Section 56 Tangible Personal Property Held for Resale in Ordinary Course of Business by Processors, Retailers, Importers, Manufacturers, or Jobbers

• Library: Tax Law 2009

The Missouri use tax does not apply to tangible personal property held by processors, retailers, importers, manufacturers, wholesalers, or jobbers solely for resale in the regular course of business. Section 144.615(6), RSMo Supp. 2007. See §9.16 above with respect to the resale exemption in the Sales Tax Law. The use tax rules provide that, “The test is what is to be done with the property purchased and held by the purchaser.” 12 C.S.R. § 10-4.105(1). The exemption applies only with respect to property purchased “solely for resale.” See Spudich v. Dir. of Revenue, 745 S.W.2d 677 (Mo. banc 1988) (billiard tables used primarily as display items to solicit orders and sold only under unusual circumstances held not purchased for resale); Pryor Executive Planes...