Supreme Court of Missouri / Jul 16, 2019
Business Aviation, LLC and Vaughn C. Zimmerman, et al., Appellants, vs. Director of Revenue, Respondent.
Business Aviation LLC purchased an aircraft in Kansas and leased it to Burgess Aircraft Management LLC, a common carrier in Missouri. The Administrative Hearing Commission (AHC) assessed use tax, finding the lease was not a "sale" for valuable consideration, thus not qualifying for a resale exemption. The Missouri Supreme Court reversed the AHC's decision, holding that the lease agreement constituted a sale because the right to use the aircraft was transferred to a common carrier for valuable consideration, thereby qualifying for the resale use tax exemption. The Court also clarified that the right to use does not need to be "fully" transferred for a lease to constitute a sale under Chapter 144.