The Missouri Supreme Court this week sided with Joplin’s Powerhouse Gym, declaring that the state’s Revenue Department overstepped its boundaries by collecting sales taxes on the company for renting out an office within the premises to an independent company providing personal training services to members of the fitness facility . Powerhouse Gym was represented both before the Missouri Administrative Hearing Commission and the Missouri Supreme Court by BSE shareholder Paul Boudreau.
In a unanimous decision, the Supreme Court found that the flat monthly payments Powerhouse received were not in exchange for a taxable service rendered at retail. Accordingly, the monthly payments were not a fee subject to state sales tax. Tatson LLC d/b/a Powerhouse Gym of Joplin v. Director of Revenue. A summary of the case, links to the parties’ briefs, and a link to the oral argument can be found on this page.
The Court’s decision has been widely reported around the state, and elsewhere. For example – Joplin Globe; KY3, Springfield; KOMU, Columbia; The Wichita Eagle; Washington Times; and, The Idaho Statesman.
Paul Boudreau has a business and administrative law practice involving regulated industries including utilities. He advises clients in the area of alcohol beverage licensing at the state and federal levels. His practice includes managing contested cases at hearing and appellate practice before the courts of appeals and the Missouri Supreme Court. He is a co-author of the chapter on the Missouri Public Service Commission in the Missouri Bar’s Administrative Law desk book. Paul has been listed in The Best Lawyers in America in the area of Energy Law.