HB 1670 -- SALES TAX EXEMPTION FOR POLLUTION CONTROLS

SPONSOR:  Cooper (120)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Ways and Means by a vote of 7 to 0.

This bill removes the required certification by the Director of
the Department of Natural Resources before a sales and use tax
exemption applies when purchasing or leasing machinery,
equipment, appliances, and devices used solely to prevent, abate,
or monitor water or air pollution and any materials and supplies
used in the installation, construction, or reconstruction of the
machinery, equipment, appliances, and devices.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the bill covers pollution
control devices that are tax exempt but must be certified under
the Department of Natural Resources before the Department of
Revenue will refund the tax.  The bill makes the equipment tax
exempt at the time of purchase instead of applying for the
refund.  The certification of air and water pollution control
equipment as a requirement for the sales tax exemption is
unnecessary and unproductive.  The equipment is specialized so
that it can only be used for water and air pollution control and
is required by the federal Environmental Protection Agency.
Senate Bill 30 from last year expanded sales tax exemptions so
that these devices may already be exempt from state taxes, but
not the local taxes.  The bill will result in a small savings to
the state and a great reduction in administrative difficulty for
taxpayers.

Testifying for the bill were Representative Cooper (120);
Taxpayers Research Institute of Missouri; Associated Industries
of Missouri; Missouri Chamber of Commerce and Industry; and
Missouri Agribusiness Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm