Arkansas Justices Dissect Tyson Foods’ Resale Exemption Case

Three Tyson Foods Inc. subsidiaries got mixed reactions from the Arkansas Supreme Court at oral arguments Thursday to their position that pallets they use to transfer food to customers are exempt from sales tax.

The Tyson chicken and tortilla divisions argued that the wooden pallets it rents from CHEP Pallets Inc. are exempt sales for resale. They want the justices to order the Arkansas Department of Finance and Administration to refund $3.45 million in sales tax they paid for 2015-2017 and 2020-2021.

“But for the pallet, how does the chicken get delivered?” Justice Cody Hiland asked the attorney representing the ...