BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
AUDITING DIVISION OF THE : Appeal No. 86 1705
STATE TAX COMMISSION OF UTAH, )
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 of a XXXXX by 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 Commission. XXXXX and XXXXX represented themselves. XXXXX and XXXXX represented the Respondent.
Petitioner stated that he was offered a position in XXXXX, with the understanding that it was a ninety day trial period. Petitioner moved to Utah on XXXXX, to begin the job and did not know if he would remain. Petitioner stated that he did not think he was a resident until the ninety days had passed. Petitioner's wife frequently traveled back and forth between Utah and Montana to try to sell their Montana home. On XXXXX, Petitioner purchased the XXXXX for $$$$$ from XXXXX. XXXXX signed a nonresident affidavit while XXXXX signed other documents at the time of purchase.
Respondent assessed a sales tax of $$$$$, a 100% fraud penalty of $$$$$, and associated interest.
Utah sales tax was properly assessed on the purchase of the vehicle. Petitioner qualified as a resident at the time of purchase pursuant to Motor Vehicle Registration Rule A12-05-1.
Interest was properly assessed in this matter because the Utah State Tax Commission was denied the use of the money during the period in question.
There is not clear and convincing evidence of fraud in this matter; therefore, the 100% fraud penalty is not appropriate. However, Utah Code Ann. §59-15-8 (1953) authorizes a 10% penalty for "negligence or intentional disregard of authorized rules and regulations with knowledge thereof, but without intent to defraud...."
DECISION AND ORDER
It is the Decision and Order of the Utah State Tax Commission that Respondent properly assessed the tax and associated interest in this matter.
The Tax Commission hereby abates the 100% fraud penalty and imposes a 10% negligence penalty in its stead.
The Auditing Division is directed to adjust its books in accordance with this decision.
DATED this 20 day of March, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.