85‑0015

Sales

Signed 3/26/86

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX, INC. )

XXXXX, :

)

Petitioner, :

) DECISION FROM

v. : INFORMAL HEARING

)

AUDITING DIVISION OF THE :

UTAH STATE TAX COMMISSION, ) Appeal No. 85‑0015

:

) Sales Tax No. XXXXX

Respondent.

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission by XXXXX, Inc. (Petitioner). The Auditing Division of the Utah State Tax Commission (Respondent) had assessed an additional sales tax because of "disallowed exempt sales of metal buildings and parts to agricultural producers that become real property after installation".

The Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. XXXXX, Hearing Officer, heard the matter for the Commission. XXXXX, of XXXXX, XXXXX & XXXXX, represented the Petitioner. XXXXX, Assistant Attorney General, represented the Respondent.

Based on the evidence and the recommendation of the Hearing Officer, the Commission makes the following determinations:

1. The tax periods in question are from XXXXX to XXXXX.

2. Petitioner sells metal buildings and parts to agricultural producers. Respondent stipulated that the materials are used primarily and directly in agriculture. The materials are tangible personal property at the time of purchase and become real property after installation.

3. Utah Code Ann. '59‑15‑6(3) exempts "sales of tangible personal property used or consumed primarily and directly in farming operations . . ." from sales tax.

4. The exemption literally applies to sales of personal property used or consumed primarily and directly in agriculture. The materials that are the subject of this case, at the time of sale, are personal property to be used or consumed primarily and directly in agriculture. These facts were stipulated to by the parties. Therefore, the exemption applies and no sales tax is to be collected on those sales.

DECISION THEREFORE, IT IS HEREBY DECIDED:

1. That the sales of metal buildings and parts to agricultural producers by Petitioner does qualify for an exemption.

2. That exemption from taxation as set forth in '59‑15‑6(3) is to be applied to the Petitioner.

3. That Petitioner is directed to adjust its audit accordingly.

DATED this 26th day of March, 1986.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

Mark K. Buchi Joe B. Pacheco *

Chairman Commissioner

R. H. Hansen Roger O. Tew**

Commissioner Commissioner

* Since the hearing on this case, Commissioner Gary C. Cornia has been replaced by Commissioner Joe B. Pacheco. Commissioner Pacheco has been duly advised of the facts and circumstances regarding this case and is qualified to sign this decision.

NOTE: ** Because of a personal association with the Petitioner, Roger O. Tew, Commissioner abstained from the deliberation.