Sales Tax Articles
Sales Tax State Activity Update - September 2008
Steel Toed Boots Fit Missouri Manufacturing Exemption like a Glove
The Missouri Director of Revenue released a ruling that clarifies the Sales and Use tax exemption for steel toed boots used in manufacturing, purchased by either the manufacturer or its employees. Pursuant to Section 144.054.2, exemption applies to:
"...equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product, or used or consumed in the processing of recovered materials, or used in research and development related to manufacturing, processing, compounding, mining, or producing any product."
According to the letter ruling LR 4865, issued July 3, 2008, steel toed boots used in manufacturing are exempt from the state's sales & use tax and local use tax. However, the steel toed boots remains subject to any sales tax imposed by the local taxing authorities.
The exemption is not limited to the manufacturer as the purchaser. The manufacturer's employees can purchase the items exempt, so long as it is used in a tax-exempt manner. An exemption certificate from the manufacturer or the manufacturer's employee should be presented to the seller, indicating their intent for exempt usage.
This ruling may be viewed at the Missouri Department of Revenue Web site.
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