BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
:
:
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
Respondent :
_____________________________________
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
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner