BEFORE THE STATE TAX COMMISSION OF UTAH
Petitioner, : INFORMAL DECISION
AUDIT DIVISION OF THE : Appeal No. 87-1160
STATE TAX COMMISSION OF UTAH, ) Account No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission from an assessment of sales tax on two XXXXX, one XXXXX, and one 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 Tax Commission. XXXXX represented the Petitioner, XXXXX represented the Respondent. Petitioner stated that other vehicles were traded in on the two XXXXX and the XXXXX and that there are no sales taxes due on these vehicles. Petitioner stated that the XXXXX was an out-of-state sale and that an affidavit has been produced to that effect. Petitioner initially stated that the Respondent made erroneous assumptions as to where the sales were made in determining the difference between XXXXX and XXXXX local tax rates, but stated at the hearing that this was a non-issue. Respondent stated that the two XXXXX were purchased from the XXXXX to be sold to XXXXX. The vehicles which had previously been traded in to the Petitioner did not qualify as trade-ins pursuant to Tax Commission Rule R865-72S. Because these vehicles had been turned in inventory two to four months prior to the purchase of the Lincolns, they did not qualify as trade-ins.
Two individuals turned in to the Petitioner, a XXXXX. These vehicles were turn in inventory two or three months prior to those individuals, purchasing two XXXXX from Petitioner. The evidence submitted by the Petitioner to support its contention that the vehicles turned into inventory were actually trade-ins on the XXXXX was not dated, incomplete and did not contain sufficient information to support the contentions of the Petitioners. Therefore, the Tax Commission finds that Petitioners failed to meet the burden of proof to establish that an actual exchange of tangible personal property occurred on any purchase of the automobiles in question.
DECISION AND ORDER
Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that the audit assessment prepared by the Auditing Division is affirmed.
DATED this 4 day of October, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis