Metal Recycler Sues California for $3 Million Sales Tax Refund

California misclassified scrap metal recycling company SA Recycling LLC, leading it to improperly deny an applicable sales and use tax exemption, the company told a state trial court.

SA, which calls itself “one of the world’s largest producers of recycled materials,” is asking the California Superior Court for San Diego County to require the state to refund $3.07 million it paid in sales or use taxes and interest. The California Department of Tax and Fee Administration found the company didn’t qualify for an exemption for “qualified tangible personal property,” even though the term is expressly defined by statute to include ...