87-1021 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

AUDITING DIVISION OF THE : Appeal No. 87-1021

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 a XXXXX. Petitioner did not request an oral hearing. Therefore the Tax Commission decides this matter based on the materials in the file.

Petitioner stated that he has lived in XXXXX since XXXXX but that he left his wife and children in Utah until the end of the XXXXX, school year. Petitioner stated that he had lost his driver's license and renewed his Utah driver's license in XXXXX, because he thought he needed it to obtain his license in XXXXX. Petitioner further stated that he signed and filed a Utah resident long form individual income tax return for the tax year XXXXX, giving the XXXXX, Utah address but that this was Petitioner's wife's address. Petitioner was employed in XXXXX at this time.

Respondent presented evidence of the XXXXX renewal of Petitioner's driver's license, three months after Petitioner stated he moved to XXXXX. Respondent also noted that Petitioner signed and filed a Utah resident long form individual income tax return on XXXXX, for the tax year XXXXX. Respondent noted that Petitioner and his wife had at least three children attending Utah public schools on a full time basis in the XXXXX school District until XXXXX. Respondent assessed a tax, 100% fraud penalty, and interest on the purchase of the XXXXX.

FINDINGS

The Tax Commission finds that Petitioner was a resident of Utah for motor vehicle registration purposes pursuant to Tax Commission Rule R873-O1V. Petitioner maintained a residence in Utah for the benefit of his wife and children and he placed his children in Utah Schools without paying nonresident tuition or fees. The Tax Commission hereby affirms the assessment of the tax and interest on the purchase of the subject vehicle.

The Tax Commission finds that Petitioner was negligent in failing to apprise himself of Utah Law before executing the non-resident affidavit. The Tax Commission, however, does not find that Petitioner was fraudulent in this matter.

DECISION AND ORDER

Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission to assess tax, a 10% negligence penalty, and interest on the purchase of the XXXXX.

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

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner