Hammond Lead Products, Inc. v. STATE OF INDIANA TAX COM'RS

FISHER, Judge.

Petitioner, Hammond Lead, is an Indiana corporation involved in the manufacture and sale of chemicals and lead chemical products. During the tax years involved, 1980 through and including 1984, Hammond Lead did all of its commercial banking with the Mercantile National Bank of Hammond, Indiana. During this time, Hammond Lead sought to periodically invest its excess cash reserves on a temporary basis. Hammond Lead wanted to obtain interest on its excess cash, but also wanted flexibility in accessing its cash.

The Mercantile National Bank (the “Bank”) routinely purchased U.S.…