Bar Master, Inc. v. State Board of Equalization

Bar Master, Inc. sued State Board of Equalization (Board) for a refund of use taxes paid by it pursuant to deficiency assessment by the Board following the Board’s denial of claim for refund. Defendant appeals from judgment in favor of plaintiff.

The cause was tried by the court without a jury upon a stipulation of facts and two depositions.

Bar Master purchased various component parts and thereafter, in its principal place of business assembled an electrical-mechanical unit used by bartenders and others to dispense water, soda and other mixing ingredients used in making mixed drinks at bars and similar business places. These will be referred to.as units or as beverage dispensing units. These units were made available tó customers as lessees, of Bar Master as lessor pursuant to one of two types of contractual agreements under each of which title to the units remained in lessor.

Each form of contract called for Bar Master to perform the initial installation and then to furnish continuous maintenance and repair service throughout the life of the agreement. The typical contract term was two years, with automatic renewal at the end of that period unless the customer gave…