94-1537
Sales Tax
Signed 10/6/95
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX, )
:
Petitioner, : ORDER
:
v. :
:
COLLECTION
DIVISION OF THE : Appeal No. 94-1537
UTAH STATE TAX COMMISSION, :
:
:
Respondent. : Tax Type: Sales Tax
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for an initial
hearing. An initial hearing was held onXXXXX. W. Val Oveson, Chairman of the Tax Commission, heard the matter
for and on behalf of the Commission.
Present and representing Petitioner was XXXXX. Present and representing Respondent XXXXX.
Based
upon the evidence in the file and presented at the Informal Hearing, the
Commission makes its:
FINDINGS
1.
Petitioner is a XXXXX. In accordance
with the financial procedures of the XXXXX, each XXXXX is authorized to: a)
XXXXX XXXXX, and b) XXXXX.
2.
The XXXXX is XXXXX, and is therefore considered a XXXXX XXXXX. The XXXXX with the Internal Revenue Service
and Petitioner, as a XXXXX, derives its XXXXX.
3.
The XXXXX has not been willing to do the paper work necessary to aggregate the
XXXXX and apply for a refund from the State Tax Commission as provided for in
the procedures.
4.
It was indicated by Petitioner that the XXXXX have, on occasion, been allowed
to make purchases through their XXXXX XXXXX, even though this violates the
financial policies of the XXXXX. When
purchases are made in this manner, the sales tax paid by the XXXXX is
reimbursed to the XXXXX but not returned to the XXXXX XXXXX. Therefore no
reimbursement is available to the XXXXX even if the XXXXX.
5.
The Administration Division of the State Tax Commission is required to follow
the procedure in the statutes and the rules established by the Tax
Commission. Under those procedures, a
XXXXX must file an application applying for an XXXXX. One of the requirements for the XXXXX with the Internal Revenue
Service as a XXXXX. Petitioner applied
for the XXXXX but is not registered with the XXXXX. Respondent denied the sales tax XXXXX for this cause.
APPLICABLE LAW
XXXXX
provides the basis for the XXXXX sales and use taxes for XXXXX. XXXXX
Administrative
rules adopted by the Tax Commission as provided in the XXXXX
XXXXX
ANALYSIS
It
is clear from the facts of this case that Petitioner is a XXXXX of a
XXXXX. In fact Petitioner could qualify
as a XXXXX of XXXXX, 1) the XXXXX, or 2) the XXXXX. The critical issue under XXXXX is that the organization must be
recognized by the Internal Revenue Service as XXXXX under XXXXX of the Internal
Revenue Code. In this case that
recognition is given to the XXXXX and not to the XXXXX. In order for Petitioner to qualify on their
own merits for the refund of sales and use tax, they would need to apply for
and obtain recognition by the IRS as XXXXX.
This does not seem to be a discriminatory burden on Petitioner because their
XXXXX XXXXX is qualified and has the ability to apply for and obtain the
refund.
DECISION AND ORDER
The
Tax Commission finds in favor of Respondent and denies the refund of sales and
use tax to Petitioner. 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 October, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^