Successful Outcome in a Sales Tax Appeal

BSE shareholder Paul Boudreau recently obtained a favorable outcome in an appeal of a sales tax audit of a fitness center located in Joplin, Missouri.  A Department of Revenue audit report had sought to collect sales tax on monthly payments for the use office space the gym had made available to an unaffiliated personal training company.  The DOR asserted that the rental payments were a taxable fee paid to “a place of amusement”, relying on the opinion Jaudes v. Director of Revenue, 248 S.W.3d 606 (Mo. banc 2008).  Administrative Hearing Commissioner Dandamundi agreed with the fitness center’s contention that rental payments were not in the nature of a fee paid for a taxable service, so Missouri’s sales tax did not apply.  The case name is Tatson LLC v. Director of Revenue, AHC Case No. 13-0755 RS.

Paul has a business and administrative law practice involving regulated industries including utilities.  He also has experience in income, sales and use tax litigation as well as ad valorem tax matters. His practice includes managing contested cases at hearing and appellate practice before the courts of appeals and the Missouri Supreme Court.  He is a co-author of the chapter on the Missouri Public Service Commission in the Missouri Bar’s Administrative Law desk book.  Paul has been listed in The Best Lawyers in America in the area of Energy Law.