BEFORE THE UTAH STATE TAX COMMISSION
XXXXX ) Appeal No. 88-1815
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.
R. H. Hansen Roger O. Tew
Joe B. Pacheco