IBM Corporation, Respondent/Cross-Appellant v. Director of Revenue, Appellant/Cross-Respondent.

The Director of Revenue seeks review 1 of the Administrative Hearing Commission’s decision that IBM Corporation is entitled to a use tax refund under section 144.054.2 2 for its sales of hardware and software to MasterCard International, LLC, for MasterCard’s use in processing credit and debit card transactions. Using the MasterCard network, MasterCard communicates information between merchants and banks, including the banks’ determination of whether customers’ purchases should be approved and whether a bank owes money or fees on the transaction. The Commission found that MasterCard’s use of…