93-0602

ILLEGAL DRUG STAMP

Signed 4/17/97

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

PETITIONER, )

Petitioner, : FINDINGS OF FACT,

) CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

)

COLLECTION DIVISION OF THE : Appeal No. 93-0602

UTAH STATE TAX COMMISSION, )

Respondent. : Tax Type: Illegal Drug Stamp Tax

_____________________________________

 

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Formal Hearing on April 2, 1997. Commissioner Alice Shearer and Administrative Law Judge Jane Phan heard the matter for and on behalf of the Commission. Present and representing the Petitioner was PETITIONERS REP. Petitioner PETITIONER was also present. Present and representing the Respondent were Wade Winegar, Assistant Attorney General, along with Mark Long and Gary Nuffer of the Collection Division.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. On February 24, 1993, Respondent made an assessment against Petitioner, in the amount of $$$$$ in tax and $$$$$ in penalty, pursuant to the Illegal Drug Stamp Act. On March 10, 1993, Petitioner filed an appeal of the assessment which brought the issue before the Tax Commission.


2. At the Formal Hearing in this matter, Respondent informed the parties that it had amended the assessment. Respondent provided a copy of the Amended Statutory Notice, dated March 28, 1997. The amendment significantly reduced the amount of the assessment to $$$$$ in tax and $$$$$ in penalty. The amendment was based on possession of 22 grams of cocaine, while the original assessment had been based on possession of 396.9 grams of cocain. Petitioner had plead guilty to possession of 22 grams for which he was convicted in Federal Court.

3. Based on the amended audit amount Petitioner's representative stated that Petitioner no longer wished to pursue the appeal.

CONCLUSIONS OF LAW

A tax is imposed on marihuana and controlled substances as defined under this chapter at the following rates: . . . (b) on each gram of controlled substance, or each portion of a gram, $200. . . (Utah Code Ann. '59-19-103 (1).)

A dealer may not possess any marihuana or controlled substance upon which a tax is imposed by this chapter, unless the tax has been paid on the marihuana or other controlled substance as evidenced by a stamp or other official indicia. (Utah Code Ann. '59-19-104(2).)

Any dealer violating this chapter is subject to a penalty of 100% of the tax in addition to the tax imposed by Section 59-19-103. (Utah Code Ann. '59-19-106.)

DECISION AND ORDER


Based upon the foregoing, the Tax Commission enters an order of assessment against Petitioner in the amount of $$$$$ pursuant to the amended audit issued on March 28, 1997. It is so ordered.

DATED this 17 day of APRIL, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

 

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

 

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13 et. seq.)

 

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