The Missouri Department of Revenue (DOR) has issued a private letter ruling regarding the taxability of food and beverage sales at a public school district’s career center. The public school district constructed a career center where they intend to offer culinary programming and the operation of a restaurant and coffee shop in order to educate students in entrepreneurship and business practices. Students will operate the restaurant and coffee shop and sell student-prepared food items, coffee, and drinks. Students will be subject to oversight by employees of the school district.
The school district inquired as to whether the sales of food, coffee, and drinks at the career center are subject to Missouri state and local sales tax. The DOR replied that the sales are not subject to Missouri state and local sales tax. Missouri tax law 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 the restaurant and coffee shop sales to qualify for the exemption, the sales must be part of the school district’s educational functions and activities. The students operating the restaurant and coffee shop will attend classes at the career center, where the restaurant and coffee shop are located. Operating the restaurant and coffee shop will teach the students subjects including entrepreneurship, marketing, business management, product pricing, financial analysis, promotion, and more.
While the restaurant and coffee shop’s sales are sales at retail and normally subject to sales tax, since they are part of the school district’s curriculum, the sales of food, coffee, and drinks at the career center are not subject to Missouri state and local sales tax. (Letter Ruling No. LR 8379, Missouri Department of Revenue, January 8, 2026)