The Sherwin-williams Company Vs. Iowa Department Of Revenue

TERNUS, Chief Justice.

The appellee, The Sherwin-Williams Company, paid Iowa use tax on certain machines used in its Iowa retail outlets to mix base paint with colorant. The appellant, Iowa Department of Revenue, denied Sherwin-Williams’ refund claim for these taxes, refusing to apply the so-called manufacturing exemption set forth in Iowa Code section 422.45(27)(a. )(1) (1999) , 1 On judicial review, the district court reversed the department’s ruling, and the Iowa Court of Appeals affirmed the district court. We granted the department’s application for further review. Concluding the…