Timber includes standing trees agreed to be severed, allowing sales tax set-off on purchase.

The entry "timber" in a dealer's registration certificate was construed in its popular sense to include standing trees agreed to be severed under the contract. Applying the statutory definition of goods and the settled approach to taxing expressions, the Court treated trees meant to be cut and converted into timber as timber for practical sales tax purposes. The later cutting of the trees into ballis, rafters and similar forms did not alter their character. On that basis, the assessee was entitled to set off the tax paid on purchase of the trees.

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Issues: Whether standing trees covered by the expression "timber" in the dealer's registration certificate entitled the assessee to set off tax paid on purchase of such trees.

Analysis: The dispute turned on the meaning of "timber" in the registration certificate and whether standing trees agreed to be severed under the contract could be treated as timber for sales tax purposes. The Court noted that the statutory definition of goods included trees agreed to be severed before sale or under the contract of sale. Relying on the settled approach that words in a taxing statute are to be understood in their popular or common parlance sense, and on earlier decisions treating timber contracts as involving trees to be severed and sold as timber, the Court held that a tree meant to be converted into timber shortly may be regarded as timber for practical purposes even while standing. The contract in question was for timber agreed to be severed, and the later cutting into ballis, rafters, and similar forms did not change the character of the goods.

Conclusion: The entry "timber" in the registration certificate included standing trees, and the assessee was entitled to the set off.

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