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.
Sales and Use Tax Exemptions and Exclusions Search
Classification Search: Manufacturing Exemption
| Classification | Year Enacted | Bill | Statute | Description |
|---|---|---|---|---|
| Exemption & Exclusions | 1939 | HB 91 | 144.010 | Creation of the sales tax exemption laws. |
| Exemption & Exclusions | 1939 | HB 91 | 144.010.1(2) | Isolated or occasional sale of tangible personal property, service, substance, or thing, by a person not engaged in such business does not constitute engaging in business, within the meaning of this article. [1977 SB 367 limits to annual sales of $3,000 or less.] |
| Exemption & Exclusions | 1939 | HB 91 | 144.010.1(8) | Sales by the Missouri Department of Transportation. [State Highway Department excluded from the definition of "person" for purposes of sales tax law.] |
| Exemption & Exclusions | 1939 | HB 91 | 144.030 | Creation of the sales tax exemption laws. |
| Exemption & Exclusions | 1939 | HB 91 | 144.030.1 | Sales in commerce between Missouri and any other state or foreign country. |
| Exemption & Exclusions | 1939 | HB 91 | 144.030.1 | Sales prohibited from taxing under the Constitution or laws of the United States of America or Missouri Constitution. |
| Exemption & Exclusions | 1939 | HB 91 | 144.030.2(1) | Motor fuel subject to an excise or sales tax under another law of Missouri. |
| Exemption & Exclusions | 1939 | p. 1457 | 262.250 | All state fair entry fees. |
| Exemption & Exclusions | 1961 | SB 360 | 144.030.2(10) | Pumping machinery and equipment used to propel products delivered by pipelines, engaged as common carriers. |
| Exemption & Exclusions | 1961 | SB 360 | 144.030.2(9) | The rental of films, records, or any type of sound or picture transcriptions [1988 SB 709 limited exemption by adding "for public commercial display" after "transcriptions."] |
| Exemption & Exclusions | 1967 | SB 19 | 144.030.2(16) | Tangible personal property purchased by a rural water district. |
| Exemption & Exclusions | 1973 | HB 46 | 144.011.1(9) | Reusable containers used in connection with the sale of tangible personal property contained therein for which a deposit is required and refunded on return. |
| Exemption & Exclusions | 1977 | SB 367 | 144.010.1(10) | Excludes sales of computer printouts, computer output on microfilm or microfiche to a purchaser to enable the purchaser to obtain for his or her own use the desired information contained in such computer printouts. |
| Exemption & Exclusions | 1977 | SB 367 | 144.010.1(10) | Excludes sales of computer-assisted photo compositions. |
| Exemption & Exclusions | 1977 | SB 367 | 144.010.1(2) | Added exclusion to definition of business that sales of tangible personal property in the course of a partial or complete liquidation of a household, farm, or nonbusiness enterprise are excluded from sales tax. |
| Exemption & Exclusions | 1979 | SB 218 | 144.011.1(10) | The purchase by persons operating eating or food service establishments, of items of a nonreusable nature which are furnished to the customers of such establishments with or in conjunction with the retail sales of their food or beverage. Such items shall include, but not be limited to, wrapping or packaging materials and nonreusable paper, wood, plastic and aluminum articles such as containers, trays, napkins, dishes, silverware, cups, bags, boxes, straws, sticks and toothpicks. |
| Exemption & Exclusions | 1979 | SB 218 | 144.011.1(9) | The transfer of reusable containers used in connection with the sale of tangible personal property contained therein for which a deposit is required and refunded on return. |
| Exemption & Exclusions | 1979 | SB 218 | 144.030.2(23) | All sales of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil for domestic use and in any city not within a county, all sales of metered or unmetered water service for domestic use. Local sales tax can be reimposed under section 144.032. |
| Exemption & Exclusions | 1979 | SB 218 | 144.030.2(24) | All sales of handicraft items made by the seller or the seller's spouse if the seller or the seller's spouse is at least sixty-five years of age, and if the total gross proceeds from such sales do not constitute a majority of the annual gross income of the seller. |
| Exemption & Exclusions | 1979 | SB 218 | 144.030.2(25) | All excise taxes, collected on sales at retail, imposed by Sections 4041, 4061, 4071, 4081, 4091, 4161, 4181, 4251, 4261 and 4271 of Title 26, United States Code. |
