BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
XXXXX, )
:
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
AUDITING
DIVISION OF THE : Appeal No. 91-1369
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 by telephone 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. Petitioner resides in XXXXX, Utah.
4. Petitioner's son, also named XXXXX, resides
in XXXXX.
5. For reasons not material to this decision,
Petitioner had an opportunity to purchase an XXXXX automobile in Utah at a
substantial discount. Petitioner could not afford the car, but his son asked
Petitioner to purchase it for him, with funds the son obtained from a loan in
XXXXX. Petitioner traded in his own
used car, purchased the new car, then immediately delivered it to his son in
XXXXX. Petitioner's son registered the
car in XXXXX and paid the applicable use tax there.
6. Petitioner returned to Utah with his son's
used car, where he registered and paid use tax on the vehicle.
7. At the time Petitioner purchased the car in
question, he completed a XXXXX, giving his son's address and other information,
rather than his own. He provided his own
social security number on the affidavit.
8. Petitioner believed that his purchase of the
new car in Utah on behalf of his son was exempt from sales tax.
9. Upon discovery that Petitioner is a resident
of Utah, Respondent assessed Petitioner with sales tax on the purchase price of
the car in the amount of $$$$$ a penalty of 15% in the amount of $$$$$, and
interest.
10. Petitioner filed a timely appeal of
Respondent's assessment with the Commission.
CONCLUSIONS OF LAW
Utah
Code Ann. §59-10-104(9) exempts from sales tax the purchase of vehicles by 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, Petitioner is clearly a resident of Utah, while his son is just as
clearly a resident of XXXXX.
Consequently, if Petitioner was the purchaser of the vehicle in
question, he must pay Utah sales tax on the net purchase price of the
transaction. If Petitioner's son
purchased the vehicle, no Utah tax is due.
In
its review of the facts of this case, the Commission finds that the
preponderance of the evidence shows Petitioner's son to have been the purchaser
of the automobile. The transaction
would not have occurred without the son's participation. The son provided the purchase money. The car was immediately transported to the
son in XXXXX. The car was registered
and taxed in XXXXX. Under such circumstances, the Commission concludes
Petitioner served as his son's agent in purchasing the car, but was not himself
the purchaser. Consequently, the
purchase of the car in Utah was a tax exempt transaction.
Based
upon the foregoing, the Commission grants Petitioner's Petition for
Redetermination and sets aside Respondent's assessment of sales tax, penalty
and interest in this matter. It is so
ordered.
DATED
this 28th day of October, 1992.
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