The Missouri 149 form, officially known as the Sales and Use Tax Exemption Certificate, is a crucial document for businesses seeking exemptions from sales or use tax on specific items including but not limited to manufacturing equipment, wholesale purchases, and agricultural supplies. It outlines various categories for exemption, from full manufacturing exemptions to partial ones and other specific scenarios such as purchases by motor vehicle dealers or for agricultural purposes. Understanding and accurately completing this form is imperative for businesses to ensure compliance with Missouri tax laws and to leverage tax exemptions effectively. To learn more about how to properly fill out this form, click the button below.
The Missouri 149 Form, also known as the Sales and Use Tax Exemption Certificate, plays a vital role for businesses and individuals looking to purchase goods or services tax-free under specific conditions recognized by state law. This certificate requires thorough attention from both the seller and the purchaser to ensure the property or service being sold is truly exempt from sales and use tax. Among the varied exemptions covered by the form, it specifically highlights instances for full and partial manufacturing exemptions, distinguishing between tangible personal property for resale, taxable services for resale, items for manufacturing or wholesale purposes, as well as niche categories like agricultural equipment or pollution control machinery. Each category demands careful classification to secure the correct tax exemption status, emphasizing the necessity for accurate information regarding the purchaser and seller's details, the nature of the business, and a detailed description of the goods or services purchased. This form not only facilitates a meticulous transaction process but also supports Missouri's regulatory framework in ensuring tax exemptions are correctly applied and governed, reflecting the complexity and specificity of tax law compliance and its implications for business operations.
Form
149
Sales and Use Tax Exemption Certificate
Caution to seller: In order for the certificate to be accepted in good faith by the seller, the seller must exercise care that the
property being sold is exempt. When a purchaser is claiming an exemption for purchases of items that qualify for the full manufacturing exemption and other items that only qualify for the partial manufacturing exemption, the seller must make certain the correct amount
of tax is charged for each item purchased.
Name
Telephone Number
Missouri Tax I.D. Number
(___ ___ ___)___ ___ ___-___ ___ ___ ___
|
Contact Person
Doing Business As Name (DBA)
Purchaser
Address
City
State
ZIP Code
Describe product or services purchased exempt from tax
Type of business
Seller
Resale - Exclusion From
r Purchases of Tangible Personal Property for resale: RETAILER’S STATE TAX ID NUMBER ______________________ HOME STATE ___________
Sales or Use Tax
(Missouri Retailers must have a Missouri Tax I.D. Number)
r Purchases of Taxable Services for resale (see list of taxable services in instructions)
RETAILER’S MISSOURI TAX I.D. NUMBER ___________________.
(Resale certificate cannot be taken by seller in good faith unless the purchaser is registered in Missouri)
r Purchases by Manufacturer or Wholesaler for Wholesale: HOME STATE: ___________ (Missouri Tax I.D. Number may not be required)
r Purchases by Motor Vehicle Dealer: MISSOURI DEALER LICENSE NUMBEr ____________________________
(Only for items that will be used on vehicles being resold) (An Exemption Certificate for Tire and Lead-Acid Battery Fee (Form 149T) is
required for tire and battery fees)
Manufacturing
Full Exemptions
These apply to state and local sales and use tax.
r Ingredient or Component Part
r Plant Expansion
r Manufacturing Machinery, Equipment, and Parts
r Research and Development of Agricultural Biotechnology
r Material Recovery Processing
Products and Plant Genomics Products and Prescription
Pharmaceuticals
Partial Exemptions
These only apply to state tax (4.225%) and local use tax, but not sales tax. The seller must collect and report local sales taxes
imposed by political subdivisions.
r Research and Development
r Manufacturing Chemicals and Materials
r Machinery and Equipment Used or Consumed in Manufacturing
r Materials, Chemicals, Machinery, and Equipment Used or Consumed in Material Recovery Processing Plant
rUtilities or Energy and Water Used or Consumed in Manufacturing (Must complete below)
Purchaser’s Manufacturing Percentage _______________ %
Purchaser’s Square Footage ____________________
Other
r Agricultural
r Common Carrier
r Locomotive Fuel
r Air and Water Pollution Control, Machinery, Equipment,
(Attach Form 5095)
Appliances and Devices
r Commercial Motor Vehicles or Trailers Greater than 54,000
r Other
Pounds (Attach Form 5435)
Signature
Under penalties of perjury, I declare that the above information and any attached supplement is true, complete, and correct.
