Panel: Truck sale voided because of fraud not subject to sales tax

| 1/22/2004

The Missouri Administrative Hearing Commission ruled that the sale of a truck that was voided because of fraudulent misrepresentations by the seller was not subject to state sales tax.

According to a news article in the Jan. 15, 2004, State Laws Newsletter by Robert C. Pitcher, the truck dealer told the prospective purchaser that the vehicle had not been in any serious accidents and had passed a recent inspection.

That information was incorrect, the Newsletter reported, and the purchaser bought the truck relying on what he was told. That voided the sales contract, and the commission concluded that legally, there had been no transaction to tax. The case – referred to by the commission as Gannon, docket no. 03-0142 RV – was decided Nov. 14, 2003.