Fourco Glass Co. v. Heath

Georoe Rose Smith, Justice.

Our use tax law contains an exemption for “[mjachinery purchased to replace existing machinery in its entirety” and used directly in manufacturing, processing, and other activities not important in this case. Ark. Stat. Ann. § 84-3106(D, 2, b) (Supp. 1975). Four-co manufactures sheet glass at its plant in Fort Smith. Fourco claimed an exemption under the quoted language of the statute for many purchases made by it between September 1, 1971, and August 31, 1974. The appellee disallowed the claim, on the ground that the purchases were not made to replace existing…