Missouri DOR Issues Ruling on Sales Tax Exemption for Contractor Purchases

The Missouri Department of Revenue (DOR) issued a letter ruling holding that purchases of building materials by contractors hired for a renovation project by an instrumentality of a political subdivision are exempt from sales tax when paid for with public grant funds. However, any purchases made with the entity’s own contributed funds or that exceed the public grant budget are subject to sales tax. [Mo. Dep’t of Revenue, Letter Ruling LR8391, 04/23/26]

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