Missouri – Taxability of Items Installed During Construction of Water Treatment Facilities

SALT Report 1232 – The Missouri Department of Revenue has issued a letter ruling discussing the application of sales and use tax to items installed during the construction of a water treatment plant. Specifically, equipment and materials, such as an air compressor with control panel, air dryer, refrigeration, and cycling, and piping, valves, fittings, pipe supports, pipe bedding material, and fusion machine rental. ┬áThese items are exempt from sales and use tax if they are required for the installation, construction or reconstruction of machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring water pollution.

However, equipment and materials required for the construction of the foundation, slabs, concrete pads, walls of the buildings or other miscellaneous are not exempt as these structures are used to house the water treatment equipment only.  These items are not solely required for the installation, construction or reconstruction of machinery, equipment, appliances or devices and are not used solely for the purpose of preventing, abating or monitoring water pollution.

For Further Information:

Missouri Department of Revenue – Letter Ruling # LR 6944