87-1103 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

COLLECTION DIVISION, :

Petitioner, : INFORMAL DECISION

: SALES TAX LICENSE

v. : REVOCATION

CARBURETOR CALIBRATION, INC., ) Appeal No. 87-1103

Respondent. : Sales Tax No. XXXXX

_____________________________________

STATEMENT OF CASE

This is a decision from an Informal Hearing regarding the sales tax license revocation of XXXXX (Respondent) requested by the Collection Division of the Utah State Tax Commission (Petitioner). The sales tax license revocation hearing was held on XXXXX in the offices of the Utah State Tax Commission. Jerry E. Larrabee, Tax Appeals Supervisor, and David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX, Tax Compliance Agent, represented the Petitioner. XXXXX represented the Respondent. Petitioner presented evidence of a sales and use tax liability in excess of $$$$$ for the periods XXXXX. Petitioner stated that a repayment schedule had been agreed upon in XXXXX in which Respondent was to make $$$$$ per month minimum payments, but that all checks but one have been returned for insufficient funds. Respondent agreed with what Petitioner said, but stated that the business is currently attempting to get certification as a minority business. If it gets this 8-A authorization then Petitioner will be entitled to be the prime contractor with the government for five years. Petitioner also stated that it would receive a $$$$$ loan contingent upon the minority certification and that it could pay the liability with this loan.

FINDINGS

1. Respondent was issued sales tax license No. $$$$$.

2. Respondent was responsible for the collection of sales taxes on the sale of goods and services and was required to remit these taxes to the State Tax Commission. Utah Code Ann. §59-12-107 (1953).

3. Respondent did not properly remit the full amount of sales tax collected each quarter.

4. The Utah State Tax Commission is vested with the authority to revoke the license of "any person violating any provisions of this chapter [Sales and Use Tax Act] . . . ." Utah Code Ann. §59-12-106 (1953).

DECISION AND ORDER

Based on the foregoing it is the Decision and Order of the Utah State Tax Commission:

1. That Respondent's sales tax license No. XXXXX is hereby revoked for failure to comply with the provisions of the Utah Sales and Use Tax Act, Utah Code Ann. §59-12-107 (1953).

2. That Respondent is ordered to close the doors of XXXXX to business and to deliver its sales tax license to the Utah State Tax Commission. Failure to comply to with this order may result in criminal prosecution being taken against the Respondent.

3. The revocation of Respondent's Sales Tax License is effective immediately unless the Respondent requests in writing, within three working days from receipt of this decision, that the Commission stay the execution of this order for thirty days provided the Respondent is able to prove that the following conditions have been met:

a. A bond has been posted in the amount of the tax, penalty, and interest that is currently delinquent and due. The bond must be in the form of a cashier's check, certificate of deposit, surety bond or cash; and

b. an account has been opened in a local financial institution by the end of the first banking day following receipt of this decision. The account must name the Respondent's company and the Utah State Tax Commission as co-owners. In addition, the Respondent must make weekly deposits into the account in the amount of the current accruing sales tax liability.

DATED this 1 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