Aquila Foreign Qualifications Corp. v. Director of Revenue
2012 Mo. LEXIS 64
| Mo. | 2012Background
- Casey’s General Stores is a convenience store selling gas, groceries, nonfood items, and prepared foods; Aquila provides electricity to Casey’s locations.
- Casey’s filed a refund claim with the Missouri Director of Revenue for sales and use tax paid on electricity supplied by Aquila.
- The Director denied the refund claim; Aquila challenged that denial in a complaint.
- The Administrative Hearing Commission reversed, holding that a portion of Casey’s electricity for food preparation was exempt under section 144.054.2.
- Casey’s argues that its food preparation constitutes “processing” under 144.054.1(1), which would exempt electricity usage from tax.
- The court ultimately held that “processing” does not include retail food preparation for Casey’s and reversed the Commission’s decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Casey’s food preparation qualifies as processing under 144.054.2 | Casey’s asserts it is exempt as processing | Aquila/Director argues no exemption for retail prep | Not exempt; processing does not include retail food prep |
Key Cases Cited
- Brinker Missouri, Inc. v. Dir. of Revenue, 319 S.W.3d 433 (Mo. banc 2010) (restaurant equipment not exempt; not a manufacturing plant)
- Hudson Foods v. Director of Revenue, 924 S.W.2d 277 (Mo. banc 1996) (processing vs. manufacturing distinctions noted)
- Mid-America Dairymen, Inc. v. Director of Revenue, 924 S.W.2d 280 (Mo. banc 1996) (meaning of processing related to manufacturing context)
- Cook Tractor Co., Inc. v. Dir. of Revenue, 187 S.W.3d 870 (Mo. banc 2006) (interpretation of statutory language in revenue cases)