Missouri Taxpayer with Civic Exemption Status Denied “Pass-Through” Exemption for Construction Project

A taxpayer with civic exemption status attempted to make the status “pass-through” to their contractor and subcontractors when purchasing construction materials for a new project. The applicant specifically has a Limited Exemption from Missouri Sales and Use Tax on Purchases and Sales as a Civic Organization under Section 144.030.2(20) RSMo.

The Missouri Department of Revenue clarified that the civic exemption status does not “pass-through,” so the exemption was denied. The contractor and subcontractors have been advised to obtain exempt status for these purchases through the Department of Transportation or the contractor can request an exemption certificate for the project itself. (Letter Ruling No. LR 8154, Missouri Department of Revenue, August 3, 2021, 204-527)

Posted on September 14, 2021