Davis Wire Corp. v. State Board of Equalization

Opinion

TOBRINER, J.

The State Board of Equalization (Board) appeals from an order directing it to refund to plaintiff, Davis Wire Corporation (Davis), certain sales taxes paid under protest. The Board contends that a sale at retail of capital assets used to manufacture nonexempt goods is taxable even if the vendor has never before sold such equipment or such goods at retail. It observes that exempting such sales from taxation would cost the state substantial tax revenues since businesses would be able *763completely to liquidate their assets without incurring any sales tax liability. We concur…