LR 8379
Taxability of Food Sold at Career Center
January 08, 2026
Dear Applicant:
This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated November 14, 2025.
The facts as presented in your ruling request are summarized as follows:
Applicant is a Missouri public school district in accordance with Missouri Code of State Regulations 1 CSR 10-1.020. Applicant provides primary and secondary public education. Applicant recently constructed a career center which Applicant intends to offer culinary programming and the operation of a restaurant and coffee shop to educate students in entrepreneurship and general business practices. Applicant's students will operate the restaurant and coffee shop and sell student-prepared food items, coffee and other drink products. The students will be subject to oversight by Applicant's employees. The restaurant and coffee shop will serve as teaching tools, allowing the students to learn business operations and related topics including learning how to market products and run a business. Both the restaurant and the coffee shop will be located within the career center.
Students in the Hospitality and Tourism Management program will study the various segments of the hospitality and tourism industry, including lodging, food and beverage, event management, and travel/tourism. Students will learn about leadership skills, professional skills, resume building, dining etiquette, and an introduction to the hospitality industry. Students will have the opportunity for internships and field trips. In addition to the Culinary and Hospitality Pathway, Applicant has a Business Pathway. The Students in the Business Pathway, specifically the Project Management program, will enjoy opportunities connected to the student-operated restaurant and coffee shop. The Project Management Pathway is described as follows:
Students enrolled in the Project Management program will learn specific skills and techniques necessary to lead a team to achieve a project goal. The development of software for an improved business process, the construction of a new building, the relief effort after a natural disaster are all project examples. Students will be tasked with identifying and managing risk, careful resource management, smart budgeting, and clear communication across multiple teams and stakeholders with the goal of managing a project to successful completion. Students will have the opportunity to earn the PMI Project Management Ready certification during this program.
ISSUE:
Are Applicant's sales of food, coffee, and other drink products at Applicant's career center subject to state and local Missouri sales tax?
RESPONSE:
No. Applicant's sales of food, coffee, and other drink products at Applicant's career center are not subject to state and local Missouri sales tax.
Section 144.020.1, RSMo, imposes a sales tax on sales of tangible personal property and certain enumerated services. Section 144.021.1, RSMo, provides "[t]he purpose and intent of sections 144.010 to 144.510 is to impose a tax upon the privilege of engaging in the business, in this state, of selling tangible personal property and those services listed in section 144.020." Section 144.010.l(13), RSMo, defines "sale at retail" as "any transfer made by any person engaged in business as defined herein of the ownership of, or title to, tangible personal property to the purchaser, for use or consumption and not for resale in any form as tangible personal property, or a valuable consideration."
However, Section 144.030.2(19), RSMo, provides that "[a]ll sales made by or to religious and charitable organizations and institutions in their religious, charitable or educational functions and activities and all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities..." are exempt from tax. In order for Applicant's restaurant and coffee shop sales to qualify for the exemption, those sales must be part of its educational functions and activities.
Applicant, a Missouri public school district, will open and operate a restaurant and a coffee shop as part of its career center. The students participating in the operation of the restaurant and coffee shop will attend classes at the career center, where both the restaurant and coffee shop are located. Students working in both the restaurant and coffee shop will operate those entities, with oversight provided by Applicant's employees. Operating the restaurant and coffee shop will 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 Applicant's curriculum, Applicant's sales of food, coffee, and other drink products at the career center are not subject to state and local Missouri sales tax.
This ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals. If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change. For this reason, the interpretation set forth above should be reviewed on a regular basis. Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.
Should additional information be needed, please contact Senior Counsel Kent Brown, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475 (phone 573-751-0961), or me.
Sincerely,
Trish Vincent