BEFORE THE STATE BOARD OF EQUALIZATION

FOR THE STATE OF WYOMING

IN THE MATTER OF THE APPEAL OF )

UNION PACIFIC RAILROAD COMPANY )

FROM A FINAL AUDIT ASSESSMENT ) Docket No. 2000-67

DECISION BY THE DEPARTMENT )

OF REVENUE )

ORDER AMENDING CONCLUSIONS OF LAW

THIS MATTER having come before the Board upon its own motion, after consideration of a Motion for Reconsideration filed by the Wyoming Department of Revenue; the Board having discovered an error in one paragraph of its original opinion in this case, issued on December 19, 2001; and the Board being otherwise fully advised in the premises;

IT IS ORDERED that Paragraph 70 of the Conclusions of Law is hereby amended to change the word "constructive," in the third sentence of the paragraph, to "actual," so that the paragraph will now read:

70. Based on the evidence presented, we find a distinction, for tax purposes, between ballast purchased for construction projects, and ballast purchased for maintenance. Construction ballast purchased under the Amendment to the Ballast Sales Agreement is not subject to sales tax. Pursuant to the Amendment, title and actual possession of the ballast passes to Petitioner at specified destinations, not at the quarry in Laramie County, Wyoming. Petitioner's transportation of this ballast by regular rail car is as a common carrier pursuant to the Rail Transportation Contract. Thus, the purchases of this ballast does not occur in Wyoming, and no sales tax is due. However, Petitioner must pay use tax at the time and place where the construction ballast is first used.

THIS SPACE INTENTIONALLY LEFT BLANK

IT IS FURTHER ORDERED that in all situations in which the Board's decision is printed, published, stored by whatever means, or otherwise made available for review, the corrected paragraph 70 as set forth above shall be inserted in the document in lieu of the original paragraph.

DATED this 26^th day of March, 2002.

STATE BOARD OF EQUALIZATION

Edmund J. Schmidt, Chairman

Roberta A. Coates, Vice Chairman

Sylvia Lee Hackl, Member

ATTEST:

Wendy J. Soto, Executive Secretary