Bill would promote refunds for non-taxables

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A Senate committee on Tuesday passed 4-1 a proposal to help purchasers receive refunds for erroneously taxed items.

The Utah Supreme Court case, Ivory Homes v. Utah State Tax Commission was brought up as an example of why SB27 should be approved. According to bill sponsor Sen. Howard Stephenson, R-Draper and president of the Utah Taxpayers Association, the court did not grant the builder in that particular case a refund for the non-taxable delivery of purchased concrete, because the delivery was not specifically itemized on the receipt from the vendor.

The proposal aims to prevent similar situations by looking at the bookkeeping of vendors in order to determine which items purchased are not taxable and will then qualify for a refund.

"There are a whole lot of refunds being held up right now," said Steve Young, from the law firm Holland and Hart.