Aquila Foreign Qualifications Corp. v. Director of Revenue

MARY R. RUSSELL, Judge.

The issue before this Court is whether a convenience store is exempt from sales and use tax for the electricity it purchases for its food preparation operations. Although section 144.054.21 provides a tax exemption for the “processing” of products, this Court holds that the legislature did not intend the term “processing” to include retail food preparation in section 144.054.2. The decision of the administrative hearing commission (“commission”) is reversed.

I. Background

Casey’s Marketing Company d/b/a Casey’s General Stores is a convenience store engaged in the retail…