Missouri Sales and Use Tax Exemptions and Exclusions From Tax
Generally, Missouri taxes all retail sales of tangible personal property and certain taxable services. However, there are a number of exemptions and exclusions from Missouri's sales and use tax laws. Although exemptions and exclusions both result in an item not being taxed, they operate differently.
Exemptions: Exemptions are specific provisions of law eliminating the tax due on an item ordinarily subject to tax. Exemptions represent a legislative decision that a taxable item should not be taxed in certain instances.
Exclusions: By contrast, exclusions concern items that are never subject to tax because they are outside the intended scope and authority of Missouri's sales and use tax laws.