Alsco, Inc. v. Tennessee Department of Revenue

A taxpayer who rented hygienically-clean textiles to its customers challenged the revocation of three industrial machinery tax exemption certificates that it had previously been issued. An administrative judge determined that the taxpayer was not entitled to the exemption because the taxpayer’s operations did not constitute “manufacturing” as they were not necessary for processing tangible personal property. The taxpayer appealed to the Chancery Court for Davidson County. The chancery court reversed after concluding that the administrative decision was not supported by substantial and material evidence. Discerning no error, we affirm the chancery court’s decision.