Opinion ID: 2381394
Heading Depth: 1
Heading Rank: 5

Heading: Exemptions for Sales to Government Entities

Text: Appellant contends the Commission erred in affirming the tax assessed on sales to LeBarge Electronics and Eagle Picher Manufacturing, claiming they are exempt under section 144.030.2(6) as sales used exclusively in the manufacturing, processing, modification, or assembly of tangible personal property sold to the United States government or one of its agencies. The Commission found appellant had not met her burden of proof to exempt the sales. Appellant argues that because she received exemption certificates from the purchasers, she was relieved of the obligation to collect tax. Appellant bears the burden of proof that sales of tangible personal property are not sales at retail and thereby exempt from tax. §§ 621.050, 144.210, 32.200, RSMo 1986. When a vendor in good faith accepts an exemption certificate offered by a purchaser, the vendor is relieved of liability for sales or use tax for that transaction. § 32.200, RSMo; Mo. Const. art. V, § 2. Under the facts of each purchase in this case, not only were the sales not within the ambit of section 144.030.2(6), but if the appellant had informed herself as to the substantive basis of the exemption certificates, it is doubtful that she would have been accepting them in good faith. The sales were made to the companies themselves, who paid Videotech directly, not to the United States government or to one of its agencies. The appellant may be held responsible for the tax under section 144.210.