Hales Sand & Gravel, Inc. v. Audit Division of the State Tax Commission

ZIMMERMAN, Justice:

This is a proceeding to review a sales tax deficiency assessment by the Utah State Tax Commission. Hales Sand and Gravel, Inc., petitions for review of the Commission’s order requiring Hales to pay sales tax on transportation costs incurred in the delivery of building materials to its customers. We affirm the Commission’s deficiency assessment but reverse the negligence penalty it assessed Hales for nonpayment.

Because a party seeking review of an order of an administrative agency must demonstrate that the agency’s factual determinations are not supported by substantial…