| Exemption & Exclusions | 1982 | SB 475 | 144.034 | All sales of advertising by legal newspapers, advertising agencies, broadcast stations, and standardized outdoor billboard advertising are sales of nontaxable services. |
| Exemption & Exclusions | 1985 | SB 152 | 144.011.1(12) | Excludes from sale tax: The transfer of a manufactured home other than: (a) A transfer which involves the delivery of the document known as the "Manufacturer's Statement of Origin" to a person other than a manufactured home dealer, as defined in section 700.010, RSMo, for purposes of allowing such person to obtain a title to the manufactured home from the department of revenue of this state or the appropriate agency or officer of any other state; (b) A transfer which involves the delivery of a "Repossessed Title" to a resident of this state if the tax imposed by sections 144.010 to 144.525 was not paid on the transfer of the manufactured home described in paragraph (a) of this subdivision. |
| Exemption & Exclusions | 1986 | SB 437 | 144.030.2(17) | All amounts paid for admission to museums, zoos and planetariums owned or operated by a municipality or other political subdivision where all the proceeds derived therefrom benefit the municipality or other political subdivision and do not inure to any private person, firm, or corporation. |
| Exemption & Exclusions | 1986 | HB 957 | 144.037 | All sales at retail made through the use of federal food stamp coupons. |
| Exemption & Exclusions | 1986 | HB 957 | 144.038 | All sales at retail for which federal government coupons or vouchers under the supplemental feeding for women, infants and children program are used as payment. |
| Exemption & Exclusions | 1986 | SB 461 | 313.085 | All sales of bingo supplies, equipment or cards, including pull-tab cards, to any organization duly licensed to conduct bingo pursuant to sections 313.005 to 313.085. |
| Exemption & Exclusions | 1988 | HB 1400 | 144.012 | Reduces the amount subject to sales tax on vending machine sales to 135% of the net cost of the property vended during the reporting period. |
| Exemption & Exclusions | 1988 | HB 957 | 144.039 | All purchases of all tangible personal property made by, or on behalf of, a state senator or state representative if such purchases are made from funds in such state senator's or state representative's state expense account. |
| Exemption & Exclusions | 1988 | HB 957 | 144.062 | All sales of tangible personal property and materials for the purpose of constructing, repairing or remodeling facilities for: (1) A county, other political subdivision or instrumentality thereof exempt from taxation under subdivision (10) of section 39 of article III of the Constitution of Missouri; (2) An organization sales to which are exempt from taxation under the provisions of subdivision (19) of subsection 2 of section 144.030; (3) Any institution of higher education supported by public funds or any private not-for-profit institution of higher education, exempt from taxation under subdivision (20) of subsection 2 of section 144.030; or (4) Any private not-for-profit elementary or secondary school exempt from taxation under subdivision (22) of subsection 2 of section 144.030. |
| Exemption & Exclusions | 1990 | HB 1315 | 209.255 | Telephone surcharges imposed to recoup the costs of deaf relay services and distribution programs. |
| Exemption & Exclusions | 1991 | HB 39 | 144.030.2(28) | All sales made to an interstate compact agency created pursuant to sections 70.370 to 70.441, RSMo, (Bi-State Development Agency) and sections 238.010 to 238.100, RSMo, (Kansas City Area Transportations Authority) in the exercise of the functions and activities of such agencies as provided pursuant to compacts. |
| Exemption & Exclusions | 1994 | SB 477 | 144.030.2(23) | Adds to domestic use utility exemption all purchases of utility service through a single or master meter for residential apartments or condominiums, including service for common areas and facilities and vacant units. |
| Exemption & Exclusions | 1994 | SB 477 | 144.044 | Exempts 40 percent of the purchase price of a new manufactured home. |
