89-0119 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX )

) STIPULATION, SETTLEMENT

) PROPOSAL AND ORDER

Petitioner, )

)

vs. ) Case No. 85-0119

)

AUDITING DIVISION, UTAH STATE )

COMMISSION, )

)

Respondent. )

_____________________________________

 

The Petitioner, XXXXX ("XXXXX"), and the Respondent, Auditing Division, hereby recommend that the Tax Commission approve the Stipulation and Settlement reached herein and enter its order authorizing and directing a refund of sales taxes, interest and penalty, together with interest thereon, in the total amount of $$$$$ to XXXXX.

STIPULATION OF FACTS

1. The Auditing Division issued a Statutory Notice of Deficiency against XXXXX on XXXXX for the audit period XXXXX On XXXXX, the Auditing Division issued an amended audit report and on XXXXX, the Auditing Division issued a second amended audit report, assessing a total of $$$$$ against XXXXX, which included $$$$$ in tax, $$$$$ in penalty and $$$$$$ in interest.

2. XXXXX filed a timely Petition for Redetermination of the Statutory Notice of Deficiency.

3. On XXXXX, XXXXX paid a total assessment of $$$$$ to the Tax Commission, including $$$$$ in tax, $$$$$ in penalty and $$$$$$ in interest under protest in order to stop incurring additional interest expense."

4. XXXXX filed an Amended Petition for Redetermination on XXXXX claiming entitlement to a refund of all tax, penalty and interest paid under protest, together with interest thereon, from XXXXX.

5. On XXXXX, XXXXX filed an action against the Utah State Tax Commission, entitled XXXXX v. State Tax Commission of Utah, XXXXX in the Tax Division of the Third Judicial District Court for Salt Lake County, State of Utah to recover sales taxes, interest and penalty paid under protest. On XXXXX, the Tax Commission signed a Stipulation that action No. XXXXX could be held in abeyance until disposition of XXXXX's action against XXXXX and XXXXX in XXXXX v. XXXXX and XXXXX, XXXXX, then pending in the Third Judicial District Court for XXXXX County.

6. Action XXXXX has been settled and dismissed.

SETTLEMENT PROPOSAL

7. In settlement of XXXXX's Petition for Redetermination herein, and without either party admitting liability, XXXXX and the Auditing Division recommend that the Tax Commission approve a refund to XXXXX in the amount of $$$$$ calculated as follows:

(a) recomputation of taxes on the purchase price of tangible personal property sold by XXXXX to exclude sales or use taxes in the purchase price.

(b) recomputation of taxes according to appropriate rates as specified in Utah Code Ann. § 59-16-5(k) (Supp. 1985).

(c) refund of the penalty; and

(d) interest on items (a)(b) and (c) at 12% from XXXXX to XXXXX.

8. The calculations for this recommended settlement are shown in the schedule attached As Exhibit 1.

9. As a further condition to this Settlement, XXXXX will file a voluntary dismissal in Action no. XXXXX, XXXXX v. State Tax Commission of Utah, upon entry of the Order herein.

DATED this 14 day of February, 1990.

of XXXXX

Attorneys for Petitioner

DATED this 14 day of February, 1990

XXXXX

Assistant Attorney General

Attorney for Respondent

ORDER

Based upon the foregoing Stipulation and Settlement Proposal, and being fully advised in the premises, it is hereby ORDERED that:

1. The proposed settlement is approved;

2. The Auditing Division is directed to process a refund to XXXXX in the amount of $$$$$.

3. XXXXX's Petition for Redetermination is dismissed upon XXXXX's receipt of the refund herein ordered, and the filing of a voluntary dismissal in XXXXX v. State Tax Commission of Utah, No. XXXXX, pending in the Third Judicial District Court.

DATED this 16 day of February, 1990.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner