Missouri SB 57: Modifies provisions relating to sales tax exemptions

Bill Text

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 57
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR COLEMAN.
0134S.02I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 144.014 and 144.030, RSMo, and to enact in lieu thereof two new sections
relating to sales tax exemptions.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 144.014 and 144.030, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 144.014 and 144.030, to read as follows:3
144.014. 1. (1) Notwithstanding other provisions of 1
law to the contrary, [beginning October 1, 1997, the tax 2
levied and imposed under this chapter on] all retail sales 3
of food shall be [at the rate of one percent. The revenue 4
derived from the one percent rate pursuant to this section 5
shall be deposited by the state treasurer in the school 6
district trust fund and shall be distributed as provided in 7
section 144.701] exempted from the provisions of and from 8
the computation of the tax levied, assessed, or payable 9
pursuant to this chapter. 10
(2) Beginning January 1, 2026, the rate of sales tax 11
imposed on all retail sales of food pursuant to the local 12
sales tax law as defined in section 32.085, and section 13
238.235, shall annually be reduced in four equal increments 14
over a period of four years. Beginning January 1, 2030, 15
notwithstanding other provisions of law to the contrary, all 16
retail sales of food shall be exempted from the provisions 17
of and from the computation of the tax levied, assessed, or 18

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payable pursuant to the local sales tax law as defined in 19
section 32.085, and section 238.235. 20
2. For the purposes of this section, the term "food" 21
shall include only those products and types of food for 22
which food stamps may be redeemed pursuant to the provisions 23
of the Federal Food Stamp Program as contained in 7 U.S.C. 24
Section 2012, as that section now reads or as it may be 25
amended hereafter, and shall include food dispensed by or 26
through vending machines. For the purpose of this section, 27
except for vending machine sales, the term "food" shall not 28
include food or drink sold by any establishment where the 29
gross receipts derived from the sale of food prepared by 30
such establishment for immediate consumption on or off the 31
premises of the establishment constitutes more than eighty 32
percent of the total gross receipts of that establishment, 33
regardless of whether such prepared food is consumed on the 34
premises of that establishment, including, but not limited 35
to, sales of food by any restaurant, fast food restaurant, 36
delicatessen, eating house, or café. 37
144.030. 1. There is hereby specifically exempted 1
from the provisions of sections 144.010 to 144.525 and from 2
the computation of the tax levied, assessed or payable 3
pursuant to sections 144.010 to 144.525 such retail sales as 4
may be made in commerce between this state and any other 5
state of the United States, or between this state and any 6
foreign country, and any retail sale which the state of 7
Missouri is prohibited from taxing pursuant to the 8
Constitution or laws of the United States of America, and 9
such retail sales of tangible personal property which the 10
general assembly of the state of Missouri is prohibited from 11
taxing or further taxing by the constitution of this state. 12

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2. There are also specifically exempted from the 13
provisions of the local sales tax law as defined in section 14
32.085, section 238.235, and sections 144.010 to 144.525 and 15
144.600 to 144.761 and from the computation of the tax 16
levied, assessed or payable pursuant to the local sales tax 17
law as defined in section 32.085, section 238.235, and 18
sections 144.010 to 144.525 and 144.600 to 144.745: 19
(1) Motor fuel or special fuel subject to an excise 20
tax of this state, unless all or part of such excise tax is 21
refunded pursuant to section 142.824; or upon the sale at 22
retail of fuel to be consumed in manufacturing or creating 23
gas, power, steam, electrical current or in furnishing water 24
to be sold ultimately at retail; or feed for livestock or 25
poultry; or grain to be converted into foodstuffs which are 26
to be sold ultimately in processed form at retail; or seed, 27
limestone or fertilizer which is to be used for seeding, 28
liming or fertilizing crops which when harvested will be 29
sold at retail or will be fed to livestock or poultry to be 30
sold ultimately in processed form at retail; economic 31
poisons registered pursuant to the provisions of the 32
Missouri pesticide registration [law] act, sections 33
[281.220] 281.210 to 281.310, which are to be used in 34
connection with the growth or production of crops, fruit 35
trees or orchards applied before, during, or after planting, 36
the crop of which