Mo. court rules against tax break for restaurants
What’s the difference between preparing and manufacturing something? For Missouri restaurants, the difference amounts to tens of thousands of dollars.
The Missouri Supreme Court ruled Tuesday that restaurants cannot claim a tax exemption for the purchase of tables, chairs, plates and kitchen equipment.
The decision hinged on a determination that restaurants prepare – not manufacture – food for their customers. Consequently, the court said, they cannot get the same tax breaks available to manufacturing plants or to processing companies that turn live hogs and into ham ready for human consumption.
“In lay terminology, one does not speak of a restaurant as manufacturing or producing food or drink; instead, restaurants prepare, cook and serve food and drink to their customers,” the court said in a 6-1 decision written by Judge Laura Denvir Stith.
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