Taxation Law in Missouri

John P. Barrie, Esquire

Sales Tax Exemption – Organization that hosts religious services and sells coffee and tea drinks entitled to sales tax exemption. The Bridge Market and Faith Community v. Director of Revenue, No. 10-1431 RS (Mo. AHC, November 22, 2013) Winn, C.

The organization was formed by two churches in the common interest of establishing a “faith presence” with a model to engage in religious conversations in a nonreligious setting and in that capacity operated a coffee shop for the “whole purpose” bringing people in to develop a new faith community. The director denied the organization’s request for a sales tax exemption on the basis that its coffee shop was not operated for religious purposes. The organization appealed the director’s determination to the administrative hearing commission.

Exemption granted. The commission determined that the organization qualified as a religious institution and that its operation of a coffee shop was in furtherance of its religious functions and activities to attract potential members of the faith community.