E & B GRANITE, INC. v. Director of Revenue

WILLIAM RAY PRICE, JR., Chief Justice.

I. Introduction

The Director of Revenue (“the Director”) seeks review of the Administrative Hearing Commission’s (“AHC”) decision to grant E & B Granite, Inc. (“E & B”) sales and use tax refunds pursuant to section 144.054.2, RSMo Supp.2007, for E & B’s purchases of raw granite slabs. E & B used the slabs to manufacture granite countertops that were eventually affixed to customers’ real property.

The AHC correctly applied the tax exemption. Under section 144.054.2, raw granite slabs are “materials” and granite countertops are “products.”

The AHC’s decision…