ÿWPCÖ …# V %a 0(g4£UN²w@ <@ | 0l„ 0Dð 0L4 0J€ 0TÊ 0^ 0h| 0rä 0|V 0†Ò 0X 1uè 0d] BÁ 0LÞU>*U6hB)ž D3ÇDCú AM= 0@ŠU*ÊôÜv~àvÓ^ AO1Æ€ 0DF D/Š B¹˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 X($¡¡DÒ xx°°3|x¡ (ÖÃ9 Z ‹6Times New Roman Regular D D‘ ’ D“ D” • D– — Ó€¡ c:\wpwin60\template\brief.wpt((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó> ÿÿ$Small Circleððà0 à2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ d>c$"Small Circleð"ðà0 à< Œ 9p`(&Times New Roman< Œ 9p`(Courier New% Line 7 d'ÿÿdxd))))7Border 1dd€-+Cþÿ << Gÿÿ("ÿÿ$££Ò  ÒÒ  Ò< Œ 9p`(Arial Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€'ÔÝ  ÝÔ€.ÔÔ€.ÔÓ  Óò òÔ YYY ÔFILEDÔ€.XÔÌÌDecember€4,€1996ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó ó ÒÝ ƒ!ÝÑ#€d#ÑÔ€'ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€'ôÔÔ€(ÔTennessee€Code€Annotated€section€67„6„702€provides,€in€pertinent€part,Ïas€follows:Ìà8 àTax€authorized€„€Rates€„€Termination€of€services€tax.€„€(a)(1)€AnyÏcounty€by€resolution€of€its€county€legislative€body€or€anyÏincorporated€city€or€town€by€ordinance€of€its€governing€body€isÏauthorized€to€levy€a€tax€on€the€same€privileges€subject€to€thisÏchapter€as€the€same€may€be€amended,€which€are€exercised€withinÏsuch€county,€city€or€town,€to€be€levied€and€collected€in€theÏsamemanner€and€on€all€such€privileges€but€not€to€exceed€two€andÏthree„fourths€percent€(2€3/4€%);€provided,€that€the€tax€leviedÏshall€apply€only€to€the€first€one€thousand€six€hundred€dollarsÏ($1,600)€on€the€sale€or€use€of€any€single€article€of€personalÏproperty.ÌTenn.€Code€Ann.€ðð€67„6„702(a)(1)(1994€&€Supp.€1996).€€ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  inion Geneva ÒÒ  inion Geneva Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€'ÔÝ  ÝÑ\R AØ'\ÑÑ\R AØ'\ÑÔ€(ÔÑ7€üzXdìdÈ7ÑÑ  ÑÓ ` Ü‚X2 ’X Ó›Þ ÞÌCOLEMILL€ENTERPRISES,€INC.,à à)Ìà àà à)ÌÓ#` Ü‚X2ôx‘X#Óà àPlaintiff/Appellant,à à)à àAppeal€No.Ìà àà à)à à01„A„01„9605„CH„00218Ìv.à àà à)Ìà àà à)à àDavidson€Chancery̜ـ€ÙÙ€€ÙßR€,/+A1-j|º` ç `€€@ÿRß›JOE€HUDDLESTON,€Commissioner€ofà à)à àNo.€94„3217„IÌœTennessee›€Department€of€œRevenue,›à à)Ìà àà à)Ìà àDefendant/Appellee.à à)ÌÌÌÌÓ  ÓÔ€(¼ÔCOURT€OF€APPEALS€OF€TENNESSEEÌÌMIDDLE€SECTION€AT€NASHVILLEÌÌÌAPPEAL€FROM€THE€CHANCERY€COURT€FOR€DAVIDSON€COUNTYÌÌAT€NASHVILLE,€TENNESSEEÌÌÌTHE€HONORABLE€IRVIN€H.€KILCREASE,€JR.,€CHANCELLORÌÓ ` Ü‚XœÈ“X ÓÌÌÓ  ÓÌÌÔ€(XÔRICHARD€L.€COLBERTÌCornelius€&€CollinsÌSuite€2700ÌNashville€City€CenterÌ511€Union€StreetÌP.€O.€Box€190695ÌNashville,€Tennessee€€37219Ìà àATTORNEY€FOR€PLAINTIFF/APPELLANTÌÌÌÌCHARLES€W.€BURSONÌAttorney€General€and€ReporterÌÌSTEVEN€M.€RODERICKÌAssistant€Attorney€GeneralÌAttorney€General's€OfficeÌTax€DivisionÌ404€James€Robertson€ParkwayÌSuite€2121ÌNashville,€Tennessee€€37243„0489Ìà àATTORNEYS€FOR€DEFENDANT/APPELLEEÌÌÌÌÌÌÌÌÓ  ÓAFFIRMED€AND€REMANDEDÌÌÌÌÌÌÌÓ  ÓÔ€(¼ÔSAMUEL€L.€LEWIS,€JUDGEÌÓÓòòÓ  ÓÔ€(°ÔOÔ€(¼Ô€P€I€N€I€O€NÌÓ  ÓÓ#` Ü` ä œÈ“X#ÓóóÔ€(XÔà àThis€is€an€appeal€by€plaintiff/appellant,€ColemillÏEnterprises,€Inc.€("Colemill"),€from€a€decision€of€the€chanceryÏcourt€which€affirmed€the€determination€of€œdefendant/appellee,›€JoeÏHuddleston,€Commissioner€of€the€Tennessee€Department€of€RevenueÏ("Commissioner"),€that€Colemill€owed€certain€state€and€local€salesÏand€use€taxes.€€The€facts€out€of€which€this€matter€arose€are€asÏfollows.ÌÌà àColemill's€business€involves€aircrafts.€€In€addition€toÏother€services,€Colemill€performs€aircraft€conversions.€€ToÏexplain,€Colemill€alters€œan€aircraft›€by€introducing€major€changesÏin€the€original€type€œdesign›€of€œthe›€œaircraft.›€€The€major€changesÏinclude€changes€in€œengine,›€propellers,€wings,€and€otherÏfundamental€parts€of€the€aircraft.€€These€changes€alter€theÏaircraft€such€that€the€aircraft€leaves€Colemill€with€a€new€typeÏdesignation,€new€performance€characteristics,€a€new€Pilot'sÍOperating€Handbook,€and€a€new€Federal€Aviation€AdministrationÏœ("FAA")›€approved€Flight€Manual€Supplement.€€In€order€to€performÏthis€service,€Colemill€holds€supplemental€type€certificates€issuedÏto€it€by€the€FAA.€€Colemill€must€follow€the€product€designÏapproved€by€the€FAA€and€upon€which€the€supplemental€typeÏcertificates€are€based.€€Federal€law€prohibits€Colemill€fromÏintroducing€unapproved€variations€into€the€conversion€process.ÌÌà àœThe€Commissioner›€performed€a€sales€and€use€tax€audit€ofÏColemill's€books€and€records€for€the€period€of€January€1991Ïthrough€March€1994.€€œThe€Commissioner€concluded€that€Colemill'sÏconversions€were€installation€services€performed€in€Tennessee€andÏtherefore€subject€to€taxation€pursuant€to€Tennessee€Code€AnnotatedÏsection€67„6„201(1).€€In€addition,€the€Commissioner€concluded€thatÏColemill€was€subject€to€certain€local€sales€and€use€taxes€pursuantÏto€Tennessee€Code€Annotated€section€67„6„702(a).€€Based€on€theseÏconclusion,€the€Commissioner›€assessed€a€tax€liability€againstÏColemill€in€the€amount€of€œ$20,714.00.€ÌÌà àColemill€filed€this€action€on€21€October€1994€challengingÏthe€tax€assessment.€€Colemill€alleged€that€its€conversions€were›Ïexempt€œbecause€they€were€manufactured€for€export.€€Tenn.€Code€Ann.Ïðð€67„6„313(a)(1994€&€Supp.€1996).›€€Colemill€also€alleged€that€œtheÏCommissioner›€improperly€assessed€the€local€sales€and€use€taxÏbecause€it€considered€the€sale€of€each€installed€aircraft€part€asÏa€sale€of€a€single€article€instead€of€treating€the€entireÍconversion€as€a€single€article€and€because€it€failed€to€apply€theÏ$1,600.00€cap€found€in€Tennessee€Code€Annotated€section€67„6„702(a)(1).ÌÌà àThe€trial€court€entered€œits›€œfinal€judgment€on€26€FebruaryÏ1996.€€The€court€granted€the€Commissioner's›€motion€for€summaryÏjudgment€and€denied€Colemill's€motion€for€summary€judgment.€ÏSpecifically,€the€court€held€that€Colemill€did€not€manufactureÏaircrafts€for€export.€€Instead,€the€court€held€that€ColemillÏprovided€an€installation€service€subject€to€Tennessee€sales€andÏuse€tax.€€In€addition,€the€court€concluded€that€œthe€Commissioner›Ïproperly€assessed€the€local€sales€and€use€tax€due€on€the€sale€ofÏthe€conversions.€€The€court€awarded€œthe€Commissioner›€a€judgmentÏagainst€Colemill€in€the€amount€of€$23,946.65€and€reasonableÏattorney's€fees.ÌÌà àColemill€filed€its€notice€of€appeal€on€29€February€1996€andÏpresented€the€following€issues.ÌÓÓÓ,"` Ü` ä <œÈ Ð X,Óà8 àI.à àDid€the€Chancellor€err€in€concluding€thatÏColemill's€conversion€sales€were€taxable€asÏ"installation€services"€under€Tenn.€Code€Ann.€ðð€67„6„102(23)(F)(vi)?Ìà8 àII.à àDid€the€Chancellor€err€in€concluding€thatÏColemill€is€not€a€manufacturer€or€producer€of€itsÏ"conversions"€for€purposes€of€Tenn.€Code€Ann.€ðð€67„6„313(a)?Ìà8 àIII.à àDid€the€Chancellor€err€in€concluding€that€theÏsingle€article€limitation€on€local€option€salesÏtaxes€under€Tenn.€Code€Ann.€ðð€67„6„702(d)€does€notÏapply€to€Colemill's€"conversions?"ÌÌÌÌò òI.€€Whether€Colemill's€conversion€sales€were€taxable€asÏinstallation€services€under€Tennessee€Code€AnnotatedÏsection€œ67„6„102(23)(F)(vi).›Ìó óÌÌÌÓÓà àœColemill›€contends€that€Tennessee€Code€Annotated€section€67„6„102(23)(F)(vi)€only€taxes€installation€services€that€areÏseparately€invoiced.€€œIn€support€of€this€conclusion,€ColemillÏcites€›€the€rule€that€taxing€statutes€are€to€be€construed€in€favorÏof€the€taxpayer€and€œthe›€œdecision€in›€œò òòòEusco,€Inc.›€v.€Huddlestonó óóó,Ï835€S.W.2d€576€(Tenn.€œ1992).ÌÌò òà àA.›à àStatutory€œArgumentsó ó›ÌÌœà àTennessee€Code€Annotated€title€67,€chapter€6€provides€thatÏany€person€who€"[e]ngages€in€the€business€of€selling€tangibleÏpersonal€property€at€retail"€in€Tennessee€is€exercising€a€taxableÏprivilege.€€Tenn.€Code€Ann.€ðð€67„6„201(1)(1994).€€A€sale€at€retailÏincludes€the€provision€of€certain€services€such€as€the€following:ÌÓÓà8 àThe€installing€of€tangible€personal€property€whichÏremains€tangible€personal€property€afterÏinstallation€where€a€charge€is€made€for€suchÏinstallation€whether€or€not€such€installation€isÏmade€as€an€incident€to€the€sale€thereof€and€whetherÏor€not€any€tangible€personal€property€isÏtransferred€in€conjunction€with€such€installationÏservices€.€.€.€.ÌÌò òòòId.ó óóó€ðð€67„6„102(23)(F)(vi)(1994€&€Supp.€1996).ÌÌÌÌ›ÓÓà àWe€are€of€the€opinion€that€the€rule€of€statutoryÏconstruction€œrelied›€upon€œby€Colemill€does€not€apply€to€the€instantÍcase.€€This€court€finds€no€need€to€construe€the€unambiguousÏlanguage€of€Tennessee›€Code€Annotated€section€œ67„6„102(23)(F)(vi).€ÏThe€section›€is€not€susceptible€to€a€two„fold€meaning.€€Therefore,Ïthis€court€does€not€need€to€construe€it.€€ò òòòMiddleton€v.ÏAllegheny€œElec.›€œCo.,ó óóó›€897€S.W.2d€œ695,€698›€(Tenn.€1995);Ïò òòòKendrick€v.€Kendrickó óóó,€902€S.W.2d€œ918,€923›€(Tenn.€App.€1994);Ïò òòòTennessee€Manufactured€œHous.›€œAss'n›€v.€Metropolitan€œGov't›Ïof€Nashvilleó óóó,€798òòò ò€óóó óS.W.2d€œ254,€257›€(Tenn.€App.€1990).€€Because€theÏstatute€is€unambiguous,€we€must€determine€the€scope€and€meaning€ofÏTennessee€Code€Annotated€section€67„6„102(23)(F)(vi)€by€looking€toÏthe€plain€language€contained€œwithin›€the€four€corners€of€theÏstatute€without€œresorting›€to€statutory€construction.€€ò òòòCarsonÏœCreek€Vacation€Resorts,€Inc.€v.€Stateó óóó,›€865€S.W.2d€œ1,€2€(Tenn.Ï1993).€€Because›€there€is€no€need€to€construe€the€statute,ÏColemill's€reliance€on€the€general€rule€of€statutory€constructionÏis€misplaced.€€ÌÌà àHere,€the€language€of€the€statute€is€plain€and€unambiguous.€ÏThus,€the€ordinary€and€natural€meaning€of€the€language€isÏconclusive.€€The€legislative€intent€is€clearly€expressed€on€theÏface€of€the€statute,€and€the€courts€œshould›€implement€this€intent.€Ïò òòòFultz€v.€Gilliamó óóó,€942€F.2d€œ396,€400›€(6th€Cir.€1991);€ò òòòCarsonÏœCreekó óóó,›€865€S.W.2d€at€2.€€The€legislative€intent€expressed€on€theÏface€of€œTennessee€Code€Annotated€section€67„6„102(23)(F)(vi)€is›€toÏtax€certain€installation€services,€not€to€make€the€statute'sÏtaxing€mandate€dependant€on€the€taxpayer's€method€of€invoicing.ÌÌà àThe€interpretation€of€the€statute€indicated€by€ColemillÏcontradicts€the€intent€of€the€legislature€and€leads€to€an€absurdÏresult€œthat›€the€text€of€the€œstatute€does€not€support.›€€TheÏlanguage€of€the€statute€does€not€show€that€the€legislatureÏintended€œthe€statute€to›€require€œproviders€to€separately€invoiceÏcharges›€for€installing€tangible€personal€property€œas›€a€conditionÏto€taxation.€€The€statute€requires€only€that€the€provider€chargeÏfor€the€services,€not€render€them€gratuitously,€and€that€anyÏtangible€personal€property€installed€remain€tangible€personalÏproperty€after€installation.ÌÌà àWe€also€reject€Colemill's€interpretation€of€the€statuteÏbecause€it€is€a€forced€construction€that€impermissibly€andÏarbitrarily€restricts€the€section's€scope€to€less€than€thatÏintended€by€the€legislature.€€ò òòòCarson€Creekó óóó,€865€S.W.2d€at€2.€€TheÏinterpretation€put€forward€by€Colemill€œeffectively›€amends€theÏstatute€by€adding€a€completely€new€requirement€not€contemplated€byÏthe€legislature.€€We€cannot€insert€extra€statutory€requirementsÏinto€a€statute's€text€under€the€guise€of€statutory€œconstruction.€Ïò òòòSee›€Loftin€v.€Langsdonó óóó,€813€S.W.2d€œ475,€480›€(Tenn.€App.€1991).€ÏIt€is€not€necessary€that€this€statute€be€construed,€only€read,€inÏorder€to€conclude€that€by€its€terms€the€statute€levies€œa€sales›€andÏuse€œtax›€on€the€installation€services€provided€by€Colemill.ÌÌà àœò òB.›à àòòEusco€v.€Huddlestonóóó óÌÌà àWe€are€also€of€the€opinion€that€ò òòòEusco€v.€Huddlestonó óóó,€835ÏS.W.2d€576€(Tenn.€1992),€does€not€support€Colemill's€argument€œthatÏthe€provider€must›€œseparately›€œinvoice€an€installation€charge€for€it›Ïto€be€taxable€under€the€statute.€€Colemill€contends€that€theÏfollowing€language€supports€its€œargument.Ì›ÓÓà8 àœà àWhile›€it€is€true€that€a€substantial€part€ofÏEusco's€costs€were€for€purchasing€and€installingÏthe€hydraulic€booms,€Eusco€made€no€separate€chargeÏfor€installation€services€as€œis€required›€œfor›€theÏapplication€of€œTenn.›€Code€œAnn.›€œðð›€67„6„102(23)(F)(vi).€€In€each€of€the€œsales,›€the€contractÏprovided€for€one€price€which€covered€all€personalÏproperty€and€labor€involved€in€building€andÏattaching€the€truck€body,€including€all€componentÏparts.ÌÌò òòòEusco,€óóó ó838€S.W.2d€at€581.ÌÌÌÌÓÓà àœWe€are€of€the€opinion€that€Colemill's€interpretation€ofÏòòò òEuscoó óóó€is€without€merit.€€Our€reading€of€ò òòòEuscoó óóó€leads€us€to€believeÏthat€it€requires€only€that€a€true€and€distinct€charge€be€made€forÏthe€installation€services.€€The€installer€must€charge€for€theÏservice€he€provides€and€not€render€it€gratuitously.ÌÌà àBecause€installation€service€providers€often€provideÏtangible€personal€property€and€then€install€it€as€part€of€theÏtransaction,€the€variety€of€mixed€transactions€that€can€ariseÏunder€this€statute€are€numerous.€€For€example,€it€is€not€uncommonÏfor€dealers€to€offer€free€installation€of€the€goods€they€sell€asÏan€incentive€to€customers€to€purchase€the€goods.€€Such€cases€areÍnot€taxable€because€no€true€and€distinct€charge€is€made€for€theÏinstallation€of€the€tangible€personal€property.€€However,€where€aÏdealer€provides€tangible€personal€property,€installs€it,€andÏcharges€the€customer€for€the€installation€there€is€a€true€andÏdistinct€charge€for€the€installation€separate€from€the€chargesÏmade€for€the€goods€regardless€of€whether€the€installation€chargeÏis€separately€itemized€on€the€invoice.ÌÌà àThe€court's€use€of€the€term€"separate€charge"€in€ò òòòEuscoó óóóÏdescribes€exactly€the€charges€Colemill€routinely€makes€forÏinstalling€aircraft€parts€onto€its€customer's€aircraft.€€These€areÏtrue€and€distinct€charges€made€in€the€course€of€a€mixedÏtransaction€where€tangible€personal€property€is€provided€andÏinstalled€with€a€charge€being€levied€for€both.€€A€customer€isÏcharged€for€the€high€performance€parts€Colemill€provides€and€forÏthe€highly€sophisticated€labor€it€takes€to€install€those€parts.€ÏNeither€is€gratuitous€and€both€are€separate€from€the€other.€€TheÏfact€that€the€sale€and€installation€of€the€parts€occurs€fairlyÏclose€in€time€to€each€other€in€the€course€of€a€conversion€does€notÏobviate€the€separate€identity€of€the€transaction's€components€norÏalter€the€fact€that€Colemill€does€indeed€make€a€separate€chargeÏfor€installing€aircraft€parts€onto€its€customer's€planes.ÌÌò òà àC.à àConclusionsó óÌÌà àColemill€attempts€to€have€us€adopt€an€interpretation€of€theÍstatute€which€makes€the€tax€dependent€on€the€manner€of€invoicingÏused€by€the€service€provider.€€This€is€contrary€to€the€mandate€ofÏthe€legislature€expressed€in€Tennessee€Code€Annotated€section€67„6„102(23)(F)(vi).