Court determines administrative remedies must be exhausted before requests for declaratory judgement in Missouri Quiktrip suit

QuikTrip must exhaust administrative remedies prior to maintaining declaratory judgment suit over tax: QuikTrip Corporation v. City of St. Charles, No. ED 113624 (Mo. App. E.D., March 3, 2026).

The Missouri Court of Appeals for the Eastern District ruled in QuikTrip Corporation v. City of St. Charles that QuikTrip’s failure to exhaust its administrative remedies under the city’s code precluded its declaratory judgment action against St. Charles regarding the enforcement and constitutionality of its taxes.

In 1984, the city passed a 1% tax on the sale of prepared food, but had not collected this tax for almost 40 years. In 2023 the city changed its posture, without a change in ordinance or notice to entities subject to the tax. The city determined that the tax retroactively applied from November 1, 2019 to present and rather than follow delinquent tax collection procedures, it filed liens on QuikTrip’s business in May 2023 and March 2024. In April 2024, the city then communicated to QuikTrip that it would not issue sign permits until the tax was paid. In June of 2024, the city communicated to QuikTrip that it would deny QuikTrip’s liquor license renewal if the delinquent taxes were not paid within 10 days. QuikTrip then filed a declaratory judgment against the city attempting to secure a temporary restraining order (“TRO”) to keep the city from denying its liquor license based on the alleged tax delinquency.

The trial court granted QuikTrip’s TRO on July 3, 2024, although it became moot when the city renewed the licenses and agreed to not foreclose on the liens. In December 2024, the city transmitted a notice of estimated delinquent tax, and QuikTrip requested an administrative hearing 2 days later—even though it objected to the administrative process. QuikTrip also amended their petition for declaratory judgment to claim the tax was unconstitutional and to enjoin the city from refusing to grant sign permits. The city responded that QuikTrip had failed to exhaust its administrative remedies with the city.

The Eastern District ruled that an administrative remedy was available to QuikTrip, and it had availed itself to that process when it commenced an administrative proceeding in response to the city’s delinquency notice in December of 2024. As there was an available administrative remedy, QuikTrip was required to exhaust that remedy prior to filing a claim for declaratory judgment. The Eastern District also dismissed QuikTrip’s constitutional claims as mixed with other claims, and therefore failure to exhaust administrative remedies precluded review of the constitutional claims at that time.

It is recommended that you review your city’s code and what potential administrative review or appeals processes may already be in place. Further, discuss with your City Attorney if having an administrative review procedure is advisable, what may be available to your city, and what types of claims administrative review may apply to.