Missouri Code of State Regulations › Title 12 - DEPARTMENT OF REVENUE › Division 10 - Director of Revenue › Chapter 110 - Sales/Use Tax-Exemptions › Section 12 CSR 10-110.400 - Newspapers and Other Publications

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule explains the application of sales
				  and use tax law to the publication and sale of newspapers and other
				  publications. Additionally, section
				  144.030, RSMo, exempts from
				  taxation newsprint, ink, computers, photosensitive paper and film, toner,
				  printing plates, and other machinery, equipment, replacement parts, and
				  supplies used in producing newspapers published for dissemination of news to
				  the general public. This rule explains what elements must be met in order to
				  qualify for this exemption. The sale of publications that are not in tangible
				  form is not subject to tax and is not addressed in this rule.
(1) In general, newspapers, magazines,
				newsletters, periodicals, trade journals, books and other publications are
				tangible personal property and their sale is subject to tax to the same extent
				as any other personal property. Sellers of printed materials are subject to all
				rules applicable to other sellers of tangible personal property, except as
				otherwise specifically provided in this rule. Machinery, equipment, replacement
				parts, and supplies used to produce newspapers for dissemination of news to the
				general public are exempt from tax. Publishers of other printed materials are
				not included within the same exemption as newspapers that disseminate news to
				the general public but may qualify for exemptions applicable to manufacturers
				to the same extent as any other manufacturer.
(2) Definition of Terms.
(A) Equipment-devices that have a degree of
				permanence to the business, contribute to multiple processing cycles over time
				and generally constitute fixed assets, other than land and buildings, that are
				capitalized and depreciated for purposes of business and accounting
				practices.
(B)
				Machinery-combinations of parts that work together as a functioning unit, even
				if they are subordinate elements of more complex machinery. Machinery may be
				simple or complex, but does not include the replacement of an individual part,
				even if that part becomes an element of a functioning machine.
(C) Newspapers published for the
				dissemination of news to the general public-publications that are published at
				stated short intervals, usually daily or weekly, and contain news of current
				events available for distribution to anyone; that do not, when successive
				issues are put together, constitute a book; and that are generally in sheet
				form.
(D) Parts-articles of
				tangible personal property that are components of machinery or equipment, which
				can be separated from the machinery or equipment and replaced. Like machinery
				and equipment, parts must have a degree of permanence and durability. Items
				that are consumed in a single processing and benefit only one (1) production
				cycle are materials and supplies, not parts. Items such as: nuts, bolts, hoses,
				hose clamps, chains, belts, gears, drill bits, grinding heads, blades, and
				bearings, would ordinarily be considered parts. Substances such as fuels and
				coolants that are added to machinery and equipment for operation are not parts.
				Substances such as lubricants, paint and adhesives that adhere to the surface
				of machinery and equipment but are not distinct articles of tangible personal
				property, are not parts; these items would be considered materials or supplies
				within the meaning of the exemptions.
(E) Producing-for purposes of this rule only,
				the process of creating a newspaper.
(F) Publisher-a person who prepares and
				issues a publication for public distribution.
(G) Publication-any written material, such as
				newspapers, magazines, newsletters, periodicals, trade journals, and books,
				offered for sale or distribution.
(H) Supplies-for purposes of this rule only,
				tangible personal property consumed in the production of a newspaper. The term
				supplies does not include fuel.