BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
AUDITING DIVISION OF THE : Appeal No. 87-1043
STATE TAX COMMISSION OF UTAH, )
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.
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
Joe B. Pacheco G. Blaine Davis