Opinion ID: 6108978
Heading Depth: 1
Heading Rank: 2

Heading: Cass County's Argument

Text: This Court will uphold the Commission's decision when it is authorized by law and supported by competent and substantial evidence upon the record as a whole unless clearly contrary to the reasonable expectations of the General Assembly. New Garden Rest., Inc. v. Dir. of Revenue , 471 S.W.3d 314 , 317 (Mo. banc 2015) (internal quotations omitted); see also § 621.193. Cass County argues the commission's decision is not authorized by law in that the director has no legal authority to withhold tax revenue owed to Cass County and redistribute the revenue to Lee's Summit. According to Cass County, the only remedy to correct the improper distribution of tax revenue required KCP&L to file a refund with the department of revenue and distribute the refunded tax revenue to Lee's Summit. Cass  County argues, because KCP&L did not seek a refund, the $966,692 in tax revenue improperly distributed to Cass County cannot be redistributed to Lee's Summit. 3 Cass County argues the director has only two options pursuant to § 67.525-pay the tax revenue to Cass County; or authorize a refund. Because the director is not paying the tax revenue to Cass County, Cass County concludes a refund is the only option. This argument ignores § 67.525, which specifically applies to county sales taxes collected by the director of revenue under sections 67.500 to 67.545 . Section 67.525.1 (emphasis added). This case concerns taxes collected pursuant to § 144.032, not §§ 67.500 to 67.545. 4 Nevertheless, Cass County argues this is a refund matter and, as such, KCP&L is required to apply for a refund pursuant to § 144.100.4, which it has not done. Cass County specifically relies on § 144.190.2 to conclude this is a refund matter. Section 144.190.2 states in relevant part: If any tax, penalty or interest has been paid more than once, or has been erroneously or illegally collected, or has been erroneously or illegally computed, such sum shall be credited on any taxes then due from the person legally obligated to remit the tax pursuant to sections 144.010 to 144.525, and the balance, with interest as determined by section 32.065, shall be refunded to the person legally obligated to remit the tax.... No party disputes KCP&L remitted the correct amount of taxes to the department of revenue. In other words, there is no claim the department erroneously or illegally collected or computed the amount of taxes, nor is there any claim KCP&L is owed any credit or balance based on overpayment of taxes. The issue is not with the amount of taxes computed and collected from KCP&L-which would be the subject of a refund-but rather the amount of revenue distributed from such taxes to Lee's Summit and Cass County. Simply put, this is not a refund matter contemplated by § 144.190.2. Therefore, Cass County's refund argument is unavailing, and it does not otherwise refute the commission's basis for its decision, namely § 32.087.6 (providing the director of revenue shall perform all functions incident to the administration, collection, enforcement, and operation of [any local sales tax]) and article IV, § 15 of the Missouri Constitution (providing all nonstate funds shall be promptly credited to the fund provided by law for that type of money). Accordingly, Cass County has failed to demonstrate the commission's decision is not authorized by law. See New Garden Rest. , 471 S.W.3d at 317 ; § 621.193.