Effective January 1, 2026, Missouri has enacted an exemption from state and local sales and use tax for sales, purchases, or use of machinery and equipment used to provide broadband communications service by a broadband communications service provider.
To qualify for this exemption, the broadband communications service provider must provide to the seller a certificate in writing to the effect that an exemption is applicable to the machinery and equipment used to provide broadband communications service.
The Department of Revenue (DOR) will allow any such broadband communications service provider to enter into a direct pay agreement with the DOR, pursuant to which the provider may pay directly to the DOR any applicable sales and use taxes on such equipment.
For purposes of the exemption, “Machinery and equipment used to provide broadband communications service”, includes, but is not limited to, wires, cables, fiber, conduits, antennas, poles, switches, routers, amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers, transmitters, circuit cards, insulating and protective materials and cases, power equipment, backup power equipment, diagnostic equipment, storage devices, customer premise equipment, modems, software, cable modem termination system components and Wi-Fi equipment, and other general central office or headend and hub equipment, such as channel cards, frames, and cabinets, or equipment used in successor technologies, including items used to monitor, test, maintain, enable, or facilitate qualifying equipment, machinery, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part to provide broadband communications service.
“Broadband communications service” means internet access as defined in 47 U.S.C. Section 151, telecommunications service, video programming service, or any combination thereof.
“Broadband communications service provider” means a person engaged in the provision of broadband communications service or an affiliate of such person. (Missouri, H.B. 594, Laws 2025, effective January 1, 2026)