BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
XXXXX :
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
AUDITING
DIVISION OF THE : Appeal No. 91-1223
UTAH STATE TAX COMMISSION, :
: Account
No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal telephone hearing
on XXXXX. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the Commission. The Petitioner participated by telephone. Present and representing the Respondent were
XXXXX, Assistant Utah Attorney General, and XXXXX, Field Audit Supervisor with
the Utah State Tax Commission.
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. On the XXXXX, the Petitioner purchased a
vehicle from XXXXX in Salt Lake City, Utah for a taxable purchase price of
XXXXX.
4. In connection with his purchase of the
foregoing vehicle, the Petitioner completed and signed a non-resident affidavit
in which he stated that he was a resident of XXXXX, where he was employed by
XXXXX. He further stated he had not
been a resident of Utah or lived within Utah during the previous sixty days.
5. Prior to XXXXX, the Petitioner had resided
with his wife in Utah. During the first of the year, his employer required that
he move from Salt Lake City to XXXXX.
He placed his Salt Lake City resident on the real estate market on
XXXXX, and then moved to XXXXX. The
Petitioner has purchased a home in XXXXX and has registered his other vehicles
in XXXXX.
6. After purchasing the vehicle in question, it
remained in Utah for approximately two days after which it was driven to XXXXX
then to XXXXX. It has since been driven to Salt Lake City by the Petitioner or
his wife on XXXXX or XXXXX occasions, in conjunction with their efforts to sell
their home.
7. The Audit Division concluded that the
foregoing transaction was subject to Utah sales tax because the Petitioner
still owned his residence in Salt Lake City at the time he purchased the
vehicle. It therefore assessed sales
tax against Petitioner in the sum of $$$$$.
It assessed a further penalty of 15% of the tax due, or $$$$$, on the
grounds the Petitioner had executed his non-resident affidavit with intentional
disregard of the Utah Sales Tax Act and regulations interpreting the same. The Audit Division also assessed associated
interest against Petitioner.
CONCLUSIONS OF LAW
Utah
Code Section 59-12-104(9) exempts from sales tax the purchase of vehicles to
bona fide non-residents of this state if such vehicles are not thereafter
registered or used in Utah except as necessary to transport them out of Utah.
Rule
R873-22l-M (Utah Administrative Code 1990-91) defines "resident" as,
among other things, every person who owns, leases or rents a residence within
Utah.
DECISION AND ORDER
In
this case, the preponderance of the available evidence establishes that the
Petitioner moved to XXXXX at the end of XXXXX or early XXXXX and established
residency in that state. It further
appears that the vehicle in question was purchased in Utah in XXXXX, but then
removed to XXXXX where it was duly licensed and registered and where it now is
located.
Based
upon the foregoing facts, the Tax Commission finds that the Petitioner was not
a resident of Utah at the time he purchased the vehicle in question. The transaction is, therefore, not subject
to Utah sales tax. Petitioner's request for redetermination is granted and the
tax, penalty and interest previously assessed against Petitioner in this matter
is hereby set aside. It is so ordered.
DATED
this 12th day of November, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner