Bill > HB743

This bill creates a new sales tax exemption for machinery and equipment used to provide broadband communications services in Missouri, effective January 1, 2026. The legislation defines key terms such as "broadband communications service" (which includes internet access, telecommunications service, and video programming) and provides an extensive list of equipment that qualifies for the exemption, ranging from wires and cables to software and network infrastructure components. Broadband communications service providers can claim this exemption by furnishing a written certificate to sellers verifying the equipment's qualifying status, and they may also enter into a direct pay agreement with the Missouri Department of Revenue to pay applicable sales and use taxes directly. The bill explicitly states that this new exemption is not intended to impact existing tax exemptions or previous legal interpretations related to telecommunications equipment, thereby maintaining the current legal framework while offering a targeted tax break to encourage broadband infrastructure investment.

Budget and Finance, Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB743&year=2025&code=R