BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-1000
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a decision of the Collection
Division of the Utah State Tax Commission (Respondent) to assess penalty and interest
on sales and use tax account No. XXXXX for the audit period XXXXX. An Informal Hearing was held on XXXXX in the
offices of the Utah State Tax Commission.
David J. Angerhofer, Hearing Officer, heard the matter for the
Commission. XXXXX represented the
Petitioner.
Petitioner
stated that during the audit period in question he sold two cars to a
XXXXX. XXXXX provided Petitioner a tax
exempt number and signed an exemption certificate. Petitioner did not know at this time that the tax exempt number
was invalid, but only discovered this fact later on during the audit. Petitioner stated that he did not try to
avoid taxes and that he took the tax exempt number in good faith. Petitioner requests a waiver of the penalty
and interest.
FINDINGS
Sales
tax rule A12-02-S23 (e) states the following:
The burden of proving
that a sale is for resale or otherwise exempt shall be upon the person who
makes the sale. In any case, if upon
request of any member or agent of the tax commission the vendor fails to produce
a valid exemption certificate or other similar acceptable evidence in support
of the vendor's claim that a sale is for resale or otherwise exempt, the sale
will be considered taxable and the tax shall be payable by the vendor.
The
exemption certificate in this matter was not a valid exemption
certificate. Therefore the Petitioner
is liable for the tax and the corresponding penalty and interest. Petitioner exhibited good faith in accepting
the invalid tax exempt number.
Therefore, the Tax Commission hereby waives the penalty which has been
assessed. However, interest shall not
be waived. 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 penalty on
sales and use tax account No. XXXXX for the audit period XXXXX be waived. Interest shall remain as assessed. The Collection Division of the Utah State Tax
Commission is hereby ordered to adjust its records in accordance with this decision.
DATED
this 15 day of October, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner