Sizemore v. Intergraph Corp.

THIGPEN, Judge.

This is an appeal by the Commissioner of Revenue of the State of Alabama (Size-more) of the trial court’s judgment that sales taxes were not due on the sale of a computer system to a government contractor who purchased under a cost-reimbursement contract with the United States government.

After an audit, Sizemore assessed Inter-graph Corporation (Intergraph) sales taxes in the amount of $67,755.93. Sizemore asserted that the taxes were due on the sale of a three-dimensional computer-aided design (CAD) system from Intergraph to USBI Booster Production Company, Inc. (USBI-BPC).…