90-2421 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

:

: Appeal No. 90-2421

: 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 sales tax.

2. The period in question is XXXXX.

3. During the period in question, the Petitioner purchased a new XXXXX from XXXXX for use in Petitioner's business in XXXXX. The vehicle was not used in Utah except to drive it to the borders of the state, and since its purchase it has been used exclusively in XXXXX for Petitioner's business activities. Petitioner, therefore, licensed the vehicle in XXXXX.

4. At the time of the purchase, Petitioner signed a nonresident affidavit under the assumption that the Utah sales tax would not be due since the truck was to be used solely in XXXXX. Petitioner admitted that he is a resident of the state of Utah and now acknowledges that the tax was properly due to the state of Utah.

5. Petitioner stated that at the time he signed the nonresident affidavit, he also signed several other documents in connection with the purchase of the vehicle in question and, therefore, did not pay any particular attention to the nonresident affidavit. Petitioner states that he was not cognizant of the fact that Utah sales tax should be paid on the purchase of the vehicle in question, and that he was not fully aware of the provisions of the nonresident affidavit when he signed that document.

6. Petitioner contests the XXXXX penalty for intent to evade the tax which has been assessed in this case. Petitioner contests that he did not have any intent to evade the tax but was merely negligent in operating under the misperception that no sales tax would be due in Utah. Petitioner, therefore, requests that the penalty be lowered to a negligence penalty.

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

The Tax Commission finds that a XXXXX negligence penalty is appropriate in this case. The evidence shows that Petitioner did not have any intent to evade the tax in question, but was negligent in failing to be properly attentive to the provisions of the nonresident affidavit when he signed the affidavit.

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown to justify a reduction of the penalty associated with the month of XXXXX from the XXXXX penalty down to a XXXXX negligence penalty. Interest shall be adjusted to account for the reduction of the penalty. It is so ordered.

DATED this 10TH day of AUGUST, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner