BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
XXXXX :
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
AUDITING
DIVISION OF THE : Appeal No. 91-1222
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. Paul F. Iwasaki, Presiding
Officer, heard the matter for and in behalf of the Commission. Present and representing the Petitioner
was XXXXX. 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 sales tax.
2. The period in question is XXXXX.
3. The Petitioner is an individual who resides
in XXXXX and has been a resident of XXXXX since approximately XXXXX.
4. Although a resident of XXXXX, the Petitioner
owns a home in Utah and commutes to Utah for medical care.
5. The Petitioner's son, also named XXXXX, had
been in the market for a XXXXX. The
Petitioner was aware of this and, during one of his trips to Utah, found a
suitable XXXXX at XXXXX, located in XXXXX.
6. The Petitioner notified his son who is a
resident of XXXXX, who in turn asked his father to purchase the vehicle on his
behalf.
7. The Petitioner purchased the motor vehicle
for his son with funds provided by his son.
8. A non-resident affidavit was completed by
the Petitioner, listing the address of his son.
9. The non-resident affidavit did not contain a
statement of any of the provisions of the State Tax Commission Administrative
Rule which pertains to the requirements for the nonresident exemption.
10. The Petitioner believed that the vehicle in
question was legitimately exempt from sales tax.
11. The Auditing Division assessed a sales tax
deficiency and imposes a 15% penalty alleging the Petitioner acted in intentional
disregard of a law or rule.
12. The vehicle in question was registered and
titled in XXXXX.
CONCLUSIONS OF LAW
Sales
of vehicles of a type required to be registered under the motor vehicle laws of
the state which are made of bona fide non-residents of the state and are not
thereafter registered to use in this state except as necessary to transport
them to the borders of the state are exempt from sales tax. (Utah Code Ann. §59-12-104(9).)
Any
person qualifying as a resident who operates a vehicle, or allows the operation
of a vehicle in this state must register it immediately. For the purposes of vehicle registration,
the term "resident" means,
...any
person, except: a tourist temporarily within the state, or student, covered
under the rule R873-22-4.M who owns,
leases, or rents a residence or place of business within the state, or occupies
or permits to be occupied a Utah residence or place of business. (Utah State Tax Commission
Administrative Rule R873-22M-1(lB).)
DECISION AND ORDER
In
the present case, the issue to be determined by the Commission in this case is
who was the "purchaser" of the vehicle in question.
With
respect to the issue in question, the Tax Commission finds that the Petitioner
purchased the XXXXX in question on behalf of his son. Although the Commission
does not condone or encourage third party purchases, absent a specific policy
prohibiting such action and under the unique facts of this case, the Commission
finds that the purchase of the vehicle was a tax exempt transaction.
Based
upon the foregoing, the Tax Commission reverses the determination of the
Auditing Division. It is so ordered.
DATED
this 11th 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