| Exemption & Exclusions | 1994 | SB 477 | 144.062.2 | Adds to exemption all sales of tangible personal property and materials used or consumed in constructing, repairing or remodeling facilities for: (1) A county, other political subdivision or instrumentality thereof exempt from taxation under subdivision (10) of section 39 of article III of the Constitution of Missouri; (2) An organization sales to which are exempt from taxation under the provisions of subdivision (19) of subsection 2 of section 144.030; (3) Any institution of higher education supported by public funds or any private not-for-profit institution of higher education, exempt from taxation under subdivision (20) of subsection 2 of section 144.030; or (4) Any private not-for-profit elementary or secondary school exempt from taxation under subdivision (22) of subsection 2 of section 144.030. |
| Exemption & Exclusions | 1994 | SB 692 | 262.250 | Exempts from tax any entry fee or charge authorized by the State Fair Commission. |
| Exemption & Exclusions | 1994 | SB 740 | 313.821 | Exempts from tax any state or local admission fees imposed upon excursion gambling boat operators that are collected from each passenger boarding such excursion gambling boat. |
| Exemption & Exclusions | 1995 | HB 414 | 144.030.2(28) | Computers, computer software, and computer security systems purchased for use by architectural, engineering or accounting firms headquartered in this state. For the purposes of this subdivision, "headquartered in this state" means the office for the administrative management of at least four integrated facilities operated by the taxpayer is located in the state of Missouri. [1997 HB 491 removed accounting firms.] |
| Exemption & Exclusions | 1995 | SB 374 | 144.045 | Exempts as nontaxable services charges for court transcripts, depositions, compressed transcripts, exhibits, computer disks containing any such item, or copies of any such item which are prepared by a court reporter. |
| Exemption & Exclusions | 1996 | HB 1466 | 144.030.2(17) | Admission charges to "fairs" added to exemption. |
| Exemption & Exclusions | 1996 | HB 1237 | 144.030.2(21) | All admission charges and entry fees to the Missouri state fair or any fair conducted by a county agricultural and mechanical society organized and operated pursuant to sections 262.290 to 262.530, RSMo. |
| Exemption & Exclusions | 1996 | HB 1466 | 144.030.2(30) | Barges which are to be used primarily in the transportation of property or cargo on interstate waterways. |
| Exemption & Exclusions | 1998 | SB 627 | 144.020.1(4) | Excluded any amounts paid for access to the Internet or interactive computer services. [SB 627 added definition of telecommunications service under Section 144.010.] |
| Exemption & Exclusions | 1998 | SB 936 | 144.030.2(35) | Feed which is developed for and used in the feeding of pets owned by a commercial breeder when such sales are made to a commercial breeder, as defined in section 273.325, RSMo, and licensed pursuant to sections 273.325 to 273.357, RSMo. |
| Exemption & Exclusions | 1999 | HB 516 | 144.518 | Machines or parts for vending machines used in a commercial, coin operated amusement business and vending machines used in a commercial vending business where sales tax is paid on the gross receipts derived from the use of commercial, coin-operated amusement machines. [2007 SB 30 exempts from tax all gross receipts for the temporary use of coin operated amusement devices.] |
| Exemption & Exclusions | 1999 | HB 139 | 144.811 | Any equipment purchased by a federally licensed commercial or public broadcast station when such equipment purchase is made as a result of federal mandate and the technological change that results. |
| Exemption & Exclusions | 2000 | SB 896 | 144.815 | Bullion and investment coins. |
| Exemption & Exclusions | 2003 | SB 11 | 144.817 | Tangible personal property that is donated to the State of Missouri without charge within one year of purchase. |
| Exemption & Exclusions | 2005 | SB 68 | 144.030.2(38) | Sales of tickets to any collegiate athletic championship event that is held in a facility owned or operated by a governmental authority or commission, a quasi governmental agency, a state university or college or by the state or any political subdivision thereof, including a municipality, and that is played on a neutral site and may reasonably be played at a site located outside the state of Missouri |
| Exemption & Exclusions | 2007 | SB 22 | 144.030.2(39) | All purchases made by a sports complex authority created under section 64.920, RSMo. |
| Exemption & Exclusions | 2007 | SB 30 | 144.054.3 | All sales and purchases of tangible personal property, utilities, services, or any other transaction when such sales are made to or purchases are made by a contractor for use in fulfillment of any obligation under a defense contract with the United States government. |
