Saint Charles County v. Director of Revenue
407 S.W.3d 576
Mo.2013Background
- Saint Charles County owns and operates the Family Arena, with county employees staffing and managing events and finances.
- The Arena hosts events (concerts, graduations, sports) under three contract types: rental, co-promotion, and purchase agreements, each allocating revenue risk differently.
- Event receipts (admissions, merchandise, food/beverage) are deposited into a county fund to pay Arena expenses.
- County paid taxes on sales at the Arena (Mar. 1, 2007–May 21, 2010) and sought a refund of $922,856.68 under Mo. Rev. Stat. § 144.030.2(17), claiming an exemption for municipal places of amusement where "all the proceeds" benefit the municipality.
- Director of Revenue denied the refund; the Administrative Hearing Commission upheld the denial, finding the county did not receive “all the proceeds” and that merchandise/concession sales did not qualify for the exemption.
- The Missouri Court of Appeals affirmed, holding the statutory phrase "all the proceeds" requires the municipality to receive all gross proceeds (not net), and the county’s revenue-sharing agreements precluded that showing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Family Arena sales qualify for the § 144.030.2(17) exemption requiring that "all the proceeds" benefit the municipality | County: "all the proceeds" should be read as net proceeds (after paying costs/agreements), so proceeds deposited to county fund qualify | Director: "all the proceeds" means gross proceeds — the municipality must receive all proceeds; county’s revenue-sharing prevents that | Held: "all" means all; county did not receive or benefit from all proceeds due to revenue-sharing contracts, so no exemption |
| Whether sales of merchandise, food, and beverages are exempt as "fees or other charges" under § 144.030.2(17) | County: Such sales are fees/charges tied to place of amusement and should be exempt if county benefits | Director: Because county did not receive all proceeds, those sales cannot be exempt under the statutory provision | Held: Merchandise and concessions not exempt under § 144.030.2(17) given county’s failure to meet the "all the proceeds" requirement |
Key Cases Cited
- Murphy Co. Mechanical Contractors, Engineers v. Dir. of Revenue, 156 S.W.3d 339 (Mo. banc 2005) (Court reviews revenue law interpretation de novo)
- Brinker Missouri, Inc. v. Dir. of Revenue, 319 S.W.3d 433 (Mo. banc 2010) (tax exemptions construed strictly against taxpayer)
- Aquila Foreign Qualifications Corp. v. Dir. of Revenue, 362 S.W.3d 1 (Mo. banc 2012) (burden of proof on taxpayer to show exemption by clear and unequivocal proof)
- 801 Skinker Blvd. Corp. v. Director of Revenue, 395 S.W.3d 1 (Mo. banc 2013) (every word of a statute must be given effect in construction)
- Hyde Park Housing P’ship v. Dir. of Revenue, 850 S.W.2d 82 (Mo. banc 1993) (legislature presumed not to insert superfluous language)