87-0934 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

            Petitioner,                                                         :

v.                                                                                 :           INFORMAL DECISION

AUDITING DIVISION OF THE                                :           Appeal No. 87-0934

STATE TAX COMMISSION OF UTAH,                  )

            Respondent.                                                     :

_____________________________________

STATEMENT OF CASE

            This is an appeal to the Utah State Tax Commission from an assessment by the Auditing Division of the Utah State Tax Commission (Respondent) of tax, penalty and interest on the XXXXX purchase of a XXXXX. Petitioner did not request an oral hearing.  The Tax Commission decides this matter based on the materials in the files.  Petitioner stated that although he moved to Utah in the summer of XXXXX, because he is part owner of a firm in Utah, he is also part owner in a firm in XXXXX, and in a firm in XXXXX, and that he, therefore, maintains residency in XXXXX.  Petitioner stated that a majority of his time is spent in XXXXX.  Petitioner stated that the vehicle is not used in the state of Utah except to have it serviced.  There is no XXXXX dealer for Ferraris.

            Respondent stated that the subject vehicle was purchased from XXXXX in XXXXX but that it is registered in the XXXXX to Petitioner's business address in Utah.  Respondent assessed the tax, a 100% penalty, and interest on the purchase of a vehicle.  The Tax Commission finds the record to be very brief in this matter.  It is not apparent from the record that Petitioner is a resident of Utah for motor vehicle registration purposes pursuant to Tax Commission Rule R873-O1V.  Petitioner stated "I moved to Utah in the summer of XXXXX" but this was approximately one year after the purchase of the vehicle.  Although Petitioner is engaging in business in the State of Utah and does, in fact, return the vehicle to Utah on occasion, no evidence has been presented which would establish that the vehicle is in Utah other than for service.

            The Tax Commission finds insufficient evidence on which to establish fraud in this matter or that Petitioner was a resident of Utah for motor vehicle registration purposes at the time of purchase of the vehicle or shortly thereafter.  The execution of a nonresident affidavit does not forever bar a purchaser from bringing the vehicle back to Utah, especially if it is later only occasionally used in Utah.

FINDINGS

            Based on 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 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