Gruschus Ex Rel. Estate of Adams v. Bureau of Revenue

NOBLE, Justice.

Prior to March 31, 1961, the Jack Adams Construction Company entered into five unit price contracts for the construction of particular highway projects, under which no increase in price could be made because of sales taxes subsequently enacted and imposed. Chapter 195, Laws 1961 became effective on that date and removed the exemption of sales of services to the State from the privilege tax imposed on contractors, thus making that tax apply prospectively to gross receipts from these contracts. Recognizing that many such contracts had already been entered into, the terms of which…