€€While€it€might€be€easier€for€the€Department€ofÏRevenue€to€administer€Tennessee€Code€Annotated€section€67„6„102(23)(F)(vi)€if€the€taxpayers€itemized€their€invoices,€theÏlegislature€did€not€intend€such€a€requirement€nor€did€the€SupremeÏCourt€of€Tennessee€impose€such€a€requirement.€€Colemill's€failureÏto€separately€invoice€the€installation€charge€does€not€releaseÏColemill€from€the€clear€operation€of€the€statute.€€The€chancellorÏcorrectly€held€that€Colemill's€installations€were€taxable€underÏthe€statute.ÌÌò òÓÓII.à àWhether€Colemill€is€a€manufacturer€or€producer€ofÏits€conversions€for€the€purposes€of€Tennessee€CodeÏAnnotated€section€67„6„313(a).ó óÌÌÓÓà àÌà àColemill€argues€that€it€is€entitled€to€the€exemption€foundÏin€Tennessee€Code€Annotated€section€67„6„313(a).€€This€sectionÏprovides€that€"[i]t€is€not€the€intention€of€this€chapter€to€levy€aÏtax€upon€articles€of€tangible€personal€property€imported€into€thisÏstate€or€produced€or€manufactured€in€this€state€for€export."€ÏTenn.€Code€Ann.€ðð€67„6„313(a)(1994€&€Supp.€1996).€€ColemillÏmaintains€that€Tennessee€Code€Annotated€section€67„6„313(a)Ïexempts€it€from€the€sales€and€use€tax€because€it€manufactured€theÏaircrafts€for€export.ÌÌà à"Every€presumption€is€against€the€exemption€and€a€well„founded€doubt€is€fatal€to€the€claim."€€ò òòòTibbals€Flooring€Co.€v.ÏHuddlestonó óóó,€891€S.W.2d€196,€198€(Tenn.€1994).€€Moreover,€ColemillÏbears€the€heavy€burden€of€proving€its€entitlement€to€the€exemptionÏbecause€no€exemption€will€be€implied€and€because€this€court€mustÏconstrue€the€statutory€exemption€against€Colemill.€€ò òòòLeTourneauÏSales€&€Serv.€v.€Olsenó óóó,€691€S.W.2d€531,€534€(Tenn.€1985).€€OurÏreview€of€this€record,€ò òòòLeTourneau,€óóó óandò òòò€Eusco€ó óóóconvinces€us€thatÏthe€chancellor€correctly€held€that€Colemill€did€not€manufactureÏits€aircraft€conversions.ÌÌÓÓò òIII.à àWhether€the€single€article€limitation€on€localÏoption€sales€tax€underòò€óóTennessee€Code€Annotated€sectionÏ67„6„702(d)€applies€to€Colemill's€conversions.ó óÌÌÓÓà àÌà àColemill€considered€each€sale€of€its€conversions€to€be€theÏsale€or€use€of€a€single€article€of€personal€property€for€purposesÏof€the€local€sales€and€use€tax.€€The€Commissioner€argued€that€thisÏtreatment€of€the€conversions€was€incorrect€and€resulted€inÏColemill€remitting€tax,€not€on€the€proper€amount,€but€only€on€theÏfirst€$1,600.00€charged€for€each€conversion.€€It€is€theÏCommissioner's€argument€that€under€Tennessee€Code€AnnotatedÏsection€67„6„702(a)(1)€Colemill€should€have€remitted€taxes€on€theÏfull€amount€it€charged€for€its€installation€services€and€on€theÍsales€price€of€each€aircraft€part€it€sold€up€to€the€$1,600.00€cap.ò ò× ƒ0 ××  ×ó óÌÌà àColemill€did€not€invoice€its€charges€for€installationÏseparately€from€its€charges€for€selling€the€aircraft€parts.€ÏTherefore,€the€Commissioner€could€not€determine€what€portion€ofÏColemill's€charges€were€subject€to€the€$1,600.00€cap€and€whichÏcharges€were€not.