Missouri court: No sales tax on balloon rides

JEFFERSON CITY, Mo. (AP) - The Missouri Supreme Court says state sales tax should not be charged for hot air balloon rides.

The high court ruled Tuesday that a federal law prohibits states from imposing a tax, fee or other charge on people traveling by air commerce or the sale of air transportation.

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Balloons Over the Rainbow Inc. had challenged the state's denial of a sales tax refund and its assessment of sales tax. The company takes passengers on roughly hour-long balloon rides that start in eastern Missouri's Jefferson County. Customers can purchase balloon rides through the company or a third-party vendor.

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