Carr v. Chrysler Credit Corp.

OPINION

HARBISON, Justice.

This case presents for decision the scope of an exemption from the state transfer tax on the recording of mortgages, deeds of trust and other evidences of indebtedness.

The transfer or recordation tax is authorized by T.C.A. § 67 — 4102, Item S(b).

The question at issue is whether or not financing statements on inventories of automobiles, financed under a “floor-plan” arrangement, are exempt from the recordation tax. The chancellor held the exemption applicable, and permitted appellee a recovery of transfer taxes which it had paid under protest upon the recordation of a…