BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________
XXXXX ) FINDINGS OF FACT,
Petitioner, : CONCLUSIONS OF LAW,
: AND FINAL
DECISION
v. :
AUDITING
DIVISION OF THE : Appeal No. 91-1578
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. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Petitioner was present and represented
himself. Present and representing
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 and use tax
assessed on an XXXXX purchased in XXXXX.
2. Petitioner bought a XXXXX from a private
party in XXXXX for on XXXXX.
3. Petitioner subsequently registered the XXXXX
with the XXXXX and brought the plane to XXXXX, Utah where it remains.
4. In its letter to Petitioner dated XXXXX, the
Auditing Division requested $$$$$ in Utah sales tax on the purchase of the
XXXXX. It further demanded $$$$$ in
interest.
5. Petitioner has been a Utah resident since
XXXXX.
6. Petitioner asserts: 1) that he should not be
obligated for tax purchased on an XXXXX out of state; and 2) that the interest
should be waived in light of the time it took the Tax Commission to notify
Petitioner of tax due.
CONCLUSIONS OF LAW
Under
Utah law, "there is levied in lieu of the ad valorem tax a uniform tax on
aircraft required to be registered with the state in an amount equal to 1% of
the average wholesale market value of the aircraft as established by the
Commission". (Utah Code Ann.
§59-2-404(1)).
All
XXXXX which meet XXXXX registration requirements are subject to annual
registration in Utah. Newly purchased
XXXXX moved to Utah from another state must be registered immediately. The uniform tax shall be prorated based on
the number of months remaining in the registration period. (Utah Admin.
RuleR873-22M-20 (B,C,F)).
If
the XXXXX is moved to Utah during the year, and property tax was paid to
another state prior to moving the aircraft into Utah, any property tax paid
will be allowed as a credit against the prorated uniform tax due in Utah. This
credit will not be refundable if the other state property tax exceeds the
uniform tax due in Utah for the comparable year.
Proof
of payment must be submitted before credit is allowable". (Utah Admin.
RuleR873-22M-20(F)(2)).
DECISION AND ORDER
Under
Utah law, XXXXX located in Utah are subject to Utah registration in addition to
XXXXX registration. Registering with
one entity does not satisfy the other registration obligation.
Petitioner
is not penalized for failure to register and pay the tax amount because the law
is relatively new.
At
the hearing, Petitioner did not provide any evidence that he paid sales tax on
the purchase in XXXXX. Had he done so,
he would have been entitled to a sales tax credit when he registered the XXXXX
in Utah. Interest would not have been
an issue.
Based
upon the foregoing, the Tax Commission finds that Petitioner was correctly
assessed sales tax on the XXXXX in question.
Interest is not waived. It is so
ordered.
DATED
this 1 day of July, 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