In this section

Taxes

Business Formation Fees

Corporate Franchise Taxes

Income Taxes - Corporate

Income Taxes - Individual

Property Taxes

Sales & Use Taxes

Unemployment Insurance

Workers' Compensation

Incentives

Advanced Energy

Enterprise Zones

Financing Programs

Foreign Trade Zones

Income Tax Credits

Int'l Trade Incentives

Life Sciences and R&D

Property Tax Exemptions

Sales & Use Tax Exemptions

Training Programs

Utility Incentives

Venture Capital

Tax & Incentive Profile

Sales & Use Tax Exemptions

There are many exemptions to sales and use taxes in both Kansas and Missouri. The following represent a few of the major exemptions.

INFORMATION FOR BOTH KANSAS AND MISSOURI IS PRESENTED BELOW.

Kansas

• Manufacturing machinery and equipment used to create, store, or distribute goods intended for sale, (including pre-production equipment used for raw material handling or storage).
• Tangible personal property, including electricity, gas, and water, if immediately consumed or dissipated during manufacturing.
• Tangible personal property which becomes an ingredient or component part of goods or services produced for sale.
• Labor and services used in the construction of an eligible business facility or in installation and repair of qualified machinery and equipment.
• Machinery that deals with by-products of production (e.g., pollution control equipment, waste handling equipment).
• Ancillary property that might not otherwise be viewed as manufacturing machinery and equipment (e.g., gas pipes, electric wiring, special foundations, clean rooms).
• The cost of building materials and items of equipment permanently installed by businesses using Industrial Revenue Bonds.
• Tangible personal property or services purchased to construct, reconstruct, or remodel a business that qualifies for sales tax exemptions.
• Eligible purchases of machinery, equipment, and certain other tangible property by businesses qualifying for the High Performance Incentive Program (this benefit is not tied to job creation).
• Materials, equipment, and services purchased when building, expanding, or renovating a business which qualifies for the job expansion and investment credits of the Kansas Enterprise Zone Act.
• Incoming and outgoing interstate wide area telephone or transmission services (WATTS).

Missouri

• Machinery and equipment used to establish a new or expand an existing manufacturing facility, provided such machinery or equipment is used directly to manufacture a product ultimately intended for sale.
• Replacement machinery and equipment used directly in manufacturing a product ultimately intended for sale, provided their acquisition is necessary because of a change in design or product (as opposed to obsolescence).
• Manufacturers' raw materials (i.e., materials, manufactured goods, machines, and parts) that become a component part of tangible personal property intended to be sold for final use or consumption.
• Machinery, equipment, and devices that abate air or water pollution.
• Machinery and equipment used to establish or expand a material recovery processing plant.
• All materials and supplies used to install tax exempt machinery and equipment.
• Electricity consumed in the manufacturing process, provided the cost of electricity exceeds 10% of total production costs; and anodes, with a useful life of less than one year, used in manufacturing or production.
• Materials, replacement parts, and equipment used directly upon and for the repair and maintenance or manufacture of common carriers.
• Tangible personal property purchased for use or consumption in research and development of prescription pharmaceuticals for humans or animals or in research and experimentation activities performed by life sciences companies.
• Computers, computer software, and computer security systems purchased for use by architectural or engineering firms headquartered in Missouri.

 

DEFINING THE GREATER KC METRO AREA

Kansas City is a Missouri/Kansas bi-state metropolitan area. All statistical references made to Kansas City Metropolitan Statistical Area (MSA) include the counties of Cass, Clay, Clinton, Jackson, Lafayette, Platte and Ray in Missouri, and Johnson, Leavenworth, Miami and Wyandotte counties in Kansas. The greater Kansas City area also includes the adjoining Lawrence, KS, St. Joseph, MO, and Topeka, KS MSAs, as well as the Atchison, KS, Chillicothe, MO, Ottawa, KS, and Warrensburg, MO areas.