Exemption Certificates

PURPOSE: This rule clarifies the special fuel tax statutes as they relate to deductions which must be supported by special fuel exemption certificates. (1) Special fuel distributors selling special fuel to be used by the purchaser for off-road purposes listed as follows are required to retain in their files a Special Fuel Exemption Certificate, executed by the purchaser, to substantiate the tax-exempt sales. Deductions taken on the Distributor’s Monthly Tax Report Form 4757 shall be supported by the signed invoice or sales slip for the month in which the tax-exempt sale occurred. Exemption certificates may be accepted for the following sales: (A) Special fuel sold for use in farm tractors and other farm machinery used exclusively for agricultural purposes, used on land owned or leased for the purpose of producing farm products and used directly in producing farm products to be fed to livestock or poultry to be sold ultimately in processed form at retail, pursuant to section 144.030, RSMo; (B) Special fuel sold for use as a home heating oil for domestic purposes. Domestic purpose is defined as that portion which the individual purchaser does not use for business, commercial, or industrial purposes. Domestic purpose includes state and federal governments, political subdivisions, public elementary and secondary schools, public institutions of higher education and churches; and (C) Special fuel sold for use exclusively in railroad rolling stock for the transportation of persons or property. (2) Once a special fuel distributor possesses an exemption certificate from a purchaser, additional exemption certificates for individual purchases are not required as long as there is no change in the character of the purchaser’s operation and the purchases are of special fuel claimed under the original exemption certificate. Exemption certificates shall be valid for five years (5) unless revoked by the customer or denied/ disallowed by the Department of Revenue. (3) All sales which are not supported by the exemption certificate shall be deemed taxable and the seller held liable for the special fuel tax. The distributor must keep in its files invoices or sales slips supported by the exemption certificate, which must be made available for inspection by the director of revenue or their agents during all business hours of the day. (4) A purchaser found to have issued an incorrect or invalid exemption certificate to the seller assumes full liability for any tax, penalties and interest due on the special fuel purchased with the exemption certificate. (5) Where the distributor deducts sales of special fuel for farm equipment, domestic use and railroad rolling stock which are supported by a valid exemption certificate, individual purchase invoices or sales slips are not required to be signed by the purchaser, if the purchaser is not able to sign. In these cases, the seller who delivers the special fuel may sign as agent for the purchaser. AUTHORITY: section 142.815, RSMo 2016.* Original rule filed March 22, 1989, effective Sept. 11, 1989. Amended: Filed Jan. 31, 1992, effective Aug. 6, 1992. Amended: Filed Nov. 9, 2023, effective May 30, 2024. *Original authority: 142.815, RSMo 1998, amended 1999, 2005, 2010, 2015.