BEFORE THE UTAH STATE TAX COMMISSION
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
AUDITING DIVISION OF THE : Appeal No. 89-1367
UTAH STATE TAX COMMISSION :
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah Tax Commission for decision on the basis of stipulated facts submitted by the parties. Alan Hennebold, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX. Present and representing the Respondent was XXXXX of the Assistant Utah Attorney General.
Based upon the stipulated facts presented by the parties, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is sales tax.
2. The period in question is XXXXX.
3. On XXXXX, the Petitioner purchased a XXXXX Chevrolet Blazer from XXXXX in XXXXX, Utah for $$$$$. In connection with his purchase of the vehicle, the Petitioner completed a non-resident affidavit in which he stated that he resided and was employed in XXXXX, Idaho. The affidavit stated "if you work or engage in interstate business in Utah, this exemption does not apply." When asked on the affidavit to list his driver's license number, he submitted an Idaho driver's license.
4. Contrary to his statements on the non-resident affidavit, the Petitioner was actually employed in Utah by XXXXX at the time of his purchase of the vehicle and had filed Utah resident income tax returns for the previous six years. He also possessed a Utah driver's license.
5. On the basis of his non-resident affidavit, the Petitioner was permitted by XXXXX to purchase the vehicle in question without payment of Utah sales tax.
6. On the basis of the foregoing facts, Auditing Division concluded the Petitioner was a resident of Utah and that his purchase of the vehicle was subject to Utah sales tax. The Auditing Division assessed tax in the amount of $$$$$, together with interest and a penalty of XXXXX of the tax due, in the amount of $$$$$, on the grounds the Petitioner had intended to evade Utah sales tax.
CONCLUSIONS OF LAW
Utah Code Section 59-12-104(9) exempts from sales tax the purchase of vehicles to bona fide non-residents of this state if such vehicles are not thereafter registered or used in Utah except as necessary to transport them out of Utah.
Rule R873-22M-1 (Utah Administrative Code 1990-91) defines "resident" as, among other things, every person who is a legal resident of this state, every person employed in the state, and every person declaring himself to be a resident of the state.
DECISION AND ORDER
The Petitioner contends that he purchased the subject vehicle for his mother. He has submitted a loan agreement between his mother and an Idaho credit union which lists the vehicle in question as security for the loan. Such evidence is insufficient to prove the vehicle was purchased for Petitioner's mother. However, even if the vehicle ultimately came to be owned by her, the evidence is clear that the petitioner was a resident of Utah at the time he purchased the vehicle, that the non-resident affidavit informed him that he did not qualify for non-resident status and that he misrepresented his status on the non-resident affidavit to evade sales tax on the transaction.
Based upon the foregoing, the Tax Commission finds that the transaction in question was subject to Utah sales tax in the sum of $$$$$. The Commission further concludes that an additional penalty of XXXXX, in the amount of $$$$$, is properly assessed against Petitioner. The assessment of tax, penalty and interest is therefore affirmed. It is so ordered.
DATED this 17th day of September, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes