STATE OF NEW YORK STATE TAX COMMISSION Storytown USA_ Inc Box

							STATEOF NEWYORK STATETAX COMMISSION
In the Matter of the petition of Storytown U.S.A., Inc. AFFIDAVIT OF I'IAITING for Redetermination of a Deficiency of a Determination Sales & Use Tax under Article for 28 of the Tax Law or a Refund of or a Revision

the Years 1970-1973.

State

of New York

County of Albany

sworn, deposes and says that he is an employee of the Department of Taxation and Finance, over 18 years of age, and that on the 19th day of 0ctober, 1979, he served the within notice of Determination by nail upon storytown u.s.A., enclosing follows: a true rnc., the petitioner in a securely in the within proceeding, by copy thereof

Jay Vredenburg,

being

duly

sealed postpaid wrapper addressed as

Storytown U.S.A., Inc. Box 511 Lake George, Ny L2B4S and by depositing sameenclosed in a postpaid properly addressed wrapper in a (post office or official depository) under the exclusive care and custodv of the United States Postal Service within the State of New York. That deponent further
and that petitioner.

says that the said addressee is the petitioner
on said wra is the last

herein

the address set forth

known address of the

to before me this day of October, 1979. {-_--

U

/

STATEOF NEWYORK STATETAX COMMISSION
In the Matter of the Petition of Storytown U.S.A., Inc.

AI'FIDAVIT OF MAIf,ING
for Redeternination of a Determination Sales & Use Tax under Article for 28 of the Tax Law of a Deficiency or a Refund of or a Revision

the Years 1970-L973.

State of New York County of Albany

sworn, deposes and says that he is an employee of the Department of Taxation and Finance, over 18 years of age, and that on the 19th day of October, L979, he served the within notice of Deternination by mail upon Francis proceeding, T. Roach the representative of the petitioner in a securely in the within by enclosing a true

Jay Vredenburg,

being

duly

copy thereof

sealed postpaid

wrapper addressed as follows:

Mr. Francis T. Roach 50 Colvin Ave. Albany, NY !2206 and by depositing sane enclosed in a postpaid properly addressed wrapper in a (post office or official depository) under the exclusive care and custody of the United SLates Postal Service within the State of New York. That deponent further the petitioner says that the said addressee is the represeotative of herein and that the address set fo h on s a i d wrapper;)s the last
of I pet (

known address of the representative

Sworn to before

me this

19th day of October, 1979.. --\ \____--------

L

tI

I

I

I

,/r/

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STATE OF NEWYORK STATE TAX COMMISSION A L B A N Y , N E WY O R K 1 2 2 2 7

October 19, I979

Storytown U.S.A., Inc. Box 511 lake George, W 12845 Gentlemen: Please take notice herewith. of the Determination of the State Tax Commission enclosed

You have now exhausted your right of review at the administrative level. Pursuant. to section(s) 1138 & 1243 of the Tax Law, any proceeding in court to review an adverse decision by the State Tax Commission can only be instituted under Article 78 of the Civil Practice Laws and Rules, and must be commenced in the Supreme Court of the State of New York, Albany County, within 4 months from the date of this notice. Inquiries concerning the computation of tax due or accordance with this decision mav be addressed to: refund allowed in

NYS Dept. Taxation and Finance Deputy Commissioner nd Counsel a Albany, New York 12227 Phone # (518) 457-6?40 Very truly yours,

STATETAX COMMISSION
Petitioner' s Representative Francis T. Roach 50 Colvin Ave. Albany, NY 12206 Taxing Bureau's Representative

STATE OF NEW YORK STATE TAX COMMISSION

In

the Matter

of of:

the

Application

:

STORYTOWNUSA,INC. ' for Revision of a Determination or for Refund of Sales and Use Taxes under Articles 28 and 29 of the Tax Law for the Period May 1, 1970 through August 31, 1973.

: : : : :

DETERMINATION

Applicant, 12845' refund Law for 00s89). A formal at the offices filed of

Storytown

U S A, Inc., for revision

Box 5I1, of

Lake George, New york or for

an application

a determination 28 and.29 of 31,

sales

and use taxes

under Articles August

the Tax No.

the Period

May 1, r97o through

L973 (File

hearing of

was held

before

Julius

E. Braun, Brdg.

Hearing

Officer,

the state orr May 12,

Tax cornmission, L976 at

#9, state

campus,

Albany, Francis ,Esq.

New Yorkr

9:15 A.M.

Applicant

appeared by Crotty,

T. Roach, Ese.

The Sales Tax Bureau appeared by Peter of counsel) .

(Richard

Kaufman, Esq.,

ISSUES Itaxes Whether applicant of is paper liable for New York State various sales and use and

on the purchase were dispensed

cups in applicant. liable

which

beverages

popcorn Ir. taxes wire

by said is

Whether applicant on the purchase of

for

New York State

sales

and use

brochures,

bumper stickers

and bumper strip

passed out Whether

to customers. the consent extending the period of limitation for

III.

assessment of

sales

and use taxes was valid.

