Moreover, neither of the aforementioned broad definitions of mining relate to an exemption. Rather, they define mining for the purposes of imposing a tax. Phosphates contends that since all the electricity supplied by Utah Power comes through one meter and Phosphates uses 78 percent of the electricity in exempt mining activity, the predominant use rule applies to exempt sales tax on all electricity supplied through that meter, including the electricity Phosphate supplies to Pipeline. This argument is not persuasive. First, the Commission specifically found that Utah Power supplied electricity to Phosphates through a single meter.
Phosphates argues for broader interpretation of the rule.
A broader interpretation of the term rule, however, could lead to abuse, allowing loosely-related organizations to take advantage of the rule to avoid paying sales tax on the transfer of electricity for commercial activities. Additionally, we note that Phosphates' ownership of Pipeline does not exempt Phosphates from paying sales tax on transactions between the two. Having elected separate corporate forms, Phosphates and Pipeline are bound by the obligations and benefits of those forms. The judgment of the Tax Commission is affirmed. Unless otherwise indicated, all statutory references are to the 1992 code sections in effect during the audit period April 1992 through December 1994.