Wetherbee v. State

This is a declaratory judgment action opposing the imposition of a transfer tax on certain property transactions. The trial court gave judgment in favor of the plaintiffs and barred the tax assessment by the state tax department. The state has appealed.

The facts are uncontested. The plaintiffs, Wetherbee, husband and wife, run a small catering business located on premises owned by them. The business was incorporated. Wishing to obtain additional funds for business improvements, the plaintiffs applied to a bank for a loan. The loan was approved on condition that the property on which the…