86-0317 - Cigarette Stamps

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0317

STATE TAX COMMISSION OF UTAH, )

:

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 $$$$$ per pack penalty on fourteen packages of unstamped cigarettes confiscated from XXXXX (Petitioner).

An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

Petitioner stated that he had no notice of any duty to check for the cigarette stamps, and that had he been aware of this duty, he would have returned all unstamped cigarettes to the distributor. Petitioner stated that he pays the tax each time he buys the cigarettes from the distributor.

Respondent seized fourteen packages of unstamped cigarettes from Petitioner's store and assessed a penalty of $$$$$ per package pursuant to Utah Code Ann. § 59-18-5 (1953). Petitioner does not dispute that the packages were unstamped.

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

It is the Decision and Order of the Utah State Tax Commission that the penalty assessed against XXXXX be 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