SALT Report 1388 – The Missouri Department of Revenue determined that a mining company’s purchases of fire extinguishers are not exempt from sales and use tax under §144.054 RSMo which provides an exemption for purchases of, “electrical energy and gas, whether natural, artificial, or propane, water, coal, and energy sources, chemicals, machinery, equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product…”
Federal law requires the Taxpayer to have fire extinguishers located within the facility for the safety of the workers and to provide protection for the facility. However, the fire extinguishers are not used or consumed by the Taxpayer in the mining of any product. Therefore, the Taxpayer’s purchases of fire extinguishers do not qualify for the exemption provided under Section 144.054, RSMo, and are subject to tax.
For Further Information: