87-1078 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-1078

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

Respondent. :

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STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from a decision of the Collection Division of the Utah State Tax Commission (Respondent) to assess penalty and interest on sales and use tax account No. XXXXX for the XXXXX. An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.

Petitioner stated that its motel business has declined during the last three years because of the overbuilding of newer motels in XXXXX Utah. Petitioner has had to remodel and modernize the motel, including the heating system and the roof, in order to compete. Petitioner stated that she was told by a Tax Commission employee that if the taxes were paid, penalty and interest would probably be waived. Petitioner requests a waiver of penalty and interest.

FINDINGS

Petitioner had the burden of proof to establish that Respondent assessed penalty and interest in error. Petitioner failed to meet this burden of proof. Petitioner was, in fact, delinquent in the payment of sales and use tax, and subsequently incurred penalty and interest as authorized by statute.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest on sales and use tax account No. XXXXX be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 26 day of October, 1987.

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