87-2623 to 2625 - Sales

 

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