Section 21 Effect of St. John?s

• Library: Tax Law 2009

St. John’s Medical Center, Inc. v. Spradling, 510 S.W.2d 417 (Mo. 1974), surely is the Missouri sales tax case most relevant and helpful to nonprofit organizations. It enunciates an expansive test of function
or activity that justifies exemption when the funds derived from the activity are devoted to the purposes of the exempt organization. In
St. John’s, MoDOR attempted to impose sales tax on the proceeds derived from the hospitals’ operation of gift shops and food service facilities accessible to the general public as well as hospital employees and patients. MoDOR argued that these sales were not directly related to the providing of health care and, thus...