Acheson Et Al. v. Johnson

This is an appeal by James M. Acheson and Mary L. Acheson doing business as Capital City Hotel Co. (Augusta House) from the decision of Ernest H. Johnson, State Tax Assessor declining to abate taxes under the Sales and Use Tax Law. The case comes to the Law Court from the Superior Court for Kennebec County on report with agreed statement of facts. The agreed facts are: James M. Acheson and Mary L. Acheson, doing business as Capital City Hotel Co., on July 1, 1951, and ever since, have operated the Augusta House, a year-round hotel open to the public, in Augusta, Maine. Neither of the appellants makes his home in the hotel. During the month of July, 1951, they purchased from Purinton Bros. Co., fuel dealers in Augusta, 16.82 tons of coal, for use in the hotel, at a price of $15.15 a ton, the total bill for the same being in the amount of $254.82. The Achesons furnished Purinton Bros. Co. a certificate stating that the coal was to be used for cooking or heating for domestic purposes and that its purchase was exempt from the sales and use tax. Such exemption certificates are authorized by the State Tax Assessor for use in certain cases and when taken in good faith relieve the seller from the duty of collecting a sales tax. The Achesons paid for the coal so purchased but neither they nor any one else has paid to Purinton Bros. Co. or to the State of Maine, any sales or use tax, or any part thereof, on the purchase of coal.