Earley v. State

Plaintiff building contractors brought this action against the state to obtain a refund of use taxes assessed and paid with respect to certain lumber purchased by plaintiffs. Judgment was rendered for plaintiffs, and defendant appeals.

The question for decision is this: Is a construction contractor liable for the state use tax on the value of purchased lumber where (a) the contractor does not pay a retail sales tax on the purchase price; (b) the lumber is completely consumed in making forms, so that it does not become an ingredient or component of the completed structure; and (c) the price…