Ex Parte Morrison Food Service of Alabama

This is a sales tax case involving the "withdrawal for use" provision, Code 1975, § 40-23-1 (a)(10). Pursuant to this section, Morrison Food Service of Alabama, Inc., was assessed a sales tax of $165,464.90 by the State of Alabama Department of Revenue based on Morrison's withdrawal of food from its inventory to fulfill its obligations under nine contracts with hospitals, nursing homes, and fraternities. Five of these contracts are with organizations which are exempt from paying sales taxes.

Morrison appealed the assessment to the Circuit Court of Mobile County, which granted the State's…