96-0760

Sales Tax

Signed 4/21/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY B, :

:

Petitioner, : ORDER

:

v. : Appeal No. 96-0760

:

AUDITING DIVISION OF THE : Account No. #####

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, :

Respondent. : Tax Type: Sales Tax

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on February 11, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REP.. Present and representing Respondent was Clark Snelson of the Attorney General’s Office.

This involves a refund request for tax and interest imposed on the purchase of ten trucks, the purchase occurring between April 1994 and January 1995. No penalties were imposed. Prior to April 1994, the Commission had a Rule in place that created an exemption from sales tax on trucks purchased to be used in interstate commerce. In April of 1994, the Commission had meetings with the industry and passed a Rule making these sales taxable. As of January 1995, new legislation reinstated the impact of the old rule making the sales again not taxable.

Not only did the purchases occur during that short period between the original rule and the new legislation, many of them occurred before the Tax Commission was able to make available new forms to reflect the change and allow for proper reporting. Petitioner is asserting that the resulting confusion, the lack of notice, and the unavailability of proper forms at the appropriate time created the problem.

DECISION AND ORDER

Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the tax and interest associated with the purchase of the ten trucks in issue.

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 21 day of APRIL, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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