BEFORE THE UTAH STATE TAX COMMISSION
In Re: : INFORMAL DECISION
XXXXX ) Appeal No. 91-1247
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. No hearing was requested, therefore, this decision is based upon information contained in the Tax Commission's file.
In XXXXX, Petitioner purchased an airplane from a dealer in XXXXX and registered it in Utah. Approximately three months thereafter, he received a questionnaire from the Tax Commission. He alleges that he called the Provo office of the Tax Commission and was told by XXXXX that this would be considered a casual transaction and would not be subject to tax. He filled out the questionnaire and returned it.
In XXXXX, he received a bill for the tax on the airplane, together with a $$$$$ penalty. He contacted the Provo office and was informed that pursuant to the statute and rule, titled and registered vehicles could not be isolated or occasional sales. On XXXXX, he paid the full balance of tax, penalty and interest, and applied for a waiver of the penalty and interest. The penalty was waived, but the interest was not waived. Petitioner now seeks a waiver of the interest. It is his position that the interest was incurred by the negligence of the Tax Commission in not collecting the tax at the time the airplane was registered, or at least which should have been collected by the Tax Commission when he initially sent in the questionnaire.
DECISION AND ORDER
Interest is not a charge which is imposed based on culpability, but is imposed based upon who had the use of the money and who was denied the use of the money. In this case, the Petitioner had the use of the money until it was paid to the State Tax Commission, and the state was denied the use of the money for that time period.
The Tax Commission finds that sufficient cause does not exist to waive the interest associated with the sales tax for XXXXX. It is so ordered.
DATED this 8 day of August, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes