Does anyone know if adding seismic bracing to manufacturing equipment would qualify as exempt for Missouri sales tax?
Cheryl, According to the Missouri Department of Revenue, the part must be used directly in the manufacturing process in order to qualify for the exemption. From their regulations: “The factors which determine whether an article is directly used are: whether the item is essential or necessary to the process; how close, causally, is the item to the production process; and whether the item operates harmoniously with other machinery to make an integrated and synchronized system.” If any equipment satisfies these tests, then it would be considered “direct use” and eligible for the exemption.
