The Missouri Department of Revenue has issued a release discussing the impact of the ICC Management, Inc. v. Director of Revenue case on the resale exclusion. In the case, the court ruled that ICC’s purchases of food and consumables were not eligible for the resale exclusion and therefore, subject to sales tax. The court determined that since ICC’s supply of food and consumables to inmates are not taxed due to the governmental sales exemption, then the rationale behind the resale exclusion (to avoid double taxation) does not apply. This change applies to all affected transactions occurring after September 1, 2009, the date the decision became final. (Release, Missouri Department of Revenue, December 23, 2009)