Excel, Inc. v. Clayton

Excel manufactures textile handling equipment and other tangible property at its plant in Lincolnton, North Carolina, for sale as a retailer both in North Carolina and outside of the State. A sales tax is a tax on the freedom of purchase, and, when applied to interstate transactions, is a tax on the privilege of doing interstate commerce, creates a burden on interstate commerce and runs counter to the commerce clause of the Federal Constitution. McLeod v. Dilworth Co., 322 U.S. 327, 88 L. Ed. 1304; Johnston v. Gill, Comr. of Revenue, 224 N.C. 638, 32 S.E. 2d 30.

Incidental interstate…