Missouri Code of State Regulations — Title 12 (Department of Revenue)

12 CSR 10-110.950

Letters of Exemption Issued by the Department of Revenue

Official textsos.mo.govlast amended Apr 30, 2003

PURPOSE: Chapter 144, RSMo provides that certain organizations are exempt. This rule sets out the steps necessary to obtain a letter of exemption from the department.

# (1)

In general, the department issues letters of exemption to qualifying exempt entities. Documentation verifying the exempt status of the organization must be filed with the department to obtain a letter of exemption.

# (2)

Application of the Rule.

# (A)

The seller is responsible for collecting tax unless the exempt entity provides proof that it is exempt. One form of proof of exemption is a letter of exemption issued by the department.

# (B)

An organization seeking a letter of exemption certif-icate must complete a Missouri Sales/Use Tax—Exemption Application—Form 1746. If the documentation establishes that the entity qualifies as an exempt entity, the department issues a letter of exemption. Once a letter of exemption is issued by the department, it will continue in effect unless there are changes in the structure or operation of the organization caus-ing the exemption to be invalid.

# (C)

The department may require the following supporting documentation to verify the claim:
1. A copy of the Articles of Incorporation, Bylaws or both;
2. A copy of the Section 501 tax exemption letter or ruling issued by the United States Department of Treasury, Internal Revenue Service;
3. A copy of the tax exemption ruling issued by the assess-ing officers in each county in which the applicant’s property is or will be located for property tax purposes;
4. Financial statements of the organization for the previous three (3) years, indicating sources and amount of revenue, and a breakdown of the disbursements, or if just beginning the organization, an estimated budget for one (1) year;
5. A copy of the not-for-profit certificate, registration or charter issued by the Missouri secretary of state’s office, if registered or incorporated within Missouri; and
6. Any other documents, statements and information as may reasonably be requested by the Department of Revenue.

# (D)

If any of the documents requested above are not submitted with the application, a letter of explanation must accompany the application. Federal agencies and instrumentalities, Missouri state agencies and Missouri political subdivisions are not required to send supporting documentation. Out-of-state political subdivisions do not qualify.

# (E)

Foreign diplomatic and consular personnel exempt from Missouri sales by treaty need not obtain a letter of exemption.
The United States Department of State will issue an exemption card for use.
AUTHORITY: section 144.270, RSMo 2000.* Original rule filed
Aug. 1, 2000, effective Jan. 30, 2001. Amended: Filed Oct. 15, 2002, effective April 30, 2003.
*Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

Amendment history

AUTHORITY: section 144.270, RSMo 2000.* Original rule filed Aug. 1, 2000, effective Jan. 30, 2001. Amended: Filed Oct. 15, 2002, effective April 30, 2003. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.

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