€€Thus,€the€Commissioner€taxed€Colemill€on€theÏfull€amount€it€charged€for€its€conversions.ÌÌà àThe€Commissoner€argued€that€its€assessment€was€correct€forÏtwo€reasons.€€First,€the€Commissioner€properly€levied€the€taxÏbecause€the€$1,600.00€cap€did€not€apply€to€installation€servicesÏmeaning€the€taxable€amount€was€the€full€amount€Colemill€chargedÏfor€its€installation€services.€€Second,€because€each€aircraft€partÏinstalled€by€Colemill€is€commonly€understood€to€be€a€singleÏarticle,€the€Commissioner€correctly€disallowed€Colemill's€attemptÏto€characterize€the€entire€conversion€as€a€single€article€andÏproperly€assessed€the€tax€on€the€full€conversion€price.€€BecauseÍColemill€presented€no€itemized€invoices,€assessing€tax€on€the€fullÏconversion€price€was€the€only€way€the€Commissioner€could€insureÏthat€the€full€amount€of€the€installation€services€were€taxed€andÏthat€the€aircraft€parts€were€properly€taxed€as€single€articles.ÌÌò òà àA.à àInstallation€Servicesó ó€€ÌÌà àPursuant€to€the€statute,€local€governments€in€Tennessee€areÏplainly€authorized€to€levy€taxes€on€any€privilege€deemed€taxableÏin€title€67,€chapter€6.€€Tenn.€Code€Ann.€ðð€67„6„702(a)(1)(1994€&ÏSupp.€1996).€€One€taxable€privilege€is€installing€tangibleÏpersonal€property€for€a€charge.€€ò òòòId.ó óóó€67„6„102(23)(F)(vi).€€Thus,Ïlocal€governments€can€and€do€levy€a€tax€of€up€to€2€3/4€percent€onÏinstallation€services€rendered€within€their€taxing€jurisdictions.€ÏWe€are€also€of€the€opinion€that€the€statute€plainly€provides€thatÏlocal€governments€may€tax€the€entire€amount€of€the€taxable€serviceÏprovided.€€Unlike€the€sale€or€use€of€personal€property,€servicesÏare€not€subject€to€the€statute's€restriction€that€localÏgovernments€may€levy€a€tax€only€on€the€first€$1,600.00€charged€forÏeach€single€article€of€personal€property.€€The€legislature€hasÏexpressly€limited€the€$1,600.00€cap€only€to€the€sale€or€use€ofÏpersonal€property€and,€by€doing€so,€authorized€local€governmentsÏto€tax€the€full€price€charged€for€those€services€identified€asÏtaxable€by€title€67,€chapter€6.€€ò òòòSee€idó óóó.€ðð€67„6„702(a)(1).€€TheÏchancellor€correctly€held€that€the€Department€of€Revenue€properlyÏassessed€the€local€sales€and€use€tax€against€Colemill€on€the€totalÍamount€charged€›for€œits€installation€services.›ÌÌœò òà àB.›à àSeparate€œArticlesó ó›ÌÌà àœWe›€are€œof€the›€opinion€œthat€the›€chancellor€correctly€heldÏthat€the€aircraft€parts€installed€by€Colemill€were€each€singleÏarticles€subject€to€the€local€sales€and€use€tax€under€TennesseeÏCode€Annotated€section€67„6„702.€€The€relevant€portion€of€thatÏstatute€provides:ÌÓÓà8 à(d)€"Single€article"€means€that€which€is€regardedÏby€common€understanding€as€a€separate€unitÏexclusive€of€any€accessories,€extra€parts,€etc.,Ïand€that€which€is€capable€of€being€sold€as€anÏindependent€unit€or€as€a€common€unit€of€measure,€aÏregular€billing€or€other€obligation.