Union Pacific Railroad v. State Tax Commission of Utah

ELLETT, Justice.

This case involves the question of whether a railroad in interstate commerce is a commercial or an industrial enterprise. If it be industrial, it escapes retail sales taxes and use taxes on fuel oil which it buys and uses to propel its engines.

Our statute exempts from the taxes the sale of coal, fuel oil, etc., except those sold or furnished for domestic or commercial consumption. (Emphasis added.) (Section 59-15-4[a] and [b], U.C.A.1953, as amended.)

The plaintiff argues that since Utah copied its law in substance from the Federal Government (Section 616[a]) originally enacted…