BEFORE THE STATE TAX COMMISSION
OF UTAH
_____________________________________
XXXXX
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0226
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an Appeal to the Utah State Tax Commission from a decision of the Collection
Division of the Utah State Tax Commission (Respondent) to assess a penalty on
Account No. XXXXX. An Informal Hearing
was held on XXXXX, in the offices of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the
matter for the Commission. XXXXX
represented the Petitioner.
At
the request of the Tax Commission, the Moab city police picked up 286 packages
of cigarettes in Petitioner's store which did not have a Utah cigarette tax
stamp affixed as required by Utah law.
One week later, when the Tax Commission auditors checked the store
again, an additional 23 packages of improperly stamped cigarettes were
confiscated. Some confiscated packages
had Idaho stamps and some were unstamped.
Respondent
assessed a $$$$$ per package penalty in the amount of $$$$$. Utah Code Ann. § 59-18-5(1953) provides for a penalty of $$$$$ for each offense
and each unstamped package is a separate offense. Petitioner stated that all cigarettes are purchased in cartons
from XXXXX. A letter from XXXXX dated
XXXXX, states that the cigarettes were not properly stamped due to human error
and that this was the first incident which XXXXX had experienced.
FINDING OF FACTS
Petitioner
has the duty to make certain that a stamp is properly affixed to each package
of cigarette and cancelled before Petitioner offers the package for sale. Petitioner could have easily and quickly
verified whether the 286 packages that were initially confiscated were properly
stamped. Petitioner was negligent in
not verifying that the packages were stamped.
Petitioner
was put on notice, once the 286 packages were confiscated, that a problem with
the stamping existed. Petitioner was
negligent in allowing an additional 23 packages to be placed on the shelves one
week later.
DECISION AND ORDER
It
is the decision and order of the Utah State Tax Commission that the request for
waiver of penalty on account No. XXXXX be denied.
The
assessment of $$$$$ in penalty by the Collection Division of the Utah State Tax
Commission is hereby affirmed.
DATED
this 15 day of October, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis *
Commissioner Commissioner