Fred Weber, Inc. v. Director of Revenue

Summary

The Missouri Supreme Court held that the construction and resurfacing of roads and parking lots did not constitute manufacturing, processing, compounding, or producing under Missouri Revised Statutes section 144.054.2. Because the paving companies' activities did not satisfy the statutory requirements for the sales tax exemption, the Court reversed the Administrative Hearing Commission's decision granting Fred Weber, Inc. a refund.

Holdings

1. The paving companies' construction and resurfacing activities were not manufacturing, processing, compounding, or producing within the meaning of section 144.054.2 because those terms refer to large-scale industrial activities, not ordinary construction activities.
2. Weber did not qualify for the exemption because it failed to prove the required statutory criteria, including that the materials were used or consumed during a qualifying manufacturing, processing, compounding, or producing activity.

Questions Presented

1. Whether the paving companies' construction and resurfacing of roads and parking lots constituted manufacturing, processing, compounding, or producing a product under section 144.054.2.
2. Whether Weber established that its sales of rock base and asphalt qualified for the section 144.054.2 sales and use tax exemption.

Disposition

reversed