HCS/SCS/SB 489 - Under current law, if property is traded in on a purchase, purchasers pay sales or use tax only on the excess, if any, of the purchase price of the new item less any trade-in allowance and any applicable rebates.

This act authorizes the reduction in the purchase price of a motor vehicle, trailer, boat or outboard motor only for the trade-in of similar items upon which a sales or use tax has been paid, credited, satisfied or waived. The act provides a presumption of proper sales and use tax payment on a motor vehicle, trailer, boat, or outboard motor if the item has a valid certificate of title.

The act also exempts sales of the following items from sales and use tax: replacement machinery and parts; materials and equipment used in producing newspapers; electrical energy used in a material recovery processing plant, if its cost exceeds 10% of the total cost of production or if the raw materials contain at least 25% recovered materials; electrodes which are used or consumed in manufacturing or processing and have a useful life of less than one year; lubricants used exclusively for farm machinery and equipment; electrical energy or gas consumed in the manufacturing of cellular glass products; retreading or recapping equipment, supplies or materials; tire carcasses; uncured rubber; or retreaded or recapped tires sold to any business which retreads, recaps, or resells any retreaded or recapped tires; pesticides, including adjuvants for applying pesticides, or herbicides used in the production of crops, livestock or poultry; dog food purchased by commercial breeders; machines and parts used in commercial, coin-operated amusement and vending businesses; admission charges for hunting certain wild game and feed and equipment used to raise such game domestically; equipment purchased by a federally licensed commercial or public broadcast station; sales to a political subdivision of this or any other state; purchases by a contractor on behalf of an entity located in another state which has a certificate of exemption from that state; made-for-hire picture film or video productions produced all or in part in this state; and tangible personal property purchased or leased by a film production company certified by the Missouri Film Commission.
RUSS HEMBREE