Sales Tax Refund
BEFORE THE UTAH STATE TAX COMMISSION
v. ) Appeal No. 02-1733
TAXPAYER SERVICES DIVISION ) Tax Type: Sales Tax Refund
OF THE UTAH STATE )
TAX COMMISSION, ) Judge: Chapman
Kerry R. Chapman, Administrative Law Judge
For Petitioner: PETITIONER
For Respondent: Mr. Mark Wainwright, Assistant Attorney General
Mr. Brett Wilding, from the Taxpayer Services Division
Ms. Julie Halvorson, from the Taxpayer Services Division
STATEMENT OF THE CASE
This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5, on February 5, 2003.
Petitioner was a resident of ESTABLISHMENT in CITY from 1994 until June 2001. During this period, she paid sales tax on meals that were exempt from taxation. On October 11, 2002, Petitioner filed a TC-98, Application to Extend Time to File a Claim for Refund, concerning sales tax paid on meals for the tax periods(s) 1998 through 2001. On or about November 1, 2002, Petitioner filed a refund claim requesting a refund of sales tax paid on exempt meals for the period January 1998 through June 2001.
Respondent addressed the Petitionerís filings in three separate responses. One response denied Petitionerís request to extend the time to file a refund claim for tax periods January 1998 through June 1999 because Petitionerís October 11, 2002 request came after the three-year statute of limitations had already expired for these periods. A second response granted the extension to file a refund claim for the July 1999 through September 1999 period because the extension request was filed within the three-year statute of limitation for this period. In a third response on or about November 19, 2002, the Respondent issued to the Petitioner a refund of $$$$$ relating to sales tax paid on exempt meals for the periods July 1999 through June 2001.
Petitioner asks the Tax Commission to refund the sales tax paid on exempt meals for the periods January 1998 through June 1999, thereby reversing the Respondentís denial to extend the time to claim a refund and refund the sales tax paid on exempt meals for these periods.
In Utah Code Ann. ß59-12-110(2), the Legislature has provided that within a limited period, a taxpayer may be refunded sales tax that has erroneously been received by the Commission. The statute provides as follows:
(a) If a taxpayer pays a tax, penalty, or interest more than once or the commission erroneously receives, collects, or computes any tax, penalty, or interest, including an overpayment described in Subsection (1)(c), the commission shall:
(i) credit the amount of tax, penalty, or interest paid by the taxpayer against any amounts of tax, penalties, or interest the taxpayer owes; and
(ii) refund any balance to the taxpayer or the taxpayer's successors, administrators, executors, or assigns.
(b) Except as provided in Subsection (2)(c) or Section 19-2-124, a taxpayer shall file a claim with the commission to obtain a refund or credit under this Subsection (2) within three years from the day on which the taxpayer overpaid the tax, penalty, or interest.
(c) Notwithstanding Subsection (2)(b), beginning on July 1, 1998, the commission shall extend the period for a taxpayer to file a claim under Subsection (2)(b) if:
(i) the three-year period under Subsection (2)(b) has not expired; and
(ii) the commission and the taxpayer sign a written agreement:
(A) authorizing the extension; and
(B) providing for the length of the extension.
DECISION AND ORDER
The evidence submitted in this case shows that the Petitioner first contacted the Tax Commission concerning the refund of erroneously paid sales tax on October 11, 2002. As of October 11, 2002, the three-year statue of limitations period prescribed in Section 59-12-110 had already expired for all periods prior to July 1999. Accordingly, the Respondent was precluded from granting an extension to request a refund for periods prior to July 1999 because the statute of limitations had already expired for these periods. Section 59-12-110(2)(c). In addition, the Respondent was precluded from refunding taxes for periods prior to July 1999 because of the same three-year statute of limitations period. Subsection 59-12-110(2)(b). For these reasons, we sustain the Respondentís actions and deny the Petitionerís request for a refund relating to periods prior to July 1999.
Had Petitioner made a refund request prior to October 2002, however, additional sales tax relating to periods prior to July 1999 may have been subject to refund. However, Petitioner provided no evidence that she made a refund request prior to October 2002. Nor did she show that she had engaged a representative to act on her behalf and that this representative made a refund request prior to October 2002. Had such information been provided at the Initial Hearing, our ruling might have been different.
Based on the foregoing, the actions of the Respondent are sustained and the Petitionerís request for a refund of sales tax for periods prior to July 1999 is denied. 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
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 18th day of February , 2003.
Kerry R. Chapman
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 18th day of February , 2003.
Pam Hendrickson R. Bruce Johnson
Commission Chair Commissioner
Palmer DePaulis Marc B. Johnson