sold, or if added, that it or any part
thereof will be refunded. Any person violating any of the provisions of
this section is guilty of a misdemeanor. (L. 1959 H.B. 35 § 27)

Any person required under sections 144.600 to 144.745 to pay any
tax, or required by sections 144.600 to 144.745 to make a return, keep
any records or supply any information, who with intent to defraud
willfully fails to pay such tax, make such return, keep such records or
supply such information, at the time or times required by law, shall, in
addition to other penalties provided by law, and upon conviction thereof,
be fined not more than ten thousand dollars, or be imprisoned in the
county jail for not more than one year or by not less than two nor more
than five years in the state penitentiary or by both fine and
imprisonment together with the cost of prosecution. (L. 1959 H.B. 35 §
28, A.L. 1974 H.B. 1288)

Any person who willfully makes a false return, or who willfully
makes a false statement in any return filed with or transmitted to the
director of revenue relating to the amount of any sales or tax due under
sections 144.600 to 144.745 shall, in addition to other penalties
provided by law, and upon conviction thereof, be fined not more than ten
thousand dollars, or be imprisoned in the county jail for not more than
one year or by not less than two nor more than five years in the state
penitentiary or by both fine and imprisonment together with the cost of
prosecution. (L. 1959 H.B. 35 § 29, A.L. 1974 H.B. 1288)

Any person violating any of the provisions of sections 144.600
to 144.745 for which no criminal penalty is otherwise provided, upon
conviction thereof, shall be deemed guilty of a misdemeanor. (L. 1959
H.B. 35 § 30, A.L. 1974 H.B. 1288)

The director of revenue and a taxpayer may agree in writing to
extend the periods prescribed in sections 144.190 and 144.220, within
which a refund claim may be filed or a proposed assessment may be served
and mailed. Such an agreement must be made before the expiration of such
periods and may be extended by subsequent agreements at any time before
the expiration of the period previously agreed upon. (L. 1994 S.B. 477,
et al.)

In the event section 144.748 is ultimately found to be
unconstitutional, the director of revenue may withhold from future
distributions due political subdivisions an amount equal to such
political subdivision's share, including interest, of the distribution
from the local use tax fund since its inception. The phrase "future
distributions" as used in this section means any and all present or
future taxes collected and administered by the director on behalf of the
political subdivision. (L. 1994 S.B. 477, et al. § 1)

(1996) Section 144.748 was held unconstitutional because it impermissibly
discriminated against interstate commerce. Associated Industries of
Missouri v. Director of Revenue, 918 S.W.2d 780 (Mo.banc).

(1998) Statute is constitutional and does not violate Art. X, Sec. 21,
Mo. Const. as it does not impose new or increased activity or service on
local taxing authorities and the general assembly may grant the director
of revenue powers not expressly prohibited by constitution. St. Charles
Co. v. Director of Revenue, 961 S.W.2d 44 (Mo.banc).

1. Any county or municipality, except municipalities within a
county having a charter form of government with a population in excess of
nine hundred thousand, may, by a majority vote of its governing body,
impose a local use tax if a local sales tax is imposed as defined in
section 32.085, RSMo, at a rate equal to the rate of the local sales tax
in effect in such county or municipality; provided, however, that no
ordinance or order enacted pursuant to sections 144.757 to 144.761 shall
be effective unless the governing body of the county or municipality
submits to the voters thereof at a municipal, county or state general,
primary or special election a proposal to authorize the governing body of
the county or municipality to impose a local use tax pursuant to sections
144.757 to 144.761. Municipalities within a county having a charter form
of government with a population in excess of nine hundred thousand may,
upon voter approval received pursuant to paragraph (b) of subdivision (2)
of subsection 2 of this section, impose a local use tax at the same rate
as the local municipal sales tax with the revenues from all such
municipal use taxes to be distributed pursuant to subsection 4 of section
94.890, RSMo. The municipality shall within thirty days of the approval
of the use tax imposed pursuant to paragraph (b) of subdivision (2) of
subsection 2 of this section select one of the distribution options
permitted in subsection 4 of section 94.890, RSMo, for distribution of
all municipal use taxes.

