BEFORE THE UTAH STATE TAX
COMMISSION
__________________________
XXXXX )
:
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
AUDITING
DIVISION OF THE ) Appeal No. 92-1251
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. Paul F. Iwasaki, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX. Present and representing the
Respondent was Susan Barnum, Assistant 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 tax.
2. The period in question is XXXXX.
3. The Petitioner is a wholly owned subsidiary
of XXXXX which, in turn, is a wholly owned subsidiary of XXXXX.
4. XXXXX is a XXXXX corporation which also has
an administrative office in XXXXX, Utah.
XXXXX, Inc. is a XXXXX corporation.
XXXXX, Inc. is an XXXXX corporation and has no offices in Utah.
5. On XXXXX, an individual, who during the
winter months is an employee of XXXXX and in the summer months an employee of
XXXXX, purchased a XXXXX truck from XXXXX, XXXXX, XXXXX located in XXXXX, Utah. The purchase price was $$$$$.
No sales tax was paid or
collected because the sale was treated as a sale to a bona fide non-resident.
6. On the Motor Vehicle Contract of Sale, the
purchaser is listed as XXXXX. On the
Non-Resident Affidavit form the purchaser is also listed as XXXXX.
7. Payment for the vehicle was made by a check
drawn on the account of XXXXX. The
check also states that the purchase was on behalf of XXXXX.
8. The Petitioner's witness testified that the
purchase of the vehicle was made by XXXXX for use by XXXXX in XXXXX. He further testified that the vehicle was
immediately transported to XXXXX where it was titled and registered in the name
of XXXXX.
9. The Petitioner's witness testified that
XXXXX is the funding entity for XXXXX and XXXXX thus explaining the method of
payment of the motor vehicle.
10. As a result of the above described
transaction, the Auditing Division determined that the vehicle was not exempt
from the imposition of sales tax and assessed a sales tax deficiency in the
amount of $$$$$, penalty in the amount of $$$$$, and interest applied at the
statutorily prescribe rate.
CONCLUSIONS OF LAW
Sales
of vehicles of a type required to be registered under the motor vehicle laws of
the state which are made to bona fide non-residents of the state and are not
thereafter registered to use in this state except as necessary to transport
them to the borders of the state are exempt from sales tax. (Utah Code
Ann.59-12-104(9)).
Any
person qualifying as a resident who operates a vehicle, or allows the operation
of a vehicle in this state must register it immediately. For the purposes of vehicle registration,
the term "resident" means, ...any person, except a tourist
temporarily within the state, or student, covered under the rule R873-22M-4,
who owns, leases, or rents a residence or place of business within the state,
or occupies or permits to be occupied a Utah residence or place of
business. (Utah State Tax Commission
Administrative Rule R873-22l-M(lB)).
DECISION AND ORDER
In
the present case, the Tax Commission finds that, notwithstanding the method of
payment of the truck in question and under the facts and circumstances of this
case, the sale of the truck was made to XXXXX which is an XXXXX corporation
with no place of business within the state of Utah.
Based
upon the foregoing, it is the order of the Utah State Tax Commission that the
determination of the Auditing Division is reversed. It is so ordered.
DATED
this 30th day of June, 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