BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re:
XXXXX ) Appeal No. 88-1815
:
Petitioner, :
_____________________________________
STATEMENT OF CASE
This
matter comes before the Utah State Tax Commission pursuant to request for
declaratory judgement pursuant to Rule R861-5A-l(Q). The Petitioner is a manufacturer of XXXXX in XXXXX, Utah. The Petitioner proposes to construct a
building addition and purchase and install machinery for a new XXXXX
operation. XXXXX materials will be
recovered from culled XXXXX for re-use in the manufacturing process. Petitioner proposes to increase the
manufacturing output and spend an estimated $$$$$ on machinery and equipment.
Petitioner
requests that an exemption be granted for the purchase of machinery and
equipment which will be used in the new or expanded operations pursuant to Utah
Code, §59-12-104(16). The Petitioner
requests that since the expenditure will be to install a newly developed
process which will not replace existing equipment and which will increase manufacturing
output and add additional jobs, it is entitled to the exemption for machinery
and equipment purchased or leased for use in new or expanding operations.
DECISION AND ORDER
The Tax Commission, after reviewing the
arguments and requests of the Petitioner, grants its request and determines
that it does fall within the exemption of Section 59-12-104(16) and the
definition is set out in Rule R865-85S-l.
This decision is subject to the following:
1.)
The exemption applies only to expenditures for the project described in
petitioners letter of XXXXX.
2.)
The described expenditures would be exempt based on the facts furnished by
XXXXX and any change in or misrepresentation of these facts could affect the
exemption.
3.)
The machinery and equipment purchased must meet all requirements specified in
Section 59-12-104(16) and rule R865-85S.
DATED
this 15 day of November, 1988.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco