Passed as part of Senate Bill 30, this legislation will exempt energy sources (such as electricity, gas, and coal), water, chemicals, machinery, equipment and materials from state sales taxes and state and local use taxes when used or consumed in manufacturing, mining, compounding, processing or producing any product. The bill also exempts these items when used in research and development related to manufacturing. The exemption extends only to state sales and use taxes and local use taxes; local sales taxes will continue to apply.
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“This is landmark legislation that will give a huge boost to the manufacturers of this state,” said Ray McCarty, executive director of TRIM. “This exemption allows
Since the measure was signed into law by Gov. Matt Blunt on June 13, AIM and TRIM is working closely with the Missouri Department of Revenue to make implementation of the exemption run as smoothly as possible. The Missouri Department of Revenue has posted some additional information regarding the AIM/TRIM Manufacturing Inputs sales tax exemption.
NEW AUGUST 28, 2007:
The Department of Revenue has issued additional guidance on application of the exemption. To see the new guidance, click here.
If you would like to view the proposed rules, please click here. PLEASE NOTE THAT THE LANGUAGE THAT APPEARS IN BRACKETS IN THE TEXT OF THE PROPOSED RULES IS INTENDED TO BE DELETED AND NEW LANGUAGE THAT IS INTENDED TO BE ADDED APPEARS AS BOLD-FACE TEXT.
The AIM/TRIM Manufacturing Inputs Sales Tax Exemption will be an agenda item at two upcoming AIM conferences – the 2007 Tax Conference, scheduled for Oct. 18 and 19 at the Lodge of the Four Seasons,
If you have any further questions, please contact the Missouri Department of Revenue by phone at (573) 751-2836 or by email at: salesuse@dor.mo.gov
As always, Associated Industries and the Taxpayers Research Institute stands ready to assist you with the exemption. You may contact Ray McCarty, Executive Director of the Institute at rmccarty@aimo.com.
