BEFORE THE UTAH STATE TAX
COMMISSION
__________________________________
XXXXX, )
:
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
COLLECTION
DIVISION OF THE ) Appeal No. 92-0307
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
November 3, 1992. Alan Hennebold,
Presiding Officer, heard the matter for and on behalf of the Commission. XXXXX represented himself. XXXXX, Assistant Utah Attorney General,
represented Respondent.
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 illegal drug stamp
tax.
2. The period in question is XXXXX through
XXXXX.
3. During the period in question, Petitioner
lived in XXXXX, Utah with his wife, XXXXX.
XXXXX ex-husband, XXXXX, also temporarily resided in the XXXXX home.
4. On XXXXX, at XXXXX request, Petitioner's
wife drove XXXXX to a rest stop in Utah County to meet two other
individuals. At the rest area, XXXXX
left the car and sold 5 grams of cocaine to the two individuals, an undercover
police officer and a confidential police informant.
5. On XXXXX, Petitioner's wife again drove
XXXXX to Utah County, where he met with the same individuals at the same rest
stop and sold them 5.8 grams of cocaine .
6. On XXXXX, Petitioner's wife again drove
XXXXX to Utah County where he sold 26.5 grams of cocaine to the same
individuals.
7. On XXXXX, XXXXX asked Petitioner's wife to
deliver cocaine to Utah County by herself.
Petitioner went with her. They
delivered 27.9 grams of cocaine at the rest stop in Utah County, according to
the practice of previous occasions and to the same individuals.
8. After the XXXXX transaction, Petitioner and
his wife decided not to participate in future drug sales. However, after several telephone calls,
Petitioner and his wife agreed to meet with the same individuals in Utah
County. Neither Petitioner nor his wife
had any controlled substances with them on their December trip to Utah County.
9. Upon arriving at the designated meeting
place, Petitioner and his wife were arrested.
Petitioner was charged with one count of distribution of a controlled
substance and one count of criminal violation of the Illegal Drug Stamp Tax
Act.
10. Petitioner subsequently pled guilty to one count
of attempted distribution of a controlled substance and one count of attempted
possession of a controlled substance.
CONCLUSIONS OF LAW
The
Utah Illegal Drug Stamp Tax Act imposes a tax of $200 per gram on controlled
substances, including cocaine. (Utah
Code Ann. §59-19-102(1).)
A dealer may not possess any controlled
substance upon which a tax is imposed by Title 59, Chapter 19, of the Utah Code
unless the tax has been paid on the controlled substance as evidenced by a
stamp or other official indicia. (Utah
Code Ann. §59-19-1004(2).)
"Dealer"
means a person who, in violation of Utah Law, manufactures, produces, ships,
transports, or imports into Utah or in any manner acquires or possesses (among
other substances) seven or more grams of cocaine. (Utah Code Ann. §59-19-102(2).)
Any
dealer violating the provisions of the Illegal Drug Stamp Tax Act is subject to
a penalty of 100 percent of the tax, in addition to the tax itself. (Utah Code Ann. §59-19-106.)
DECISION AND ORDER
The
facts of this case are not in dispute.
Petitioner concedes that the substance involved in this matter was, in
fact, cocaine and that the tax imposed by the Illegal Drug Stamp Tax Act was
not paid. He also concedes that he
transported cocaine to Utah County in connection with the XXXXX incident.
For
its part, Respondent concedes that no sufficient basis exists to assess
Petitioner with tax and penalty under the Act with respect to the XXXXX, XXXXX
or XXXXX incidents.
Based
on the foregoing, the Commission instructs Respondent to issue an amended
assessment under the Illegal Drug Stamp Tax Act, limited to the 27.9 grams of
cocaine involved in the XXXXX, XXXXX transaction only. It is so ordered.
DATED
this 3rd day of February, 1993.
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