Storm Construction and Don & Sara Hetter

99-12

Taxpayers performed road construction services for governmental entities who told Taxpayers that they were exempt from gross receipts tax.  No part of the Taxpayers’ receipts were exempt or deductible from tax because there is no exemption or deduction for services provided to governmental entities. Taxpayers also failed to present evidence to establish the amount which can be deducted, pursuant to Section 7-9-53 for the value of land which was sold along with houses the Taxpayer built and sold. Taxpayers also failed to carry their burden of proving the Department’s lien to be improper or illegal. Finally, the Department is not bound by the court order filed in Mr. and Mrs. Hetter’s divorce proceedings to the extent it divides responsibility for payment of this tax liability because the Department was not a party to the divorce proceedings.  Protest denied.