2. (1) The ballot of submission, except for counties and municipalities
described in subdivisions (2) and (3) of this subsection, shall contain
substantially the following language:

Shall the .............. (county or municipality's name) impose a local
use tax at the same rate as the total local sales tax rate, currently
.......... (insert percent), provided that if the local sales tax rate is
reduced or raised by voter approval, the local use tax rate shall also be
reduced or raised by the same action? A use tax return shall not be
required to be filed by persons whose purchases from out-of-state vendors
do not in total exceed two thousand dollars in any calendar year.

[ ] YES [ ] NO

If you are in favor of the question, place an "X" in the box opposite
"Yes". If you are opposed to the question, place an "X" in the box
opposite "No".

(2) (a) The ballot of submission in a county having a charter form of
government with a population in excess of nine hundred thousand shall
contain substantially the following language:

For the purposes of economic development and enhancing local government
services, shall the county be authorized to collect a local use tax equal
to the total of the existing county sales tax rate of (insert tax rate),
provided that if the county sales tax is repealed, reduced or raised by
voter approval, the local use tax rate shall also be repealed, reduced or
raised by the same voter action? Fifty percent of the revenue shall be
used for economic development, including retention, creation, and
attraction of better-paying jobs, and fifty percent shall be used for
enhancing local government services. The county shall be required to make
available to the public an audited comprehensive financial report
detailing the management and use of economic development funds each year.

A use tax is the equivalent of a sales tax on purchases from out-of-state
sellers by in-state buyers and on certain taxable business transactions.
A use tax return shall not be required to be filed by persons whose
purchases from out-of-state vendors do not in total exceed two thousand
dollars in any calendar year.

[ ] YES [ ] NO

If you are in favor of the question, place an "X" in the box opposite
"Yes". If you are opposed to the question, place an "X" in the box
opposite "No".

(b) The ballot of submission in a municipality within a county having a
charter form of government with a population in excess of nine hundred
thousand shall contain substantially the following language:

Shall the municipality be authorized to impose a local use tax at the
same rate as the local sales tax by a vote of the governing body,
provided that if any local sales tax is repealed, reduced or raised by
voter approval, the respective local use tax shall also be repealed,
reduced or raised by the same action? A use tax return shall not be
required to be filed by persons whose purchases from out-of-state vendors
do not in total exceed two thousand dollars in any calendar year.

[ ] YES [ ] NO

If you are in favor of the question, place an "X" in the box opposite
"Yes". If you are opposed to the question, place an "X" in the box
opposite "No".

(3) The ballot of submission in any city not within a county shall
contain substantially the following language:

Shall the ............... (city name) impose a local use tax at the same
rate as the local sales tax, currently at a rate of ........ (insert
percent) which includes the capital improvements sales tax and the
transportation tax, provided that if any local sales tax is repealed,
reduced or raised by voter approval, the respective local use tax shall
also be repealed, reduced or raised by the same action? A use tax return
shall not be required to be filed by persons whose purchases from
out-of-state vendors do not in total exceed two thousand dollars in any
calendar year.

[ ] YES [ ] NO

If you are in favor of the question, place an "X" in the box opposite
"Yes". If you are opposed to the question, place an "X" in the box
opposite "No".

(4) If any of such ballots are submitted on August 6, 1996, and if a
majority of the votes cast on the proposal by the qualified voters voting
thereon are in favor of the proposal, then the ordinance or order and any
amendments thereto shall be in effect October 1, 1996, provided the
director of revenue receives notice of adoption of the local use tax on
or before August 16, 1996. If any of such ballots are submitted after
December 31, 1996, and if a majority of the votes cast on the proposal by
the qualified voters voting thereon are in favor of the proposal, then
the ordinance or order and any amendments thereto shall be in effect on
the first day of the calendar quarter which begins at least forty-five
days after the director of revenue receives notice of adoption of the
local use tax. If a majority of the votes cast by the qualified voters
voting are opposed to the proposal, then the governing body of the county
or municipality shall have no power to impose the local use tax as herein
authorized unless and until the governing body of the county or
municipality shall again have submitted another proposal to authorize the
governing body of the county or municipality to impose the local use tax
and such proposal is approved by a majority of the qualified voters
voting thereon.

