Honeywell Information Systems, Inc. v. King

OPINION

HARBISON, Justice.

This case presents two issues under the local option sales tax, T.C.A. §§ 67-3049 to -3056. The first question is factual: whether rent on each component of a computer system leased to others by the taxpayer is subject to the local sales tax or whether the tax should be applied to the entire system. The second question is one of law: whether monthly rental payments on leased computer systems are each taxable up to the limits of the local option tax provisions (five dollars or seven dollars and fifty cents, as the case may be), or whether this limit applies to the…