Bakery Tax Dispute Heads to Mo. High Court

2 years 6 months 2 weeks ago October 19, 2013 Oct 19, 2013 Saturday, October 19 2013 Saturday, October 19, 2013 9:37:56 PM CDT in News
By: The Associated Press

JEFFERSON CITY (AP) - The Missouri Supreme Court this week is considering taxes for baking doughnuts and cookies.

Ameren Missouri sought a tax refund on behalf of Schnuck Markets Inc. for energy used by the grocery store's bakeries. The company points to a tax exemption for energy used in manufacturing, processing, compounding, mining or producing, and a Department of Revenue regulation with examples of what is considered "processing" that deals with bakeries.

However, the state is not buying what they're cooking. The deputy solicitor says the tax exemption is aimed at producing products in industrial plants and facilities.

The Missouri Supreme Court ruled in a March 2012 decision a convenience store could not claim a tax exemption for energy used to prepare food. The court concluded food preparation for retail consumption is not "processing."

 

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