NC Business Court Reverses Sales Tax Decision - Feeling Great, Inc. and Sleep Medical Center, Inc. v. Department

On August 20, 2015, in the matter of Feeling Great, Inc. and Sleep Medical Center, Inc. v. N.C. Department of Revenue , 14 CVS 11139, Special Superior Court Judge, Gregory P. McQuire, on behalf of the North Carolina Business Court ("Court"), issued the Order on Petition for Review of Final Decision concluding that the Final Decision issued by the Administrative Law Judge contained errors of law and findings of fact unsupported by substantial evidence. The Court reversed the Final Decision and found that the supplies used during sleep testing were not "sold 'on prescription'" and the supplies at issue were not exempt from use tax under G.S. 105-164.13(12)d (2011).