Thanks to the support of our sponsors (KCP&L and Ameren), more than 125 manufacturers, utility companies and suppliers were treated to lunch and details regarding the new AIM/TRIM Manufacturing Inputs Sales Tax Exemption that was contained in SB 30 and signed by Governor Matt Blunt into law effective August 28, 2007. Associated Industries of Missouri and the Taxpayers Research Institute of Missouri were pleased to coordinate this meeting to help ensure the bill is implemented as we intended when we drafted the language and we are pleased to report it appears the DOR will interpret our language as we intended.
Director of Revenue Trish Vincent and Deputy Director Lowell Pearson addressed the crowd and explained that the manufacturing tax break was a priority of Governor Blunt and that the Department of Revenue would interpret the language as they believed the legislature and Governor intended for it to be interpreted: as a benefit to Missouri manufacturers. During the talk and the responses to the questions that followed, it became apparent that the Department of Revenue, under Director Vincent's leadership, is committed to providing the exemption in as broad a manner as possible, exactly as we drafted and explained it during its course through the legislature.
Although many finer details such as forms and detailed processes are still being determined, the Director and Deputy Director fielded many questions and provided attendees with insight on their view of the new law. One of the most important determinations that was made is that, because we drafted the language without requiring direct use of items in the manufacturing process as a prerequisite for exemption, energy used to provide lighting and heating and air conditioning for manufacturing plants would be included. This helps ease the administrative burden of implementing the exemption for energy suppliers because the Department plans to allow manufacturers to claim exemption for all of their energy if their non-manufacturing use is minimal in relation to their manufacturing use of the energy.
Taxpayers with specific questions regarding their operations were encouraged to submit letter rulings to the Department of Revenue. The letter ruling process provides taxpayers with a firm determination based on facts submitted by the taxpayer and is binding on the DOR for three (3) years. You may find more information and guidelines on letter rulings here, and you may access the Department's Power Point Presentation here.
AIM and TRIM are organizing another free meeting for late August in the southwest part of the state. Attendance at that meeting will be limited and advance reservations will be required. AIM and TRIM are continuing our dialog with the Department of Revenue and will post additional information regarding the implementation of the exemption as it becomes available on this website.
If you have any questions, please contact Ray McCarty at ray@raymccarty.com.
