State v. Rockaway Corp.

HOLMES, Judge.

This is an appeal by the State of Alabama from a decree of the Circuit Court of Montgomery County. That court held certain proceeds paid to the taxpayer, Rockaway Corporation, were not subject to Alabama’s lease tax imposed by Tit. 51, § 629(21), et seq. The pertinent part of the statute levies a tax on proceeds “accruing from the leasing or rental of tangible personal property.”

The issue on appeal is whether the proceeds in question were paid to the taxpayer for the rental or lease of tangible personal property within the meaning of the statute.

The taxpayer contends that the…