BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
AUDITING DIVISION OF THE ) Appeal No. 87-0415
STATE TAX COMMISSION OF UTAH, )
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission from an assessment of tax, penalty and interest by the Auditing Division of the Utah State Tax Commission (Respondent) on the XXXXX purchase of the XXXXX. Petitioner did not request an oral hearing. Therefore the Tax Commission decides his matter based on the materials in the file. Petitioner stated that he is a resident of XXXXX and has been since XXXXX. Petitioner only returned to Utah in XXXXX, in order for his wife to undergo surgery. Petitioner was required to come to Utah four weeks prior to the surgery for preparation and to stay four to six weeks after surgery for post operative care. Therefore, Petitioner rented an apartment because a motel was too expensive. Petitioner requests a waiver of tax, penalty and interest. Respondent assessed a use tax, a 10% negligence penalty, and interest on the purchase of the vehicle in XXXXX. Respondent noted that Petitioner leased a place of residence in XXXXX, and that this alone is sufficient to qualify him as a resident for motor vehicle purposes. Respondent further noted that the vehicle was used in Utah less than 90 days after the purchase.
Tax Commission Rule R873-01V(3) states that a resident includes:
any person, except a tourist temporarily within this state, or a student covered under Rule R873-04V, who owns, leases, or rents a residence or a place of business within this state, or occupies or permits to be occupied, a Utah residence or place of business. The Tax Commission finds that Petitioner's nexus with the State of Utah is a very tenuous one. While Petitioner technically was not a tourist temporarily within the State of Utah but instead was a person who rented a residence in Utah, the Tax Commission finds that Rule R873-01V was not intended to define a person temporarily within the borders of Utah for medical reasons as a resident of Utah. Petitioner resided in Utah less than three months and did so only for medical reasons. The Tax Commission finds that Petitioner was not a resident of Utah and was not therefore subject to Utah Sales and Use Tax Act.
DECISION AND ORDER
Based upon the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of tax, penalty and interest on the XXXXX purchase of a XXXXX be granted. The Auditing Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.
DATED this 8 day of January, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis