89-0014 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

___________________________________

XXXXX.

:

Petitioner )

: FINDINGS OF FACT,

v. ) CONCLUSIONS OF LAW

: AND FINAL DECISION

AUDIT DIVISION OF THE )

STATE TAX COMMISSION OF UTAH : Appeal No. 89-0014

)

Respondent :

_________________________________

This matter came before the Utah State Tax Commission by Petition for agency action of the Petitioner dated XXXXX. A hearing was not requested on behalf of the Petitioner. The matter was submitted on the documentation provided by the Petitioner and all other relevant information as it: relates to the Petitioner's request.

Based upon a review of the file and the recommendation of the Presiding Officer, the Tax Commission makes its

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The period in question is XXXXX through XXXXX.

3. The Petitioner is a manufacturer of prescription drugs. In conjunction with that endeavor, they supply samples of medicines to physicians and hospitals in Utah. The hospitals then prescribe and dispense the medicines to patients.

CONCLUSIONS OF LAW

1. Utah Code Ann. §59-12-104(10) provides an exemption from sales tax for sales of medicines.

2. Utah Code Ann. §59-12-102(4)(a) defines medicines as any medicine supplied to a patient by a physician.

DECISION AND ORDER

The Tax Commission based upon the foregoing finds that the exemption applies to those medicines which are provided free or on a sample basis to hospitals and physicians and therefore note that the Petitioner's request is granted.

DATED this 15th day of May, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner