Restaurant Equipment Does Not Qualify for Manufacturing Exemption in Missouri

A Missouri restaurant’s purchases of equipment used in the restaurant’s operations were not exempt from Missouri state sales and use tax as manufacturing equipment under Section 144.054, RSMo. To qualify for the manufacturing exemption, equipment must be used or consumed in the manufacturing process. Missouri takes the position that a restaurant does not manufacture products, but is in the business of selling and merchandising food and drinks, therefore not eligible of the manufacturing exemption (Letter Ruling No. LR5609, Missouri Department of Revenue, April 20, 2009)

Posted on March 30, 2010