Effective - 28 Aug 2007
144.062. Construction materials, exemption allowed, when — exemption certificate, form, content, purpose — effect — entity having unauthorized exemption certificate, effect. — 1. With respect to exempt sales at retail of tangible personal property and materials for the purpose of constructing, repairing or remodeling facilities for:
(1) A county, other political subdivision or instrumentality thereof exempt from taxation under subdivision (10) of Section 39 of Article III of the Constitution of Missouri; or
(2) An organization sales to which are exempt from taxation under the provisions of subdivision (19)* of subsection 2 of section 144.030; or
(3) Any institution of higher education supported by public funds or any private not-for-profit institution of higher education, exempt from taxation under subdivision (20)* of subsection 2 of section 144.030; or
(4) Any private not-for-profit elementary or secondary school exempt from taxation under subdivision (22)* of subsection 2 of section 144.030; or
(5) Any authority exempt from taxation under subdivision (39)* of subsection 2 of section 144.030; or
(6) After June 30, 2007, the department of transportation or the state highways and transportation commission;
hereinafter collectively referred to as exempt entities, such exemptions shall be allowed for such purchases if the purchases are related to the entities' exempt functions and activities. In addition, the sales shall not be rendered nonexempt nor shall any material supplier or contractor be obligated to pay, collect or remit sales tax with respect to such purchases made by or on behalf of an exempt entity due to such purchases being billed to or paid for by a contractor or the exempt entity contracting with any entity to render any services in relation to such purchases, including but not limited to selection of materials, ordering, pickup, delivery, approval on delivery, taking of delivery, transportation, storage, assumption of risk of loss to materials or providing warranties on materials as specified by contract, use of materials or other purchases for construction of the building or other facility, providing labor, management services, administrative services, design or technical services or advice to the exempt entity, whether or not the contractor or other entity exercises dominion or control in any other manner over the materials in conjunction with services or labor provided to the exempt entity.
2. When any exempt entity contracts for the purpose of constructing, repairing or remodeling facilities, and purchases of tangible personal property and materials to be incorporated into or consumed in the construction of the project are to be made on a tax-exempt basis, such entity shall furnish to the contractor an exemption certificate authorizing such purchases for the construction, repair or remodeling project. The form and content of such project exemption certificate shall be approved by the director of revenue. The project exemption certificate shall include but not be limited to:
(1) The exempt entity's name, address, Missouri tax identification number and signature of authorized representative;
(2) The project location, description, and unique identification number;
(3) The date the contract is entered into, which is the earliest date materials may be purchased for the project on a tax-exempt basis;
(4) The estimated project completion date; and
(5) The certificate expiration date.
Such certificate is renewable for a given project at the option of the exempt entity, only for the purpose of revising the certificate expiration date as necessary to complete the project.
3. The contractor shall furnish the certificate prescribed in subsection 2 of this section to all subcontractors, and any contractor purchasing materials shall present such certificate to all material suppliers as authorization to purchase, on behalf of the exempt entity, all tangible personal property and materials to be incorporated into or consumed in the construction of that project and no other on a tax-exempt basis. Such suppliers shall execute to the purchasing contractor invoices bearing the name of the exempt entity and the project identification number. Nothing in this section shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in constructing, repairing or remodeling facilities for the exempt entity. All invoices for all personal property and materials purchased under a project exemption certificate shall be retained by the purchasing contractor for a period of five years and shall be subject to audit by the director of revenue.
4. Any excess resalable tangible personal property or materials which were purchased for the project by a contractor under a project exemption certificate but which were not incorporated into or consumed in the construction of the project shall either be returned to the supplier for credit or the appropriate sales or use tax on such excess property or materials shall be reported on a return and paid by such contractor not later than the due date of the contractor's Missouri sales or use tax return following the month in which it was determined that the materials were not to be used in the project.
5. No contractor or material supplier shall, upon audit, be required to pay tax on tangible personal property and materials incorporated into or consumed in the construction of the project due to the failure of the exempt entity to revise the certificate expiration date as necessary to complete any work required by the contract. If it is determined that tax is owed on such property and materials due to the failure of the exempt entity to revise such certificate expiration date, the exempt entity shall be liable for the tax owed.
6. If an entity issues exemption certificates for the purchase of tangible personal property and materials which are incorporated into or consumed in the construction of its project and such entity is found not to have had the authority granted by this section to issue such exemption certificates, then such entity shall be liable for the tax owed on such personal property and materials. In addition, if an entity which does have the authority granted by this section to issue exemption certificates issues such certificates for the purchase of tangible personal property and materials which are incorporated into or consumed in the construction of a project, or part of a project, which is found not to be related to such entity's exempt functions and activities, then such entity shall be liable for the tax owed on such personal property and materials.
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(L. 1988 H.B. 957 & 1571 § 1, A.L. 1994 S.B. 477, et al., A.L. 1998 S.B. 558, A.L. 2007 S.B. 22)
*Statutory references to subdivision "(20)" changed to "(19)", subdivision "(21)" changed to "(20)", subdivision "(23)" changed to "(22)", and subdivision "(40)" changed to "(39)" in accordance with section 3.060 based on renumbering within section 144.030 by S.B. 768 merged with S.B. 975 & 1024 Revision, 2018.
Structure Missouri Revised Statutes
Title X - Taxation and Revenue
Chapter 144 - Sales and Use Tax
Section 144.008 - Nonseverability clause.
Section 144.010 - Definitions.
Section 144.013 - Tax imposed in accordance with federal Mobile Telecommunications Sourcing Act.
Section 144.015 - Promulgation of rules.
Section 144.020 - Rate of tax — tickets, notice of sales tax.
Section 144.030 - Exemptions from state and local sales and use taxes.
Section 144.034 - Exemption, advertising and advertising products.
Section 144.037 - Exemption for retail sales made through the use of federal food stamp coupons.
Section 144.039 - Exemption, purchases by state legislator, when.
Section 144.043 - Light aircraft, definitions — exemption from sales tax, when.
Section 144.046 - Exemption for electrical current to battery manufacturers, when.
Section 144.050 - Additional to other taxes — exceptions.
Section 144.053 - Farm machinery and equipment exempt from state and local sales and use tax, when.
Section 144.054 - Additional sales tax exemptions for various industries and political subdivisions.
Section 144.060 - Purchaser to pay sales tax — refusal, a misdemeanor — exception.
Section 144.064 - Firearms or ammunition, limitation on sales tax levied.
Section 144.071 - Rescission of sale requires tax refund, when.
Section 144.088 - Definitions — rate of sales tax stated on receipt or invoice, when, contents.
Section 144.090 - Director may require monthly or annual returns instead of quarterly — when due.
Section 144.115 - Returns kept four years — destroyed, when.
Section 144.130 - Refunds to purchasers, deduction.
Section 144.157 - Violations in collecting, penalty.
Section 144.160 - Extension of time by director for payment of tax.
Section 144.170 - Interest on delinquent taxes — rate.
Section 144.200 - Appropriation for refunds.
Section 144.230 - Assessed penalty and tax due, when.
Section 144.240 - Assessment final when, appeal — procedures.
Section 144.261 - Review by administrative hearing commission.
Section 144.270 - Rulemaking authority.
Section 144.300 - Director may demand information.
Section 144.310 - Records kept by director.
Section 144.320 - Records required to be kept.
Section 144.330 - Examination of records — investigations.
Section 144.340 - Exemption from testifying — immunity from prosecution.
Section 144.350 - Penalty for failure to testify.
Section 144.390 - Unpaid taxes may be recovered at law — procedure.
Section 144.400 - Suit for taxes filed, where — jurisdiction.
Section 144.410 - Remedies of state, cumulative.
Section 144.420 - Certification of delinquencies to attorney general — collection suits.
Section 144.425 - Compromise of delinquent taxes — percentage — limitation — procedure.
Section 144.427 - Taxpayer's agreement to certain conditions to obtain compromise.
Section 144.430 - Legal expenses.
Section 144.450 - Exemptions from use tax.
Section 144.470 - Taxes now authorized not prohibited.
Section 144.480 - Failure to furnish a return, penalty.
Section 144.490 - Penalty for false return.
Section 144.500 - Penalty for fraud or evasion.
Section 144.510 - Violation of this law a misdemeanor.
Section 144.513 - College bookstores, sales by, subject to tax.
Section 144.517 - Textbooks, sales and use tax exemption.
Section 144.527 - Farmers' market, sales and use tax exemption for farm products sold.
Section 144.600 - Title of law.
Section 144.605 - Definitions.
Section 144.613 - Boats and boat motors — tax to be paid before registration issued.
Section 144.620 - Presumption arising from sale for delivery to state.
Section 144.625 - Vendors may be required to give bond.
Section 144.630 - Agent of vendor for service, designation or agreement as to — process served, how.
Section 144.635 - Vendor to collect tax from purchasers — selling agent not liable for tax, when.
Section 144.640 - Taxpayer to keep records, examination.
Section 144.645 - Investigations, subpoenas, oaths.
Section 144.650 - Vendors to register, information required.
Section 144.655 - Return, when filed — payment, when due — rules — exemption, limits.
Section 144.660 - Director's powers as to returns.
Section 144.665 - Failure to file return, penalties — exceptions.
Section 144.670 - Additional assessment made when, notice.
Section 144.675 - Penalty assessed for fraud or evasion, notice.
Section 144.695 - Excess payments to be adjusted or refunded.
Section 144.696 - Refund of overpayments — claim for refund — time for making claims.
Section 144.705 - Rules and regulations, adoption — copies available.
Section 144.715 - Notices served, how.
Section 144.720 - Sales tax interest and penalty provisions applicable.
Section 144.725 - Failure to obey subpoena or to produce books, a misdemeanor.
Section 144.730 - Advertising that vendor absorbs tax, a misdemeanor.
Section 144.735 - Failure to make return, pay tax or keep records, penalty.
Section 144.740 - False return or statement, penalty.
Section 144.745 - Violation not having a specific penalty deemed a misdemeanor.
Section 144.809 - Exemption for aviation jet fuel, when.
Section 144.815 - Bullion and investment coins, sales and use tax exemption.