BEFORE THE UTAH STATE TAX COMMISSION
XXXXX ) FINDINGS OF FACT,
Petitioner, : CONCLUSIONS OF LAW,
: AND FINAL DECISION
AUDITING DIVISION OF THE : Appeal No. 91-1578
UTAH STATE TAX COMMISSION, :
: Account No. XXXXX
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
Joe B. Pacheco S. Blaine Willes