October 9, 2007 - We have learned the DOR has decided lease payments on qualifying equipment will be exempted or taxed based on the date of such lease payments.
As a result, even though a lease was initiated prior to August 28, 2007, lease payments made on or after that date for equipment covered under the new AIM/TRIM Manufacturing Inputs Tax Exemption will be exempted from state and local use taxes and state sales taxes. Local sales taxes will continue to apply to such lease payments.
This makes sense because Missouri's sales tax law is a gross receipts tax. Gross receipts on leases occur when the lease payment is made, so the law in effect when the lease payment is made should govern the transaction, even though the lease was initiated prior to the effective date of the new AIM/TRIM Manufacturing Inputs Tax Exemption.
