The act clarifies that the term "product which is intended to be sold ultimately for final use or consumption" used in the sales tax exemptions for replacement machinery and new or expanded plant machinery covers tangible personal property or taxable services that are taxable in this state or any other state.

The act excludes from the definition of food, for purposes of the reduced sales tax rate, food or drink where the gross receipts of selling that food constitutes more than fifty percent of the total gross receipts of that establishment.

The act also exempts the following items from sales and use tax: all feed for livestock or poultry, regardless of whether the livestock or poultry is to be sold ultimately in processed form or otherwise; replacement 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; certain assistive devices, such as wheelchairs, stairway lifts and braille writers, and sales of scooters, reading machines and other devices if they are purchased by or for persons with one or more physical or mental disabilities to enable them to function more independently; 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; tangible personal property used in the research and development of prescription pharmaceuticals for humans or animals; grain bins used for the storage of grain for resale; tangible personal property purchased or leased by a film production company certified by the Missouri Film Commission. The act also exempts as a service not subject to tax the sale of the first copy of a customized film or video production produced in this state under contract with a film or video production company; sales of subsequent copies are subject to tax.

The act allows the Director of Revenue to increase or decrease the filing and payment requirements for sales tax and vendor's use tax.

RUSS HEMBREE