Court Opinion

ID: 9767993
Source: CourtListenerOpinion
Date Created: 2023-08-29 05:37:49.427731+00
Date Added: 2024-06-11T07:30:35.411678
License: Public Domain

DONNELLY, Judge,
dissenting.
The principal opinion rejects the interpretation of the term “commercial” in the sales tax statute, § 144.020, RSMo 1978 and its predecessors, that has been used since Kansas City Power & Light Co. v. Smith, 342 Mo. 75, 111 S.W.2d 513 (banc 1938) and its companion case, Kansas City Power & Light Co. v. Kansas City Public Service Co., 342 Mo. 45, 111 S.W.2d 516 (banc 1938). In those cases, this Court read “commercial” narrowly, permitting some activities to fall within the cracks and avoid the sales tax. The reason now given for overruling these cases is that a “common sense understanding of the operations of this taxpayer” *117indicates that the use of electricity here was an integral part of the commercial activities of the taxpayer.
In my view, there are two important reasons for continuing with the more narrow interpretation. First, the rule that tax laws are to be construed strictly against the taxing authority, Canteen Corp. v. Goldberg, 592 S.W.2d 754, 756 (Mo. banc 1980), and where there is a reasonable doubt as to the meaning of a revenue statute, the doubt is resolved in favor of those taxed, C. Sands, Sutherland Statutory Construction, § 66.01 at 179 (4th ed. 1974); United Air Lines; Inc. v. State Tax Commission, 377 S.W.2d 444, 448 (Mo. banc 1964), is such a settled rule that it has been called a “fundamental precept”. Stephens v. Glander, 151 Ohio St. 62, 84 N.E.2d 279 (1949), quoted in C. Sands, id.; see also Gould v. Gould, 245 U.S. 151, 38 S.Ct. 53, 62 L.Ed. 211 (1917). When it conflicts with other rules of construction, it should prevail. Second, from the time of Smith, the predecessors of § 144.020, RSMo 1978 and its 1979 amendment have remained unchanged. Had the legislature intended a different meaning of “commercial” from that given it by the courts, it would not have used the same language. Where the legislature, after a statute has received settled judicial construction by the court of last resort, re-enacts it or carries it over without change or reincorporates the exact language theretofore construed, it must be presumed that the legislature knew of and adopted such construction. State ex rel. Smith v. Atterbury, 364 Mo. 963, 971, 270 S.W.2d 399, 403-04 (banc 1954). In the absence of clear expression of intent by the legislature otherwise, this Court should retain the Smith interpretation of “commercial” strictly construing the statute in favor of the taxpayer.
I respectfully dissent.