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Missouri Sales Tax Exemption for Data-Center Growth


 New sales tax exemptions encourage data center growth in Missouri.

Govenor Jay Nixon (D) of Missouri has signed legislation designed to encourage the development of data centers through state and local sales and use tax exemptions.

Senate Bill 149 provides sales and use tax exemptions for the following, provided they are used in new or expanding data centers:

  • Equipment
  • Machinery
  • Utilities

Also exempt are tangible personal property and materials purchased for the construction of new- or the expansion of existing- data centers.

To qualify for an exemption, applicants must certify their projects would meet the following criteria:

  • Expanding data centers:
    • Invest at least $5 million in the project
    • Create of at least 5 new jobs paying at least 150% of the county average wage
  • For new data centers:
    • Invest at least $25 million in the project
    • Create at least 10 new jobs paying at least 150% of the county average wage

Governor Nixon called the bill “fiscally responsible,” noting that it “will help attract high-tech data center investments and jobs – without putting our budget or taxpayers at risk.”

The exemption is open to existing facilities that expand operations on or after April 28, 2015. For new facilities, the exemption is open to facilities “acquired by or leased to an operating taxpayer on or after August 28, 2015.” For additional details, please see the text of SB 149.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.