PURPOSE: This rule sets forth the system used by the commission to determine eligibility for sales tax exemption for items purchased for the purpose of preventing or abating water pollution control.

1. (1) Eligible Applicants. Individuals, contractors, corporations, industries, or public entities constructing or purchasing equipment for treatment of wastewater in Missouri may apply for sales tax exemption certification.
2. (2) Application Process. Sales tax exemptions for wastewater treatment equipment and supplies shall be requested on the application form provided by the Department of Natural Resources (DNR). The application shall be submitted to the Department of Natural Resources, Water Pollution Control Program, P.O. Box 176, Jefferson City, MO 65102.
3. (3) Approval or Denial of Certification. The department will review the application and approve or deny the sales tax exemption request. If approved, the department will notify the Missouri Department of Revenue which will forward a Missouri Sales/Use Tax Exemption for Pollution Control certification to the applicant. If the application is denied, the department shall send written notice to the applicant. Applicants who are denied a sales tax exemption shall have a period of thirty (30) days from the issuance date of the notice of denial to file a written appeal of the denial to the Missouri Clean Water Commission, P.O. Box 176, Jefferson City, MO 65102, see 10 CSR 20-6.020(4) and (5).

4. (4) Except as specified in section (5), machinery, equipment, appliances and devices purchased or leased and used solely for the purpose of preventing, abating or monitoring water pollution, and materials or supplies solely required for the installation or reconstruction of such shall be eligible for sales tax exemption if they also meet one (1) of the criteria listed in subsection (4)(A), (B) or (C):

   1. (A) The machinery, equipment, appliances or device is a portion or all of a water pollution control facility required or authorized by a permit, letter of authorization, enforceable agreement with the owner, or court order under authority of Chapters 640 and 644, RSMo and the implementing regulations;
   2. (B) The machinery, equipment, appliances or device is a portion or all of a facility pretreating wastewater prior to its discharge into central sewers; or
   3. (C) Individual home treatment systems and components thereof.

5. (5) With the exception of those activities specified under (4)(A) above, the machinery, equipment, appliances or devices listed below are not eligible for water pollution control sales tax exemptions.

   1. (A) Landfill liners, caps, leachate collection and treatment systems, and closure costs.
   2. (B) Leak detection and containment devices and site remediation for underground storage tanks and aboveground storage tanks.
   3. (C) Machinery, equipment, appliances or devices which conserve soil, protect soil from contamination, or which prevent migration of contaminated soils or soil contaminants.
   4. (D) Storm sewers.
   5. (E) Potable water systems or components thereof with the exception of sludge treatment facilities.

AUTHORITY: sections 144.030 and 644.026, RSMo Supp. 1997 and 144.062, RSMo 1994.* Original rule filed Nov. 3, 1997, effective July 30, 1998. *Original authority: 144.030 RSMo, 1939 amended 1941, 1943, 1945, 1949, 1961, 1965, 1967, 1969, 1977, 1979, 1980, 1982, 1983, 1985, 1986, 1988, 1989, 1991, 1994, 1995, 1996, 1997; 144.062, RSMo 1988, amended 1994; and 644.026, RSMo 1972, amended 1973, 1987, 1993, 1995.