86-1555 - Mine Occupation Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

IN RE: XXXXX, ) ORDER DISMISSING AMENDED

Preliminary notice of tax due, ) PETITION FOR HEARING, PRO-

Mine Occupation Tax for the ) TEST OF STATUTORY NOTICE

Period of XXXXX ) OF DEFICIENCY, REQUEST FOR

through XXXXX ) REDETERMINATION AND CLAIM

: FOR REFUND, AND APPROVING

: SETTLEMENT AGREEMENT

:

: Case No. 86-1555

_____________________________________

On XXXXX XXXXX, Petitioner, and the Auditing Division of the Utah State Tax Commission, appeared before the Utah State Tax Commission, Commissioners G. Blaine Davis, R. H. Hansen and Joe Pacheco, to present to the commission a settlement agreement recommended by the Auditing Division and XXXXX. Acceptance of this Settlement Agreement by the Tax Commission would resolve this proceeding without the need for informal hearing, formal hearing, and further litigation. That settlement agreement is embodied in the letters dated XXXXX, executed by XXXXX, and in a letter dated XXXXX from XXXXX to XXXXX. Copies of these letters are attached hereto as Exhibits A and B respectively.

The settlement agreement was explained and enunciated by XXXXX, in behalf of the Auditing Division of Utah State Tax Commission and XXXXX and XXXXX in behalf of XXXXX. Appearing at this presentation was XXXXX of the Auditing Division of the Utah State Tax Commission, as well as XXXXX, Vice President and General Manager of operations, XXXXX, and XXXXX, Controller, XXXXX. The Tax Commission now having reviewed the Settlement Agreement reached between the parties hereto and being fully advised in the premises finds that the settlement is appropriate under the circumstances, and therefor makes the following order.

ORDER

1. XXXXX's Amended Petition for Hearing, Protest of Statutory Notice of Deficiency, Request for Redetermination, and Claim for Refund is hereby dismissed, with prejudice.

2. XXXXX shall pay to the Utah State Tax Commission, in full settlement of all asserted sums by the Auditing Division of the Utah State Tax Commission under the Statutory Notice of Deficiency dated XXXXX, the sum of XXXXX Dollars ($$$$$). Said sum shall be payable ten (10) days from the date of the entry of this order.

3. Payment by XXXXX to the Utah State Tax Commission of the sum of $$$$$ shall fully resolve all claimed and asserted deficiencies, including any asserted interest, as set out in the Statutory Notice of deficiency dated XXXXX.

4. All counterclaims, or claims for refund, by XXXXX asserted in connection with the audit conducted by the Utah State Tax Commission of XXXXX's mine occupation taxes for the period XXXXX through XXXXX, are hereby dismissed, with prejudice.

5. The Auditing Division of the Utah State Tax Commission shall conduct an audit of XXXXX's mine occupation tax filings for the years XXXXX and XXXXX as soon as the Auditing Division can reasonably accomplish that task.

6. The Auditing Division of the Utah State Tax Commission is hereby ordered to forego, and not contest, any transportation cost deductions asserted and claimed by XXXXX during the audit period XXXXX through XXXXX. The Auditing Division shall not disallow any transportation costs claimed by XXXXX for the periods XXXXX, XXXXX and XXXXX, should those transportation costs be claimed on the same basis by XXXXX as was claimed by XXXXX during the audit period, i.e. XXXXX through XXXXX.

7. XXXXX agrees that it will not contest any disallowance by the Auditing Division of cost deductions taken by XXXXX for XXXXX precipitation plant or related water collection and distribution facilities for the years XXXXX, XXXXX and XXXXX, upon completion of an audit by the Auditing Division of the Utah State Tax Commission. The Auditing Division and the Utah State Tax Commission agree to waive any interest attributable to any asserted deficiency resulting from the disallowance of XXXXX's cost deductions for XXXXX precipitation plant or related water collection and distribution facilities for the years XXXXX, XXXXX and XXXXX.

DATED this 18 day of June, 1987.

R. H. HANSEN

Chairman, Utah State Tax Commission

G. BLAINE DAVIS,

Commissioner, Utah State Tax

Commission

JOE B. PACHECO,

Commissioner, Utah State Tax

Commissioner

ROGER O TEW

Commissioner, Utah State Tax

Commission

APPROVED AS TO FORM:

XXXXX

Assistant Utah State Attorney General