Ragland v. General Tire and Rubber Co.

Jack Holt, Jr., Chief Justice.

The appellant, Charles D. Ragland (Commissioner), challenges the trial court’s determination that the appellee, General Tire and Rubber Company, Inc. (General Tire), is exempt under Ark. Code Ann. § 26-52-401(12)(A) and (B) (Supp. 1987) from paying use tax on chemicals used in the manufacturing of tennis balls and rubber moldings. We hold that the trial court erred in its ruling. Therefore, we reverse the judgment entered in favor of General Tire and remand the case for further proceedings.

The Commissioner conducted a use tax audit of General Tire’s records for…