HB 653 Missouri House · 2025 Regular Session

Modifies provisions relating to sales tax exemptions

HB 653 modifies Missouri's sales tax exemption rules to clarify which goods and services are exempt from taxation. The bill explicitly exempts manufacturing supplies (including telecommunications services under "manufacturing"), agricultural materials like feed and fertilizer, materials used in material recovery processing plants, and certain business equipment. It also clarifies that telecommunications services production qualifies for manufacturing exemptions and overrules a 2016 court interpretation (IBM case) regarding these exemptions. These changes primarily affect businesses selling exempt items, such as manufacturers, agricultural producers, and material recovery facilities.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Dec 2024

Committee Review

Floor Vote

Governor

Introduced Dec 20, 2024 Last action Apr 23, 2025

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What changed between versions

Introduced → House Committee Substitute · 4 edits

MODERATE

The bill was amended to broaden the sales tax exemption scope by removing specific medical device language and replacing it with general 'sales tax exemptions.' The committee substitute also updated definitions related to material recovery processing plants and added new provisions about unusable vehicle parts.

Scope change

The bill's scope expanded from a specific medical device sales tax exemption to a broader category of sales tax exemptions, and definitions related to recycling facilities and vehicle parts were modified.

SCOPE

Changed the bill's purpose from repealing a specific medical device sales tax exemption to enacting general sales tax exemptions.

DEFINITION

Added new language allowing facilities licensed under section 301.218 to qualify as material recovery processing plants.

Added a new definition stating that 'part' includes purchases of vehicles that are unusable as a whole.

Removed language that excluded motor vehicles used on highways from material recovery processing plant definitions.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 23, 2025

Committee

Referred: Rules - Administrative(H)

lower

Apr 2, 2025

Lower · Passed

HCS Reported Do Pass (H) - AYES: 8 NOES: 0 PRESENT: 0

lower

Mar 31, 2025

Lower · Passed

HCS Voted Do Pass (H)

lower

Mar 19, 2025

Committee

Referred: Ways and Means(H)

lower

Dec 20, 2024

Introduced

Prefiled (H)

lower

1 primary · 0 co-sponsors