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HB 2152

Modifies definitions to expand the types of facilities eligible for a certain sales tax exemption

2026 Regular Session Introduced by Michael Davis

Missouri HB 2152 would broaden sales tax exemptions to include more machinery, parts, vehicles used in manufacturing and material recovery, expanding eligibility for related purcha

Referred: Emerging Issues(H)
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Bill Summary · HB 2152

Bill Overview

House Bill 2152 (HB 2152), introduced in Missouri's 2026 session, would modify the state sales tax exemptions by expanding the types of facilities and activities eligible for certain exemptions. The bill repeals section 144.030 and enacts a new version with broad-based exclusions from state and local sales taxes for a wide range of purchases, including machinery, equipment, parts, and related items used in specific production, manufacturing, and support activities. The sponsor is Rep. Davis, with Rep. Michael Davis as a co-sponsor.

Main Purpose and Intent

  • To expand eligibility for specific sales tax exemptions, particularly for activities that support manufacturing, processing, and material recovery.
  • To clarify and broaden the scope of “part” purchases to include vehicles unusable as a whole, thereby extending exemptions to certain vehicle purchases used in production or processing contexts.
  • To reaffirm and codify the treatment of various inputs and infrastructure as exempt when used directly in manufacturing, mining, fabricating, or related final-use production.

Key Provisions and Changes

  • The bill preserves and expands exemptions for:
    • Replacement machinery, equipment, and parts used directly in manufacturing or processing to produce final consumer goods.
    • Materials, replacement parts, and equipment used for installation or construction of replacement machinery, including for establishing or expanding material recovery processing plants.
    • Machinery and equipment used to establish or expand manufacturing, mining, or fabricating operations, when used directly in production.
    • Components and inputs used exclusively in material recovery processes (including facilities and equipment used for recovering materials, with a defined scope for ownership and operation).
  • Explicit expansion to include purchases of vehicles that are “unusable as a whole” within the meaning of “part,” thereby aligning vehicle components with exemptions intended for parts.
  • Clarifications regarding telecommunications-related manufacturing and the treatment of electricity or energy used in primary/secondary processing, with explicit references to material recovery facilities and related processes.
  • Broad enumerations of exempt items under various subsections (including agricultural inputs, utilities, and specialized equipment) remain intact or are clarified to align with the expanded exemptions.
  • The bill retains language ensuring that some exemptions do not apply to tax on certain items previously taxed or subject to other regulatory exemptions, and it references existing court interpretations (and clarifies how the new section interacts with prior rulings).

Who Is Affected

  • Missouri-based manufacturers, processors, and fabricators that purchase machinery, equipment, parts, and materials used directly in production.
  • Businesses establishing or expanding manufacturing, mining, fabricating, or material recovery facilities.
  • Entities purchasing vehicles or vehicle parts that would now qualify as exempt due to the broader “part” definition.
  • Contractors and suppliers who supply equipment or materials to exempt facilities, provided the purchases meet the criteria.
  • Local governments and taxpayers due to the potential impact on local sales tax revenues.

Procedural and Timeline Aspects

  • Repeals current section 144.030 and replaces it with a new section defining the exemptions.
  • The bill is in the referral stage (Emerging Issues), with prior readings completed in January 2026 and introduction in December 2025.
  • If enacted, the exemptions would apply prospectively as defined by the new section and associated statutory language, subject to implementation rules and potential regulatory guidance.

Note: The text includes detailed statutory language and cross-references to existing Missouri law and case law, which the summary highlights at a high level without reproducing all specifics.

Compiled from official sources — confirm details with the bill’s official record.

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