Signature (Purchaser or Purchaser’s Agent)
Title
Date (MM/DD/YYYY)
__ __ /__ __ /__ __ __ __
If you have questions, please contact the Department of Revenue at:
Form 149 (Revised 11-2019)
Phone: (573) 751-2836
TTY: (800) 735-2966E-mail: salestaxexemptions@dor.mo.gov
Fax: (573) 522-1666
Visit http://www.dor.mo.gov/business/sales/sales-use-exemptions.php for additional information.
Manufacturing - Full Exemptions
Manufacturing - Partial Exemptions
Sales or Use Tax Exemption Certificate (Form 149) Instructions
Select the appropriate box for the type of exemption to be claimed and complete any additional information requested.
•Purchases of Tangible Personal Property for resale: Retailers that are purchasing tangible personal property for resale purposes are exempt from sales or use tax.
The purchaser’s state tax ID number can be found on the Missouri Retail License or out of state registration for retail sales.
•Purchases of Taxable Services for resale: Purchasers for resale must have a Missouri retail license in order to claim resale of taxable services in Missouri. A taxable service includes sales of restaurants, hotels, motels, places of amusement, recreation, entertainment, games and athletic events not at arms length, and sales of telecommunications and utilities (see Section 144.018, RSMo).
•Purchases by Manufacturer or Wholesaler for Wholesale: A Missouri Tax I.D. Number is not required to claim this exclusion.
•Purchaser’s Home State: Provide the state in which purchaser is located and registered.
•Purchases by Motor Vehicle Dealer: A motor vehicle dealer who is purchasing items for the repair of a vehicle being resold is exempt from sales or use tax. The dealer’s license is issued by the Missouri Motor Vehicle Bureau or by the out of state registration authority that issues such licenses.
Check the appropriate box for the type of exemption to be claimed. All items selected in this section are exempt from state and local sales and use
tax under Section 144.030, RSMo.
•Ingredient or Component Parts: This exemption includes materials, manufactured goods, machinery, and parts that become a part of the final product. To qualify, the product must ultimately be subject to sales or use tax, or its equivalent, in Missouri or other states.
•Manufacturing Machinery, Equipment and Parts: This exemption includes only machinery and equipment and their parts that are used directly in manufacturing a product. To qualify, the product must ultimately be subject to sales or use tax, or its equivalent, in Missouri or other states.
•Material Recovery Processing: This exemption includes machinery and equipment used to establish new or to replace existing material recovery processing plants. See Sections 144.030.2(5) and (32), RSMo, for a definition of, and exemptions for, material recovery processing.
•Plant Expansion: This exemption includes machinery, equipment, and parts and the materials and supplies solely required for installing or constructing the machinery and equipment, used to establish new or to expand existing Missouri manufacturing, mining, or fabricating plants. To qualify, the machinery must be used directly in manufacturing, mining or fabricating a product that is ultimately subject to sales or use tax, or its equivalent, in Missouri or other states.
•Research and Development of Agricultural Biotechnology Products and Plant Genomics Products and Prescription Pharmaceuticals: This exemption is specifically authorized in Section 144.030.2(34), RSMo, and exempts any tangible personal property used or consumed directly or exclusively in research and development of agricultural, biotechnology, and plant genomics products and prescription pharmaceuticals consumed by humans or animals.
Check the appropriate box for the type of exemption to be claimed according to Section 144.054, RSMo. All items in this section are exempt from state sales and use tax and local use tax, but are still subject to local sales tax. Section 144.054, RSMo, exempts electrical energy and gas (natural, artificial and propane), water, coal, energy sources, chemicals, machinery, equipment and materials used or consumed in manufacturing, processing, compounding, mining or producing any product. These same items are exempt if used or consumed in processing recovered materials. To qualify for this exemption, the item must be used or consumed and does not have the same requirement of direct use that is required in Section 144.030, RSMo. Additionally, the manufactured product is not required to be ultimately subject to tax.
•Research and Development: Check this box if the exemption is for the research and development related to manufacturing, processing, compounding or producing a product.
•Manufacturing Chemicals and Materials: Check this box if the exemption is for chemicals or materials used or consumed in manufacturing, processing, compounding or producing a product.
•Machinery and Equipment Used or Consumed in Manufacturing: Check this box if the exemption is for machinery or equipment used or consumed in manufacturing, processing, compounding or producing a product.
•Materials, Chemicals, Machinery, and Equipment Used or Consumed in Material Recovery Processing Plant: Check this box if the exemption is for material recovery processing.
•Utilities or Energy and Water Used or Consumed in Manufacturing: If claiming utilities (electrical energy, gas or water), record account numbers, meter numbers, or other information as required by the vendor. All purchasers who are claiming an exemption for energy use must provide the amount of energy use which is related to manufacturing in the space provided and also select the method by which this percentage was obtained.
•Agricultural: Farm machinery and equipment are exempt from tax if used exclusively for agricultural purposes, used on land owned or leased for the purpose of producing farm products, and used directly in the production of farm products to be ultimately sold at retail. The sale of grains to be converted into foodstuffs or seed, and limestone, fertilizer, and herbicides used in connection with the growth or production of crops, livestock or poultry is exempt from tax. The sale of livestock, animals or poultry used for breeding or feeding purposes, feed for livestock or poultry, feed additives, medications or vaccines administered to livestock or poultry in the production of food or fiber, and sales of pesticides and herbicides used in the production of aquaculture, livestock or poultry are exempt from tax. All sales of fencing materials used for agricultural purposes and the purchase of motor fuel are exempt from tax.
•Common Carrier: Materials, replacement parts and equipment purchased for use directly upon, and for the repair and maintenance or manufacture of, motor vehicles, watercraft, railroad rolling stock or aircraft engaged as common carriers of persons or property. See Section 144.030.2(3), RSMo. Attach completed Form 5095.
•Locomotive Fuel: Fuel purchased for use in a locomotive that is a common carrier is exempt from sales and use tax.
•Air and Water Pollution Control Machinery, Equipment, Appliances and Devices: Machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring water and air pollution, and materials and supplies solely required for the installation, construction or reconstruction of such machinery, equipment, appliances and devices. See Sections 144.030.2(15) and (16), RSMo.
•Commercial Motor Vehicles or Trailers Greater Than 54,000 Pounds: Motor vehicles registered for and capable of pulling in excess of 54,000
pounds and their trailers actually used in the normal course of business to haul property on the public highways of the state are exempt from tax. The purchase of materials, replacement parts, and equipment used directly on, for the repair of and maintenance or manufacture of these vehicles is also exempt. See Section 144.030.2(4), RSMo.
•Other: Exemptions not listed on this sheet, but are provided by statute. Provide explanation of exemption being claimed. See Chapter 144 of the Missouri Revised Statutes for exemption http://www.moga.mo.gov/mostatutes/statutesAna.html#T10.
Once the Missouri 149 form, also known as the Sales and Use Tax Exemption Certificate, is in hand, it's time to begin the process of accurately filling it out. This form is essential for validating the sales and use tax exemption status of your purchases or transactions. The steps outlined below are designed to guide you through each part of the form to ensure no detail is missed and that your filing is in compliance with Missouri Department of Revenue requirements.
After completing the form, the next steps involve submitting it to the relevant seller or service provider from whom you are purchasing goods or services. This form serves as a declaration of your exemption status, allowing the seller to process your transaction without including the sales and use tax. Remember, it’s important to keep a copy of this completed form for your records and be prepared to provide it during any audits or reviews by the Missouri Department of Revenue. Ensuring the accuracy and completeness of this form is crucial for maintaining compliance with state tax laws.
