BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX )
XXXXX : ORDER ON MOTION TO
) RECONSIDER
AN INFORMAL
Petitioner : DECISION
)
v. : Appeal No. 85-0094
)
AUDITING
DIVISION OF THE :
UTAH STATE TAX
COMMISSION )
:
Respondent )
_____________________________________
STATEMENT OF CASE
An
Informal Decision was rendered on XXXXX.
Thereafter, the Petitioner appealed the Decision to a Formal
Hearing. However, the only issue which
was appealed was the penalty and interest which had been assessed by the
Auditing Division and which was affirmed by the Informal Decision. A Formal Hearing was held on XXXXX. James E. Harward, Hearing Officer and Joe B.
Pacheco, Commissioner, heard the matter for the Tax Commission. Petitioner was represented by XXXXX and
XXXXX. Respondent was represented by
XXXXX and XXXXX. At the outset it was
determined that the petition should be considered a motion to reconsider upon
the penalty and interest rather than treating the matter as a Formal
Hearing. Therefore, on motion of the
Hearing Officer, and not objection being raised by either Petitioner or
Respondent, the matter was converted to a Motion for Reconsideration of the
Decision of the Informal Hearing.
Thereafter, testimony and evidence was taken on the issue of penalty and
interest.
Evidence
was presented that XXXXX acted in good faith in the issue of collecting sales
tax from farmers for the purchases of certain items of equipment. Further evidence was presented that the
exemption itself was unclear and confusing.
The Respondent recommended that the penalty be waived because of the
gray area of the law and the good faith efforts of the Petitioner to take care
of the matter once it was called to his attention.
The
Petitioner further argued that since he did not collect the sales tax, he
didn't have the use of the money and therefore, should not be required to pay interest on money which was not
collected.
As
final matter, the Petitioner requested that the Auditing Division assist the
Petitioner in the collection of the sales tax from the farmers who did not pay
the sales tax.
DECISION AND ORDER
Based
upon the foregoing facts, it's the Tax Commission's Decision and Order that the
penalty assessed against the Petitioner be waived on the grounds that the
matters was, in fact, one of dispute and the Petitioner acted in good faith in
pursuing the matter as he did. The Tax
Commission is also persuaded that since the Petitioner did not, in fact,
collect the sales tax, he did not have the use of the money and therefore, the
interest will also be waived.
The
Tax Commission also directs the Auditing Division to assist the Petitioner in
the collection of the tax from farmers to the extent of giving information and
corroborating the proceedings to date of the Petitioner. However, the Auditing Division is not to
actively participate in the collection process or to be the collector.
DATED
this 12 day of March, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
Mark K.
Buchi Joe
B. Pacheco
Chairman Commissioner
ABSENT
R. H. Hansen Roger
O. Tew
Commissioner Commissioner