By Ray McCarty
January 10, 2023 - Effective January 1, 2023, the AIM manufacturing inputs exemption we fought hard to pass in 2007 was expanded to include ALL sales and use taxes on utilities and other items used in the manufacturing, processing, compounding, mining, or producing of any product, or used in research and development related to such activities.
"While the previous exemption has saved manufacturers millions, the exemption did not formerly apply to local sales taxes due to a negotiation that was necessary to get the bill passed in 2007," said Ray McCarty, president and CEO of Associated Industries of Missouri. "This created a nuisance for accountants and a strange financial incentive to buy these items from out-of-state vendors instead of Missouri vendors. We are pleased to announce that is no longer the case and these transactions will be completely exempt from all state and local sales and use taxes, effective January 1, 2023," he said.
This victory was made possible by our negotiations on, and the passage of, the so-called "Wayfair" bill that expanded use tax liability on sales made by out-of-state vendors selling to Missouri customers. As part of our negotiations on that bill, we needed to make collection and remittance of the tax as easy as possible for out-of-state vendors. Completely exempting all taxes on such transactions makes the tax collection much easier for out-of-state vendors.
"We are very happy that everyone that was entitled to the exemption before will now enjoy additional benefit and reduced red tape," said McCarty.
The exemption may be found in Section 144.054, RSMo linked HERE.