Harry J. Whelchel Co. v. King

OPINION

FONES, Justice.

The question in this State revenue case is whether the grain bins that plaintiff sells to farmers qualify for the one percent sales tax rate applicable to “farm equipment and machinery” as defined in T.C.A. § 67-3002(p).

The trial judge found in favor of taxpayer and the Commissioner’s appeal presents two issues, to wit: (1) whether the grain bins are used “directly and primarily” to produce agricultural products for sale, and (2) whether the grain bins become real property when erected or installed.

The statutory definition in effect for the taxable periods involved in…