NC Business Court judge reverses and remands NCDOR v. First Petroleum Services, Inc. Directs the Office of Administrative Hearings to grant partial summary judgement in favor of the Department.

In the matter of the N. C. Department of Revenue v. First Petroleum Services, Inc., the NC Business Court (“Court”) reversed the Office of Administrative Hearings’ decision and remanded with instruction to enter partial summary judgment in favor of the Department.

The issue is whether Respondent First Petroleum Services, Inc. ("First Petroleum") must pay a use tax on materials it purchased and used in fulfilling contracts to construct and install fuel storage tanks and related equipment on property owned by a governmental entity, such as a municipality or federal agency. The Court found that the use tax is due on purchases made by First Petroleum and used in fulfilling contracts with governmental agencies.

Read the judgement.