TUSCALOOSA CTY. SP. TAX BD. v. Tuscaloosa Vending Co.

This is a sales tax case.

Tuscaloosa Vending Company, Inc. (vendor) is in the business of selling food products through coin-operated dispensing machines. From April 1, 1981, to March 31, 1984, the vendor paid $34,736.10 in sales taxes assessed for that period. This amount represented two percent (2%) of the gross receipts from sales through the vendor's machines. On April 30, 1984, the vendor petitioned the Tuscaloosa County Special Tax Board (Board) for a partial refund, claiming the sales tax should have been based on the cost of their products rather than the gross proceeds of the sale. As…