3. The local use tax may be imposed at the same rate as the local sales
tax then currently in effect in the county or municipality upon all
transactions which are subject to the taxes imposed pursuant to sections
144.600 to 144.745 within the county or municipality adopting such tax;
provided, however, that if any local sales tax is repealed or the rate
thereof is reduced or raised by voter approval, the local use tax rate
shall also be deemed to be repealed, reduced or raised by the same action
repealing, reducing or raising the local sales tax.

4. For purposes of sections 144.757 to 144.761, the use tax may be
referred to or described as the equivalent of a sales tax on purchases
made from out-of-state sellers by in-state buyers and on certain
intrabusiness transactions. Such a description shall not change the
classification, form or subject of the use tax or the manner in which it
is collected. (L. 1996 S.B. 981, A.L. 2000 H.B. 1238, A.L. 2004 H.B. 795,
et al. merged with H.B. 833 merged with S.B. 1155)

CROSS REFERENCE: Community comeback act, funding, local use tax, RSMo
67.478 to 67.493

1. All local use taxes collected by the director of revenue
pursuant to sections 144.757 to 144.761 on behalf of any county or
municipality, less one percent for cost of collection, which shall be
deposited in the state's general revenue fund after payment of premiums
for surety bonds as provided in section 32.087, RSMo, shall be deposited
with the state treasurer in a local use tax trust fund, which fund shall
be separate and apart from the local sales tax trust funds. The moneys in
such local use tax trust fund shall not be deemed to be state funds and
shall not be commingled with any funds of the state. The director of
revenue shall keep accurate records of the amount of money in the trust
fund which was collected in each county or municipality imposing a local
use tax, and the records shall be open to the inspection of officers of
the county or municipality and to the public. No later than the tenth day
of each month, the director of revenue shall distribute all moneys
deposited in the trust fund during the preceding month, except as
provided in subsection 2 of this section, to the county or municipality
treasurer, or such other officer as may be designated by the county or
municipality ordinance or order, of each county or municipality imposing
the tax authorized by sections 144.757 to 144.761, the sum due the county
or municipality as certified by the director of revenue.

2. The director of revenue shall distribute all moneys which would be due
any county having a charter form of government and having a population of
nine hundred thousand or more to the county treasurer or such other
officer as may be designated by county ordinance, who shall distribute
such moneys as follows: the portion of the use tax imposed by the county
which equals one-half the rate of sales tax in effect for such county
shall be disbursed to the county treasurer for expenditure for economic
development purposes, as defined in this section, subject to any
qualifications and regulations adopted by ordinance of the county. Such
ordinance shall require an audited comprehensive financial report
detailing the management and use of economic development funds each year.
Such ordinance shall also require that the county and the municipal
league of the county jointly prepare an economic development strategy to
guide expenditures of funds and conduct an annual review of the strategy.
The treasurer or such other officer as may be designated by county
ordinance shall distribute one-third of the balance to the county and to
each city, town and village in group B according to section 66.620, RSMo,
as modified by this section, a portion of the two-thirds remainder of
such balance equal to the percentage ratio that the population of each
such city, town or village bears to the total population of all such
group B cities, towns and villages. For the purposes of this subsection,
population shall be determined by the last federal decennial census or
the latest census that determines the total population of the county and
all political subdivisions therein. For the purposes of this subsection,
each city, town or village in group A according to section 66.620, RSMo,
but whose per capita sales tax receipts during the preceding calendar
year pursuant to sections 66.600 to 66.630, RSMo, were less than the per
capita countywide average of all sales tax receipts during the preceding
calendar year, shall be treated as a group B city, town or village until
the per capita amount distributed to such city, town or village equals
the difference between the per capita sales tax receipts during the
preceding calendar year and the per capita countywide average of all
sales tax receipts during the preceding calendar year.

