OSI Industries, Inc. v. Utah State Tax Commission, Auditing Division

OPINION

RUSSON, Associate Presiding Judge:

OSI Industries, Inc. (OSI), seeks review of a decision of the Utah State Tax Commission (Tax Commission) upholding the assessment of a sales tax on OSI’s purchase of liquid nitrogen. We reverse and remand.

FACTS

OSI operates a meat processing plant that produces ground meat patties for sale to McDonald’s restaurants. In order to preserve the required quality and uniformity of the meat patties, OSI sprays liquid nitrogen on the patties to “flash freeze” them to very low temperatures. The patties are then packed in containers and placed in cold storage to…