BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
AUDITING DIVISION OF THE UTAH : Appeal No. 87-0963
STATE TAX COMMISSION, : Acct. No. XXXXX
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.
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
Joe B. Pacheco G. Blaine Davis