The Missouri 149 Form, also known as the Sales and Use Tax Exemption Certificate, is a document that allows businesses to purchase items without paying sales tax, provided those items are to be used in a way that qualifies for tax exemption. This includes goods for resale, items for manufacturing processes, and various other specific uses detailed in Missouri tax law.
Business owners and organizations that make purchases for resale, manufacturing, wholesale, or for specific exempt purposes can use the Missouri 149 Form. This includes retailers, manufacturers, wholesalers, and motor vehicle dealers, among others, provided they meet the eligibility criteria for the exemptions.
The Missouri 149 Form details several types of exemptions, categorized mainly into:
To qualify for an exemption, the purchaser must provide specific information about the nature of their business and the items being purchased. This includes the business’s Missouri Tax I.D. Number, a detailed description of the exempt products or services, and the exemption category under which the purchase falls. The form must be completed in full, and the seller must accept it in good faith, ensuring the goods qualify for the claimed exemption.
Sellers must exercise due diligence to ensure that the property being sold qualifies for the exemption claimed by the purchaser. This includes verifying the purchaser’s eligibility and the applicability of the exemption to the products or services sold. Sellers are responsible for keeping accurate records of exempt transactions and may be required to provide these records if audited by the Missouri Department of Revenue.
For more information or specific questions about the Missouri 149 Form, individuals can contact the Missouri Department of Revenue directly. Assistance is available via phone at (573) 751-2836, TTY at (800) 735-2966, email at salestaxexemptions@dor.mo.gov, or fax at (573) 522-1666. Additionally, detailed information and resources can be found on the Missouri Department of Revenue’s website.
Filling out the Missouri 149 form, which is crucial for sales and use tax exemption, requires careful attention to detail. Unfortunately, people often make mistakes that can invalidate their claims or lead to issues with tax authorities. Here are four common errors:
To avoid these mistakes, it's important to thoroughly review the form, ensure all information is accurate and complete, and consult the instructions or a tax professional if any uncertainties arise.
Completing the Missouri Form 149 for Sales and Use Tax Exemption is an essential step for businesses qualifying for tax-exempt purchases under specified conditions governed by Missouri law. However, to ensure compliance and support tax-exempt transactions, several additional forms and documents might be needed depending on the nature of the exemption being claimed. Understanding these additional forms is crucial for businesses to effectively manage their tax-exempt purchases.
For businesses operating within the applicable sectors in Missouri, these forms serve as vital tools to navigate the complexities of sales and use tax exemption. Properly identifying and utilizing the relevant forms, in addition to Form 149, ensures compliance with state tax laws and facilitates efficient operation by leveraging tax exemptions designed to support specific industries and activities.
The Missouri 149 form, known as the Sales and Use Tax Exemption Certificate, facilitates a range of tax exemption claims for various business activities, echoing the structure and function of other tax-related documents, albeit with its unique specifications and applicability under Missouri law.
Uniform Sales & Use Tax Exemption/Resale Certificate – Multijurisdiction: This document is akin to the Missouri 149 form in its purpose to provide tax exemptions on purchases meant for resale, manufacturing, or other eligible exemptions across multiple states. Both documents require detailed information about the purchaser, including business type and a valid tax ID number. The primary distinction lies in the Missouri 149 form's specific orientation towards Missouri's tax laws, whereas the Multijurisdiction Certificate is broader, catering to multiple states' tax requirements.
Certificate of Exemption: State-specific versions of Certificates of Exemption parallel the Missouri 149 form in their function to exempt entities from sales tax during procurement processes. However, each state's Form focuses on exemptions as per its tax statutes, highlighting differences in qualification criteria and the types of exemptions available. For instance, some states might have more nuanced exemptions for agricultural implements or digital products, which may not align precisely with Missouri’s categories outlined in the Missouri 149 form.
