Ragland v. Allen Transformer Co.

Tom Glaze, Justice.

This appeal involves the appellant’s assessment of a sales tax on repair services performed on electrical transformers by the appellee at its business location in Fort Smith, Arkansas. After exhausting its administrative remedies, appellee filed suit in chancery court, alleging the appellant’s assessment was an illegal exaction. The chancellor upheld the appellant’s sales tax assessment on the repairs performed for Arkansas customers, but disallowed as an illegal exaction the assessment on repair services performed within the state on transformers owned by out-of-state…