LR 8389
Taxability of Steel Building for Agricultural Use
April 23, 2026
Dear Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated February 26, 2026.
The facts presented in your letter ruling request are summarized as follows:
Applicant intends to purchase a pre-engineered steel building kit for Applicant's property in Missouri. The 40' x 60' x 18' steel building will be used exclusively for the storage and maintenance of agricultural machinery and land-management equipment used in the upkeep of Applicant's land.
ISSUE:
Is Applicant's purchase of the steel building kit subject to sales tax?
RESPONSE:
Yes. Applicant's purchase of the steel building kit is subject to sales tax, as it is a sale of tangible personal property that does not qualify for a sales tax exemption under Missouri statute.
Section 144.020.1(1) RSMo, provides: "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."
Section 144.030.2(22) RSMo, exempts from sales tax: "[A]ll sales of farm machinery and equipment..."
Section 144.030.2(22)(a) defines farm machinery and equipment as: "New or used farm tractors and such other new or used farm machinery and equipment, including utility vehicles used for any agricultural use..."
12 CSR 10-110.900(3)(G) provides: "The fact that particular items may be considered to be essential or necessary will not automatically entitle them to exemption. The following categories of items are excluded from the meaning of the term farm machinery or equipment, including supplies, and are subject to tax ... 6. Building materials ... for nonproduction areas."
Applicant intends to purchase materials to build a steel building for storage of Applicant's farm machinery and land-management equipment. While storage of farm machinery may be necessary to preserve the long-term health of the machine's functionality, storage of farm machinery is not a production activity. Applicant's purchase of a steel building kit does not qualify for an exemption, and therefore Applicant's purchase is subject to state and local sales tax.
This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Legal Counsel Gabriel Barnes, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.
Sincerely,
Trish Vincent