BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
AUDITING
DIVISION OF THE : Appeal No. 88-0156
UTAH STATE TAX COMMISSION, :
Respondent. :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for an informal hearing on the
XXXXX. James E. Harward, Hearing
Officer, heard the matter for and in behalf of the Tax Commission. XXXXX, XXXXX, XXXXX, and XXXXX all appeared
representing the Petitioner. XXXXX
appeared representing the Respondent.
The
hearing was commenced, evidence was taken, and recess was called for the purpose
of reviewing evidence and arriving at a stipulation as to those matters which
could be agreed upon between the parties.
At the recommencement of the hearing the parties entered into a
stipulation whereby all issues are resolved except for five transactions
involving the XXXXX.
XXXXX
submits a published list of repossessed of available mobile homes to the
Petitioner. The Petitioner then acts as
an agent for the sale of those mobile homes.
The Petitioner is then given a commission for sending the purchaser to
XXXXX upon the consummation of the sale.
XXXXX handles all the disbursement of monies received from the sales of
the mobile homes.
The
Respondent argues that since the Petitioner is listed on the transaction as the
dealer, then he is responsible for the collection and payment of the sales
tax. Respondent argues that since it
was not part of the arrangement and did have any control over the funds or
disposition of the funds, they are not responsible for the collection and
payment of the sales tax.
DECISION AND ORDER
The
Tax Commission has reviewed the files and the records of the Tax Commission to
determine whether or not XXXXX has a sales tax number and has filed
returns. No records exist of such
transaction occurring or of a license being issued to XXXXX. The Tax Commission is under the
responsibility of collecting sales tax.
As an extension of that responsibility, licensed and bonded dealers are
required to collect sales tax on any transactions with which they
associate. The Petitioner is a licensed
and bonded dealer which participated in transactions whereby sales tax was
required to be collected. Sales tax
was, in fact, collected. It appears
that sales tax was collected by XXXXX, however, was not distributed through the
dealer. Since the dealer has the
ultimate responsibility to the Tax Commission for the collection and payment of
that sales tax, that dealer is therefore responsible. Based upon this reasoning, the Tax Commission has no other alternative
but to affirm the assessment on the five transactions involving sales of mobile
homes of XXXXX whereby the Petitioner acted as the dealer and received a
commission for the sale of the mobile homes.
However, the Tax Commission encourages Petitioner to seek recourse
against XXXXX for reimbursement of the tax collected but not paid.
DATED
this 11 day of October, 1988.
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