87-1175 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 87-1175

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

Respondent. :

_____________________________________

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 audit period 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 he moved to Utah from XXXXX five years ago and set up a showroom in XXXXX, Utah to sell appliances. Since he was unfamiliar with the procedure in Utah, he called the Tax Commission to learn the proper procedures. He was told that built-in appliances were part of real property and were not taxable, but that appliances such as refrigerators which had not become part of real property were taxable.

FINDINGS

Respondent properly assessed penalty and interest in this matter. However, due to the fact that Petitioner has exhibited good faith in attempting to comply with the regulations,i.e., inquiring of the Tax Commission in XXXXX as to the proper procedures, and further relying on the advice of a Tax Commission employee to pay tax and interest as payment in full, the Tax Commission, in its discretion, hereby reduces the penalty to $$$$$.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that penalty on sales and use tax account, No. XXXXX for the audit period XXXXX, be reduced to $$$$$. The Collection Division of the Utah State Tax Commission is hereby directed to adjust its records in accordance with this decision.

DATED this 9 day of December, 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