MO HB1872

Repeals and reenacts section 144.054, RSMo to clarify sales tax exemptions for manufacturing and processing industries.

Expands the manufacturing exemption to include services used in testing, installing, calibrating, maintaining, repairing, or restoring machinery or equipment used in manufacturing, processing, compounding, mining, or producing any product.

Maintains existing exemptions for electrical energy, gas, water, coal, chemicals, machinery, equipment, and materials used in manufacturing, processing, research and development, and processing of recovered materials.

Confirms that exemptions under this section do not apply to local sales taxes as defined in section 32.085.

Preserves exemptions for defense contracts with the U.S. government, county and city sales and leases authorized under chapter 100, railroad infrastructure brought in for processing and modification, and private partners completing projects under sections 227.600 to 227.669.