BEFORE PATTERSON, HAWKINS AND PRATHER
PRATHER, JUSTICE, FOR THE COURT:
The question presented on this appeal seeks an interpretation of a rule promulgated by the Mississippi State Tax Commission requiring coin-operated laundries to pay a five percent (5%) sales tax on gross receipts. The Hinds County Chancery Court held that Rule 7 of the Mississippi State Tax Commission Sales and Use Tax Rules impermissibly expanded the authority of the taxing statute and awarded to Ronnie R. Schilling, Jr., a judgment of $53,000 plus interest and costs against Mississippi State Tax Commission.
The Tax Commission appeals arguing that:
(1) The court erred in holding that MCA 27-65-23 (1972) does not include coin operated laundries; and
(2) The court erred in holding that Rule 7 of the Mississippi State Tax Commission Sales and Use Tax Rules impermissibly expanded or extended MCA 27-65-23 (1972) to include coin operated laundries.
Ronnie Schilling has owned several coin operated businesses throughout the state since 1971. The business consists of coin-operated washers, dryers, and related equipment at each location. There are no managers or supervisors present to assist or accept money from the customers, but customers use the machines by placing coins, usually quarters, in the slots provided.
It is conceded that sales tax has been collected on launderettes since 1948. The appellee Schilling has been paying these taxes for ten (10) years without formal written protest.
Sales tax on gross receipts paid by Schilling for the years 1979 through the date of the lawsuit was stipulated to be $53,000. II.
The sole question before this Court is whether a" launderette "or" coin-operated laundry "is taxable under the applicable sales tax statute, Mississippi Code Annotated, section 27-65-23 (1972) (Supp. 1984) which in pertinent part states:
Upon every person engaging or continuing in any of the following businesses or activities there is hereby levied, assessed and shall be collected a tax equal to five percent (5%) of the gross income of the business, except as otherwise provided:
* * * * Laundering, cleaning, pressing or dyeing: * * * *
In 1948 pursuant to the authority granted the Tax Commissioner by Mississippi Code Annotated section 27-65-93 (1972), Rule 7 (J) of the Mississippi State Tax Commission Sales And Use Tax ...