HONEYWELL INFORMATION SYSTEMS, INC. v. KING


640 S.W.2d 553 (1982)

HONEYWELL INFORMATION SYSTEMS, INC., Plaintiff-Appellee, v. John K. KING, Commissioner of Revenue, State of Tennessee, Defendant-Appellant.

Supreme Court of Tennessee, at Knoxville.

October 25, 1982.


Attorney(s) appearing for the Case

Joe C. Peel, Asst. Atty. Gen., Nashville (William M. Leech, Jr., Atty. Gen., Nashville, of counsel), for defendant-appellant.

Robert L. Crossley, Knoxville, for plaintiff-appellee.


OPINION

HARBISON, Justice.

This case presents two issues under the local option sales tax, T.C.A. §§ 67-3049 to -3056. The first question is factual: whether rent on each component of a computer system leased to others by the taxpayer is subject to the local sales tax or whether the tax should be applied to the entire system. The second question is one of law: whether monthly rental payments on leased computer systems are each taxable up to the...

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