Alabama Trucking Company Held Liable for Tax on Construction Material Deliveries

A trucking company that contracted with customers to both furnish and deliver materials, was found to be reselling materials at retail. The trucking company contended that it was a construction contractor and that it correctly paid sales tax when it purchased the materials. However, since the company did not apply or attach the materials to any realty, they could not be considered a contractor for sales and use tax purposes. Therefore, the company was found liable for sales tax on the lump-sum amounts paid by its customers. (Pearce Trucking, Inc. v. Alabama Department of Revenue, Alabama Department of Revenue, Administrative Law Division, No. S. 08-317, September 29, 2008)

Posted on March 3, 2009