94-0614
Sales Tax
Signed 1/6/95
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX, )
:
Petitioner, : ORDER
:
v. : Appeal No. 94-0614
:
AUDITING
DIVISION : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
:
Respondent. : Tax Type: Sales Tax
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a Settlement Conference pursuant
to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Joe B. Pacheco, Commissioner, heard the
matter for and on behalf of the Commission.
Present and representing the Petitioner was XXXXX. Present and representing the Respondent were
XXXXX, Auditing Division of the Utah State Tax Commission.
Based
upon the evidence and testimony presented at the hearing, the Tax Commission
hereby makes its:
FINDINGS OF FACT
1. The tax in question is sales tax.
2. The period in question is XXXXX.
3. The past XXXXX for the Petitioner, XXXXX,
stated that the company is no longer in business.
4. The Petitioner testified that when the
company began operations, corporate officers had met numerous times with other corporate officials, and had made numerous telephone calls to the
Utah State Tax Commission with regards to the taxability of the services that
XXXXX was providing. The taxpayer felt
that the information they received is contrary to the information that was
given to them during the time of the audit.
The Petitioner also testified that their outside XXXXX had also made
numerous calls to the Tax Commission to determine the correct handling for the taxability of the services provided.
5. The company was in the business of
XXXXX. The primary source of income for
the company was the XXXXX. A secondary
part of the business was the XXXXX provided.
6. The only item at issue in this case is the
disallowance for exempt sales made by the Auditing Division during its audit
for the audit period. Specifically, the
Petitioner said that they paid sales tax on XXXXX but that tax had not been
paid on the XXXXX, the XXXXX.
7. The Auditing Division of the Utah State Tax
Commission relied on Utah Code Annotated §59-12-102 (7), the definition of purchase price. The "purchase price" means the amount paid or charged
for tangible personal property or other taxable items or service under
subSection 59-12-103(1) excluding only cash discounts taken or any excise tax
imposed on the purchase price by the federal government. The Auditing Division stated that the charge
for the XXXXX and that the tax applied to the entire sales price. In this case
the Auditing Division made an assessment of what the Petitioner said was the
exempt portion of the sale.
8. The amount of assessment in the
aforementioned audit is $$$$$ less a payment that was applied of $$$$$ leaving
a balance of $$$$$.
9. The calculation of the interest that was
assessed in the audit in the amount of $$$$$ is not in dispute. However,
petitioner is asking for a waiver of that amount.
APPLICABLE LAW
Pursuant
to Utah Code Annotated Section 59-12-104 and Administrative RuleR865-19S-23,
the taxpayer is required to collect tax on the total amount charged for sales
and for leases of tangible personal property made to its customers unless it
can provide evidence to support its claim that the sale or lease is exempt.
The
taxpayer is relying on telephone conversations it had with employees of the
Utah State Tax Commission. This
evidence is also corroborated by XXXXX, however the taxpayer inadvertently did
not receive any written documentation from the Commission and can only testify
that the information was received verbally from an employee. The taxpayer testifies that the business
operated under compliance with all the instructions that were given to them.
DECISION AND ORDER
Based
upon the information presented at the conference, and the records of the Tax
Commission, the Commission finds that the transactions entered into by the
taxpayers are found to be taxable and that the Respondent's reliance on
§59-12-102 and §59-12-106 together with Administrative RuleR865-19S-23 is the
correct
application for these transactions. The Commission also finds that the request
for the interest was properly applied and the request for the waiver of the
interest is denied. It is so ordered.
This
decision does not limit a party's right to a formal hearing. However, this Decision and Order will become
the Final Decision and Order of the Commission unless any party to this case
files a written request within thirty (30) days of the date of this decision to
proceed to a Formal Hearing. Such a
request shall be mailed to the address listed below and must include the
Petitioner's name, address, and appeal number:
Utah State Tax Commission
Appeals Division
210 North 1950 West
Salt Lake City, Utah 84134
Failure
to request a Formal Hearing will preclude any further administrative action or
appeal rights in this matter.
DATED
this 6th day of January, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^