Covington Pike Toyota, Inc. v. Cardwell

OPINION

ANDERSON, Justice.

The issue presented in this sales tax appeal is whether sale of extended warranty contracts on automobiles constitutes “the performing for a consideration of any repair services” within the meaning of Tenn. Code Ann. § 67-6-102(22)(F)(iv), thus making it subject to sales tax. The Commissioner of Revenue assessed sales taxes upon sales of extended warranty contracts to purchasers of new and used automobiles. The assessment was challenged in this action; the Chancellor granted the taxpayer’s motion for summary judgment, reduced the tax assessment by the amount imposed…