IOWA AUTO DEALERS v. IOWA DEPT. OF REVENUE

No. 64362.

301 N.W.2d 760 (1981)

IOWA AUTO DEALERS ASSOCIATION and Elbert Chevrolet, Inc., Appellees/Cross-Appellants, v. IOWA DEPARTMENT OF REVENUE and Gerald Bair, Director, Iowa Department of Revenue, Appellants/Cross-Appellees.

Supreme Court of Iowa.

February 18, 1981.


Attorney(s) appearing for the Case

Thomas J. Miller, Atty. Gen. and Harry Griger and Thomas Donahue, Asst. Attys. Gen., for appellants/cross-appellees.

W. Don Brittin, Jr., of Nyemaster, Goode, McLaughlin, Emery & O'Brien, Des Moines, for appellees/cross-appellants.

Considered by LeGRAND, P. J., and UHLENHOPP, HARRIS, McCORMICK and ALLBEE, JJ.


McCORMICK, Justice.

The determinative question here is whether used car dealers are required to pay sales tax on automobile repair services performed on used cars owned and held by them for sale. The district court held that a portion of an Iowa Department of Revenue rule implementing such a requirement was unreasonable and exceeded the department's authority. The court awarded attorney fees to the car dealers. The department...

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