87-0107 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

v. :

AUDITING DIVISION OF THE : Appeal No. 87-0107

STATE TAX COMMISSION OF UTAH, )

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Informal Hearing on the XXXXX. James E. Harward, Hearing Officer, heard the matter for and on behalf of the Tax Commission. XXXXX appeared representing the Petitioner. XXXXX appeared representing the Respondent. Petitioner presented evidence that the purchaser of the XXXXX in XXXXX on the XXXXX was made by a bonafide non-resident claiming that XXXXX has moved from the state approximately XXXXX and established residency in XXXXX. Petitioner further argued that since his job requires substantial amounts of moving that he maintains his XXXXX address for the purposes of receiving mail. The XXXXX address is the home residence of his mother, XXXXX. For the XXXXX tax year the Petitioner paid income tax to the state of XXXXX. After the vehicle was purchased and warranty work was completed the vehicle was taken out of the state of Utah and has not been brought back in. Any trips that the Petitioner makes back to the state of Utah for employment purposes is done by airplane and rental vehicle. Petitioner has a Utah driver's license currently in affect and still operates a vehicle under the Utah driver's license. The Respondent argues that the Petitioner is granted a privilege not ordinarily given to a non-resident i.e. he has a Utah driver's license and therefore is subject to the sales tax laws of the state of Utah. Further, the Respondent argues that since the non-resident affidavit is technically incorrect.

DECISION AND ORDER

1. The Tax Commission after reviewing the facts and evidence find the following facts to be relevant in arriving in its conclusion: All sales of tangible personal property within the state of Utah are subject to sales tax.

2. Only certain transactions or items of tangible personal property are exempt from sales tax.

3. A sale of a motor vehicle of the type normally registered under the laws of the state of Utah to a bonafide non-resident is exempt from the sales tax provision of the Utah Code, State of Utah. Petitioner was a bona fide non resident of the Based upon these conclusions, the Tax Commission grants the request of the Petitioner. Petitioner is not obligated for sales tax on the purchase of a XXXXX.

DATED this 29 day of April, 1988.

R. H. Hansen G. Blaine Davis

Chairman Commissioner

Joe B. Pacheco Roger O. Tew

Commissioner Commissioner