QUALLS v. GEORGIA-PACIFIC CORP.

No. 80-7.

602 S.W.2d 646 (1980)

R. L. QUALLS, Director, Dept. of Finance and Administration, Appellant, v. GEORGIA-PACIFIC CORPORATION, Appellee.

Supreme Court of Arkansas.

Rehearing Denied August 25, 1980.


Attorney(s) appearing for the Case

Joseph V. Svoboda, Little Rock, for appellant.

Griffin Smith and W. R. Nixon, Jr., by W. R. Nixon, Jr., Little Rock, for appellee.


MAYS, Justice.

Although Georgia-Pacific Corporation replaced a boiler and purchased spare machine parts in 1976 and 1977 at its paper mill plant in Crossett, Arkansas, Georgia-Pacific did not pay a use tax on the boiler replacement or spare machine part purchases. When the State attempted to collect the tax and a 10% penalty for non-payment, Georgia-Pacific sought an injunction in Chancery, claiming an exemption. The chancellor enjoined the collection of the 10% penalty...

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