88-2153 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner, :

:

v. : ORDER

AUDITING DIVISION OF THE :

UTAH STATE TAX COMMISSION, : Appeal No. 88-2153

:

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter comes before the Utah State Tax Commission upon a Petition for Reconsideration filed by the Petitioner dated XXXXX. This was filed as a result of the Commission's final decision dated XXXXX, which denied Petitioner's request in this case.

Petitioner states in his petition that he was "caught in the middle" because of a change in the law during the period of time with which this appeal is concerned. This change in the law made it impossible to register the boat in question in Petitioner's company name. Therefore, it had to be registered in Petitioner's personal name. The boat was sold to Petitioner from XXXXX under the assumption it would be resold by Petitioner and no sales tax was charged. Upon attempting to resell the boat, Petitioner found that he could not charge sales tax because under the new law, a used boat is not subject to sales tax. Therefore, Petitioner found himself liable for the unpaid sales tax on the purchase of the boat.

Based upon these facts, Petitioner requests that the Commission waive the penalties assessed in this case. Petitioner states that he is willing to pay the tax and interest amounts.

FINDINGS

1. Utah Administrative Rule R861-1A-5(P) provides that the Tax Commission may exercise its discretion in granting or denying a Petition for Reconsideration.

2. The Tax Commission finds that there is sufficient grounds alleged in the Petition For Reconsideration for granting the Petitioner's request and the penalty should be waived.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petition for Reconsideration be granted. The penalty amounts assessed in this case are waived upon Petitioner's payment of the tax and interest. The interest amounts are ordered to be recalculated to take into account the waiver of the penalty.

DATED this 20 day of June, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner