If I buy a pre-engineered steel building kit just to store and maintain my farm machinery and land-management equipment, do I owe Missouri sales tax on it?

Plain-English summary

The Missouri Department of Revenue ruled that a landowner's planned purchase of a pre-engineered steel building kit is subject to Missouri sales tax, even though the building will be used entirely in connection with the landowner's farming operation.

The Applicant intended to buy a 40' x 60' x 18' steel building kit to store and maintain agricultural machinery and land-management equipment used to keep up the Applicant's land. Missouri does exempt "farm machinery and equipment" from sales tax, but the Department's own regulation carves building materials back out of that exemption when the building is for a "nonproduction area." A building used only to store and maintain equipment -- rather than to actually grow crops, raise livestock, or otherwise produce something -- counts as a nonproduction area.

The Department acknowledged that storing farm machinery properly can be important to keeping the machinery working well over time, but reasoned that storage itself is not a production activity. Because the steel building's only job was storage and maintenance of equipment, it didn't qualify for the farm machinery exemption, and the purchase is taxable.

What this means for you

Farmers and agricultural producers

Buying farm machinery itself (tractors, other qualifying farm equipment, and utility vehicles used for agricultural purposes) can be exempt from Missouri sales tax. But buying materials to construct a building -- even one used only to house that same machinery -- is treated differently. If the building's function is storage or maintenance rather than actual production (growing, raising, or processing), expect to pay sales tax on the building materials.

Anyone planning an equipment storage building

The key distinction the Department drew is "production" versus "nonproduction" use of the building itself, not how essential the building is to the farm's overall operation. Even though keeping equipment sheltered may extend its useful life, that benefit doesn't convert a storage shed into an exempt purchase.

Accountants and tax professionals

This ruling applies Section 144.030.2(22) and 12 CSR 10-110.900(3)(G) narrowly: the farm machinery exemption reaches the machinery and equipment itself, but building materials for structures serving a nonproduction purpose (like a storage/maintenance building) are expressly excluded from that exemption and remain taxable under Section 144.020.1(1).

Common questions

Q: Why doesn't a storage building for farm equipment qualify for the farm machinery exemption?
A: Missouri's regulation, 12 CSR 10-110.900(3)(G), specifically excludes "building materials ... for nonproduction areas" from the definition of exempt farm machinery and equipment. A building used only for storage and maintenance is a nonproduction area, even if the equipment stored there is itself exempt farm machinery.

Q: Would the answer change if the building were used for something other than storage, like housing livestock or processing crops?
A: This ruling only addresses a building used for storage and maintenance of machinery and equipment. A building used for an actual production activity could raise a different analysis, but that question wasn't presented here.

Q: Can I rely on this ruling for my own steel building purchase?
A: No, not directly. This letter ruling is binding on the Department only with respect to the Applicant who requested it, only for three years from the date of the letter, and only as long as the facts and the underlying law don't change. Other taxpayers can look to it for how the Department reasons, but cannot rely on it as their own binding authority.

Q: Does it matter that the machinery being stored is itself tax-exempt?
A: No. The exemption analysis is separate for the machinery and for the building materials. Farm machinery and equipment can qualify for the exemption on its own; a building used to store that machinery is analyzed under the building-materials/nonproduction-area rule and does not inherit the machinery's exempt status.

Citations and references

Statutes and rules:

• Section 536.021.10, RSMo (letter ruling authority)
• Section 144.020.1(1), RSMo (imposition of sales tax on retail sales)
• Section 144.030.2(22), RSMo (farm machinery and equipment exemption)
• Section 144.030.2(22)(a), RSMo (definition of farm machinery and equipment)
• 12 CSR 10-1.020 (letter ruling procedure)
• 12 CSR 10-110.900(3)(G) (building materials for nonproduction areas excluded from exemption)

Source

• Landing page: Missouri DOR Rulings Search
• Ruling: LR 8389

Original ruling text

Dear Applicant:

This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated February 26, 2026.

The facts presented in your letter ruling request are summarized as follows:

Applicant intends to purchase a pre-engineered steel building kit for Applicant's property in Missouri. The 40' x 60' x 18' steel building will be used exclusively for the storage and maintenance of agricultural machinery and land-management equipment used in the upkeep of Applicant's land.

ISSUE :

Is Applicant's purchase of the steel building kit subject to sales tax?

RESPONSE :

Yes. Applicant's purchase of the steel building kit is subject to sales tax, as it is a sale of tangible personal property that does not qualify for a sales tax exemption under Missouri statute.

Section 144.020.1(1) RSMo, provides: "A tax is hereby levied and imposed...upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state."

Section 144.030.2(22) RSMo, exempts from sales tax: "[A]ll sales of farm machinery and equipment..."

Section 144.030.2(22)(a) defines farm machinery and equipment as: "New or used farm tractors and such other new or used farm machinery and equipment, including utility vehicles used for any agricultural use..."

12 CSR 10-110.900(3)(G) provides: "The fact that particular items may be considered to be essential or necessary will not automatically entitle them to exemption. The following categories of items are excluded from the meaning of the term farm machinery or equipment, including supplies, and are subject to tax ... 6. Building materials ... for nonproduction areas."

Applicant intends to purchase materials to build a steel building for storage of Applicant's farm machinery and land-management equipment. While storage of farm machinery may be necessary to preserve the long-term health of the machine's functionality, storage of farm machinery is not a production activity. Applicant's purchase of a steel building kit does not qualify for an exemption, and therefore Applicant's purchase is subject to state and local sales tax.

This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals.  If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.  For this reason, the interpretation set forth above should be reviewed on a regular basis.  Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.

Should additional information be needed, please contact Legal Counsel Gabriel Barnes, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.

Sincerely,

Trish Vincent