SALES
86-0648
Signed 6/26/87
BEFORE
THE STATE TAX COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
AUDITING DIVISION OF THE : Appeal No. 86-0648
STATE TAX COMMISSION OF UTAH, ) Audit Period XXXXX
:
Respondent. )
_____________________________________
STATEMENT
OF CASE
This is an appeal to the
Utah State Tax Commission from a decision of the Auditing Division of the Utah
State Tax Commission (Respondent) to assess tax, penalty, and interest on the
purchase by Petitioner of a 1986 Toyota 4X4 Pickup from XXXXX Toyota in XXXXX,
Utah. Petitioner filed a Petition for
Redetermination on XXXXX. Petitioner
then filed for Chapter 7 bankruptcy on XXXXX (Case No. XXXXX). The Chapter 7 was discharged on XXXXX, and
was closed on XXXXX. By letter dated
XXXXX, Jerry E. Larrabee, Tax Appeals Supervisor, gave Petitioner ten days in
which to request a hearing before the Tax Commission. Petitioner did not respond.
Therefore, the Tax Commission decides this matter based on the materials
in the file.
Petitioner stated that
he was advised by the dealership that he should license the vehicle in Idaho
because of his frequent traveling to and from Idaho. Petitioner requested a credit against the tax that he paid in
Idaho, $$$$$, which would leave a balance due of tax of $$$$$. Petitioner stated that he was willing to pay
the interest and a 10% penalty on the total amount due to Utah.
Respondent calculated a
tax due of $$$$$ (at 5.75%) on a tax base of $$$$$. Respondent assessed a 100% fraud penalty of $$$$$ and interest at
1% per month from XXXXX, to XXXXX, of $$$$$ for a total amount due of $$$$$.
FINDINGS
Petitioner executed a
nonresident affidavit on XXXXX, when he purchased the vehicle tax exempt from
XXXXX Toyota in XXXXX, Utah. Petitioner
stated on the affidavit that he was a nonresident of Utah residing at XXXXX,
Idaho. Petitioner, in fact, lives at
XXXXX in XXXXX, Utah, and is listed in the XXXXX telephone directory at that
address. Petitioner claimed residency
from XXXXX, through XXXXX, on a Utah part year resident individual income tax
return for XXXXX. This return indicated
that Petitioner's address was XXXXX XXXXX, Utah, and is dated XXXXX.
Petitioner's credit
application signed on XXXXX, lists his address as XXXXX, XXXXX, Utah XXXXX.
Petitioner further
stated on the nonresident affidavit that he has not been a resident of Utah
within the past 60 days. The Tax
Commission, however, finds that the Petitioner was a resident of Utah as of
XXXXX.
The Utah State Tax
Commission will not allow Petitioner to receive credit for the Idaho tax
paid. The tax was properly due to Utah,
and the Petitioner is required to remit the full $$$$$. Petitioner should seek a refund from Idaho
once the Utah tax is paid.
The Tax Commission finds
that Petitioner's actions have risen to the level of negligence. A l0% penalty is properly assessed on the
full amount of sales tax due to Utah.
Petitioner's actions, however, have not risen to the level of fraud.
DECISION
AND ORDER
It is the Decision and
Order of the Utah State Tax Commission that Petitioner's Petition for
Redetermination be denied. Petitioner
is liable for sales tax in the amount of $$$$$, a 10% penalty of $$$$$, and
interest assessed at 1% per month from XXXXX, to the date the account is
finally settled. Interest shall be
tolled during the period this matter was in bankruptcy.
The Auditing Division of
the Utah State Tax Commission is hereby ordered to adjust its records in
accordance with this decision.
DATED this 26 day of
June, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco G.
Blaine Davis
Commissioner Commissioner
^^