Missouri Sales Taxes

Missouri levies a statewide sales tax of 4.225% on the purchase of tangible personal property and enumerated services. A 4% special use tax is applied to the sale of motor vehicles, trailers, boats, and outboard motors. For more details, click here.

Local taxing jurisdictions may levy additional sales taxes; sales tax rates for selected Missouri communities are as follows:

Sales tax exemptions include:

• Machinery and equipment used to establish a new facility or expand an existing manufacturing facility are tax exempt, provided such machinery/equipment is used directly to manufacture a product ultimately intended for sale.

• Replacement machinery and equipment used directly in manufacturing a product ultimately intended for sale are tax-exempt, provided their acquisition has been necessitated by reason of change in design or product, as opposed to obsolescence.

• Machinery, equipment and devices which abate air pollution may be acquired tax-exempt. To qualify for this exemption, a company need only have the appropriate state governmental agency certify the equipment is pollution control equipment.

• All materials and supplies used to install this tax-exempt machinery and equipment also may be purchased tax-exempt.

• Electricity consumed in the manufacturing process, provided the cost of the electricity exceeds 10% of total production costs. The cost of electrical energy consumed in the manufacturing process cannot be included in total production costs to qualify for the exemption. Electricity used for non-manufacturing purposes, such as heating and lighting, is taxable.

• Electricity or gas, whether national, artificial or propane, is tax-exempt when used in connection with basic steel making.

• Effective Aug. 28, 2007, energy, including electricity or natural gas, used in manufacturing, mining, compounding, processing or producing a product or used in research and development related to the items above may qualify for a new state sales tax exemption (referred to as Missouri Senate Bill 30).

• Anodes used in manufacturing or other types of production, with a useful life of less than one year.

• Certain property purchased by specific biotech, medical, and veterinary labs for use in research and experimentation activities is exempt from state and local sales and use tax.