Combs v. Roark Amusement & Vending, LP

Roark Amusement & Vending owned and leased coin-operated amusement crane machines found in supermarkets, restaurants, and shopping malls. Roark sought a refund of the sales taxes it paid on the plush toys it purchased to stock its machines for a three-and-a-half year period, arguing that the toys were exempt under the Tax Code's sale-for-resale exemption. The Comptroller of Public Accounts disputed that the exemption applied. The trial court granted the Comptroller's motion for summary judgment and denied Roark's refund request. The court of appeals reversed, concluding that the toys were exempt, and remanded the case for a determination of the refund amount due Roark. The Supreme Court affirmed, holding the toys were "tangible personal property" acquired by Roark "fore the purpose of transferring" the toys "as an integral part of a taxable service", and therefore, Roark qualified for a sales-tax exemption on the toys that filled its crane machines. View "Combs v. Roark Amusement & Vending, LP" on Justia Law