Sizemore v. Franco Distributing Co., Inc.

Franco Distributing Company and Franco Novelty Company (Franco) appealed in the Montgomery County Circuit Court for a refund of sales tax that Franco had paid according to an assessment by the State Department of Revenue (Department) for the period from May 1, 1986, through April 30, 1989. The Department's assessment was levied pursuant to subsection (1) of § 40-23-2, Ala. Code 1975, which provides for a tax at the rate of four percent on the gross proceeds of retail sales of "any tangible personal property whatsoever." Franco subsequently claimed, however, that its sale of video arcade game…