86-0215 - Cigarette Stamps

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0215

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Informal Hearing on XXXXX. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX appeared representing the Petitioner.

The Petitioner argued that it had purchased certain quantities of cigarettes from the XXXXX. XXXXX had problems with its stamping machine in which it did not properly ink packages of cigarettes. It would appear that the tax had not been paid on the packages of cigarettes. The cigarettes were confiscated and a penalty was assessed against the Petitioner.

The Petitioner presented evidence by way of a certification of delivery of cigarettes and payment of cigarette tax and that the XXXXX had distributed the cigarettes and the sales tax had been paid.

Based on the foregoing, the Petitioner has requested that the penalty assessed be waived.

FINDINGS

The Petitioner has the duty to make certain that a stamp has been properly affixed on each package of cigarettes and cancelled before Petitioner offers the package for sale. The Petitioner could have simply and quickly verified whether the ten packages in question had been properly stamped. The Petitioner was negligent by not checking for the stamps.

DECISION AND ORDER

Based upon the foregoing, it is the Decision and Order that the request for waiver of penalty on account No. XXXXX be denied.

The assessment of penalty by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 7 day of October of 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis *

Commissioner Commissioner