Brown Plumbing & Heating Co. v. State Tax Commission

JACKSON, Judge:

Brown Plumbing and Heating Company (Brown) seeks a redetermination of the sales or use tax deficiency assessed against it by the Auditing Division of the Utah State Tax Commission. We reverse.

FACTS

In June 1985, the Board of Education of Alpine School District (Alpine) entered into a general contractor’s agreement with Paulsen/Ellsworth Construction Company for the construction of Cedar Hollow Junior High School. Paragraph twenty of the contract’s supplementary conditions provided that Alpine, “at its sole option and discretion, may purchase certain major items and quantities of…