Taxation Law in Missouri
John P. Barrie, Esquire
Sales Tax - exemption allowed for the sale of electrical energy consumed in processing food at retail stores. Aquila Foreign Qualifications Corporation v. Director of Revenue, No. 09-0376 RS (Mo. Administrative Hearing Commission, April 28, 2011), Winn, C.
Taxpayer sought a refund for sales tax collected and paid with
respect to a portion of charges for electricity used in a customer's
retail stores for the processing of food on the basis that such use was
exempt under Section144.054, RSMo. The director denied the refund on
the basis of Brinker Missouri, Inc. v. Director of Revenue, 319 S.W. 3d 433 (Mo. banc 2010), finding that the retail stores' activities did not constitute processing at a plant.
Held: Refund granted. The commission found that
Section144.054, RSMo, was broader, and in addition to, the exemptions
set forth in Section 144.030.2(4) and (5), RSMo, and that the
"processing" of food and other items by the retail stores was within
the scope of Section 144.054, RSMo, even though the "processing" would
not have qualified for an exemption under Section 144.030.2(4) or (5),
RSMo. Brinker Missouri, Inc. was distinguished because it did not address Section 144.054, RSMo.