United States of America, Reynolds Electrical & Engineering Co., Inc. And Cashman Equipment Co. v. Nevada Tax Commission

The United States, Reynolds Electrical & Engineering Co., Inc. (Reeco), and Cashman Equipment Co. (Cashman), brought this action against the Nevada Tax Commission for declaratory and monetary relief. Specifically, plaintiffs sought a judicial declaration that the Nevada Sales and Use Tax Act (Nev. Rev.Stat. §§ 372.105, .110, .185, .190) does not provide for any tax on the particular transactions described in the complaint, a judicial declaration that certain deficiency determinations made by defendant against Reeco and Cash-man are illegal, and a refund of amounts paid under protest pursuant to such deficiency determinations.

The Commission moved to dismiss the action as to all plaintiffs upon the grounds that the complaint does not state a claim, the United States District Court is without jurisdiction, and the Government does not have standing to sue. The district court granted the motion as to Reeco and Cashman and denied it as to the Government. The Commission and the Government then filed cross motions for summary judgment. The district court granted summary judgment for the Government based upon an extensive memorandum opinion reported in 291 F.Supp 530 (D.Nev. 1968). This…