Merrill Bean Chevrolet, Inc. v. State Tax Commission

MAUGHAN, Justice:

Here for review is a decision of the State Tax Commission sustaining a deficiency assessment for sales tax not paid on automobiles used, by plaintiff, in the demonstration of its stock in trade for the promotion of sales. We reverse.

Plaintiff is a franchised Chevrolet dealer. It is in the business of selling automobiles.

Its procedures for bookkeeping are established by General Motors, and all cars received by plaintiff are entered in the new-car inventory account. Upon determination by plaintiff that a vehicle is to be used as a demonstrator, such vehicle is transferred to…