BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, )
v. ) INFORMAL DECISION
AUDITING
DIVISION OF THE ) Appeal No. 87-0415
STATE TAX
COMMISSION OF UTAH, )
Respondent. )
_____________________________________
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.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner