Rhodes & Jamieson, Ltd. v. California State Board of Equalization

The question on this appeal is whether a buyer who hauls purchased cement in his own truck from a place of manufacture to place of use and receives a credit from the seller in an amount (fixed by the latter) based upon what the seller regards to be the buyer’s cost of transportation is making a “specific charge for transportation” (which makes the transaction taxable) or is merely receiving a “price differential.”

The trial court held it was the latter and that the transaction was not taxable under the California Motor Vehicle Trans-License Tax Law. We with that conclusion.

Said law imposes a…