Bates v. Farmers Sav. Bank

The litigation under consideration here arises under chapter 423, Code of Iowa, 1950, embodying the Use Tax law. It concerns the power of the Iowa State Tax Commission, hereinafter known as the commission, to levy a use tax upon materials and equipment purchased outside the State of Iowa and used by the plaintiff, City of Ames, hereinafter termed the city, in the construction of a municipal light and power plant. Two appeals are involved. The citys action prayed that certain use tax assessments levied by the commission be canceled. The trial court granted the relief prayed as to what, following the order set out in appellees brief, we shall designate as Exhibits Nos. 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11. From this part of the decree and judgment the commission has appealed. It will be designated as the appellant. The court denied the citys prayer for relief from the assessment against the property described in Exhibit 1, and also held certain freight charges paid by the city were part of the price of goods purchased and so subject to use tax. From this part of the judgment the city, which we shall term the appellee, has appealed.