Power Plant Expansion Equipment not Exempt in Utah

The purchase of machinery and equipment for an electricity generating power plant was not eligible for exemption under Utah law. The law stated that purchases must meet multiple requirements in order to qualify for exemption, including falling under specific range of business activity descriptions. The purchases met many of the requirements, but the activity fell outside of what was described in the SIC Manual that was referenced in the law. As they did not meet that criteria, the purchases were subject to tax. (Private Letter Ruling, Opinion No. 05-010, Utah State Tax Commission, January 11, 2006)

Posted on February 12, 2007