Colemill Enterprises, Inc. v. Huddleston

OPINION

DROWOTA, Justice.

We granted the applications of both Cole-mill Enterprises, Inc. and the Department of Revenue in this action in which Colemill Enterprises, Inc., pursuant to Tenn.Code Ann. § 67-1-1801, challenges an assessment against it of state and local sales taxes. The assessment was based on transactions whereby Colemill Enterprises, Inc. substantially modified airplanes for out-of-state customers.

For multiple reasons hereinafter described, we conclude that neither of the identified transactions on which the assessment was based is subject to sales taxes on (i) sales of tangible…