01-0765

Sales Tax

Signed 1/10/02

BEFORE THE UTAH STATE TAX COMMISSION

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PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 01-0765

)

v. ) Account No. #####

)

AUDITING DIVISION OF ) Tax Type: Sales Tax

THE UTAH STATE TAX )

COMMISSION, ) Audit Period: 01/01/98 - 12/31/00

)

Respondent. ) Judge: Davis

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Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER REP, accountant

For Respondent: Mr. Laron Lind, Assistant Attorney General

Ms. Shelley Robinson, from the Auditing Division

Ms. Heidi Reilly, from the Auditing Division

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing on October 18, 2001, pursuant to the provisions of Utah Code Ann. '59-1-502.5.

Petitioner was purchasing natural gas from COMPANY A, which was provided through a pipeline owned by COMPANY B. COMPANY B added the municipal energy tax for a portion of the time, but then the law was changed. COMPANY A was not required to collect the tax for the time periods at issue, and did not add the tax to the invoice.

Petitioner was sent a self-audit review form, and timely and properly responded and self-assessed the tax. The interest was added by the Division, and Petitioner is now requesting that the interest be waived because the payment of such interest would just be transferring funds from one state agency to another state agency.

There have not been any penalties imposed on the tax assessment.

APPLICABLE LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. Utah Code Ann. §59-1-401(10).

Interest is imposed by Utah Code Ann. §59-1-402 in accordance with the prescribed interest rate.

DISCUSSION

The Utah Code imposes interest on taxes which are not timely paid. There is no exemption for the payment of interest for state agencies.

DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of the interest associated with the municipal energy tax assessment made upon Petitioner. It is so ordered.

This decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this 10^th day of January, 2002.

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G. Blaine Davis

Administrative Law Judge

BY ORDER OF THE UTAH STATE TAX COMMISSION.

The Commission has reviewed this case and the undersigned concur in this decision.

DATED this 10^th day of January, 2002.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner