TracFone Wireless, Inc. v. Director of RevenueAnnotate this Case
In 2013, TracFone Wireless, Inc. sought refunds of the difference between the sales tax it paid on its sales to Missouri residents and the use tax it believes it should have paid, arguing that it qualified for the “in commerce” exemption from sales tax set out in section 144.030.1. The Director of Revenue denied the requested refunds. The Administrative Hearing Commission upheld the decision, finding that TracFone’s sales were subject to sales tax under Mo. Rev. Stat. 144.020.1(4) and that TracFone was not entitled to claim the “in commerce” sales tax exemption because the true object of the transactions was the sale of access to telecommunications services in Missouri, and the equipment was merely incidental to the sale of access to those services in Missouri. TracFone filed a petition for review, asserting that, while the sales at issue may be retail sales under section 144.020.1, they qualified for the “in commerce” exemption set out in section 144.030.1. The Supreme Court affirmed, holding that the transactions at issue did not qualify for the exemption set out in section 144.030.1 for sales “in commerce” between states.