BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
AUDITING
DIVISION OF THE UTAH : Appeal No. 87-0963
STATE TAX COMMISSION, : Acct. No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a decision of the Auditing
Division of the Utah State Tax Commission (Respondent) to assess penalty and
interest on the purchase a XXXXX on XXXXX.
An Informal Hearing was held on XXXXX in the offices of the Utah State
Tax Commission. XXXXX, Hearing Officer,
heard the matter for the Commission.
XXXXX represented the Petitioner. XXXXX represented the Respondent.
Petitioner
stated that she grew up in XXXXX and that she was a student at XXXXX. Petitioner executed a nonresident affidavit
on XXXXX, believing herself to be an XXXXX resident for vehicle registration
purposes. Petitioner stated that she
relied upon the advice of her father-in-law, a XXXXX attorney. XXXXX told Petitioner that she could buy the
car in Utah and register it in XXXXX.
Respondent presented evidence that Petitioner did not meet the
qualifications for nonresidency and that Petitioner qualified as a resident of
Utah for tax purposes. The vehicle was
used in Utah from the time of acquisition until the time of disposal. Respondent asserted that Petitioner
registered the vehicle solely in her name to avoid the nexus with Utah which
would have occurred had her husband's name been included.
FINDINGS
The
Tax Commission finds that Petitioner was a resident of Utah for motor vehicle
registration purposes and was required to pay sales tax on the purchase of the
subject vehicle. Petitioner negligently
executed the nonresident affidavit to avoid the imposition of a sales tax. Petitioner's actions do not rise to the
level of fraud considering that she relied upon the faulty advice of an
attorney. The penalty for negligence is
"the greater of $50 or ten per cent of the total amount of the deficiency
. . . ." Utah Code Ann. §59-15-8
(1953). The greater of $50 or 10% of
the deficiency in the present matter is $50.
Interest shall remain as assessed.
The Tax Commission was denied the use of the money during the period of
delinquency.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner be
assessed a $50 penalty and associated interest on the purchase of the XXXXX on
XXXXX. Respondent is directed to adjust
its records in accordance with this decision.
DATED
this 11 day of December, 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