87-2312 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-2312

UTAH STATE TAX COMMISSION, : Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an informal hearing on XXXXX. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX appeared representing the Petitioner.

Petitioner was audited for the period XXXXX. The deficiency assessment was made based upon certain leases from the Petitioner to XXXXX whereby sales tax was not collected on the lease payments. The Petitioner, however, in purchasing equipment did pay Utah Sales Tax. After the audit the Petitioner requested a refund on the tax paid on the purchase of the equipment and paid the deficiency assessment of the tax due on the lease payments.

Petitioner argues that since the tax had, in fact, been paid and that the Tax Commission had the use of the funds that the penalty should be waived as well as the interest.

DECISION AND ORDER

Based upon the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request be granted and that the penalty and interest associated with the audit of XXXXX be waived.

DATED this 23 day of February, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner