MacEy Jewelry Corporation v. United States

WISDOM, Circuit Judge:

This is an action for refund of federal excise taxes amounting to $859.79 paid by the plaintiff-appellant, Macey’s Jewelry Corporation, during 1961 and part of 1960. When the taxpayer sells an article of jewelry on credit, its practice is to add a ten per cent “budget charge” to the balance remaining after deducting the customer’s down payment. The question for decision is whether this budget charge is a true finance charge and as such not a part of “the price for which * * * [the jewelry] is sold”, within the meaning of the retailers excise tax provisions of the…