BEFORE THE UTAH STATE TAX COMMISSION
XXXXX ) FINDINGS OF FACT,
Petitioner, : CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
AUDITING DIVISION OF THE : Appeal No. 89-1935
UTAH STATE TAX COMMISSION, : Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission based on a stipulation of facts submitted by James Harward, representing the Petitioner, and XXXXX, Assistant Attorney General. Alan Hennebold, Presiding Officer, heard the matter for and on behalf of the Commission.
Based upon the parties' stipulation of facts and the documentary record in this matter, 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 automobile from XXXXX, located in Salt Lake City, Utah.
4. At the time he purchased the vehicle, the Petitioner executed a non-resident affidavit, stating therein that he was a resident of Colorado and had not lived in Utah during the previous sixty days. In fact, at the time of the transaction he resided in Utah, was employed in Utah, had a Utah driver's license and owned several vehicles registered in Utah. He had also filed resident income tax returns in Utah for the previous several years.
5. The Petitioner purchased the vehicle for his mother's use in Florida. The vehicle is now registered to the Petitioner and his mother in Florida.
6. Based on the foregoing information, the Respondent assessed sales tax in the amount of $$$$$ and a XXXXX penalty in the amount of $$$$$ on the grounds the Petitioner had intentionally disregarded the Utah Sales Tax Act in executing his non-resident affidavit and purchasing the vehicle without paying sales tax.
CONCLUSIONS OF LAW
Utah Code Section 59-12-104(9) exempts from sales tax the purchase of vehicles to bona fide non-residents of this state if such vehicles are not thereafter registered or used in Utah except as necessary to transport them out of Utah.
Rule R873-22m-1 (Utah Administrative Code 1990-91) defines "resident" as, among other things, every person who is a legal resident of this state, every person employed in the state, and every person declaring himself to be a resident of the state.
DECISION AND ORDER
While the Petitioner may have purchased the vehicle in question with the intention that it be used by his mother in Florida, the facts clearly remain that the vehicle was purchased in Utah by a resident of Utah. The transaction is therefore subject to sales tax. Had the Petitioner correctly completed the non-resident affidavit, the taxable nature of the transaction would have been apparent and the appropriate tax would have been collected by the dealer.
Based upon the foregoing, the Tax Commission affirms the determination of the Respondent assessing sales tax of $$$$$ and penalty of $$$$$ against the Petitioner. It is so.
DATED this 5th day of September, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes