BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX &
XXXXX )
XXXXX :
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
AUDITING
DIVISION OF THE ) Appeal No. 92-1296
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. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Representing the Petitioner was XXXXX. Present and representing the 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 tax.
2. XXXXX, a resident of XXXXX, tried to buy a
car from XXXXX XXXXX in Utah in the fall of XXXXX.
3. When he was denied financing, Mr. XXXXX
persuaded his parents to buy the car for him.
4. His parents purchased the car under the
auspices of the XXXXX and XXXXX XXXXX Trust of which XXXXX is a trustee. This is a Utah trust.
5. The car dealership had two non-resident
affidavits signed on the purchase of the car, one in the name of XXXXX and the
other in the name of XXXXX. Both forms
listed XXXXX's address in XXXXX.
XXXXX's signature appears at the bottom of one of the forms.
6. XXXXX testified that his parents drove the
new car to XXXXX two to three weeks after its purchase. He, in turn, owes his parents the money used
to buy the car.
7. In XXXXX, XXXXX registered the car under the
family trust name as well as his own.
8. Further, at the time of the purchase of the
car in question, XXXXX owned a home in XXXXX, Utah which he rents out. He, however, lives in XXXXX where he has a
business and rents a home.
9.
XXXXX stated that the dealership advised him that he qualified as a
non-resident for the purposes of a sales tax exemption.
10. The Auditing Division of the Tax Commission
argues that sales and use tax is due on this car as the true purchaser of the
car is the family trust which is located in Utah. Moreover, if XXXXX was somehow determined to be the purchaser, he
owns Utah property and would be subject to the sales tax in any case.
11. Petitioner was assessed a fifteen percent
penalty for intentional disregard of a law or rule plus interest.
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).)
"Person"
includes any individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver, syndicate, or any group or
combination, acting as a unit. (Utah Admin. Code R873-22M-1(A)(1).)
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 R873-22M-1(1B).)
DECISION AND ORDER
The
Tax Commission agrees with the Auditing Division's determination in this case
that the purchaser of car is a Utah trust and, as such, the trust was required
to pay Utah sales tax on the purchase.
The fifteen percent penalty, however, is reduced to ten percent. Interest is not waived. It is so ordered.
DATED
this 10th 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