BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
AUDITING DIVISION OF THE : Appeal No. 87-1023
STATE TAX COMMISSION OF UTAH, )
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.
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
Joe B. Pacheco G. Blaine Davis