89-0511 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX )

dba XXXXX, )

Petitioner, )

v. ) ORDER

) Appeal No. 89-0511

COLLECTION DIVISION OF THE ) Audit Period: XXXXX

UTAH STATE TAX COMMISSION, )

Respondent.

_______________________________________

STATEMENT OF CASE

This matter comes before the Utah State Tax Commission upon a Petition for Reconsideration received by the Tax Commission on XXXXX, and filed by the Petitioner as a result of the Commission's final decision dated XXXXX, which held that Petitioner's subscriptions are subject to sales tax.

The only additional evidence which Petitioner supplies in support of the Petition for Reconsideration are copies of publications from other states which Petitioner alleges are tax exempt. Other than this, the Petition for Reconsideration does not set forth any additional facts or evidence.

FINDINGS

1. Utah Administrative Rule R861-1A-5(P) provides that a Petition for Reconsideration shall "allege grounds for reconsideration either a mistake in law or fact, or the discovery of new evidence." The rule also provides that the Commission may exercise its discretion in granting or denying a Petition for Reconsideration.

2. The Petition for Reconsideration does allege that the final decision of the Commission was in error, but does not substantiate this position with anything which the Commission was not already aware of at the time of issuing the final decision. The out-of-state publications have no bearing upon the Commission's decision because each state has different laws and regulations, and those of other states do not necessarily have a bearing on those of Utah.

3. Petitioner was under the assumption that sales tax would not have to be paid for its subscriptions and, indeed, Petitioner had operated in this manner for several years. The previous owners of this publication also operated in that manner. The Commission, therefore, finds that Prospective compliance only would be proper in this case and the Petitioner should not be liable for the deficiency amounts assessed against the Petitioner for the audit period in question or at anytime prior to the date of this order.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that this Petition for Reconsideration is denied, but Petitioner will only be held liable for sales tax collections in the future and any deficiency amounts assessed for the audit period or at anytime previous to the date of this order are abated. Petitioner shall assume liability for sales tax collections on its subscription ten (10) days from the date of mailing of this order, so that Petitioner may have time to obtain a sales tax license and make other arrangements for the collection of sales taxes.

DATED this 1st day of August, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION

R. H. Hansen Roger O. Tew

Chairman Commissioner