BEFORE THE UTAH STATE TAX
COMMISSION
________________________________
XXXXX :
Petitioner : FINDING OF FACTS,
: CONCLUSIONS
OF LAW
v. : AND FINAL DECISION
:
MOTOR VEHICLE DIVISION
OF THE : Appeal No. 91-0852
UTAH STATE TAX COMMISSION :
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, participated by telephone on behalf
of the Petitioner. XXXXX represented
the Respondent.
Based
upon the stipulated facts submitted by the parties, as well as the evidence and
testimony presented during the hearing, the Commission hereby makes its:
FINDINGS OF FACT
1. XXXXX, Petitioner entered into a retail
installment contract and security agreement with XXXXX and XXXXX. Petitioner
thereby obtained a security interest in the XXXXX automobile.
2. The vehicle was impounded on XXXXX by the
XXXXX for expired motor vehicle registration.
3. On XXXXX, Respondent mailed the first of two
notices to XXXXX and XXXXX, stating that the vehicle had been impounded and
explaining the procedures for its release.
The notice stated that "failure to claim the vehicle within 30 days
from the original date of impoundment" would result in the public sale of
the vehicle.
4. On XXXXX Respondent accessed the XXXXX,
thereby obtaining a report that verified the XXXXX ownership of the vehicle,
but showed no security interests or liens against it.
5. On XXXXX, Respondent mailed a second notice
to XXXXX and XXXXX, again explaining the procedure for the vehicle's release
and advising of the potential of public sale.
6. On XXXXX, the vehicle was listed in a XXXXX
Notice of Public Sale of Impounded Vehicles.
7. On XXXXX the vehicle was sold at public
auction to the highest bidder for XXXXX, an amount representing XXXXX, in
excess of the towing and storage fees.
8. On XXXXX, Petitioner was informed by XXXXX
that the vehicle had been sold at XXXXX in Utah.
9. On or about XXXXX, Petitioner filed its
claim to the proceeds from the vehicle's sale, based upon its security interest
in the vehicle.
CONCLUSIONS OF LAW
The
Motor Vehicle Division or any peace officer may seize any vehicle which is
being operated with improper registration.
(Utah Code Ann. §41-10115). The Division may then store the vehicle
until its registration has been properly completed and the appropriate fees
have been paid, or until the ownership of the vehicle is established to the
satisfaction of the department. (Utah
Code Ann. §41-1-116.)
If
the impounded vehicle's owner or lien holder does not reclaim the vehicle
within 30 days from the date of seizure, or if the Division is unable to
determine the owner or lien holder through reasonable efforts, the Division is
required to sell the vehicle, with the proceeds to be distributed as provided
by law. (Utah Code Ann. .§41-1-117.)
If
ownership of the impounded vehicle cannot be determined, the proceeds of sale
must be deposited with the state treasurer in a suspense account for return to
the vehicle's owner upon a claim being filed within one year of date of
sale. If no claim is filed within one
year from the date of sale, the proceeds must be paid into the General
Fund. (Utah Code Ann. §41-1-136.)
DECISION AND ORDER
The
issue before the Commission is Petitioner's claim to proceeds from Respondent's
sale of an impounded vehicle against which Petitioner claimed a security
interest.
Petitioner
raises two points in support of its claim to the sale proceeds. First, that Respondent failed to take the
"reasonable steps" required by Utah Code Ann. §41-1-117 to notify
Petitioner of the vehicle's pending sale. Second, that the one year limitation
established by Utah Code Ann. §41-1-136 on claims for refund should be waived
due to Petitioner's lack of notice of the vehicle's sale.
The
parties, through their stipulation, have agreed that Respondent notified the
vehicle's registered owner that the vehicle would be sold at auction unless it
was reclaimed.
Respondent
also verified the vehicle's ownership through the XXXXX system, which typically
discloses any security interests in such vehicles. In this case, the XXXXX did not reveal Petitioner's interest in
the vehicle. Respondent proceeded to sell the vehicle on XXXXX, realizing net
proceeds of XXXXX. Petitioner did not
file its claim to the sale proceeds until XXXXX.
With
respect to the adequacy of Respondent's efforts to notify interested parties of
the vehicle's pending sale, Respondent provided actual notice to the vehicle's
registered owner and used reliable means (the XXXXX) to discover any other
interests in the vehicle. The
Commission finds that Respondent took reasonable efforts to determine
Petitioner's interest in the vehicle.
As
to Petitioner's request that the Commission waive the time limitation for
claiming the sale proceeds, the Commission has no such authority absent some
demonstrated defect in the conduct of the sale.
Based
on the foregoing, the Commission affirms Respondent's determination that
Petitioner is not entitled to the proceeds from the sale of the vehicle in
question. It is so ordered.
DATED
this 25th day of February, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
ABSENT
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner