How the Law Affects Manufacturers

Senate Bill 30, passed during the 2007 legislative session, will provide Missouri manufacturers with tools they need to compete with manufacturers in other states and countries in the global economy. Manufacturers will now be able to take much broader exemptions for energy use as well as new exemptions for research and development activities. These inputs include energy sources, water, chemicals, machinery, equipment, and materials when they are used in manufacturing, processing, compounding, mining, or producing of any product or when they are used in research and development related to those activities. These inputs are also exempt when they are used in the processing of recovered materials.

Effective August 28, 2007, Senate Bill 30 exempts from state tax (4.225 percent) and local use tax, but not local sales tax: By expanding, and in some cases creating new, exemptions for manufacturers, SB 30 will stimulate economic growth in our manufacturing sector and bring new jobs to the state.

How to Claim the Exemption

To claim this partial exemption, provide a Sales/Use Tax Exemption Certificate (Form 149) to your supplier.