Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
170.0000 COLLECTION OF TAX BY BOARD
(a) IN GENERAL
170.0066.800 Refund of Use Tax Paid on Lease Payments. The Board issued a Notice of Determination to a taxpayer for tax on the purchase of a vessel. The determination was issued for the period June 1, 1991 to December 31, 1992. The taxpayer filed a petition for redetermination and agreed that he had made a taxable use of the vessel in May 1991. The taxpayer also agreed that the correct measure of tax was the purchase price. The Board agreed with the taxpayer that the vessel was purchased in May 1991.
The Board noted that the taxpayer filed a sales tax return which covered the period January 1, 1991 through December 31, 1991. Therefore, the three-year statute of limitations applied and it expired. Since the statute of limitations has expired in 1995, the Board cannot issue deficiency determinations in 1996 covering the period of May 1991, when the vessel was purchased.
The taxpayer stated that since there is no deficiency determination, he is entitled to a refund of the use tax paid on the lease receipts with respect to this transaction.
Although a determination cannot be issued to enforce collection of the tax, the tax liability still accrued under the law and the use tax submitted with respect to the same transaction may be retained in satisfaction of the liability. 3/4/96.