BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
AUDITING
DIVISION OF THE : Appeal No. 87-1043
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 lives in XXXXX, Utah, but that he maintains a full time
residence XXXXX where he operates a XXXXX acre farm. Petitioner stated that he purchased the subject vehicle for use
on the farm, and that he registered the vehicle in XXXXX. Petitioner stated that he uses the vehicle
more than 75% of the time in XXXXX and that he believed in good faith that this
purchase qualified as a sale to a nonresident.
Petitioner asserted that the obligation to collect the tax is on the
vendor, not the Petitioner. Petitioner
further asserted that Respondent only had three years in which to assess the
deficiency pursuant to Utah Code Ann. §59-15-8 (1953), and that Respondent, in
fact, made the assessment beyond the statute of limitations.
Respondent
stated the Petitioner is a resident of Utah and note that Petitioner has had a
current Utah driver's license since XXXXX; that Petitioner has filed Utah
resident long form individual income tax returns since at least XXXXX; and that
Petitioner maintains his XXXXX practice in Utah. Respondent provided evidence of a nonresident affidavit executed
by Petitioner, which affidavit states that Petitioner is "a bona fide
nonresident of Utah, residing at XXXXX.
The affidavit further states that Petitioner is self employed when, in
fact, he is employed by the Utah cardiovascular surgical associates. Respondent
stated that although Petitioner certified in the affidavit that the vehicle
would not be used in Utah except as necessary to transport it to the borders, the
subject vehicle has been used in Utah more than the exemption allows. Respondent assessed a tax, a 100% fraud
penalty, and interest on the purchase of the vehicle.
FINDINGS
Petitioner
was a resident of Utah for motor vehicle registration services pursuant to
Motor Vehicle Registration No. XXXXX and was required to pay sales tax on the
purchase of the subject vehicle. The
execution of the nonresident affidavit by Petitioner subjected Petitioner to
liability for the collection of the tax in the event that the non-resident
affidavit proved to invalid. The
affidavit is, in fact, invalid.
Petitioner is liable for the full amount of the tax, penalty, and
interest.
Respondent
is not barred by the statute of limitations from assessing the deficiency. There is no statute of limitations in the
event of fraud. Utah Code Ann. §59-15-8
(1953).
DECISION AND ORDER
Based
on the foregoing, it is the Decision and Order of the Utah State Tax Commission
that Petitioner's request for abatement of the tax, penalty, and interest on
the purchase of the XXXXX be denied.
The
assessment of tax, penalty, and interest by the Auditing Division of the Utah
State Tax Commission is hereby affirmed.
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