Missouri Utilities Used to Raise and Sell Cattle Not Taxable

The Missouri Department of Revenue has issued a Letter Ruling regarding the consumption of electric utilities used to raise and sell beef cattle. Under this ruling, the non-personal amount of electricity used is not subject to Missouri sales taxes. However, electric utilities used for personal consumption located on a farm are subject to sales tax. Furthermore, the utility company must be notified by the property owner as to what amount of electricity consumed is exempt from sales tax when there is only one utility meter located on a farm. (Letter Ruling No. LR4371, Missouri Department of Revenue).

Posted on March 31, 2008