Air and Water Pollution Control Exemption (House Bill 1670)

The legislature enacted House Bill 1670 that removes the requirement that businesses claiming the air and water pollution control exemption pursuant to Sections 144.030.2(14) and 144.030.2(15), RSMo must first seek approval from the Department of Natural Resources. In the past, the Department of Natural Resources sent their certification to the Department of Revenue (Department) and the Department subsequently issued an exemption letter and the certification to the claimant.  With the enactment of House Bill 1670, effective for purchases made on or after August 28, 2008, claimants may utilize the Department of Revenue’s Form 149, Exemption Certificate to claim the exemption. Claimants must complete Form 149 and issue it to the seller. Do not send it to the Department of Natural Resources or the Department of Revenue for approval.

Sections 144.030.2(14) and 144.030.2(15), RSMo both require that any machinery, equipment, appliance or device purchased under the claim of exemption be used solely for that exempt purpose. Once a purchaser issues the exemption letter, that purchaser becomes liable if the purchased item does not meet the standard of the exemption. Reference the Department’s rules for further guidance on claiming the exemption.