87-1888 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

AUDITING DIVISION OF THE : Appeal No. 87-1888

UTAH STATE TAX COMMISSION, : Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from a decision of the Auditing Division of the Utah State Tax Commission (Respondent) to deny a request for refund of sales tax for the periods of XXXXX. An informal hearing was held on XXXXX in the offices of the Utah State Tax Commission. Jerry E. Larrabee, Tax Appeals Supervisor, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

Petitioner stated that he leased equipment through XXXXX during the periods in question. Petitioner then re-leased the equipment to restaurants. Petitioner was charged sales tax on the leases from XXXXX. Petitioner also charged its customers sales tax on the same equipment. Petitioner stated that XXXXX told him that they had to collect the sales tax. XXXXX later took over XXXXX and said that Petitioner did not have to pay sales tax to XXXXX. Petitioner stated that he had double paid the tax while leasing from XXXXX and requested the amount back that has been double paid.

FINDINGS

Petitioner did not need to pay sales tax to XXXXX since he was leasing the equipment to his customers and collecting sales tax from them. Utah Code Ann. 59-12-110(2) (1953) permits a credit or refund on a tax which has been paid more than once or which has been erroneously collected only if the taxpayer timely files the claim within three years from the date of overpayment.

Petitioner filed claims for credit for the periods XXXXX for account Nos. XXXXX and filed a claim for credit for XXXXX for account No. XXXXX. All claims were filed on XXXXX. A credit is only permissible for those periods whose statutory due dates are within the three year period immediately preceding XXXXX. XXXXX is the first quarter whose due date lies within the statute of limitations.

DECISION AND ORDER

Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for a credit of sales tax on account Nos. XXXXX be granted commencing with XXXXX. No credit is possible for quarters prior to XXXXX.

The Auditing Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

DATED this 12 day of May, 1988.

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