| Exemption & Exclusions | 2007 | SB 30 | 144.054.3 | All sales and leases of tangible personal property by any county, city, incorporated town, or village, provided such sale or lease is authorized under chapter 100, RSMo, and such transaction is certified for sales tax exemption by the department of economic development. |
| Exemption & Exclusions | 2007 | SB 22 | 144.062 | Added any authority exempt from taxation under section 144.030.2(39) and the department of transportation or the state highways and transportation commission to the pass-through exemption. |
| Exemption & Exclusions | 2007 | SB 30 | 144.518 | All gross receipts for the temporary use of coin operated amusement devices. |
| Exemption & Exclusions | 2008 | HB 2058 | 144.057 | All tangible personal property included on the United States munitions list, as provided in 22 CFR 121.1, sold to or purchased by any foreign government or agency or instrumentality of such foreign government which is used for a governmental purpose. |
| Exemption & Exclusions | 2009 | HB 683 | 144.054.4 | All sales and purchases of tangible personal property, utilities, services, or any other transaction that would otherwise be subject to the state or local sales or use tax when such sales are made to or purchases are made by a private partner for use in completing a project under sections 227.600 to 227.669, RSMo. (Missouri Public Private Partnerships Transportation Act) |
| Exemption & Exclusions | 2010 | HB 1442 | 144.030.2(39) | All purchases by a sports complex authority created under section 64.920, and all sales of utilities by such authority at the authority's cost that are consumed in connection with the operation of a sports complex leased to a professional sports team. |
| Exemption & Exclusions | 2010 | SB 928 | 144.030.2(41) | Exempts sales of sporting clays, wobble, skeet, and trap targets to any shooting range or similar place of business for use in normal course of business. |
| Exemption & Exclusions | 2010 | SB 928 | 144.030.2(41) | Exempts money received by a shooting range or similar place of business from patrons held by a shooting range or similar place of business for redistribution as the conclusion of the shooting event. |
| Exemption & Exclusions | 2010 | SB 0795 | 274.180 | Cooperative Marketing Associations organized under Chapter 274 pays an annual fee of ten dollars only, in lieu of all franchise or license or corporation or other taxes, including state sales taxes, or taxes or charges upon reserves held by it for members. |
| Exemption & Exclusions | 2013 | SB 23 | 144.030.2(17) | All amounts paid or charged for admission or participation or other fees paid by or other charges to individuals in or for any place of amusement, entertainment or recreation, games or athletic events owned or operated by a municipality or other political subdivision where all the proceeds derived therefrom benefit the municipality or other political subdivision and do not inure to any private person, firm, or corporation, provided, however, that a municipality or other political subdivision may enter into revenue-sharing agreements with private persons, firms, or corporations providing goods or services, including management services, in or for the place of amusement, entertainment or recreation, games or athletic events, and provided further that nothing in this subdivision shall exempt from tax any amounts retained by any private person, firm, or corporation under such revenue-sharing agreement; |
| Exemption & Exclusions | 2015 | SB 149 | 144.810 | Creates state and local sales and use tax exemptions for data storage centers and allows municipalities to enter into loan agreements, or sell, lease, or mortgage municipal property for a technology business facility project. |
| Exemption & Exclusions | 2016 | SB 823 | 144.030.2(45) | Creates a State and Local sales tax exemption for internet use or access. |
| Exemption & Exclusions | 2022 | HB 2400 | 620.1039.5 | The purchases of new tangible personal property, never used, that is purchased for the purpose of research and development activities for experimental or laboratory research for developing new products, new uses of existing products, or improving or testing existing products, qualifies for an exemption from state and local sales and use taxes. |