85-0039 SALES
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In the Matter
of: )
: DECISION
FROM SALES TAX
XXXXX ) REVOCATION HEARING
:
)
: Appeal No.
85-54-0039
Taxpayer. )
:
_____________________________________
This
is a decision regarding the sales tax license revocation of XXXXX and XXXXX,
dba XXXXX, XXXXX (hereinafter referred to as "Taxpayer"), requested
by the Collections Division of the Utah State Tax Commission (hereinafter
referred to as "Claimant").
A
sales tax revocation hearing was scheduled for XXXXX at the hour of 3:30 p.m.
in the office of the Utah State Tax Commission. XXXXX, Hearing Officer, heard the matter for the Utah State Tax
Commission. XXXXX appeared representing
the Taxpayer. XXXXX, Compliance Agent,
appeared and presented the arguments for the Claimant.
After
reviewing the evidence and the written documentation submitted, the Commission
makes the following determinations:
1.
Taxpayer was issued a sales tax license, No. XXXXX, for XXXXX. Such a license is valid until the vendor
"ceases to do business, changes his business address, or until the license
is revoked by the State Tax Commission." (Utah Code Ann. § 59-15-3 (1953,
as amended).
2.
Taxpayer was responsible for the collection of sales taxes on the sale of his
goods and services, Utah Code Ann. § 59-15-5(1) (1953, as amended). Taxpayer was required to hold the sales
taxes in "escrow" for the Utah State Tax Commission (although a
separate account was not required), and was required to remit the taxes to the
State Tax Commission. (Utah Code Ann. § 59-15-5(4) (1953, as amended). The sales taxes collected were expressly to
be used for profits, operating expenses, or any other use pertaining to the
business of Taxpayer. Taxpayer was
"deemed to be a person charged with the receipt, safekeeping, and transfer
of public moneys." (Utah Code Ann. § 59-15-5(1) (1953, as amended).
Sales
taxes are an addition to the price of a good or service over and above the
profit margin that a vendor has established.
These taxes do not alter the profits.
If the Taxpayer had not included the sales tax collected in its profit
margin, it would not have had any difficulty remitting the sales tax,
regardless of how much or how little was sold during the quarter.
3.
The sales tax collected is "due and payable to the State Tax Commission
quarterly on or before the thirtieth day of the month next succeeding each
calendar quarterly period . . .". (Utah Code Ann. § 59-15-5(4) (1953, as
amended).
4.
Taxpayer has failed to remit the sales taxes collected within the statutory
limitations for the tax periods since the issuance of Sales Tax license No.
XXXXX on XXXXX.
5.
The Taxpayer has failed to make full payment of the balance of the deficiency
in the sales tax monies collected by Taxpayer to the Commission for the period
at issue. The sales tax deficiency for
this period is in the amount of $$$$$.
6.
At the hearing, XXXXX made a decision setting forth certain criteria that the
Taxpayer was required to comply with in order to avoid the revocation of the
sales tax license. The Taxpayer was
informed by XXXXX that failure to satisfy all of the criteria would result in
the immediate revocation of the sales tax license. A letter dated XXXXX was mailed to the Taxpayer reiterating the
decision made by XXXXX.
7.
It has been brought to the attention of XXXXX and the Commission that the
Taxpayer has failed to comply with all of the criteria set forth at the XXXXX
hearing.
8.
There exists from the above facts a situation that substantially impairs the
ability of Taxpayer to pay the present deficiency, and thus the Claimant has
requested that, the sales tax license, No. XXXXX be revoked.
9.
The Utah State Tax Commission is vested with the authority to revoke the
license of "any person violating any provision of this Sales Tax Act . .
.". (Utah Code Ann. § 59-15-3 (1953, as amended). The only requirements are that the taxpayer
must be given reasonable notice and a hearing prior to the revocation Id. The taxpayer failed to appear at the hearing
that was scheduled due to the bankruptcy petition which was filed by taxpayer. In addition, Claimant has repeatedly mentioned
the possibility and imminence of revocation to the Taxpayer if the taxes
remained delinquent.
THEREFORE, IT IS HEREBY DECIDED:
1.
That Taxpayer was required to collect and remit sales taxes to the Utah State
Tax Commission during the period in which Taxpayer remained in business at his
present location.
2.
That Taxpayer collected, but failed to properly remit the sales taxes for
certain tax periods since the issuance of the Sales Tax license, No. XXXXX, on
XXXXX.
3.
That Taxpayer has been given adequate and sufficient notice within which to
comply with the Utah Sales Tax Act.
4.
That Taxpayer's sales tax license, No. XXXXX, is hereby revoked for failure to
comply with the provisions of the Utah Sales Tax Act, Utah Code Ann. §59-15-3.
5.
The revocation of Taxpayer's sales tax license is effective immediately, unless
the Taxpayer requests in writing, within 3 working days from receipt of this
decision, that the Commission stay the execution of this order for thirty (30)
days, provided the Taxpayer is able to prove that the following conditions have
been met:
a. A bond has been posted in the amount of the tax, penalty and
interest that is currently delinquent and due.
The bond must be in the form of a cashier's check, certificate of
deposit, surety bond, or cash: and
b. An account has been opened in a local financial institution by the
end of the first banking day following receipt of this decision. The account must name the Taxpayer's company
and the Utah State Tax Commission as co-owners. In addition, the Taxpayer must
make weekly deposits into the account in the amount of the current accruing
sales tax liability.
6.
That Taxpayer is ordered to close the doors of XXXXX to business and to deliver
its sales tax license to the Utah State Tax Commission. Failure to comply with this order may result
in criminal prosecution being taken against the Taxpayer.
DATED
this 16 day of May, 1985.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
Mark K.
Buchi Gary
C. Cornia
Chairman Commissioner
ABSENT
G. Ellswroth
Brunson Marthe
F. Dyner
Commissioner Commissioner