3. The director of revenue may authorize the state treasurer to make
refunds from the amounts in the trust fund and credited to any county or
municipality for erroneous payments and overpayments made, and may redeem
dishonored checks and drafts deposited to the credit of such counties or
municipalities. If any county or municipality abolishes the tax, the
county or municipality shall notify the director of revenue of the action
at least ninety days prior to the effective date of the repeal, and the
director of revenue may order retention in the trust fund, for a period
of one year, of two percent of the amount collected after receipt of such
notice to cover possible refunds or overpayment of the tax and to redeem
dishonored checks and drafts deposited to the credit of such accounts.
After one year has elapsed after the effective date of abolition of the
tax in such county or municipality, the director of revenue shall
authorize the state treasurer to remit the balance in the account to the
county or municipality and close the account of that county or
municipality. The director of revenue shall notify each county or
municipality of each instance of any amount refunded or any check
redeemed from receipts due the county or municipality.

4. Except as modified in sections 144.757 to 144.761, all provisions of
sections 32.085 and 32.087, RSMo, applicable to the local sales tax,
except for subsection 12 of section 32.087, RSMo, and all provisions of
sections 144.600 to 144.745 shall apply to the tax imposed pursuant to
sections 144.757 to 144.761, and the director of revenue shall perform
all functions incident to the administration, collection, enforcement,
and operation of the tax.

5. As used in this section, "economic development" means:

(1) Expenditures for infrastructure and sites for business development or
for public infrastructure projects;

(2) Purchase, assembly, clearance, demolition, environmental remediation,
planning, redesign, reconstruction, rehabilitation, construction,
modification or expansion of land, structures and facilities, public or
private, either in connection with a reinvestment project in areas with
underused, derelict, economically challenged, or environmentally troubled
sites, or in connection with business attraction, retention, creation, or
expansion;

(3) Expenditures related to business district activities such as facade
improvements, landscaping, street lighting, sidewalk construction, trash
receptacles, park benches, and other public improvements;

(4) Expenditures for the provision of workforce training and educational
support in connection with job creation, retention, attraction, and
expansion;

(5) Development and operation of business incubator facilities, and
related entrepreneurship support programs;

(6) Capitalization or guarantee of small business loan or equity funds;

(7) Expenditures for business development activities including
attraction, creation, retention, and expansion; and

(8) Related administration expenses of economic and community development
programs, provided that such expenses shall not exceed five percent of
annual revenues. (L. 1996 S.B. 981, A.L. 2000 H.B. 1238, A.L. 2004 H.B.
795, et al. merged with H.B. 833 merged with S.B. 1155)

CROSS REFERENCE: Community comeback act, funding, local use tax, RSMo
67.478 to 67.493

1. No county or municipality imposing a local use tax pursuant
to sections 144.757 to 144.761 may repeal or amend such local use tax
unless such repeal or amendment is submitted to and approved by the
voters of the county or municipality in the manner provided in section
144.757; provided, however, that the repeal of the local sales tax within
the county or municipality shall be deemed to repeal the local use tax
imposed pursuant to sections 144.757 to 144.761.

2. Whenever the governing body of any county or municipality in which a
local use tax has been imposed in the manner provided by sections 144.757
to 144.761 receives a petition, signed by fifteen percent of the
registered voters of such county or municipality voting in the last
gubernatorial election, calling for an election to repeal such local use
tax, the governing body shall submit to the voters of such county or
municipality a proposal to repeal the county or municipality use tax
imposed pursuant to sections 144.757 to 144.761. If a majority of the
votes cast on the proposal by the registered voters voting thereon are in
favor of the proposal to repeal the local use tax, then the ordinance or
order imposing the local use tax, along with any amendments thereto, is
repealed. If a majority of the votes cast by the registered voters voting
thereon are opposed to the proposal to repeal the local use tax, then the
ordinance or order imposing the local use tax, along with any amendments
thereto, shall remain in effect. (L. 1996 S.B. 981, A.L. 2000 H.B. 1238)

Effective 6-27-00

CROSS REFERENCE: Community comeback act, funding, local use tax, RSMo
67.478 to 67.493

