BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW
v. : AND FINAL DECISION
:
: Appeal No.
89-1235
COLLECTION
DIVISION OF THE :
UTAH STATE TAX COMMISSION :
: Account
No. XXXXX
Respondent :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Utah
Administrative Procedures Act for a formal hearing on XXXXX, before Joseph G.
Linford, Presiding Officer. Petitioner
was represented by XXXXX. No one
representing Respondent appeared.
After
reviewing the evidence and arguments of the parties in the record and the
recommendation of the presiding officer, the Tax Commission hereby makes its:
FINDINGS OF FACT
1.
The tax in question is sales and use tax.
2.
The period in question is XXXXX.
3.
During the period in question, Petitioner sold to XXXXX a car for which Mr.
XXXXX filled out a nonresident affidavit.
Although Petitioner asserts that Mr. XXXXX represented to them that the
automobile would be registered and used only in Oregon, the affidavit shows
that Mr. XXXXX's current employment at the time of the purchase was in Salt
Lake City, Utah. The affidavit also
said that Mr. XXXXX would be a temporary resident in Utah for approximately two
months.
4.
Petitioner has been advised previously by the Tax Commission that temporary
residence or employment within the state disqualifies a person from claiming
sales tax exemption.
CONCLUSIONS OF LAW
1.
Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall
be assessed for the late filing of sales taxes.
2.
Utah Code Ann. §59-1-401(8) provides that the Commission may, upon reasonable
cause shown, waive or reduce the penalties assessed under the above statutes.
3.
Such reasonable cause has not been shown in this case. Although there was no intent to defraud the
State of tax funds, it is a dealer's responsibility to ensure that those
claiming exemption are actually entitled to that exemption. A dealer should take substantially more care
than has been shown in this case to ensure that such an exemption does apply
before granting it.
DECISION AND ORDER
Based
on the foregoing, it is the decision and order of the Utah State Tax Commission
that Petitioner's request for waiver of penalty be denied.
DATED
this 17th day of May, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner