Hyatt v. Taylor

OPINION

FONES, Justice.

Plaintiff, taxpayer, sued the Commissioner of Revenue alleging that the State has erroneously assessed sales taxes upon gross receipts from a portion of his business operations. The trial judge found that the “continuous supervision” exemption, applicable to the lease and rental of tangible personal property, applied and thus plaintiff was not liable for the taxes assessed. We reverse.

Plaintiff sells, leases and services water conditioning units to residential, commercial and industrial users. Some of plaintiff’s customers buy the units, but those transactions are not in…