Balloons Over the Rainbow, Inc. v. Dir. of Revenue

Appellant was a Missouri corporation that sold rides on untethered hot air balloons. Appellant collected sales tax on receipts of balloon rides and subsequently requested a refund of those sales taxes from the director of revenue. The director denied Appellant’s request. The director also assessed sales taxes on the amount paid to Appellants by third-party vendors and use taxes on a hot air balloon and inflator fan purchased in Texas. The administrative hearing commission (AHC) denied Appellant’s claim for a refund of the sales taxes paid and Appellant’s challenge to the assessment of sales and use taxes. The Supreme Court (1) reversed the ruling of the AHC as to the assessment of sales taxes on all sales of hot air balloon rides - those purchased directly from Appellant in Missouri and those purchased by flight certificate from out-of-state third-party vendors - because the taxes on those gross receipts were state taxes on air commerce, which are prohibited by the Anti-Head Tax Act; and (2) affirmed the AHC in regard to the assessed use taxes, holding that Appellant was liable for use taxes on equipment purchased outside of Missouri. View "Balloons Over the Rainbow, Inc. v. Dir. of Revenue" on Justia Law