How the Law Affects Utilities/Vendors/Retailers
Senate Bill 30, passed during the 2007 legislative session, changes the way utilities, vendors, and retailers will collect and remit taxes from manufacturers. They will no longer collect state sales/use tax or local use tax on exempt items. They will continue to collect and remit local sales tax.
Any business that makes retail sales of qualifying manufacturing related items pursuant to Senate Bill 30 will collect only the local sales tax for these sales. For example, if your regular sales tax rate is 6.725%, you will collect 2.5% on the sale of qualifying manufacturing related items (6.725% - 4.225% = 2.5%). Any customer wishing to claim this partial exemption must issue you Form 149, Sales/Use Tax Exemption Certificate
before you collect the new lower rate on your sales to that customer.
The department has pre-registered many businesses to collect tax on qualifying manufacturing related items at the new lower rate. The sales tax returns for filing periods beginning August, 1, 2007 will have an additional line below each business location with the text “MANUFACTURING EXE”. Please report sales to manufacturers and material recovery processing plants claiming this exemption on this line. (See the example below.)
If your business has not been pre-registered, please add the location to your return as shown below or you may contact the department at businesstaxregister@dor.mo.gov or call (573) 751-5860.
If you have a specific business location that does not make retail sales of items contained in this new exemption, please mark through the “MANUFACTURING EXE” line when filing your return. (Subsequent returns will have the “MANUFACTURING EXE” line removed.)