86-0300 - Centrally Assessed

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

PROPERTY TAX DIVISION OF THE : Appeal No. 86 0300

STATE TAX COMMISSION OF UTAH, )

:

Respondent. )

_____________________________________

STATEMENT OF CASE

On XXXXX, Petitioner submitted a request to the Appeals Section of the Utah State Tax Commission for a refund due to an adjustment of the XXXXX windfall profits tax deduction. Petitioner relied upon Utah Code Ann. 59-5-47 in filing beyond the statutory time limit for a redetermination of the tax due or a refund. On XXXXX, the Utah State Tax Commission denied Petitioner's request for the Commission to take original jurisdiction.

On XXXXX, Petitioner submitted a second request to the Appeals Section, again relying on Section 59-5-47. This request was granted and a hearing was held on XXXXX, in the offices of the Utah State Tax Commission. XXXXX, Tax Appeals Supervisor, and David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX and XXXXX represented the Petitioner. XXXXX and XXXXX represented the Respondent. XXXXX County had adequate notice of the hearing but elected not to appear. Mr. XXXXX contacted the XXXXX County assessor, auditor, and attorney prior to the hearing but was informed that XXXXX County would not be present. XXXXX County did not request a continuance.

FINDINGS

This matter involves a requested refund due to an adjustment of the windfall profits tax deduction from the gross sales of oil and gas for XXXXX (the basis for the XXXXX assessment). Corrections for a prior year are made on oil and gas assessments where assessments are based on gross sales less windfall profits tax because of the adjustments in FERC (Federal Energy Regulation Commission) investments and pricing differentials which occur the following year. A correction for the gross sales for XXXXX would normally have been adjusted for in the XXXXX assessment and refunded in XXXXX (usually the adjustments result in Petitioner owing additional taxes to a particular county, but in this case, a refund was due to Petitioner).

The XXXXX in XXXXX County, Utah was unitized on XXXXX. Petitioner took a windfall profits tax deduction of $$$$$ and later filed an adjustment in XXXXX for an additional deduction of $$$$$. This resulted in a total windfall profits tax deduction of $$$$$, from the gross sales of oil for XXXXX. The XXXXX County levy of .05072 for XXXXX applied to the additional deduction of $$$$$ ($$$$$ x 80%) results in a tax refund of $$$$$. If the $$$$$ is applied as a credit towards the taxes due for XXXXX rather than refunded directly, then XXXXX County will not be adversely affected.

DECISION AND ORDER

The Utah State Tax Commission hereby grants Petitioner's request for a refund due to an adjustment of the XXXXX windfall profits tax deduction. The tax refund of $$$$$ shall be applied as a credit on Petitioner's XXXXX tax payment to XXXXX County.

The XXXXX County Auditor is hereby ordered to adjust its records in accordance with this decision.

DATED this 4 day of February, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner