Atlantic City Electric Co. v. Director

LASSER, P.J.T.C.

In this action, Atlantic City Electric Co. contests a sales and use tax deficiency assessment levied by the Director pursuant to N.J.S.A. 54:32B-1 et seq. The issue before the court is whether taxpayer’s leases of railroad tank cars to transport oil to its electrical generating plant are exempt from sales tax under N.J.S.A. 54:32B-8(m)(2).1 All other issues in this action having been disposed of by agreement of the parties, it is agreed that as to these other issues, the complaint is to be dismissed.

N.J.S.A. 54:32B-8(m)(2) exempts from sales and use tax “Sales of machinery,…