Statutes, codes, and regulations
Missouri Administrative Code
Title 12 - DEPARTMENT OF REVENUEDivision 10 - Director of Revenue
Chapter 111 - Sales/Use Tax-Machinery and Equipment Exemptions
Section 12 CSR 10-111.061 - Exempt Items Used or Consumed in Material Recovery Processing as Defined in Section 144.054, RSMo

Mo. Code Regs. tit. 12 § 10-111.061

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Current through Register Vol. 49, No. 21, November 1, 2024.
Section 12 CSR 10-111.061 - Exempt Items Used or Consumed in Material Recovery Processing as Defined in Section 144.054, RSMo

PURPOSE: Section 144.054.2, RSMo, exempts machinery, equipment, materials, coal, energy sources and chemicals used or consumed in the processing of recovered materials from state tax and local use tax, but not local sales tax. This rule explains the elements that must be met in order to qualify for the exemption.

(1) In general, the purchase of machinery, equipment, materials and chemicals used or consumed in the processing of recovered materials are exempt from state tax and local use tax, but not local sales tax.
(2) Basic Application of Exemption.
(A) Purchases of machinery, equipment and materials used or consumed in the processing of recovered materials are exempt from state tax and local use tax, but not local sales tax. Coal, energy sources and chemicals used or consumed in the processing of recovered materials are also exempt from state tax and local use tax, but not local sales tax.
(B) Electrical energy or gas (natural, artificial or propane), water, or other energy sources consumed in processing recovered materials is exempt from state and local tax (144.030.2(31), RSMo).
(3) Examples.
(A) A metal recycler uses diesel fuel to operate its hydraulic cutter. The diesel fuel may be purchased exempt from state tax and local use tax, but not local sales tax, because it is used or consumed in the processing of recovered materials.
(B) A paper recycler mixes water with paper in its pulping equipment in order to separate the paper fibers from each other. The water may be purchased exempt from state tax and local use tax, but not local sales tax.
(C) An aluminum can recycler uses natural gas in its furnace to melt aluminum scraps into molten aluminum. The purchase of the natural gas is exempt from state tax and local use tax, but not local sales tax, because it is consumed in the processing of recovered materials.

12 CSR 10-111.061

AUTHORITY: section 144.270, RSMo 2000 and 144.054, RSMo Supp. 2007.* Emergency rule filed Aug. 14, 2007, effective Aug. 28, 2007, expired Feb. 23, 2008. Original rule filed Aug. 14, 2007, effective March 30, 2008.

*Original authority: 144.054, RSMo 2007 and 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.