Security Fire Protection v. Joe B. Huddleston

Security Fire Protection Company challenged the Commissioner of Revenue's assessment of sales and use taxes arising from an audit of Security Fire's transactions with out-of-state customers from January 1, 1990, through March 31, 1993. The Shelby County Chancery Court granted the Commissioner's motion for summary judgment, holding 1) material purchased in Tennessee under a certificate of resale were not resold for purposes of the sales tax exemption; 2) material purchased by Security Fire out of Tennessee, stored and partially fabricated in Tennessee, and utilized by Security Fire in performance of contracts out of Tennessee was subject to Tennessee use tax; and 3) no credit was due for taxes paid out-of-state. We affirm the judgment of the trial court.