1. In addition to the exemptions granted pursuant to the
provisions of section 144.030, there shall also be specifically exempted
from the provisions of sections 144.010 to 144.525, sections 144.600 to
144.748, and section 238.235, RSMo, and the provisions of any local sales
tax law, as defined in section 32.085, RSMo, and from the computation of
the tax levied, assessed or payable pursuant to sections 144.010 to
144.525, sections 144.600 to 144.748, and section 238.235, RSMo, and the
provisions of any local sales tax law, as defined in section 32.085,
RSMo, all sales of aviation jet fuel in a given calendar year to common
carriers engaged in the interstate air transportation of passengers and
cargo, and the storage, use and consumption of such aviation jet fuel by
such common carriers, if such common carrier has first paid to the state
of Missouri, in accordance with the provisions of this chapter, state
sales and use taxes pursuant to the foregoing provisions and applicable
to the purchase, storage, use or consumption of such aviation jet fuel in
a maximum and aggregate amount of one million five hundred thousand
dollars of state sales and use taxes in such calendar year.

2. To qualify for the exemption prescribed in subsection 1 of this
section, the common carrier shall furnish to the seller a certificate in
writing to the effect that an exemption pursuant to this section is
applicable to the aviation jet fuel so purchased, stored, used and
consumed. The director of revenue shall permit any such common carrier to
enter into a direct-pay agreement with the department of revenue,
pursuant to which such common carrier may pay directly to the department
of revenue any applicable sales and use taxes on such aviation jet fuel
up to the maximum aggregate amount of one million five hundred thousand
dollars in each calendar year. The director of revenue shall adopt
appropriate rules and regulations to implement the provisions of this
section, and to permit appropriate claims for refunds of any excess sales
and use taxes collected in calendar year 1993 or any subsequent year with
respect to any such common carrier and aviation jet fuel.

3. The provisions of this section shall apply to all purchases and
deliveries of aviation jet fuel from and after May 10, 1993.

4. All sales and use tax revenues upon aviation jet fuel received
pursuant to this chapter, less the amounts specifically designated
pursuant to the constitution or pursuant to section 144.701 for other
purposes, shall be deposited to the credit of the aviation trust fund
established pursuant to section 305.230, RSMo; provided however, the
amount of such state sales and use tax revenues deposited to the credit
of such aviation trust fund shall not exceed six million dollars in each
calendar year.

5. The provisions of this section and section 144.807 shall expire on
December 31, 2013. (L. 1993 H.B. 913 §§ 1, B, A.L. 1996 S.B. 640, A.L.
1998 S.B. 619, A.L. 2002 H.B. 1196, A.L. 2005 S.B. 396)

Expires 12-31-13

1. In addition to the exemptions granted under the provisions of
section 144.030, there shall also be specifically exempted from the
provisions of sections 144.010 to 144.525, 144.600 to 144.748, and
section 238.235, RSMo, and the provisions of any local sales tax law, as
defined in section 32.085, RSMo, and from the computation of the tax
levied, assessed or payable under sections 144.010 to 144.525, 144.600 to
144.748, and section 238.235, RSMo, and the provisions of any local sales
tax law, as defined in section 32.085, RSMo, the purchase or storage by
any common carrier engaged in the interstate air transportation of
persons and cargo of tangible personal property, other than catered food
and beverage products purchased for in-flight consumption and aviation
jet fuel, within the state of Missouri, which tangible personal property
is purchased or stored in the state of Missouri and is subsequently
transported out of state by the common carrier and is used by the common
carrier in the conduct of its business as a common carrier.

2. Any use of the tangible personal property by the common carrier, other
than that incident to the delivery of the property to the carrier, the
storage of the property by the carrier pending out-of-state
transportation of the property by the carrier and the out-of-state
transportation of the property by the carrier and subsequent use in the
conduct of its business as a common carrier, shall subject the common
carrier to liability for payment of sales and use tax, as applicable,
with respect to such property so used by the common carrier in the state
of Missouri, as if this exemption did not apply.

