Missouri § 144.062 - Construction materials, exemption allowed, when — exemption certificate, form, content, purpose — effect — entity having unauthorized exemption certificate, effect.

§ 144.062. Construction materials, exemption allowed, when — exemption certificate, form, content, purpose — effect — entity having unauthorized exemption certificate, effect.

1.  With respect to exempt sales at retail of tangible personal property and materials for the purpose of constructing, repairing or remodeling facilities for:

(1)  A county, other political subdivision or instrumentality thereof exempt from taxation under subdivision (10) of Section 39 of Article III of the Constitution of Missouri; or

(2)  An organization sales to which are exempt from taxation under the provisions of subdivision (19)^* of subsection 2 of section 144.030; or

(3)  Any institution of higher education supported by public funds or any private not-for-profit institution of higher education, exempt from taxation under subdivision (20)^* of subsection 2 of section 144.030; or

(4)  Any private not-for-profit elementary or secondary school exempt from taxation under subdivision (22)^* of subsection 2 of section 144.030; or

(5)  Any authority exempt from taxation under subdivision (39)^* of subsection 2 of section 144.030; or

(6)  After June 30, 2007, the department of transportation or the state highways and transportation commission;

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2.  When any exempt entity contracts for the purpose of constructing, repairing or remodeling facilities, and purchases of tangible personal property and materials to be incorporated into or consumed in the construction of the project are to be made on a tax-exempt basis, such entity shall furnish to the contractor an exemption certificate authorizing such purchases for the construction, repair or remodeling project.  The form and content of such project exemption certificate shall be approved by the director of revenue.  The project exemption certificate shall include but not be limited to:

(1)  The exempt entity's name, address, Missouri tax identification number and signature of authorized representative;

(2)  The project location, description, and unique identification number;

(3)  The date the contract is entered into, which is the earliest date materials may be purchased for the project on a tax-exempt basis;

(4)  The estimated project completion date; and

(5)  The certificate expiration date.  

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3.  The contractor shall furnish the certificate prescribed in subsection 2 of this section to all subcontractors, and any contractor purchasing materials shall present such certificate to all material suppliers as authorization to purchase, on behalf of the exempt entity, all tangible personal property and materials to be incorporated into or consumed in the construction of that project and no other on a tax-exempt basis.  Such suppliers shall execute to the purchasing contractor invoices bearing the name of the exempt entity and the project identification number.  Nothing in this section shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in constructing, repairing or remodeling facilities for the exempt entity.  All invoices for all personal property and materials purchased under a project exemption certificate shall be retained by the purchasing contractor for a period of five years and shall be subject to audit by the director of revenue.

4.  Any excess resalable tangible personal property or materials which were purchased for the project by a contractor under a project exemption certificate but which were not incorporated into or consumed in the construction of the project shall either be returned to the supplier for credit or the appropriate sales or use tax on such excess property or materials shall be reported on a return and paid by such contractor not later than the due date of the contractor's Missouri sales or use tax return following the month in which it was determined that the materials were not to be used in the project.

5.  No contractor or material supplier shall, upon audit, be required to pay tax on tangible personal property and materials incorporated into or consumed in the construction of the project due to the failure of the exempt entity to revise the certificate expiration date as necessary to complete any work required by the contract.  If it is determined that tax is owed on such property and materials due to the failure of the exempt entity to revise such certificate expiration date, the exempt entity shall be liable for the tax owed.

6.  If an entity issues exemption certificates for the purchase of tangible personal property and materials which are incorporated into or consumed in the construction of its project and such entity is found not to have had the authority granted by this section to issue such exemption certificates, then such entity shall be liable for the tax owed on such personal property and materials.  In addition, if an entity which does have the authority granted by this section to issue exemption certificates issues such certificates for the purchase of tangible personal property and materials which are incorporated into or consumed in the construction of a project, or part of a project, which is found not to be related to such entity's exempt functions and activities, then such entity shall be liable for the tax owed on such personal property and materials.

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(L. 1988 H.B. 957 & 1571 § 1, A.L. 1994 S.B. 477, et al., A.L. 1998 S.B. 558, A.L. 2007 S.B. 22)

*Statutory references to subdivision "(20)" changed to "(19)", subdivision "(21)" changed to "(20)", subdivision "(23)" changed to "(22)", and subdivision "(40)" changed to "(39)" in accordance with section 3.060 based on renumbering within section 144.030 by S.B. 768 merged with S.B. 975 & 1024 Revision, 2018.

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