International Business MacHetes Corp. v. Director of Revenue

BENTON, Chief Justice.

In 1990,1991 and 1992, International Business Machines Corporation sold mainframe computers, document scanners, direct storage devices, tape drives and printers to DST Systems, Inc., for $21,456,387.56. IBM remitted sales tax on these items to the Director of Revenue, but later claimed a refund of $1,388,870.38 based on the exemption in section 144.030.2(5) RSMo Supp.1990.1 The Director and the Administrative Hearing Commission denied the refund. IBM appeals. Mo. Comt. art. V, sec. 3. Affirmed.

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DST designs and operates software in order to process information for the…