93-1634

Sales & Use

Signed 5/4/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, : ORDER

:

v. : Appeal No. 93-1634

:

AUDITING DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

Respondent. : Tax Type: Sales & Use

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission upon a Petition for Reconsideration, dated XXXXX, filed by Respondent as a result of the Commission's final decision dated XXXXX.

APPLICABLE LAW

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

ANALYSIS

The thrust of Respondent's argument is that once the Commission determined that equipment purchased which replaces equipment destroyed in a fire constitutes normal operating replacement, the "new or expanding" exemption becomes unavailable even though it is a new or expanding operation. The decision, however, set forth the Commission's position that, although the exemption is not available based on circumstances of the fire, the exemption is available because the petitioner has met relevant criteria for new or expanding operations. Separate and apart from the fire, the facts of this case provide sufficient circumstances to apply the sales tax exemption for the purchase of equipment by a manufacturer used for new or expanding operations.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petition for Reconsideration is denied. It is so ordered.

DATED this 4th day of May, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have thirty (30) days after the date of a final order to file a) a Petition for Judicial Review in the Supreme Court, or b) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. §§59-1-601(1),63-46b-13(1), 63-46-14(3)(a).)

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