BEFORE THE UTAH STATE TAX
COMMISSION
________________________________
XXXXX :
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
XXXXX ) Appeal No. 91-1196
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. 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.
6. On XXXXX, Respondent assessed Petitioner
with illegal drug stamp tax of $$$$$ plus penalty in the same amount. Petitioner received written notice of the
foregoing assessment on approximately XXXXX. Through his attorney, Petitioner
filed a timely appeal of the assessment.
At the time of the hearing in this matter, Respondent amended its
assessment by reducing the tax to $$$$$ and likewise reducing the penalty to
$$$$$, based upon Petitioner's possession of XXXXX grams of marijuana.
CONCLUSIONS OF LAW
A
tax of $3.50 per gram of marijuana is imposed pursuant to the Illegal Drug
Stamp Tax Act. (Utah Code Ann.
§59-19-103.)
A
dealer may not possess any marijuana or controlled substance upon which a tax
is imposed by the Illegal Drug Stamp Act unless the applicable tax has been
paid, as evidenced by a stamp or other official indicia. (Utah Code Ann. §59-19-1004(2).) "Dealer" means a person who, in
violation of Utah law, manufactures, produces, ships, transports, or imports
into Utah or in any manner acquires or possesses more than 42 1/2 grams of
marijuana, or seven or more grams of any controlled substance. (Utah Code Ann. §59-19-102(2).)
Failure
to affix the stamp required by the Illegal Drug Stamp Act shall result in the
assessment of the tax due plus a 100% civil penalty. (Utah Code Ann. §59-19-106.)
DECISION AND ORDER
Under
Utah's Illegal Drug Stamp Tax Act, dealers in possession of marijuana must
purchase and affix drug tax stamps to the marijuana. Failure to do so renders the dealer liable for the amount of the
tax plus a penalty in an amount equal to the tax. In this case, Petitioner has been assessed drug stamp tax and
penalty totalling $$$$$ arising from his possession of XXXXX grams of
marijuana.
Petitioner
challenges the assessment on the grounds the quantity of marijuana upon which
the assessment was made exceeds the quantity in his possession. The Petitioner has submitted no evidence to
support his contention, while the Respondent has provided testimony from XXXXX,
Criminologist with the XXXXX, substantiating that the marijuana in question did
in fact weigh XXXXX grams. The
Commission accepts XXXXX testimony as accurate.
Based
on the foregoing, the Commission concludes that Petitioner possessed XXXXX
grams of marijuana on XXXXX without having purchased or affixed the drug stamps
required by Utah's Illegal Drug Stamp Tax Act.
The Commission therefore affirms Respondent's assessment of tax of $$$$$
and penalty in an equal amount, for a total assessment against Petitioner of
$$$$$. 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