3. To qualify for the exemption under this section, the common carrier
shall file an election with the department of revenue whereby the common
carrier will agree to pay the state three hundred thousand dollars
annually in equal monthly payments, on or before the fifteenth day of
each such month, for the privilege of this election, and shall further
agree that it will maintain records documenting the use and
transportation of the tangible personal property outside the state of
Missouri, as required under this section. Once a common carrier makes
this election, it may furnish its vendors a certificate in writing that
it is a common carrier qualifying for exemption under this section and
can purchase tangible personal property free of sales and use taxes. To
the extent the purchased property is used for its intended purpose in the
state of Missouri, the carrier shall remit the appropriate tax directly
to the department of revenue. (L. 1993 H.B. 913 § 2)

Effective 5-10-93

Expires 12-31-13 (see section 144.805)

In addition to the exemptions granted pursuant to the provisions
of section 144.030, there is hereby specifically exempted from the
provisions of, and the computation of the tax levied, assessed or payable
under, any state or local sales or use tax, or any increase in any state
or local sales or use tax rate, which tax or increase was not in effect
on December 30, 1987, the sale, storage, use or consumption of aviation
jet fuel at or upon airports within the state of Missouri, which airports
are recipients of federal grant funds, have submitted applications for or
have been approved for federal grant funds, or which are otherwise
eligible to apply for federal grant funds. (L. 1996 S.B. 640)

1. In addition to the exemptions granted under the provisions of
section 144.030, there shall also be specifically exempted from the
provisions of sections 144.010 to 144.525, sections 144.600 to 144.748,
section 238.235, RSMo, and from the provisions of any local sales tax
law, as defined in section 32.085, RSMo, and from the computation of the
tax levied, assessed or payable under sections 144.010 to 144.525,
sections 144.600 to 144.748, section 238.235, RSMo, and under any local
sales tax law, as defined in section 32.085, RSMo, any equipment
purchased by a federally licensed commercial or public broadcast station
when such equipment purchase is made as a result of federal mandate and
the technological change that results. This exemption does not apply to
replacement of equipment necessitated by a result of use or equipment
replaced due to damage or theft.

2. As used is this section, the following terms mean:

(1) "Broadcast equipment", such equipment as may be necessary for the
broadcast station to fulfill those obligations as set forth under federal
guidelines;

(2) "Federal mandate", any action of the Congress of the United States or
any federal regulatory agency having jurisdiction with regard to
broadcast stations when such action requires broadcasters to alter
methods of operation;

(3) "Federally licensed broadcast station", any enterprise, either
commercial or noncommercial, which operates under a license granted by
the Federal Communications Commission for the purpose of the free
distribution of audio and/or video services when such distribution occurs
by means of transmission over the public airwaves;

(4) "Technological change", those changes in the design and methods of
operation of broadcast equipment which would, by virtue of these changes,
require the implementation and/or installation of replacement equipment
and the updating of existing equipment. (L. 1999 H.B. 139 § 3)

Effective 7-13-99

In addition to the exemptions granted pursuant to the provisions
of section 144.030, there shall also be specifically exempted from all
local sales taxes, as defined in section 32.085, RSMo, and sections
144.010 to 144.510 and 144.600 to 144.757, and from the computation of
the tax levied, assessed or payable pursuant to all local sales taxes as
defined in section 32.085, RSMo, and sections 144.010 to 144.525 and
144.600 to 144.811, purchases of bullion and investment coins. For
purposes of this section, the following terms shall mean:

(1) "Bullion", gold, silver, platinum or palladium in a bulk state, where
its value depends on its content rather than its form, with a purity of
not less than nine hundred parts per one thousand; and

(2) "Investment coins", numismatic coins or other forms of money and
legal tender manufactured of gold, silver, platinum, palladium or metals
with a fair market value greater than the face value of the coins. (L.
2000 S.B. 896, A.L. 2001 H.B. 825)

In addition to the exemptions granted pursuant to the provisions
of section 144.030, there shall also be specifically exempted from the
provisions of the local sales tax law as defined in section 32.085, RSMo,
section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to
144.745, and from the computation of the tax levied, assessed, or payable
pursuant to the local sales tax law as defined in section 32.085, RSMo,
section 238.235, RSMo, and sections 144.010 to 144.525 and 144.600 to
144.761, purchases of any item of tangible personal property which is,
within one year of such purchase, donated without charge to the state of
Missouri. The exemption prescribed in this section includes purchases of
all items of tangible personal property converted into an item donated as
a gift to the state of Missouri. (L. 2003 S.B. 11)

Sections 144.1000 to 144.1015 shall be known as and referred to
as the "Simplified Sales and Use Tax Administration Act". (L. 2002 H.B.
1150, et al.)

Effective 7-1-02

As used in sections 144.1000 to 144.1015, the following terms
shall mean:

(1) "Agreement", the streamlined sales and use tax agreement;

(2) "Certified automated system", software certified jointly by the
states that are signatories to the agreement to calculate the tax imposed
by each jurisdiction on a transaction, determine the amount of tax to
remit to the appropriate state and maintain a record of the transaction;

(3) "Certified service provider", an agent certified jointly by the
states that are signatories to the agreement to perform all of the
seller's sales tax functions;

(4) "Person", an individual, trust, estate, fiduciary, partnership,
limited liability company, limited liability partnership, corporation or
any other legal entity;

(5) "Sales tax", any sales tax levied pursuant to this chapter, section
32.085, RSMo, or any other sales tax authorized by statute and levied by
this state or its political subdivisions;

(6) "Seller", any person making sales, leases or rentals of personal
property or services;

(7) "State", any state of the United States and the District of Columbia;

(8) "Use tax", the use tax levied pursuant to this chapter. (L. 2002 H.B.
1150, et al.)

Effective 7-1-02

For the purposes of reviewing and, if necessary, amending the
agreement embodying the simplification recommendations contained in
section 144.1015, the state may enter into multistate discussions. For
purposes of such discussions, the state shall be represented by seven
delegates, one of whom shall be appointed by the governor, two members
appointed by the speaker of the house of representatives, one member
appointed by the minority leader of the house of representatives, two
members appointed by the president pro tempore of the senate and one
member appointed by the minority leader of the senate. The delegates need
not be members of the general assembly and at least one of the delegates
appointed by the speaker of the house of representatives and one member
appointed by the president pro tempore of the senate shall be from the
private sector and represent the interests of Missouri businesses. The
delegates shall recommend to the committees responsible for reviewing tax
issues in the senate and the house of representatives each year any
amendment of state statutes required to be substantially in compliance
with the agreement. Such delegates shall make a written report by the
fifteenth day of January each year regarding the status of the multistate
discussions and upon final adoption of the terms of the sales and use tax
agreement by the multistate body. (L. 2002 H.B. 1150, et al.)

Effective 7-1-02

No provision of the agreement authorized by sections 144.1000
to 144.1015 in whole or in part invalidates or amends any provision of
the law of this state. Implementation of any condition of this agreement
in this state, whether adopted before, at, or after membership of this
state in the agreement, must be by action of the general assembly. Such
report shall be delivered to the governor, the secretary of state, the
president pro tempore of the senate and the speaker of the house of
representatives and shall simultaneously be made publicly available by
the secretary of state to any person requesting a copy. (L. 2002 H.B.
1150, et al.)

Effective 7-1-02

Unless five of the seven delegates agree, the delegates shall
not enter into or vote for any streamlined sales and use tax agreement
that:

(1) Requires adoption of a definition of any term that would cause any
item or transaction that is now excluded or exempted from sales or use
tax to become subject to sales or use tax;

(2) Requires the state of Missouri to fully exempt or fully apply sales
taxes to the sale of food or any other item;

(3) Restricts the ability of local governments under statutes in effect
on August 28, 2002, to enact one or more local taxes on one or more items
without application of the tax to all sales within the taxing
jurisdiction, however, restriction of any such taxes allowed by statutes
effective after August 28, 2002, may be supported;

(4) Provides for adoption of any uniform rate structure that would result
in a tax increase for any Missouri taxpayer;

(5) Affects the sourcing of sales tax transactions; or

(6) Prohibits limitations or thresholds on the application of sales and
use tax rates or prohibits any current sales or use tax exemption in the
state of Missouri, including exemptions that are based on the value of
the transaction or item. (L. 2002 H.B. 1150, et al.)

Effective 7-1-02

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