Missouri Establishes Manufacturing Exemptions

Effective August 28, 2007, Senate Bill 30 provides Missouri manufacturers an exemption from state tax and local use tax (but not local sales tax) on electrical energy, gas (natural or artificial), water, coal, energy sources, chemicals, machinery, equipment and materials used or consumed in the manufacturing, processing, compounding, mining or production of any product, or used/consumed in the processing of recovered materials. A similar exemption applies to the aforementioned items used for research and development purposes. The items need not be “directly” used in the manufacturing process to benefit from the exemption. Therefore, items used in areas such as warehousing, maintenance, or engineering may also qualify. (Missouri SB. 30)

Posted on September 7, 2007