The Missouri Department of Revenue ruled that a taxpayer’s purchases of power transformers, switchgears, and other supporting utilities were exempt from sales tax as machinery and equipment used to expand an existing manufacturing plant. The taxpayer’s purchases will be used directly in upgrading the current electrical system, which is required to maintain the additional power needed for the expansion of the plant. Therefore, the purchases are exempt. (Letter Ruling No. LR5105, Missouri Department of Revenue, August 29, 2008).