Krispy Kreme Doughnut Corp. v. Director of Revenue

WILLIAM RAY PRICE, JR., Judge.

I. Introduction

Missouri law provides for two sales tax rates: a standard rate of 4 percent that applies to most retail sales, see section 144.020, RSMo 2000, and a reduced rate of 1 percent that applies to some — but not all — sales of food, see section 144.014, RSMo Supp.2010. Krispy Kreme Doughnut Corporation seeks review of a decision of the Administrative Hearing Commission (“AHC”) that Krispy Kreme must collect tax at the 4-percent rate on all retail food sales at its Missouri locations.

The Court holds that “food prepared ... for immediate consumption on or…