Dillon Ranch Supply, a Corporation v. United States

This case involves the issue of the taxa-bility of certain flatbed trailers and related attachments which are manufactured or assembled by Dillon Ranch Supply. Specifically, the Government appeals from a judgment of the United States District Court for the District of Moptana which ordered the United States to refund to Dillon Ranch Supply the manufacturers’ excise tax paid by taxpayer for the fourth quarter of 1972 through the second quarter of 1975, in the amount of $12,882.71, plus interest. For reasons stated herein, we reverse.

The facts are essentially undisputed. Dillon Ranch Supply is a Delaware corporation with its principal place of business in Dillon, Montana. It is engaged in the business of manufacturing, assembling, and selling supplies and equipment, including but not limited to gooseneck, flatdeck, self-ramping trailers and attachments which may be mounted on such trailers. During the tax periods at issue in this case, taxpayer was a distributor of “Maverick” brand trailers. It assembled the trailers from components which, except for the tires and wheels, were imported by Dillon Ranch Supply from Maverick M/C Manufacturing Co. Ltd., of Fort MacLeod, Alberta,…