BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX,
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
v. :
: Appeal No.
90-1574
COLLECTION
DIVISION OF THE :
STATE TAX
COMMISSION OF UTAH, ) Serial No. XXXXX
:
Respondent. :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the Commission. XXXXX, Petitioner, represented himself. XXXXX, Assistant Utah Attorney General,
represented Respondent Collection Division.
Based
upon the evidence presented at the hearing, the Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is illegal drug stamp
tax.
2. The period in question is XXXXX.
3. Petitioner was arrested on XXXXX and charged
with two counts of possession of a controlled substance with intent to
distribute, one count of possession of cocaine without tax stamps affixed, one
count of unlawful possession of marijuana, and one count of distribution of a
controlled substance.
4. Pursuant to a plea bargain, Petitioner pled
guilty to one count of possession of a controlled substance and one count of
possession of cocaine without tax stamps affixed. His guilty pleas were accepted by the court.
5. On XXXXX, Respondent assessed Petitioner with
illegal drug stamp tax and penalty totalling $$$$$, based upon his possession
of XXXXX grams of XXXXX and XXXXX grams of XXXXX.
6. On XXXXX, Respondent amended its assessment
against Petitioner by reducing the amount of the assessment of tax and penalty
to $$$$$, based upon Petitioner's possession of XXXXX grams of cocaine.
CONCLUSIONS OF LAW
The
Utah Illegal Drug Stamp Tax Act imposes a tax of $$$$$ per gram on certain
controlled substances, including XXXXX.
(Utah Code Ann. §59-19-102(1).)
A
dealer may not possess any controlled substance upon which a tax is imposed by
Title 59, Chapter 19, Utah Code Ann., unless the tax has been paid on the
controlled substance as evidenced by a stamp or other official indicia. (Utah Code Ann. §59-19-1004(2).)
"Dealer"
means any person who, in violation of Utah law, manufactures, produces, ships,
transports, or imports into Utah or in any manner acquires or possesses more
than 42 1/2 grams of marijuana or seven or more grams of any controlled substance. (Utah Code Ann. §59-19-102(2).)
Any
dealer violating the provisions of the Illegal Drug Stamp Tax Act is subject to
a penalty of 100% of the tax, in addition to the tax itself. (Utah Code Ann. §59-19-106.)
DECISION AND ORDER
Petitioner's
appeal of his drug stamp tax assessment comes before the Commission after the
companion criminal case has been concluded.
In that criminal proceeding, Petitioner entered a guilty plea to
criminal violation of the Illegal Drug Tax Stamp Act, in particular, possession
of XXXXX without tax stamps affixed. In
entering his guilty plea to that charge, Petitioner necessarily admitted his
unlawful possession of at least XXXXX grams of XXXXX, without having purchased
and affixed the required drug stamps.
Under
the principle of collateral estoppel, Petitioner's guilty plea and admissions
in the criminal court are binding upon him in this tax proceeding before the
Commission. The Commission therefore
affirms Respondent's assessment of tax and penalty in this matter, as set forth
in its amended assessment dated XXXXX.
It is so ordered.
Dated
this 22 day of April, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner