Missouri Says Walmart Subsidiary Owes $8 Million in IT Gear Tax

A wholly owned Walmart subsidiary should be liable for about $8 million in use tax and interest for information technology equipment it purchased, because it modified the equipment before reselling it, Missouri’s tax agency told the state’s high court.

Missouri Revised Statute Section 144.615 says that the resale tax exemption that Walmart Starco LLC is claiming only applies to tangible personal property meant “solely for resale,” according to the state’s Sept. 29 reply brief.

“This Court’s jurisprudence is clear that a taxpayer cannot avail itself of the resale exemption to use tax when the taxpayer altered, modified, or consumed ...