The Missouri Department of Revenue ("Department") recently determined that hoop buildings used exclusively and directly for raising livestock for ultimate sale at retail are exempt. "Hoop buildings" are fabric covered metal structures anchored with a concrete or wood pony wall foundation. Hoop buildings are permanent installations farmers can use in multiple livestock production cycles. Farmers also use hoop buildings for storage, shelter, and protection in the raising of livestock.
Missouri provides an exemption for farm machinery and equipment. Taxpayers must use equipment exclusively for agricultural purposes for the exemption to apply. Taxpayers must also use the equipment (1) directly in producing farm products sold at retail or (2) in producing farm products fed to livestock or poultry sold in processed form at retail. The Department concluded that hoop buildings used exclusively to raise and feed livestock are exempt. However, the Department also determined that hoop buildings are taxable if used for the storage of items such as (1) grain, (2) hay, (3) feed rations, (4) sand, (5) salt, (6) gravel, or (7) equipment and machinery.