Crane Leased for Use in Manufacturing Exempt in Missouri

A company that leases a crane for use at the beginning of the manufacturing process in order to lift and transport materials to a conveyor belt is exempt from Missouri sales and use taxes. The conveyor belt moves the materials down the assembly line in order for the manufacturing process to begin. The Department of Revenue ruled that the crane is considered to be used directly in the manufacturing process because it is an integral part of the synchronized system, and therefore qualifies for the exemption. (Letter Ruling No. LR5323, Missouri Department of Revenue, December 2, 2008)

Posted on February 16, 2009