Commissioner of Revenue v. Fashion Affiliates, Inc.

The Commissioner of Revenue has appealed from a decision of the Appellate Tax Board (board) granting Fashion Affiliates, Inc., an abatement of use taxes assessed on its rental of certain machinery used in the manufacture of clothing. The board concluded, we think correctly, that the machinery, known as the “Markamatic System” and leased by Fashion Affiliates, was exempt from use taxes by reason of the provisions of G. L. c. 64H, § 6 (s), as appearing in St. 1971, c. 555, § 45. See G. L. c. 641, § 7 (b).

The board rejected the Commissioner’s argument that, because Fashion Affiliates did not…