Notice has been taken of all Comptroller's records pertinent to this case. The Petitioner did not respond. The ALJ and the Comptroller have considered the Exceptions and the Response, and this Comptroller's Decision represents the ruling thereon. The trade-in credits claimed by Petitioner on its sales tax returns should not have been disallowed. Petitioner detrimentally relied on two prior audits on which the trade-in credits taken by Petitioner were not disallowed.
Petitioner sells bowling and billiard supplies and equipment.
In addition, Petitioner maintains a coin-operated amusement machine business. The Comptroller audited Petitioner for sales and use tax compliance for the period referenced above. Petitioner paid the assessed tax, penalties and interest, but requested a redetermination hearing regarding the disallowance of trade-in credits, resulting in the instant proceeding. The full set of such documents was given to the auditor by Petitioner and was submitted into evidence by Petitioner in support of the credits claimed on its sales tax reports as trade-ins. Petitioner took credits on its own sales tax returns for that portion of the purchase price of amusement machines that represented the difference between the purchase price and the amount received for amusement machines which it considered to have been trade-ins.