Lackawanna Leather Co. v. Nebraska Department of Revenue

NATURE OF CASE

The Nebraska Department of Revenue (Department) appeals from an order of the Lancaster County District Court, which reversed the decision of the State Tax Commissioner and ordered that Lackawanna Leather Company (Lackawanna) was entitled to a refund of sales and use taxes paid on particular solvents used in dying leather. The district court concluded that the solvents were exempt from sales tax pursuant to Neb. Rev. Stat. § 77-2702.13(2)(a)(i) (Supp. 1999) and Nebraska Sales and Use Tax Regulation 1-023, 316 Neb. Admin. Code, ch. 1, § 023 (1994), which exempt from sales and use…