Court Opinion

ID: 9774655
Source: CourtListenerOpinion
Date Created: 2023-08-29 18:28:45.440566+00
Date Added: 2024-06-11T07:32:12.623650
License: Public Domain

HOLSTEIN, Judge,
concurring in part and dissenting in part.
I concur as to ninety percent of the assessment approved by the majority, but respectfully dissent as to the remaining ten percent.
Ten percent of the freight charges related to items shipped F.O.B.1 to the taxpayers’ places of business in Missouri. The shipping by the seller as to that ten percent was clearly intended as an integral part of the sale of the goods delivered. The costs of shipping the goods in those situations were as much a part of the services related to the sale as were the services involved in packaging, warehousing and handling the goods in preparation for shipment. Under the theory announced by the majority, if the seller were to itemize other services which were not directly related to manufacturing the goods sold, sales tax would be avoided.
As for the other ninety percent, there is at least a reasonable question as to the intent of the contracting parties regarding whether the shipping charges were a part of the sale price. I take no issue with the Administrative Hearing Commission’s conclusion that such charges were not intended as part of the sale.

. This term in a contract generally means the invoice price includes delivery at seller’s expense to a designated location. § 400.2-319; RSMo 1986.