94-1734

Sales Tax

Signed 12/18/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1734

:

AUDITING DIVISION OF THE : 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. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner on the telephone was Ms. XXXXX. Present and representing Respondent was Ms. XXXXX, Assistant Attorney General, and Mr. XXXXX from the Auditing Division.

1. At the time of the Prehearing Conference, the parties came to a Stipulated Agreement and agreed that the Prehearing Conference could be converted to a Settlement Conference, and an Order entered pursuant thereto.

2. The issue in this proceeding is an audit assessment which was made by Respondent, and involved primarily sales tax which had been imposed on the purchase of comedy routines and software maintenance agreements. The parties have agreed that the comedy routines are received by fax machine and telephone, and that Petitioner does not receive any tangible personal property. Therefore, the Petitioner and Respondent have agreed that the sales and use tax on comedy routines could be removed from the audit report, but that the sales and use tax on the software maintenance agreements was a valid assessment and could be affirmed by the Commission, together with affirming all other items in the sales and use tax audit report.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission hereby finds that the audit report imposing additional sales and use tax on all items except for sales and use tax on the comedy routines purchased by Petitioner, is hereby sustained and affirmed together with interest at the statutory rate.

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 18th day of December, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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