Missouri Utilities Used to Clean and Condition Grain Taxable

Cooperative utilities which are owned by farmers and used to clean and condition grain are subject to sales and use tax in Missouri. The utilities do not fall under the exemption §144.030.2(33), RSMo, which includes utilities that are used in the research and development for agriculture and biotechnology and prescription drugs consumed by humans or animals, or the exemption §144.054.2, because they are not used during for manufacturing, processing, compounding, mining, or the producing of any product. (Letter Ruling No. LR4232, Missouri Department of Revenue, November 14, 2007, released February 2008)

Posted on October 9, 2008