BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX )
:
Petitioner, )
: DECISION
FROM
V. ) INFORMAL HEARING
:
DEPARTMENT OF
MOTOR VEHICLES )
PRORATE
DIVISION, : Appeal No. 85-0059
)
Respondent :
)
_____________________________________
This
is an appeal to the Utah State Tax Commission from a decision by the Department
of Motor Vehicles (DMV) to assess penalties on checks issued for vehicle
registrations which were returned for insufficient funds. XXXXX, and XXXXX (Petitioner) issued the
checks.
The
Informal Hearing was held on XXXXX, in the offices of the Utah State Tax
Commission. Roger O. Tew, Commissioner,
heard the matter for the Commission, XXXXX, Attorney at Law, represented the
Petitioner. XXXXX, Assistant Attorney
General, represented the DMV.
Based
on the evidence and the recommendation of the Hearing Officer, the Commission
makes the following determinations:
1. In XXXXX and XXXXX, the DMV allowed the
Petitioners to exchange the returned checks for certified funds or other
payment without assessing any penalties.
2 The DMV notified the Petitioner in XXXXX,
that Petitioner's checks issued for vehicle registrations were returned for
insufficient funds and that the Commission would assess $$$$$ in penalties to
the Petitioners for having operated the vehicle or vehicles upon the public
highways of Utah without having paid the registration fees. No other demand was made by the Commission
prior to assessment of the penalty. In
XXXXX, Petitioners offered to exchange the return checks for certified funds,
but the DMV refused to accept the Petitioner's offer.
3. Petitioner asserts (a) that the DMV did not
give reasonable notice before the assessment of penalties; (b) the DMV violates
the constitutional guarantee to equal protection by permitting other persons to
obtain a temporary permit to operate their vehicle upon the public highways for
up to 60 days without payment of registration fees but assessing Petitioner
penalties for operating vehicles on public highways without paying the
registration fees "due to an alleged accounting misunderstanding";
(c) because of the DMV's prior practice, the DMV is estopped from assessing a
penalty without giving the Petitioner the opportunity to correct.
4. No reasonable notice is required to assess
penalties under Utah Code Ann. § 41-1-134.
Reasonable notice and demand is required to suspend or revoke
registration § 41-1-124(d), but is not required for the DMV to determine that
the required fee has not been paid. An
official suspension or revocation of registration is not required under §
41-1-134 in order for the DMV to assess a penalty. It is enough that the Petitioner not have his registration
suspended or revoked under § 41-1-124 (d), but was assessed a penalty under §
41-1-134, no notice was required.
5. There is not violation of equal
protection. "Equal protection
protects against discrimination within a class." State Tax Commission vs. Department of Finance, 576 P2d
1297, 1298, Utah 1978. Petitioner, who
is required to pay registration fees, is not in the same class with persons
receiving temporary permits.
6. The DMV is not estopped from assessing a
penalty without first giving the Petitioner an opportunity to correct. The courts are "most reluctant to find
an estoppel where the state is acting in its taxing capacity and for the
enforcement and collection of taxes...". Wasems Inc. vs. State of
Washington, 385, P2d, 530, 531 (Washington 1963). The DMV was acting in its taxing capacity by assessing a
penalty. A penalty insures the prompt
collection of taxes. "The doctrine
of equitable estoppel does so to operate in favor of one who has knowledge of
the essential facts, or who has convenient and available means of obtaining
such knowledge". Morgan vs.
Board of State Lands, 549 P2d, 695, 697 (Utah 1976) Footnote 4 [Citing Wichita
Federal Savings & Loan Assoc. vs. Jones 130 P2d 556 1942]. Even if Petitioner did not have actual
knowledge of the possible penalties under § 41-1-134, knowledge to the statute
was easily accessible to Petitioner.
DECISION
Based
on the determinations that no notice is required under § 41-1-134 for the
assessment of a penalty, that there is no violation of equal protection, and
that the DMV is not estopped from assessing a penalty, the Commission hereby
decides that the penalties assessed to petitioners are valid. The Petition is denied.
DATED
this 28 day of January, 1986.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
Mark K.
Buchi Joe
B. Pacheco *
Chairman Commissioner
R. H. Hansen Roger
O. Tew
Commissioner Commissioner