Pfizer, Inc. v. Ruth E. Johnson, Commissioner of Revenue for the State of Tennessee

Pfizer, Inc. challenges the assessment of the additional rate of business tax under Tenn. Code Ann. § 67-4-709(b)(2)(B). It contends the sales in question, which were from one wholesaler to another wholesaler, were not within the definition of “wholesale sales” as the term is defined in Tenn. Code Ann. § 67-4-702(a)(19), and thus not subject to the additional business tax. The State of Tennessee contends sales, whether a “sale at retail” or a “sale at wholesale,” are taxable pursuant to the percentages set forth in Tenn. Code Ann. § 67-4-709(b)(2)(B). The facts are not disputed. Based upon a statutory interpretation, we find sales from one wholesaler to another wholesaler are not subject to the additional business tax under Tenn. Code Ann. § 67-4-709(b)(2)(B).