92-0307 - Drug Stamp

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