90-1118 - Special Fuel

 

BEFORE THE UTAH STATE TAX COMMISSION

______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 90-1118

: Account No. XXXXX

_____________________________________

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 was 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 special fuel tax.

2. The period in question is the audit period XXXXX through XXXXX.

3. On XXXXX, Petitioner purchased XXXXX. This purchase included fuel storage tanks for diesel and propane fuel. Petitioner then began to purchase these fuels from local wholesale distributors. Petitioner states that it was never asked by these distributors to furnish a special fuel user permit number. Petitioner was unaware it was responsible for paying this tax and was under the assumption it was paying taxes to the companies who were selling it the fuel. Petitioner discovered the error in early XXXXX when it received a letter from XXXXX, asking Petitioner to supply XXXXX with a special fuel user number. Upon realizing that such a permit was needed, Petitioner immediately applied for the same, and has since paid the tax on a timely basis.

4. During the audit, Petitioner was informed that a special propane exemption sticker which would relieve Petitioner of the payment of tax on propane was available. Petitioner immediately purchased these stickers for XXXXX.

Before this time it had not been aware that such an exemption sticker was available. Petitioner states that part of the penalty assessed in this case is assessed on tax for the propane which it would not have had to pay if it had been aware of the exemption stickers.

5. Based upon the foregoing, Petitioner requests that the penalty and interest imposed in this case be waived.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. 59--1-401(8).)

DECISION AND ORDER

It is the Petitioner's responsibility in all cases to be aware of taxes owed and to be aware of exemptions to those taxes. Petitioner operated on assumptions in this case and apparently made little or no effort to adequately research tax requirements relative to its operations.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the period XXXXX to XXXXX. It is so ordered.

DATED this 6 day of February, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner