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Administrative: Use Tax-Resale Exemption

Staff Report//November 13, 2023//

Administrative: Use Tax-Resale Exemption

Staff Report//November 13, 2023//

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The director of revenue sought review of an administrative ruling holding that respondent’s purchase and use of IT equipment was exempt from use tax. Respondent was a subsidiary of Walmart and purchased the equipment to resell to other Walmart subsidiaries, who in turn used the equipment to run Walmart stores. Respondent loaded additional hardware and software into the equipment to meet purchasers’ requirements.

Where the evidence showed that respondent purchased the equipment solely for resale and sold the equipment in transactions that were subject to taxes in Missouri and other jurisdictions, the AHC correctly found that respondent was entitled to a resale use tax exemption.

Judgment is affirmed.

Walmart Starco LLC v. Director of Revenue (MLW No. 80727/Case No. SC99998 – 16 pages) (Supreme Court of Missouri, Fischer, J.) Petition for review of a decision of the Administrative Hearing Commission, Wheeler, C. (Samual C. Freedlun and Maria A. Lanaham, St. Louis, for petitioner) (B. Derek Rose, St. Louis, and Jeffrey A. Friedman and Charles C. Kearns, Washington, D.C. for respondent)


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