AA Transportation Co. v. Commissioner of Revenue

Summary

The Massachusetts Supreme Judicial Court held that a transportation company must possess a certificate of public convenience and necessity under G. L. c. 159A, § 7, at the time it purchases buses to qualify for the sales-tax exemption in G. L. c. 64H, § 6 (aa). Because AA Transportation obtained its certificate only in 2002, it was not entitled to an abatement for buses purchased in 1999, 2000, and 2001. The court affirmed the Appellate Tax Board’s decision upholding the Commissioner of Revenue’s denial of the abatement.

Holdings

1. A taxpayer seeking the sales-tax exemption under G. L. c. 64H, § 6 (aa), must possess a certificate of public convenience and necessity under G. L. c. 159A, § 7, at the time of purchase. A certificate obtained after the purchases cannot support a retroactive abatement.
2. AA Transportation failed to carry its burden of proving that it fell clearly and unequivocally within the statutory sales-tax exemption because it lacked the required § 7 certificate when it made the purchases.

Questions Presented

1. Whether G. L. c. 64H, § 6 (aa), permits a transportation company to claim a sales-tax exemption for buses purchased before the company possessed a certificate of public convenience and necessity under G. L. c. 159A, § 7.
2. Whether AA Transportation qualified for the exemption based on the type of bus service it operated.

Disposition

affirmed