2FINDINGS OF FACT 1. On June 20, L974 as the result a Notice of Determination of an audit, the Sales Tax Palment of

Bureau issued Sales for for

and Demand for Storytown and interest

and Use Taxes Due against $10,960.70,

applicant, penalty

U S A' of

Inc.,

taxes due of a total of

plus

$3'580.39,

$141541.09. a Notice

On September 10, 1975, the Sa1es Tax an adjusted

Bureau issued tax due of

of Assessment Review to reflect

$91693.70 and a payment of is

$7,L88.38 on the assessment. tax, plus penalty and interest.

The amount now at issue 2. in Applicant,

$21505.32 in

Storytown with

U S A, Inc., a variety of

operates rides,

an amusement park shows and other

Lake George,

New York,

attractions. facilities is

Access to and permission obtained

to use all a single

of

applicant's charge

by the payment of are given

admission that

by the customer. describes

Customers

a brochure

pictures, charge is

and maps applicant's for

facilities.

No separate did not

made by applicant or use tax 3. thereonr wire is

the brochure. said

Applicant brochures.

pay a sales

on the purchase of places

Applicant

a bumper sticker, vehicle stickers for the in

with

applicant's 1ot.

name

orl a customer's used to affix. is the

the parking to

Bumper strip No separate Applicant stickers or

the vehicles. or wire. of the

charge did wire. 4. not

made by applicant

stickers

pay a sales

or use tax

on the purchase

Applicant,

Storytown

U S A,

Inc., in

dispenses cups to

beverages its customers the paper

(such as soda and beer) in its food operations.

and popcorn No separate

paper

charge

was made for

3cups which beverages were transferred and popcorn. of paper of to the customer did not with the purchase of

Applicant cups.

pay a sales

or use tax

on the purchase 5. is at

That portion

the Sales Tax Bureau's

assessment which brochures' Applicant

issue

here was based on applicant's and bumper strip the brochures, for resale wire,

purchase of and paper cups.

bumper stickers contended wire that

bumper stickers in that

and bumper strip of said items was

were purchased in the

the price also

included the paper popcorn. 6. ment of

admission

charge. for

Applicant resale with

contended

that and

cups were purchased

the beverages

The consent sales

extending

the

period

of

limitation

for

assess-

and use taxes was signed and a manager of Storytown in

by Rex Bi1lings,

who was a

vice-president 7.

applicant. Inc., cooperated with the Sales

Applicant,

U S A,

Tax Bureau and acted

good faith.
CONCLUSIONS OF LAW

A. Inc.,

That

the paper

cups purchased for resale within

by applicant,

Storytown

U S A' of

were not purchased personal of

as a physical

component part of

tangible

property,

the meaning and intent the purchases Said sale"

section by

1101 (b) (4) (i) applicant provides, sale for of

the Tax Law. exempt from part,

Accordingly, sales the for

thereof

were not in

and use taxes. term "retail

subsection means the than "... per(A)

pertinent

that

tangible

personal

property

any purpose other of

resale

as such or

as a physical Applicant's

component part

tangible

sonal property...".

customers did

not purchase the

4paper cups "as such, " but to the purchase for of food received said items only as an incident

and drink.

No separate

consideration reusable. U S A, King, Thus, Inc.

was paid the paper when it Decision B. wire Inc.,

the paper

cups and they were not

cups were used or consumed by Storytown food or drink. Matter of Burger

served of

Inc.,

the State

Tax Commission, dated December 7 | 1977. bumper stickers, by applicant, for and bumper strip Storytown resale property, of as a within U S A,

That

the brochures, without

distributed, to its

charge,

customers were not purchased of of of tangible section said

physical

component part

personal I101(b)(4)(i)

the meaning and intent therefore, the purchase sales

the Tax Law; was not

items

by applicant of

exempt from the above).

or

use tax

(see Conclusion not purchase but the

Law rrArr

Applicantrs

customers

did

the brochures, said items

bumper stickers only

or bumper strip to

wire,

received admission items,

as an incident

the payment of was paid for

charge. and said

No separate items

consideration reusable. the consent

said

were not C. That

extending

the period

of

limitation since it

for

the assessment of by an officer

sales of

and use taxes was valid, applicant who had apparent

was signed to do so.

authority

5D. to the That extent the application that rate the penalty of Storytown U S A, in Inc. is of granted the mini-

and interest The Sales the Notice of

excess

mum statutory directed

are cancelled. modify Sales

Tax Bureau is Determination

hereby and L974

to accordingly Payment of

Demand for and adjusted

and Use Taxes Due issued L975 and that, respects except

June 20,

on September 10, is in all other

as so granted,

the application
DATED: Albany,

denied.
STATE TAX COMMISSION

New York

ocT1I 1979

FGSIDENT

ISSIONER