CHAPTER 100 SALES TAX EXEMPTION, PERSONAL PROPERTY

MISSOURI DEPARTMENT OF ECONOMIC DEVELOPMENT

PURPOSE
Provide a sales tax exemption on tangible personal property purchased through Chapter 100 bonds for non-manufacturing purchases.

AUTHORIZATION
Section 144.054(3), RSMo, as enacted in Senate Bill 30 (2007).

ELIGIBLE AREAS
Statewide.

ELIGIBLE APPLICANTS
Any company for which Chapter 100 bonds are issued that purchases personal property. Companies eligible for Chapter 100 bond financing include manufacturing, warehousing, distribution, office, research and development, agricultural processing, and services in interstate commerce. Retail, services in intrastate commerce and others are not eligible.

ELIGIBILITY CRITERIA
The project cannot have been announced; bonds already approved/issued; or personal property already purchased. The project must:
• Involve competition with another state; therefore, a comprehensive state/local incentive proposal will be in an attempt to win the project;
• Have above-average wages with benefits, or be in an economically distressed or blighted area;
• Include local incentives provided to the project commensurate with the state incentives, relative to the new state/local tax revenues created by the project;
• Have a positive state fiscal benefit, including all the state incentives proposed for the project; and
• Have an indication that the city and county have approved the local sales tax exemption. (The local sales tax exemption may also be provided independent of the state sales tax.)

PROGRAM BENEFITS/ELIGIBLE USES
The Missouri Department of Economic Development (DED) will issue a state or local sales tax exemption to a company for which Chapter   bonds have been issued. The company must present the exemption to the vendor from whom they are purchasing the equipment.

APPLICATION/APPROVAL PROCEDURE
DED will coordinate a state/local incentive proposal to qualifying projects, in which the exemption will be included. Upon the decision to proceed, the business will file the Missouri form “Chapter 100 Sales Tax Exemption Application,” and return the completed form to the DED for approval and certification. Upon approval, DED will issue a certificate authorizing the applicant to claim the tax exemption. The applicant must then display the tax exemption to the vendor before the purchase is made.

CONTACT
Missouri Department of Economic Development
Business and Community Services
Business and Community Finance Team
301 West High Street • P.O. Box 118 • Room 770
Jefferson City • MO • 65102
Phone: 573-751-4539 • Fax: 573-522-4322
E-mail: dedfin@ded.mo.gov • Web: www.MissouriDevelopment.org