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