Atlantic City Showboat Inc. v. Director, Division of Taxation

In these consolidated cases, plaintiffs Atlantic City Showboat, Inc. and Our Lady of Lourdes Medical Center, Inc. (collectively plaintiffs) appeal from the Tax Court’s grant of summary judgment in favor of defendant Director, Division of Taxation (Director). In both cases, plaintiffs sought refunds of a portion of the sales tax paid on purchases of electricity and related delivery services, challenging the Director’s application of the Sales and Use Tax Act, N.J.S.A. 54:32B-1 to -55.

Specifically, plaintiffs claim the court erred in holding the amount charged by an electric public utility for…