Tax Law Commons^™

Taxation - Sales - Recovery Of Processing Taxes - Remedies Of The Buyer, Keith P. Bondurant

Michigan Law Review

Defendant, a flour milling company, was subjected to payment of processing taxes under the Agricultural Adjustment Act. It entered into contracts with plaintiffs, by the terms of which the amount of such taxes was included in the purchase price of flour. The contracts provided that the amount of any decrease in processing taxes levied against defendant would inure to the benefit of the buyers and be credited against the contract price. Meanwhile, defendant, contesting the validity of the tax, had deposited in court a sum equal to the amount of accrued taxes. After the Supreme Court invalidated the A. A. …