Boots and Saddles, Inc. v. United States, Civ. A. No. 25572.

• Court: United States District Courts. 6th Circuit. United States District Court (Western District Michigan)
• Citation: 269 F. Supp. 274
• Docket Number: Civ. A. No. 25572.
• Parties: BOOTS AND SADDLES, INC., Plaintiff, v. UNITED STATES of America, Defendant.
• Decision Date: 30 June 1967

269 F. Supp. 274

BOOTS AND SADDLES, INC., Plaintiff,
v.
UNITED STATES of America, Defendant.

Civ. A. No. 25572.

United States District Court E. D. Michigan, S. D.

June 30, 1967.

W. Ralph Musgrove and David P. Ruwart, of Raymond, Chirco, Fletcher, Donaldson & Ruwart, Detroit, Mich., for plaintiff.

Lawrence Gubow, U. S. Dist. Atty., and Milton Trumbauer, Jr., Asst. U. S. Dist. Atty., Detroit, Mich., and Steven Cochran, David A. Wilson, Jr., and A. C. Murphy, of U. S. Dept. of Justice, Washington, D. C., for defendant.

FINDINGS OF FACTS AND CONCLUSIONS OF LAW

MACHROWICZ, District Judge.

This is a suit brought by Boots and Saddles, Inc., a Michigan non-profit corporation, on behalf of its members

269 F. Supp. 275

for the recovery of federal excise taxes assessed on monthly board payments for its members' horses lodged in stables maintained by plaintiff, for the period from January 1, 1958 through December 31, 1960

The issues raised by the pleadings and proofs are:

1. Whether "monthly board" charges paid in advance by members to a club, which entitle them to use the club's privileges and facilities for a period in excess of six (6) days, are subject to the excise tax on dues imposed by Sec. 4241 of the Internal Revenue Code of 1954, and

2. Whether twenty-five percent (25%) of the monthly payments should be excluded from the tax base because allegedly expended by the club for food for the horses being boarded.

It was the position of the plaintiff that these payments were for horse feed and exclusive use of a stall, paid in addition to an annual assessment; that they were computed and billed monthly on the basis of a charge for the occasion of actual use only, and are not subject to the excise tax imposed by Sec. 4241 of the Internal Revenue Code of 1954.

The case was tried before the Court without a jury. The Court finds from the evidence the facts to be as follows:

The plaintiff was a club within the meaning of Sec. 4241(a) of the Internal Revenue Code of 1954. Its physical property consists of a rented stable, containing thirty-six (36) horse stalls, a riding ring, tack-room and kitchen-dining room. The rental lease with Ford Motor Company, owners of the property, also gave the club members the privilege of riding over farm-roads of the farm on which the barn is located.

The tack-room contained tables, chairs and a library consisting of magazines devoted to horses. It was used occasionally for "horse movies" and occasional parties and social events were arranged for members, including horse shows and "breakfast rides".

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