SEARS, ROEBUCK & CO. v. RICHARD H. ROBERTS, COMMISSIONER, DEPARTMENT OF REVENUE - Articles

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Posted by: Chandra Williams on May 12, 2016

Court: TN Court of Appeals

Attorneys 1:

Carl E. Hartley, Chattanooga, Tennessee; James A. Delanis, and Brett A. Oeser, Nashville, Tennessee; and Brian R. Harris, Tampa, Florida, for the appellant, Sears, Roebuck & Co.

Attorneys 2:

Herbert H. Slatery III, Attorney General and Reporter; Andre´e S. Blumstein, Solicitor General; and R. Mitchell Porcello, Assistant Attorney General, Nashville, Tennessee, for the appellee, Richard H. Roberts, Commissioner, Department of Revenue.

Judge(s): MCBRAYER

This case involves a taxpayer’s claim to a sales tax deduction under Tennessee Code Annotated § 67-6-507(e) for bad debts associated with private label and co-branded credit card programs. After an audit, the Tennessee Department of Revenue disallowed taxpayer’s bad debt deductions and assessed additional tax. Taxpayer paid the assessment and filed a claim for a refund, which was denied. Taxpayer sued the Commissioner of the Department of Revenue (“Commissioner”) in chancery court, seeking a declaration that it was entitled to the bad debt sales tax deduction and a monetary judgment for the additional assessed tax. On cross-motions for summary judgment, the chancery court granted the Commissioner’s motion, holding the taxpayer was not entitled to claim the deduction. We affirm.