Getchell Mine, Inc. v. United States

The question upon this appeal is the appellant’s liability for federal transportation tax under Internal Revenue Code, § 3475 (a), imposing a tax upon the amount paid “for the transportation * * * of property * * * from one point in the United States to another”.

Appellant was engaged in operating a mining property in Humboldt County, Ne vada. Appellant also operated a mill, and the ores, after removal to the surface from underground workings, were transported to the mill for treatment there. Transportation was by Dodge Construction, Inc., a Nevada corporation, which was an independent contractor, with which appellant contracted for the transportation of the ores, by truck, from mine to mill, paying sums ranging from 25{5 to $1 per cubic yard, depending on the distance the ores were hauled, which varied from 30Q feet to 7 miles.

The Commissioner determined a tax to be due upon the sum paid by appellant for the transportation. The tax was paid, and appellant’s claim for refund was denied. This action was brought, to recover the amount paid. The facts were stipulated. The court’s findings and conclusions are reported in full in 83 F.Supp. 774 .

The question raised on this appeal…