€€SuchÏindependent€units€sold€in€sets,€lots,€suites,€etc.,Ïat€a€single€price€shall€not€be€considered€a€singleÏarticle.€œÌ›ÌTenn.€Code€Ann.€ðð€67„6„702(d)(Supp.€œ1996).›ÌÌÌÌÓÓà àAn€oil€pump€is€separate€and€distinct€from€a€hose€or€anÏengine.€€œThe€fact€that€a€provider€may€install€all›€of€these€partsÏœat›€the€same€time€and€as€part€of€the€same€service€œdoes›€not€alterÏtheir€nature€as€separate,€œfunctional›€units.€€By€œcommon›Ïunderstanding,€an€oil€pump€or€an€engine€œperform›€their€functionsÏindependently,€œhave›€intrinsic€value,€and€do€not€lose€theirÏseparate€identity€simply€because€they€become€part€of€œan›€aircraft.€ÏColemill€relies€heavily€on€the€fact€that€the€FAA€requires€thatÏsome€of€these€aircraft€parts€be€installed€with€certain€other€partsÏas€part€of€a€conversion;€however,€we€find€this€argumentÍunpersuasive.€€œThe€fact€that€the€oil€pump€is€one€of€many€partsÏColemill€installs€in€the€course€of€an€FAA€approved€conversion€doesÏnot€alter€the€identity€of€an€oil€pump€as€a€single,€individual€partÏof€an€aircraft.›ÌÌà àFurther,€two€decisions€of€the€Tennessee€Supreme€CourtÏsupport€the€Commissioner's€assertion€that€each€aircraft€partÏColemill€installs€is€a€single€article.€€ò òòòExecutone€of€Memphis,ÏInc.€v.€Garneró óóó,€650€S.W.2d€734€(Tenn.€1983);€ò òòòHoneywellÏInformation€œSys.,›€Inc.€v.€Kingó óóó,€640€S.W.2d€553€(Tenn.€1982).€ÏIn€both€ò òòòExecutoneó óóó€and€ò òòòHoneywelló óóó€the€taxpayers€argued,€asÏColemill€does€in€the€instant€case,€that€because€the€componentsÏsold€were€interdependent€and€conveyed€together€as€a€part€of€aÏwhole€system€they€were€not€single€articles,€but€rather€the€sum€ofÏthe€system€was€a€single€article.€€œThe€supreme€court€rejected€these›Ïarguments€œin€both€of€the€foregoing€cases.€€ò òòòExecutoneó óóó,€650€S.W.2dÏat€736„37;€ò òòòHoneywelló óóó,€640€S.W.2d€at€554.›€€We€likewise€rejectÏColemill's€argument€in€the€instant€œcase.€The€chancellor€correctlyÏheld€that€the€Commissioner€properly€calculated€the€local€sales€andÏuse€tax€assessment.̛̜ò òIV.›à àœConclusion›à àó óÌÌà àWe€have€considered€each€of€the€arguments€of€Colemill€œand›Ïfind€them€to€be€without€merit.€€Finally,€we€have€considered€theÏCommissioner's€motion€that€it€be€awarded€attorney€fees€andÍlitigation€expenses€under€Tennessee€Code€Annotated€section€67„1„1803€and€are€of€the€opinion€that€this€is€not€œa›€proper€case€for€theÏaward€of€such€fees.ÌÌà àTherefore,€it€results€that€the€judgment€of€the€chancellorÏis€in€all€things€affirmed,€and€the€cause€is€remanded€to€theÏchancery€court€for€further€necessary€proceedings.€€Costs€on€appealÏare€taxed€to€plaintiff/appellant,€Colemill€Enterprises,€Inc.ÌÌÓÓà àà àà à__________________________________Ìœà à›à àà àSAMUEL€L.€LEWIS,€JUDGEÌœCONCUR:›Ìœ›Ìœ_________________________________›ÌBEN€H.€CANTRELL,€JUDGEÌœÌ_________________________________›ÌWILLIAM€C.€KOCH,€JR.,€œJUDGE›