Missouri Installation Equipment is Subject to Tax

A corporation’s rentals of cranes and forklifts used to manufacture and install materials for other manufacturers are taxable in Missouri. The cranes and forklifts are not considered to be materials and supplies; and therefore, are not exempt under Paragraphs (4) and (5) of subsection 144.030.2, RSMo, which provides an exemption for materials and supplies used in the installation of manufacturing equipment. Furthermore, since the corporation uses the cranes and forklifts for installation after the manufacturing, processing, or production is complete, they are not entitled to the exemption pursuant to subsection 144.054, RSMo. (Letter Ruling No. LR4234, Missouri Department of Revenue)

Posted on August 28, 2008