Section 5 Exemptions and Exclusions

• Library: Tax Law 2009

Applicable statutory exemptions and exclusions are found in §§ 144.011, 144.450, and 144.613, RSMo 2000, and § 144.030, RSMo Supp. 2007. The exemption provisions use the term “sale[s] at retail” as a term of art and exclude certain transactions by classifying them as being other than “sale[s] at retail.”

“Sale at retail” is defined in § 144.010.1(10), RSMo Supp. 2007, as “any transfer made by any person engaged in business as defined herein of the ownership of, or title to, tangible personal property . . . for use or consumption and not for resale . . . for a valuable consideration . . . .” Section 144.010.1(2) further indicates that “[b]usiness” includes any activity engaged in “with the object of gain, benefit or advantage, either direct or indirect.”

The isolated or occasional sale of tangible personal property does not constitute engaging in business unless the total gross receipts exceed $3,000 in any calendar year. Section 144.010.1(2). See generally Chapter 9 of this deskbook.

The definitions found in § 144.010 create exemptions from sales tax in certain motor vehicle transactions, such as sales between individuals or sales of less than $3,000. These transactions, however, are usually subject to § 144.440, RSMo 2000, highway use tax. Exemptions to the use tax are found in §...