Sales Tax Exemptions

Missouri sales tax exemptions include:

  • Machinery and equipment used to establish a new facility or expand an existing manufacturing facility, provided such machinery/equipment is used directly to manufacture a product ultimately intended for sale.
  • Replacement machinery and equipment used directly in manufacturing a product ultimately intended for sale, provided their acquisition has been necessitated by reason of change in design or product, as opposed to obsolescence.
  • Machinery, equipment and devices that abate air pollution. To qualify for this exemption, a company need only have the appropriate state governmental agency certify the equipment is pollution-control equipment.
  • All materials and supplies used to install this tax-exempt machinery and equipment.
  • Electricity consumed in the manufacturing process, provided the cost of the electricity exceeds 10% of total production costs. The cost of electrical energy consumed in the manufacturing process cannot be included in total production costs to qualify for the exemption. Electricity used for non-manufacturing purposes, such as heating and lighting, is taxable.
  • Electricity or gas, whether national, artificial or propane, when used in connection with basic steel making.
  • Energy, including electricity or natural gas, used in manufacturing, mining, compounding, processing or producing a product or used in research and development related to the items above may qualify for a state sales tax exemption.
  • Anodes used in manufacturing or other types of production, with a useful life of less than one year.
  • Chapter 100 Sales Tax Exemption, Personal Property: Section 144.054(3), RSMo, as enacted in Senate Bill 30 (2007), provides a sales tax exemption on tangible personal property purchased through Chapter 100 bonds for non-manufacturing purchases.
  • Certain property purchased by specific biotech, medical and veterinary labs for use in research and experimentation activity. 

(Source: Missouri Department of Economic Development)