Appellants, v. Director of Revenue, Respondent. The Administrative Hearing Commission upheld the director of revenue's denial of the claims. American Healthcare and others appeal. Utility services for nursing home residents are exempt from sales tax for all of 1994. The commission correctly decided the nursing homes are residential facilities but erred in ruling they are not residential apartments.
Nursing homes are residential facilities and are apartments under the common dictionary definition.
They are special homes for their residents, despite providing health and other care services. As such, they are entitled to the exemption. The 1994 amendment's purpose is to clarify the domestic use exemption, not to restrict or prohibit the exemption for periods before the amendment took effect. Under the amendment, the sales tax refund should apply to all of 1994. The Court affirms the commission's decision applying the sales tax exemption to one entity for a limited period but reverses its decision denying the exemption for the entire year of 1994.