Eaton Kenway, Inc. v. Auditing Division of the Utah State Tax Commission

HOWE, Justice:

Petitioner Eaton Kenway, Inc. (Eaton), seeks review of a decision by the Utah State Tax Commission assessing sales tax on Eaton’s purchase of a new manufacturing machine and its conversion of engineering drawings to computer disks.

Utah levies a tax on “retail sales of tangible personal property made within the state.” Utah Code Ann. § 59~12-103(l)(a). The Auditing Division of the Commission conducted a sales and use tax audit of Eaton’s operations for the period from April 1989 until March 1992. Following this audit, the Division assessed sales taxes on (1) a computer…