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A Whopper of a Court Case: Can Citizens Sue States?
Governing: There is such a thing as a free lunch in Arkansas, but thanks to a recent court ruling you still have to pay taxes on it. That ruling could also have led to an enormous expansion of state power.
Flis Enterprises owns 16 Burger King franchises in central Arkansas. It gives its managers one free meal per shift. The state Department of Finance and Administration said that Flis had to pay taxes on the retail value of those hamburgers and fries, while Flis maintained it should pay only on the wholesale price of the ingredients that go into the meal. Given the number of meals doled out over the years, the dispute involved tens of thousands of dollars.
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