State Tax Day - Current, S.6, Missouri—Sales and Use Tax: School District's Food And Beverage Sales at Career Center Deemed Tax Exempt, (Feb 3, 2026)

Sales of food, coffee, and other drink products at a public school district's career center are not subject to Missouri state and local sales tax because the sales are part of its educational functions and activities. The school district operates a restaurant and a coffee shop as part of its career center. The students participating in the operation of the restaurant and coffee shop attend classes at the career center, where both the restaurant and coffee shop are located. Students working in both the restaurant and coffee shop operate those entities, with oversight provided by school district employees. Operating the restaurant and coffee shop teach the students subjects including, but not limited to, entrepreneurship, marketing, business management, product pricing, financial analysis, and promotion. While the restaurant and coffee shop's sales are sales at retail and normally subject to sales tax, because the restaurant and coffee shop are part of the school district’s curriculum, sales of food, coffee, and other drink products at the career center are not subject to tax.

Letter Ruling No. LR 8379, Missouri Department of Revenue, January 8, 2026, ¶204-662