Androscoggin Foundry Co. v. Johnson

Decision Date14 April 1952
PartiesANDROSCOGGIN FOUNDRY CO. v. JOHNSON.
CourtMaine Supreme Court

Locke, Campbell, Reid & Hebert, Augusta, for appellant.

Alexander LaFleur, Atty. Gen., and Boyd L. Bailey and Miles P. Frye, Asst. Attys. Gen., for the State.

Before MURCHIE, C. J., and THAXTER, FELLOWS, MERRILL, NULTY and MILLIAMSON, JJ.

MERRILL, Justice.

On report. This case is an appeal to the Superior Court for the County of Kennebec from a decision of Ernest H. Johnson, State Tax Assessor, declining to abate taxes. The assessor levied a use tax upon certain coke, molding sane, refractories, fire clay, steel shot and grit, oil burned to heat core ovens, oil burned to heat enameling ovens, crucibles and snagging wheels, all of which were purchased by the appellant for use in its business of conducting an iron foundry. Proper procedure was followed to obtain a reconsideration and abatement of the assessment in question by the assessor and to bring the case before the Superior Court on appeal. See P.L.1951, c. 250, §§ 29 and 30.

In the Superior Court this case was reported to this Court for final determination. By the terms of the report it is agreed that there is only one issue and that is, 'Is the purchase by the Appellant, the taxpayer, of coke, molding sand, refractories, fire clay, steel shot and grit, oil burned to heat core ovens, oil burned to heat enameling ovens, crucibles and snagging wheels a purchase of 'tangible personal property which becomes an ingredient or component part of, or which is consumed or destroyed or loses its identity in the manufacture of, tangible personal property for later sale by the purchaser * * *' within the meaning of the fourth sentence of the definition of 'retail sale', or 'sale at retail', Section 2, Chapter 250 P.L.1951?'

By Chapter 250 of the Public Laws of 1951 the Legislature enacted Chapter 14-A of the Revised Statutes known as the 'Sales and Use Tax Law', hereinafter called the Act. In assessing the taxes involved herein, the assessor purported to do so under authority of the Act.

This case is a companion case to Hudson Pulp & Paper Corporation v. Johnson, State Tax Assessor, 147 Me. ----, 88 A.2d 154, the two cases having been heard together in this Court and the decision in the latter case being filed simultaneously herewith.

All of the before mentioned personal property was purchased by the appellant for use in its business of conducting a foundry. All of it will be consumed or destroyed within the meaning of those terms as used in Section 2 of the Act as interpreted by this Court in the Hudson Pulp & Paper Corporation case. No useful purpose would be served by a discussion of the specific use and length of life of molding sand, refractories, fire clay, steel shot and grit, crucibles and snagging wheels. All of these articles of tangible personal property are expendibles and have a relatively short use life in the foundry business. As all of these items of property will be consumed or destroyed in the manufacture of personal property for later sale by the purchaser, the purchase of none of these articles is a purchase at 'retail sale' within the meaning of the Act as interpreted by us in the Hudson Pulp & Paper Corporation case, supra. The appellant is not subject to a use tax with respect to any of these items. None of them were taxable within the meaning of the stipulation and the use taxes assessed with respect to their purchase must be abated.

The purchases of coke, oil burned to heat core ovens and oil burned to heat enameling ovens by the ultimate consumer are purchases at 'retail sale' within the meaning of Section 2 of the Act. The definition of 'retail sale' or 'sale at retail' contained in Section 2 of the Act so far as pertinent to the present inquiry is as follows:

"Retail sale' or 'sale at retail' means any sale of tangible personal property, in the ordinary course of business, for consumption or use, or for any purpose other than for resale in the form of tangible personal property. * * * 'Retail sale' and 'sale at retail' do not include the sale of tangible personal property which becomes an ingredient or component part of, or which is consumed or destroyed or loses its identity in the manufacture of, tangible personal property for later sale by the purchaser, but shall include fuel and electricity.' (Emphasis ours.)

From a consideration of the foregoing definition of 'retail sale' and 'sale at retail' and the exclusions therefrom, it is seen that purchases of fuel by the ultimate consumer are specifically included within the definition of 'retail sale' and 'sale at retail'...

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8 cases
  • W. S. Libbey Co. v. Johnson
    • United States
    • Maine Supreme Court
    • February 3, 1953
    ...v. Johnson, 147 Me. 327, 87 A.2d 667; Hudson Pulp and Paper Corporation v. Johnson, 147 Me. 444, 88 A.2d 154; Androscoggin Foundry Co. v. Johnson, 147 Me. 452, 88 A.2d 158. As was said in Berry v. Clary, 77 Me. 482, 1 A. 360, 361, legislative intention is the 'guiding star in the constructi......
  • Courier Citizen Co. v. Commissioner of Corporations and Taxation
    • United States
    • United States State Supreme Judicial Court of Massachusetts Supreme Court
    • January 20, 1971
    ...upon therein and thereby.' Lubricating oils and felts used on paper machines thus were held exempt. In Androscoggin Foundry Co. v. State Tax Assessor, 147 Me. 452, 456--457, 88 A.2d 158, molding sand, refractories, fire clay, steel shot and grit, and crucibles used in an iron foundry were h......
  • Granite City Steel Co. v. Department of Revenue
    • United States
    • Illinois Supreme Court
    • March 18, 1964
    ...For example, some states have provided exclusions for 'fuel' used in the manufacture of goods for sale. (Androscoggin Foundry Co. v. Johnson, 147 Maine 452, 88 A.2d 158; for any material which 'enters into the processing of' tangible personal property for sale, (Bedford v. Colorado Fuel & I......
  • Bonnar-Vawter, Inc. v. Johnson
    • United States
    • Maine Supreme Court
    • July 25, 1961
    ...paper-making business after relatively short periods of time. All of these items were held to be non-taxable. In Androscoggin Foundry Co. v. Johnson, 147 Me. 452, 88 A.2d 158, moulding sand, refractories, fire clay, steel shot and grit, crucibles and snagging whirls, all having a relatively......
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