NOTICE TO MANUFACTURERS:
Associated Industries of Missouri and the Taxpayers Research Institute of Missouri hosted a symposium in July. We taped that session with intentions of making a DVD available, free of charge, to our members. We discovered, however, before we could even get the video in a form that could be distributed, the information in the video had changed, due to the ever-evolving interpretations of the Missouri Department of Revenue. We fear distributing that video may lead our members to rely on information in the video that is now outdated.
In fact, the interpretations and application of the exemption are changing so rapidly that we decided the best way to communicate the most current information to our members was to keep our website updated with the most current information. This has already worked to our members’ advantage because we recently received an updated interpretation from the Missouri Department of Revenue and posted it to our website within minutes of receipt. Maintaining the website will ensure our members have access to the most accurate information available with which to make their business decisions and to maximize their ability to take full advantage of the new AIM/TRIM Manufacturing Inputs exemption.
On this website, you will find links to the Missouri Department of Revenue’s website containing proposed rules. The proposed and emergency rules can be confusing for taxpayers that do not regularly read such rules. As you read these rules, the language that is enclosed in brackets ( [ ] ) is intended to be deleted and language appearing in bold is intended to be added to the rule. The most important rule developed by the DOR so far that relates to all manufacturers, producers, etc., is 12 CSR 10-111.011, which you will find here: http://dor.mo.gov/tax/pros/proposedrules/P-RUL-111-011-dor-vw.pdf
No special application is required to take advantage of the AIM/TRIM Manufacturing Inputs Exemption. You need to complete a Sales/Use Tax Exemption Certificate, DOR Form 149, and provide that certificate once to each of your vendors. As long as the vendor has the exemption certificate on file, you do not need to complete a new exemption certificate for each purchase. The exemption certificate may be found here: http://dor.mo.gov/tax/business/sales/forms/149f.pdf
To determine what processes are exempted under the new AIM/TRIM Manufacturing Inputs Exemption, you need to make a determination based on the most recently available information from the Department of Revenue. Here is the link to the most current information provided by the Department of Revenue: http://dor.mo.gov/tax/pros/proposedrules/P-RUL-111-011-dor-vw.pdf
All energy sources (electricity, gas, coal), water, machinery, equipment and chemicals that are used or consumed in the manufacturing, processing, compounding, mining or producing of any product are exempt from state sales taxes and state and local use taxes under the AIM/TRIM Manufacturing Inputs Exemption. If the items are used directly in the process, they will be exempted by the new law (from state sales taxes and state and local use taxes – local sales taxes continue to apply).
Some have asked what types of businesses qualify as a “manufacturer” that is able to receive the exemption. It is important to note that you are not required to be a “manufacturer” to obtain the exemption. You must be performing one of the exempt activities: manufacturing, processing, compounding, mining or producing a product. There is no requirement in the law that the product be a taxable product. The Department of Revenue will continue to refine its interpretation and any updates will be posted on this website.
Regarding the purchase of energy from utility providers, if your company is entitled to the exemption, you must complete and provide an exemption certificate (DOR 149) to your energy provider. Use
Associated Industries of Missouri and the Taxpayers Research Institute of Missouri is happy to have achieved this exemption and to provide this information to you free of charge. We encourage you to check our website often because we will have the most current information posted here for you. Feel free to forward links to our website to your corporate or branch offices, and thank you for your continued support of AIM and TRIM.
ADDITIONAL RESOURCES:
MISSOURI DEPARTMENT OF REVENUE WEBSITE ON AIM/TRIM MANUFACTURING EXEMPTION
