Taxation Law in Missouri

Editor:
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.