02-1733
Sales Tax Refund
Signed 2/18/03
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, )
) ORDER
Petitioner, )
)
v. ) Appeal No. 02-1733
)
TAXPAYER SERVICES
DIVISION ) Tax Type:
Sales Tax Refund
OF THE UTAH STATE )
TAX COMMISSION, ) Judge: Chapman
)
Respondent. )
_____________________________________
Presiding:
Kerry R. Chapman,
Administrative Law Judge
Appearances:
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
Petitioner’s filings in three separate responses. One response denied Petitioner’s request to extend the time to
file a refund claim for tax periods January 1998 through June 1999 because
Petitioner’s 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 Respondent’s denial to extend the
time to claim a refund and refund the sales tax paid on exempt meals for these
periods.
APPLICABLE LAW
In Utah Code Ann. §59-12-110(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 Respondent’s actions and deny the Petitioner’s 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 Petitioner’s 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
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 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
Commissioner Commissioner