State Tax Commission v. Burns

FOSTER, Justice.

This is a suit seeking a declaratory judgment to determine whether persons engaged in the restaurant business who give their employees food as an element of compensation for services rendered in and about the preparation and service of food to customers, on which the sales tax is paid, should pay a tax on the value of the food thus served.

The restaurateur purchases the material, which is compounded into edible food for consumption. This we presume is from dealers in such articles, and for such pur chases his seller does not pay the tax upon the ground that the sale to him is a…