BellSouth Publishing v. Ruth Johnson, Commissioner of Revenue

The State Commissioner of Revenue imposed a use tax on the cost price of telephone directories produced in Alabama and distributed in Tennessee by BellSouth Advertising and Publishing Company ("BAPCO"). BAPCO claimed a credit for sales taxes it paid in Alabama when it purchased the photocompositions used to print the directories. The Chancery Court of Davidson County granted summary judgment to the Commissioner. We affirm the lower court's decision because BAPCO did not show that it was entitled to the credit and the Tennessee use tax in this case does not violate the Commerce Clause of the United States Constitution.