Bedford v. Hartman Brothers Inc‪.‬

The sole question involved is whether an automobile dealer must collect the two per cent tax on the sale of a used car, if he later disposes of it, which car was accepted in part payment for a new car where it appears that he collected the two per cent from the buyer on the full amount of the purchase price of the new car. Specifically stated, the evidence before us discloses that Hartman sold a new car for $1,045 and took as part payment a used car at the agreed value of $450, which amount was credited upon the sale price of the new car; that he collected two per cent of the $1,045, or $20.90, as the sales tax; that he later sold the used car to Bass for $400, and Bedford seeks to enforce the collection of the two per cent tax on that $400 sale. Is he entitled to do so under the law? The answer must be yes.