90-0126 - Motor Fuel

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 90-0126

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Joseph G. Linford, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is fuel tax.

2. The period in question is XXXXX.

3. The transaction which gave rise to the penalty and interest assessment in this case was an unusual one for Petitioner. It involved an unusually large purchase of fuel by Petitioner, which Petitioner held in storage until it could be used. Petitioner paid the eleven cent per gallon tax when Petitioner purchased the fuel rather than collecting the tax when Petitioner sold the fuel to Petitioner's customers. However, the audit subsequently performed by the Tax Commission showed that the eleven cent per gallon tax paid by Petitioner at the point of purchase was insufficient because a fourteen cent per gallon tax applied at the time Petitioner sold the fuel, which was on or after XXXXX, the statutory date upon which the new fourteen cent rate went into effect. An additional amount of tax was therefore imposed, plus penalty and interest. Petitioner has paid the tax and interest amounts and requests only a waiver of the penalty.

6. From the above, it appears that Petitioner was involved in this transaction during the time when the statute was changed from an eleven cent tax rate to a fourteen cent tax rate.

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 or payment of taxes.

2. Utah Code Ann. 59-1-401(8) provides that upon reasonable cause shown, the Commission may waive or reduce penalties and interest assessed under the above statutes.

3. The confusion caused by the intricacies of the purchase, delivery and storage at the same time a substantial change in the tax rate was taking affect shows reasonable cause for waiver of the penalty.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalty is granted.

DATED this 5 day of October, 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