BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioners, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal Nos. 87-2623
UTAH STATE TAX COMMISSION, : to
87-2625
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 Petitioners. The deficiency was a result of an audit
conducted by the Auditing Division of the Utah State Tax Commission. XXXXX was the company first established in
XXXXX as a branch organization of XXXXX.
The purpose of the company was to test artificial organs. The employees of XXXXX were employees of
XXXXX. The company as an entity of
XXXXX was permitted XXXXX. In XXXXX,
XXXXX was sold to XXXXX. The
organization remained the same, the employees remained the same, and the
organization remained in the building at XXXXX even though the ownership
changed. At the time of the sale all
vendors were notified of the change in the taxable status of the
Petitioner. However, vendors continued
to treat the Petitioners as tax exempt.
For the purpose of convenience, the purchaser of XXXXX divided the
company into three organizations; XXXXX, XXXXX, and XXXXX.
The
audit resulted in (1) tax not being paid on utilities, (2) tax not being
charged on equipment purchases used for government contracts and equipment
leases, and (3) out of state purchases upon which tax was not paid.
DECISION AND ORDER
Based
upon the foregoing, it is the Decision and Order of the Utah State Tax
Commission that the Petitioner's request be denied.
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