Alley-Cassetty Coal Co., Inc. v. Ruth Johnson, Commission of the Tennessee Department of Revenue

This appeal involves a trial court's grant of summary judgment to the Tennessee Department of Revenue. The taxpayer operates a brick and block business on a ten-acre tract of land in Murfreesboro, Tennessee, on which is located a block manufacturing facility and retail sales office. Upon undertaking an audit of the taxpayer, the department inspected the property in Murfreesboro. The department subsequently assessed a sales and use tax liability against the taxpayer for the Murfreesboro property. The department determined that the Murfreesboro property constituted one location, and sales of concrete blocks manufactured at the facility constituted less than fifty-one percent (51%) of the gross sales at this location. The taxpayer filed an action in the trial court alleging it was entitled to a sales tax exemption under section 67-6-206 of the Tennessee Code because it operated two "locations" at the Murfreesboro property under the fifty-one percent (51%) test used by the department. Both parties moved for summary judgment. The trial court granted the department's motion and denied the taxpayer's motion. The taxpayer filed an appeal to this Court. We affirm.