Missouri Exempts Equipment Used to Blend Fertilizer for Sale

May 24th, 2021

The Missouri Department of Revenue recently determined that equipment used to blend raw materials into fertilizer for sale qualified for the manufacturing exemption. A taxpayer who owned and operated a facility that produced fertilizer for sale purchased machinery and equipment used to process and blend the fertilizer.

Missouri exempts sales of machinery, equipment, and parts used directly in manufacturing. Manufacturing consists of the alteration of a material in a way that produces an article with a use, identity, and value different from the original. For machinery, equipment, and parts to be "used directly in" manufacturing, they must be essential to and comprise an integral part of the manufacturing process. The taxpayer used the equipment to blend raw materials into fertilizer, and the fertilizer was then sold for final use or consumption. The Department concluded that the equipment was used directly in a manufacturing operation.

https://www.ttrus.com/sites/default/files/newspdf/Missouri_Exempts_Equipment_Used_to_Blend_Fertilizer_for_Sale_1621891282.pdf