88-0652 - Insurance Premiums

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : FINDINGS OF FACT,

: CONCLUSIONS OF LAW &

: FINAL DECISION

AUDIT DIVISION OF THE : Appeal No. 88-0652

STATE TAX COMMISSION OF UTAH, )

Respondent. :

_____________________________________

STATEMENT OF CASE

A prehearing conference was scheduled for XXXXX in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented himself. During the course of the prehearing conference the hearing officer converted the proceeding to a formal hearing.

Petitioner owns a XXXXX and uses it twice a year to pull a hay wagon. Petitioner stated that in XXXXX or XXXXX of every year he uses the vehicle one or two days and in XXXXX or XXXXX of every year he uses the vehicle for one or two days. The use of vehicle does not exceed ten days per year. Petitioner stated that the insurance audits required by Utah Code Ann. §41-12a-702 denied Petitioner the free use and enjoyment of his personal property. The requirement of maintaining insurance during the full period of registration even though the Petitioner uses the vehicle less than ten days a year works an economic hardship on Petitioner. The Petitioner assured the hearing officer that the vehicle would be insured in every instance that it was operated on the highways and requested that the vehicle be exempt from the insurance audits. Petitioner stated that he was willing to sign a statement of responsibility.

FINDINGS OF FACT

To fulfill the purposes for which Petitioner intends to use the vehicle, the vehicle must be operated on public highways.

CONCLUSIONS OF LAW

Owner's or operator's security is required throughout the registration period of the motor vehicle pursuant to Utah Code Ann. §41-12a-301 (1953). The XXXXX is a motor vehicle pursuant to Section 41-1-l(s) and is subject to registration pursuant to Section 41-1-127. The subject vehicle does not qualify for an exemption from the owner's or operator's security requirement as set forth in Section 41-12a-301(5) or in Section 41-12a-701.

Owner's or operator's security is not required for a vehicle which is not registered and which is not operated. Section 41-12a-701(2)(e). If Petitioner wishes to discontinue insurance coverage on the subject vehicle prior to the expiration of the registration then Petitioner must return the license plates to the Division of Motor Vehicles of the State Tax Commission. Section 41-12a-704.

Petitioner must either maintain insurance for the full period of registration of the subject vehicle or return the license plates to the Division of Motor Vehicles if insurance coverage is canceled prior to the expiration of the license plates.

FINAL DECISION

Based on the foregoing, the Utah State Tax Commission hereby denies Petitioner's request for agency action. Petitioner must maintain adequate insurance coverage on the subject vehicle during the period of registration, or must return the unexpired license plates to the Division of Motor Vehicles.

DATED this 4 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