Form 18518 - The Tax Commission Of The State Of Idaho

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BEFORE THE TAX COMMISSION OF THE STATE OF IDAHO
In the Matter of the Protest of
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DOCKET NO. 18518
[REDACTED]
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Taxpayer.
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DECISION
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On October 22, 2004, the Sales, Use, and Miscellaneous Tax Audit Bureau (Bureau) of the
Idaho State Tax Commission (Commission) issued a Notice of Deficiency Determination to
[Redacted] (taxpayer). The Notice proposed additional use tax and interest in the total amount of
$7,167.00 for the period of July 1, 2001 through June 30, 2004. The Commission later amended the
amount of the deficiency to $5,823 based on additional documentation supplied by the taxpayer.
The taxpayer filed a timely appeal and petition for redetermination on December 20, 2004.
In its petition, the taxpayer requested a redetermination of the deficiency based on Idaho tax
statutes and administrative agency rule interpretations. The Commission held an informal hearing
with the taxpayer on March 24, 2005.
The taxpayer sells “transit-mixed” concrete. That is, the concrete is mixed in the truck on the
way to the job site. The various ingredients that make up the concrete (aggregate, cement, sand,
water, and chemical admixtures) are stored separately at the taxpayer’s batch plant. These
ingredients are loaded into cement trucks at the batch plant. It takes ten minutes to load the trucks
and mix the concrete. The mixer drums of the trucks turn constantly from the time the ingredients
are loaded until the time when the trucks return to the plant after delivering the concrete. When the
truck reaches the job site, the contractor purchasing the concrete can make adjustments to the
mixture by adding water or coloring agents. The trucks consume diesel fuel during this entire
process, whether the truck is operating on a public highway or off. A “power take-off” (PTO)
provides the power to turn the drum. According to the taxpayer, a PTO is a device that is powered
DECISION - 1
[Redacted]

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