Purchase tax rate applies on date of purchase, not later enhancement when taxable character is subsequently determined.

Purchase tax liability on goods later found to be the last purchases in the State arose only when subsequent events established their taxable character, but the applicable rate remained the rate in force on the date of purchase because the taxable event was the purchase itself. Later ascertainment of taxability did not justify applying an enhanced rate introduced after the purchases were made. Accordingly, purchases made before the rate increase were taxable at the earlier rate prevailing when the transactions occurred, not at the higher rate imposed subsequently.

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Issues: Whether goods purchased before the enhancement of purchase tax, but found later to be last purchases in the State because of subsequent events, were taxable at the increased rate or at the rate prevailing on the date of purchase.

Analysis: Liability to purchase tax arose when later events established that the purchases had the character of last purchases within the State. However, the incidence and rate of tax had to be determined with reference to the date on which the purchases were made, since the taxable event was the purchase itself and not the later ascertainment of its character. The Court agreed with the view that subsequent determination of taxability did not attract the enhanced rate introduced after the purchases were effected.

Conclusion: The purchases were taxable at the rate of 3% prevailing when they were made, not at the increased rate of 5% introduced later.

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