87-0126 - Special Fuel

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

            Petitioner,                                                         :           INFORMAL DECISION

v.                                                                                 :

                                                                                    :

COLLECTION DIVISION OF THE                          :           Appeal No. 87-0126

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 penalty and interest on special fuel tax account No. XXXXX for the XXXXX. 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 represented the Petitioner.  Petitioner stated that he paid the special fuel tax at the pump for the fuel purchased.  Petitioner was then contacted by the Tax Commission and told not to pay the tax at the pump, but to pay it directly to the Tax Commission.  Petitioner obtained a refund from the fuel distributors who then took a credit on their reports.  Once the Petitioner received the refund checks, he immediately paid the amount due to the Tax Commission.  Petitioner presented evidence of check No. XXXXX, made out to the Tax Commission in the amount of $$$$$.  Respondent's records indicate that a delinquency exists for the XXXXX.  For the XXXXX, Respondent determined a tax due of $$$$$, a %%%%% penalty of $$$$$, associated interest, and a credit of $$$$$ for a balance due of $$$$$.  For the XXXXX, Respondent determined a tax due of $$$$$, a %%%%% penalty of $$$$$, associated interest, and no credit for a balance due of $$$$$.  Petitioner requests a waiver of the penalty and interest.

FINDINGS

            Check No. XXXXX was received by Respondent and was applied to various quarters to satisfy the outstanding tax, penalty and interest $$$$$ was applied to the XXXXX, $$$$$ was applied to the XXXXX, $$$$$ was applied to the XXXXX, $$$$$ was applied to the XXXXX, and $$$$$ was applied to the XXXXX.  A %%%%% penalty was properly assessed on special fuel tax account No. XXXXX for the quarters in question.  Since XXXXX, special fuel users have been required to buy special fuel on a non-tax collected basis and pay the special fuel tax on a report basis.  Petitioner did not comply with this requirement. However, the Tax Commission, in its discretion, hereby waives the penalty because of Petitioner's prompt efforts in collecting the money from the suppliers and complying with the law.  The Utah State Tax Commission imposes interest on delinquent taxes because it has been denied the use of the money. In the present matter the Tax Commission was not denied the use of the money since the fuel distributors had paid the tax for the periods in question.  The Petitioner remitted the tax to the Tax Commission as soon as he received the refund from the fuel distributors.  Therefore, assessment of interest is not appropriate.

DECISION AND ORDER

            The Tax Commission hereby waives the penalty and interest assessed on special fuel tax account No. XXXXX for the period from the XXXXX through the XXXXX.  The Collection Division is directed to adjust its records in accordance with this decision.

            DATED this 5 day of October, 1987.

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