Case Title: State v. Hertz Skycenter, Inc.

Citation: 317 So. 2d 324

Docket Number: 

State: alabama

Court: Alabama Supreme Court

Date: 1975-07-17T00:00:00Z

Document:
317 So. 2d 324 (1975)
In re STATE of Alabama
v.
HERTZ SKYCENTER, INC.
Ex parte State of Alabama.
SC 1166.

Supreme Court of Alabama.
July 17, 1975.
*325 William J. Baxley, Atty. Gen., Willard W. Livingston, Counsel, Dept. of Revenue, and Asst. Atty. Gen., Philip C. Davis, Asst. Counsel, Dept. of Revenue, and Asst. Atty. Gen., for petitioner, the State.
Thomas B. Hill, Jr., Neal H. Acker, Montgomery, for respondent.
BLOODWORTH, Justice.
The question presented to us by the State's petition for writ of certiorari is:
The Court of Civil Appeals concluded that such sales are "wholesale sales," within the meaning of the Alabama Sales Tax Law, and are not subject to sales tax inasmuch as the food purchased by United was intended to be resold to United's passengers for their consumption in flight. We agree.
The Court of Civil Appeals held, 55 Ala.App. 481, 317 So. 2d 319, inter alia, viz:
* * * * * *
We affirm the Court of Civil Appeals' decision as to this aspect.
The Court of Civil Appeals also held:
Since the validity vel non of this holding is not raised by the petition for writ of certiorari, we do not undertake to examine the holding.
Finally, the Court of Civil Appeals held that the trial court erred in declaring that Revenue Department Regulation M5-053 conflicted with Civil Aeronautics Board regulations and was therefore invalid. Regulation M5-053 declares that the price of meals served by any transportation company (including airlines) are not required to be reported as "retail sales" by the company when "no separate charge is made" therefor and the meals are served "as a part of its transportation service."
Although the validity and applicability of this regulation is presented to us, in view of the fact that the regulation purports to regulate the reporting and collection of sales taxes (pursuant to Tit. 51, § 786(25)) by transportation companies, including airlines, and since United Air Lines is not a party to this cause, we decline to consider the validity or applicability of the regulation nor do we think the trial court or the Court of Civil Appeals could do so for the same reason. Doby v. State Tax Commission, 234 Ala. 150, 174 So. 233 (1937). See also Rogers v. Smith, 287 Ala. 118, 248 So. 2d 713 (1971).
The issue in the case at bar simply presents a conflict between two opposing interpretations of our sales tax statutes. Hertz, the caterer, says its sales to United were "wholesale sales" and it is not liable for collecting the sales tax. The State, on the other hand, contends the sales were "retail sales" and Hertz is liable for collecting the tax. United, the airline, is not a party to the lawsuit. (The conclusion is, of course, inescapable, that it will ultimately be the passenger who will pay the tax, regardless as to which party is made the collector. State v. T. R. Miller Mill Co., 272 Ala. 135, 130 So. 2d 185.)
To conclude, we agree with the Court of Civil Appeals in its conclusion that the sales from Hertz to United were "wholesale sales" and were not therefore subject to sales taxes.
The judgment and decision of the Court of Civil Appeals is affirmed, as corrected by this decision.
Affirmed, as corrected.
HEFLIN, C. J., and MERRILL, FAULKNER, JONES, ALMON, SHORES and EMBRY, JJ., concur.
MADDOX, J., not sitting.