Missouri – General Contractor’s Use of Charitable Organization’s Exemption Certificate

SALT Report 3092 – The Missouri Department of Revenue issued a letter ruling regarding a general contractor’s use of a charitable organization’s exemption letter and project exemption certificate for travel expenses, meals, office supplies, safety equipment and lodging associated with an exempt construction project.

In its ruling, the Department stated that under section 144.062, RSMo a pass-through contractor is allowed an exemption for purchases of tangible personal property and materials that will be used in the construction of, or will be incorporated into, projects for exempt entities. However, travel expenses, meals, and lodging are not included within this exemption. Therefore, the Taxpayer cannot provide the charitable organization’s exemption letter and project exemption certificate to a vendor who provides those services.

In addition, the Department stated that the Taxpayer cannot purchase or rent office supplies, temporary job site fencing, temporary erosion materials, construction hard hats, safety equipment, hand tools, power tools, or any other items not considered tangible personal property or materials under the charitable organization’s exemption letter and project exemption certificate because these items cannot be incorporated into the project, as required by the exemption.

For Further Information

Missouri Department of Revenue – Letter Ruling #LR 7317