BEFORE THE UTAH STATE TAX
COMMISSION
__________________________________
XXXXX, )
:
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
COLLECTION
DIVISION OF THE ) Appeal No. 92-1095
UTAH STATE TAX
COMMISSION, :
) Account
No. XXXXX
Respondent. :
) Tax Type:
Drug Stamp
_______________________________
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. XXXXX, attorney at law, represented the Petitioner. XXXXX, Assistant Utah Attorney General,
represented the Respondent.
Based
upon the evidence 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.
3. On XXXXX, Respondent assessed Petitioner
with illegal drug stamp tax and penalty in the amount of $$$$$.
4. Petitioner filed an appeal of the foregoing
assessment with the Utah State Tax Commission on XXXXX.
5. At a prehearing conference held on XXXXX,
Petitioner's attorney conceded that the substance upon which the assessment is
based was cocaine, that the cocaine weighed 2,500 grams, and that Petitioner
had not purchased the required drug tax stamps with respect to such cocaine.
6. Petitioner was convicted in the Third
Judicial District Court, Salt Lake County, Utah, of possession of cocaine with
intent to distribute. Petitioner's
criminal conviction was based upon the same cocaine as that upon which
Respondent's assessment is based.
CONCLUSIONS OF LAW
The
Utah Illegal Drug Stamp Tax Act imposes a tax of $200 per gram on certain
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, Utah Code Ann., 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 any person who, in violation of Utah law, manufactures, produces, ships,
transports, or imports into Utah or in any manner acquires or possesses more
than 42 1/2 grams of marijuana or seven or more grams of any controlled
substance. (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% of the tax, in addition to the tax itself. (Utah Code Ann. §59-19-106.)
DECISION AND ORDER
Petitioner's
appeal of his drug stamp tax assessment comes before the Commission after the
companion criminal case has been concluded.
Petitioner has previously conceded that the substance in question is in
fact cocaine weighing 2,500 grams and that he did not purchase or affix the
required drug stamps to the cocaine.
The only issue which Petitioner has not conceded is his possession of
the cocaine. In the companion criminal
case, Petitioner was convicted of having possessed the cocaine.
Under
the principle of collateral estoppel, Petitioner's conviction n the criminal
proceeding is binding upon him in this tax proceeding before the
Commission. The Commission therefore
concludes that Petitioner did possess the cocaine in question, and affirms
Respondent's assessment of tax and penalty in this matter, as set forth in its
assessment dated XXXXX. It is so
ordered.
DATED
this 22nd Day of April, 1993
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco S.
Blaine Willes
Commissioner Commissioner