Street v. Director of Revenue
361 S.W.3d 355
Mo.2012Background
- Street bought a boat, outboard motor, and trailer from a Maryland dealer and moved them to Greene County, Missouri.
- He paid local sales taxes at registration under protest, totaling $149.94, with an overpayment concession of $41.25 on the trailer.
- Street challenged the refund denial, arguing sales tax applies only to Missouri sales and the transaction occurred outside the state.
- AHC upheld the director’s collection of Greene County taxes, treating the out-of-state purchase as occurring in Missouri and subject to local tax.
- Missouri statutes delineate state and local sales/use taxes; Greene County had never enacted a local use tax and required voterReferendum for such taxes.
- The Supreme Court reversed, holding that local sales/use taxes apply only to sales within Missouri and remanded for refund calculation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Greene County may tax Street's out-of-state purchase | Street: tax must be on Missouri sales only | Street: statutorily deemed in Missouri under 144.069/32.087.12(2) | Reversed; tax not authorized by law. |
Key Cases Cited
- Olin Corp. v. Dir. of Revenue, 945 S.W.2d 442 (Mo. banc 1997) (sales/use tax complementary; equal treatment of intrastate and interstate purchases)
- Binkley Coal Co. v. Smith, 179 S.W.2d 17 (Mo. banc 1944) (sales tax limited to sales within Missouri; out-of-state sale not taxable)
- Mackey v. Dir. of Revenue, 200 S.W.3d 521 (Mo. banc 2006) (deference to agency findings; de novo review for tax statutes)
- President Casino, Inc. v. Dir. of Revenue, 219 S.W.3d 235 (Mo. banc 2007) (strict construction in favor of taxpayer when language ambiguous)
- J.B. Vending Co. v. Dir. of Revenue, 54 S.W.3d 183 (Mo. banc 2001) (ambiguity requires taxpayer-favorable interpretation)