Boise National Leasing, Inc. v. United States

Taxpayer, Boise National Leasing, Inc., of Boise, Idaho, has appealed from the District Court’s dismissal on the merits of its suit for refund of some manufacturer’s excise taxes, § 4061(a), Int. Rev.Code of 1954, 26 U.S.C.A. § 4061 (a). The tax amounts involved were $10,463.-19 for the year 1962 and $1,000.49 for the year 1964.

We agree with the trial court’s findings and conclusions, 257 F.Supp. 614 , except as to the correctness of the computations or amounts of the taxes involved. To enable the court to deal with this aspect, as later discussed, the judgment will be vacated and the case remanded.

Taxpayer’s contentions here are in general, as they were in the court below, (1) that no manufacture had occurred as a basis for the excise taxes imposed; (2) that if a manufacture was involved then another and not it had to be held to be the manufacturer; and (3) that the taxes imposed were in any event incorrect in their computations or amounts.

Taxpayer was engaged in the business of leasing equipment. The excise taxes were imposed in relation to a reconstruction of six used White logging trucks, which taxpayer had done in 1962, and to a reconstruction of a used Sterling truck,…