BEFORE THE STATE TAX COMMISSION
OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
AUDITING
DIVISION OF THE : Appeal No. 87-1023
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. Therefore, the Tax Commission decides this matter based on
materials in the file.
Petitioner stated that Respondent has only
had telephone conversations with XXXXX and that XXXXX has never talked to
Respondent. Petitioner stated that the
Utah Code concerning residency is irrelevant since Petitioner works and lives
in XXXXX. Petitioner stated that the
nonresident affidavit was not signed for the sole purpose of avoiding sales tax
and that Respondent has Łailed to prove actual usage of the trailer beyond the
borders of XXXXX. Petitioner has
enclosed a check for the original amount of the tax claim owed and stated that
acceptance of the same would constitute termination of the matter.
Respondent
noted that paragraph 4 of the Petition for Redetermination stated that "on
occasion our vehicles go into XXXXX." Respondent stated further that a
XXXXX has admitted pursuant to a phone conversation with Respondent that the
trailer has frequently been used in Utah.
XXXXX executed the nonresident affidavit on behalf of XXXXX.
FINDINGS
The Tax Commission finds that Utah law is
relevant concerning the determination oŁ residency for motor vehicle
registration purposes since the subject vehicle was sold to Petitioner in Utah
from a Utah dealer. The Tax Commission
further finds that pursuant to Tax Commission Rule R873-O1V, Petitioner was a
resident of Utah for motor vehicle registration purposes and was required to
remit sales tax to the state of Utah.
The
Tax Commission finds that Petitioner was negligent in executing a nonresident
affidavit, but does not find that Petitioner's actions rose to the level of
fraud. Therefore, the Tax Commission
assesses a 10% negligence penalty in lieu of the 100% fraud penalty.
DECISION AND ORDER
Based
on the foregoing, it is the Decision and order of the Utah State Tax Commission
that tax, a 10% negligence penalty, and interest is properly assessed on the
XXXXX purchase of a XXXXX by Petitioner.
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
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner