Utilicorp United, Inc. v. Director of Revenue

MICHAEL A. WOLFF, Judge.

Missouri’s sales and use tax law offers an exemption from sales or use tax for purchases of equipment directly used in manufacturing. The parties agree that the production of electricity is within the definition of manufacturing under Missouri’s sales and use tax law. The question presented here is whether transformers, voltage regulators, and other equipment used between the electric generators and the place where the electricity is delivered to the customer are used directly in manufacturing within the meaning of section 144.030.2(4) and (5).1

The utilities seeking…