89-0246-Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

IN RE: )

:

XXXXX )

: DECLARATORY JUDGEMENT

)

: Appeal No. 89-0246

) Acct. No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter comes before the Utah State Tax Commission as a request for declaratory judgment pursuant to Rule R861-5A-l(Q). The Petitioner is a manufacturer and retailer of concrete. The concrete is either premixed with all necessary ingredients, including water, and poured into a mixing bowl mounted on a truck chassis, or dry mix is loaded into the mixing bowl and water is added. The mixing process continues during transportation and until delivery to the customer.

Petitioner requests that an exemption be granted for the purchase of mixing bowls which are mounted on truck chassis which will be used in the new or expanded operations pursuant to Utah Code Ann. §59-12-104(16). The Petitioner opened six new plant locations and purchased new mixer trucks for each location.

In this case it appears that there is an element of manufacturing involved in that the mixing bowl is an extension of the concrete manufacturing process. SIC code 3273, which is in the manufacturing series, includes truck-mixed concrete.

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 does not allow the tax-free purchase of truck chassis.

DATED this 28th day of March, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner