Salt Lake Telegram | 1935-09-13 | Page 10 | Court Studies Electrical Tax

COURT IT STUDIES ELECTRICAL ELE TAX Tho The Utah supreme cour court took under under un un- der advisement nt Friday y the contro contro- question of the states state's right to levy a tax on sales of power by municipal pal power plants Arguments involving the state tax commissions commission's appeal from a First district court decision that power sales made ad by bYthe the Logan municipal power plant are exempt from the sales sales' tax were heard by the high court late Thursday Tax pe penalty alty and Interest totaling 2000 levied against Logan and ana covering cov ering 13 months months' operation of the power plant are involved in the suit Leon Fonnesbeck Logan city attorney attorney at at- torney argued that the sales tax tat is In effect a properly tax ta which the state stat cannot impose on ona a municipality municipality municipality while Ned Warnock tax commission attorney contended the tax taxis is not directed ag against the city but the consumer and the city is merely the collector for the state Warnock also alo maintained Logan had failed ailed to take its Its' appeal to the supreme court in proper manner The city he said should have appealed appealed appealed ap ap- ap- ap pealed first t to the commission for fora a 8 hearing to determine the issues and relief then should appealed to the high court for fora a writ of review Should the thc court uphold the lower low low- er courts court's judgment in favor of Logan Logan Logan Lo Lo- gan the state will be without authority authority authority au au- au- au to levy evY a sales sales' tax on this type of at municipal service explained Irwin Arnovitz tax commission chairman l