Rock Quarries

(Rescinded January 30, 2000)
AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 030-38 was last filed Oct. 28, 1975, effective Nov. 7, 1975. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981.
Rescinded: Filed July 14, 1999, effective Jan. 30, 2000.
West Lake Quarry & Material Co. v. Schaffner, 451 SW2d 140 (Mo.
banc 1970). Taxpayer’s removal of rock from the ground is included in the term mining as used in section 144.030.3(4). The court found equipment used to mine and refine rock including crushing equipment, was exempt from sales and use tax. Equipment used to load customer’s trucks is not directly used in either manufacturing or mining the product intended to be sold or required to be exempt under section 144.030.3(4), RSMo.
Rotary Drilling Supply, Inc. v. Director of Revenue, 662 SW2d 496 (Mo. banc 1983). Petitioner contended that its sales of drilling rigs were exempt from sales tax under section 144.030.3(4), RSMo on the grounds that they were purchased from petitioner for the purpose of expanding or establishing mining plants in this state.
Petitioner had failed to obtain exemption certificates from its purchasers and, therefore, it would be liable for uncollected tax. The court refused to recognize water-well drilling as a form of mining.
The use of rigs to drill water wells for any purpose or exploratory holes would not constitute mining within the exemption requirement. The evidence was that this was the primary function performed by these rotary drills. The court then went on to reject the Administrative Hearing Commission’s conclusion that none of the sales were exempt because a predominant number of rigs were not put to an exempt use. The case was remanded for an evidentiary hearing at which the commission was to determine the exempt status of each rig.
American Industries Resources Corp., Missouri Mining, Inc. v.
Director of Revenue, Case Nos. RS 84-0922–0925 (A.H.C. 10/28/88) Taxpayer is in the business of mining coal. It operated a surface coal mine or strip mine. Taxpayer purchased a bulldozer for reclamation purposes but also occasionally used it to remove the last layer of coal covering the coal field. The bulldozer was found to be exempt as “machinery . . . purchased and used to establish new or expand existing . . . mining … plants in the state” under 144.030.2(5), RSMo.