In Re State & Municipal Sales & Use Tax Liability of K.O. Lee Co.

AMUNDSON, Justice.

Department of Revenue (Department) appeals from trial court order, which re*608versed in part the decision of the Secretary of Department (Secretary) to assess additional sales and use tax on K.O. Lee Company (K.O. Lee). We affirm.

FACTS

K.O. Lee received a notice of intent to audit from Department in November, 1989. The purpose of the audit was to verify the gross receipts, deductions, and use tax K.O. Lee reported to Department on its sales and use tax returns for the period of November, 1986, through October, 1989. During the audit, Department assessed sales and use tax on…