Streamlined Sales Tax Exemption Certificate: The Streamlined Sales and Use Tax Agreement (SST) Exemption Certificate covers a consortium of states and offers a standardized format to facilitate sales tax exemption requests. Similar to the Missouri 149 form, it is used by businesses to claim exemptions on purchases, such as goods for resale or manufacturing equipment. The pivotal difference is its streamlined application across member states of the SST, offering a uniform procedure compared to the state-specific nuances of Missouri's approach with Form 149.
When filling out the Missouri 149 form, which is pertinent for claiming various sales and use tax exemptions, attention to detail and a clear understanding of your eligibility are crucial. Here are eight vital do's and don'ts to ensure you fill out this form accurately and effectively:
Treating the 149 form with the seriousness it requires, and following these guidelines, can help streamline your sales and use tax exemption claims, making the process smoother for both the purchaser and the seller. Remember, accurate and honest communication of your exemption eligibility is key to a successful claim.
Understanding Missouri's Form 149 can sometimes be confusing due to common misconceptions surrounding its use and requirements. Below, we clarify some of these misconceptions to help ensure accurate completion and compliance with state tax laws.
Only for tangible goods: A common belief is that Form 149 is only for the purchase of tangible goods. In reality, it also covers certain services deemed exempt from sales tax under Missouri law, making it applicable beyond just physical products.
Uniform application: It's often thought that if you qualify for exemption under one category, it automatically applies across the board. However, exemptions are specific to the category under which your purchase falls. Sellers must ensure they charge the correct amount of tax for each item purchased, depending on its exemption status.
Resale certificates always accepted in good faith: Sellers are cautioned that a resale certificate, including Form 149, can't always be accepted in good faith. They must exercise diligence to ensure the buyer's purchase truly qualifies for exemption. This involves understanding the nuances of what qualifies for full versus partial exemptions.
Missouri Tax I.D. requirement: There's a misconception that a Missouri Tax I.D. Number is always needed to claim an exemption. While often required, there are situations, such as purchases by manufacturers or wholesalers for wholesale, where this might not be the case. Each exemption type has specific requirements regarding the Missouri Tax I.D. Number.
Automatic exemption for all manufacturing machinery: Not all purchases of manufacturing machinery and equipment are exempt from sales and use tax. The exemption applies only to those items used directly in manufacturing a product intended for sale. It's important to check the specific qualifications for full exemptions versus partial ones.
All agricultural purchases are exempt: While agricultural operations do benefit from several tax exemptions, not every purchase related to agriculture is automatically exempt. Eligible items must be used exclusively for agricultural purposes, and directly in the production of farm products to qualify.
Complete exemption from all sales and use taxes: Certain exemptions listed on Form 149 apply only to the state sales tax or local use tax, but not to local sales taxes. It's crucial to distinguish between full exemptions, which exempt the purchase from state and local sales and use taxes, and partial exemptions, which may not cover local sales taxes.
Form 149 for out-of-state purchases: Another misunderstanding is that Form 149 is usable for exempting out-of-state purchases from Missouri sales tax. While the form does apply to transactions involving Missouri vendors and out-of-state buyers, specific criteria and registration requirements must be met for the exemption to be valid.
It's essential for both sellers and buyers to familiarize themselves with the specific conditions and limitations of Form 149 to ensure compliance with Missouri's sales and use tax laws. By understanding these common misconceptions, businesses can better navigate the complexities of tax-exempt purchases, thereby avoiding potential penalties for incorrect application of exemptions.
The Missouri 149 form is an essential document for individuals and businesses seeking exemption from sales and use tax on qualifying purchases. Understanding how to properly fill out and use this form can save time and ensure compliance with state regulations. Here are six key takeaways:
Utilizing the Missouri 149 form correctly can significantly benefit businesses by reducing tax liabilities on eligible purchases. It’s recommended to consult the form instructions and, if necessary, seek guidance to ensure all information is filled out correctly and that the purchases indeed qualify for the claimed exemptions. This diligence will help prevent issues with tax exemptions and ensure a smoother process in transactions exempt from sales and use tax.
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