89-0490 - Sales Tax

BEFORE THE UTAH STATE TAX COMMISSION

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IN RE: )

XXXXX )

) DECLARATORY JUDGMENT

) Appeal No. 89-0490

) Acct. No. XXXXX

)

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to a Request for Declaratory Judgment pursuant to Rule R861-13A and Rule R865-85S-l(B)(6).

The facts represented by Petitioner are that Petitioner is a manufacturer of XXXXX located in XXXXX, Utah and intends to purchase and install additional stand alone machinery to permit the production of container flap XXXXX. This process is a new proprietary and patented process which does not replace any existing operations at the XXXXX facility. The project will increase manufacturing output by approximately 17%.

DECISION AND ORDER

Utah Code Ann. 59-12-104(16) exempts from sales tax machinery and equipment purchased or leased by a manufacturer for use in a new or expanding operation.

Based upon the representations of the Petitioner, the Commission finds that the proposed expansion is not replacing present operating equipment but is a new process which expands the existing processes and results in a substantial increase in the manufacturing output. Therefore, the request of the Petitioner is granted to exempt the purchase of the machinery and equipment to be used in the new or expanding operation from sales tax pursuant to Utah Code Ann. 59-12-104(16). It is so ordered

DATED this 2ND day of JUNE, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

FOR THE COMMISSION

G. Blaine Davis

Commissioner