BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
XXXXX )
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 91-0471
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. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX, attorney at law. Present and
representing the Respondent was XXXXX, Assistant Utah Attorney General.
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 illegal drug stamp
tax.
2. The period in question is XXXXX.
3. On XXXXX, Petitioner was arrested in XXXXX
Utah by officers of the XXXXX.
4. At the time of his arrest, Petitioner was found
in possession of XXXXX grams of marijuana.
5. Petitioner was subsequently convicted of
charges relating to possession of marijuana.
6. The drug stamps required by the Utah Illegal
Drug Stamp Tax Act (Utah Code Ann. §59-19-1 et seq.) were not affixed to the
marijuana in Petitioner's possession on XXXXX, nor had any drug stamps been
purchased with respect to that marijuana.
7. On XXXXX, Respondent assessed Petitioner
with illegal drug stamp tax of $$$$$ plus penalty in the same amount. Petitioner received written notice of the
foregoing assessment on approximately XXXXX. Through his attorney, Petitioner
filed a timely appeal of the assessment.
CONCLUSIONS OF LAW
A
tax of $3.50 per gram of marijuana is imposed pursuant to the Illegal Drug
Stamp Tax Act. (Utah Code Ann.
§59-19-103.)
A
dealer may not possess any marijuana or controlled substance upon which a tax
is imposed by the Illegal Drug Stamp Act unless the applicable tax has been
paid, as evidenced by a stamp or other official indicia. (Utah Code Ann. §59-19-1004(2).)
"Dealer"
means a person who, in violation of Utah law, manufactures, produces, ships,
transports, or imports into Utah or in any manner acquires or possesses more
than 42 1/2 grams of marijuana, or seven or more grams of any controlled
substance. (Utah Code Ann.
§59-19-102(2).)
Failure
to affix the stamp required by the Illegal Drug Stamp Act shall result in the
assessment of the tax due plus a 100% civil penalty. (Utah Code Ann. §59-19-106.)
DECISION AND ORDER
Under
Utah's Illegal Drug Stamp Tax Act, dealers in possession of a controlled
substance must purchase and affix drug tax stamps to the controlled
substance. Failure to do so renders the
dealer liable for the amount of the tax plus a penalty in an amount equal to
the tax. In this case, Petitioner has
been assessed drug stamp tax and penalty totalling $$$$$ arising from his
possession of XXXXX grams of marijuana.
Although
Petitioner originally challenged the assessment on the grounds he did not
possess the amount of marijuana indicated by the assessment, he did not pursue
that contention at the hearing in this matter, nor did he put forward any other
defense to the assessment.
The
Commission therefore concludes that Petitioner possessed XXXXX grams of
marijuana on XXXXX without having purchased or affixed the drug stamps required
by Utah's Illegal Drug Stamp Tax Act.
The Commission therefore affirms Respondent's assessment of tax of $$$$$
and penalty in an equal amount, for a total assessment against Petitioner of
$$$$$. It is so ordered.
DATED
this 17th day of March, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner