95-0482

Sales & Use

Signed 2/15/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. :

:

AUDITING DIVISION OF THE : Appeal No. 95-0482

UTAH STATE TAX COMMISSION, :

:

:

Respondent. : Tax Type: Sales & Use

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STATEMENT OF CASE

Petitioner filed a Petition for Redetermination on XXXXX in reference to premium tax for XXXXX, XXXXX and XXXXX, involving $$$$$ per year on a guarantee fund credit. Petitioner requests that the matter be determined without a hearing. Respondent filed a Motion to Dismiss for years XXXXX and XXXXX based on failure to file a petition in a timely fashion for those two years. An Order was issued by the Commission giving the parties an opportunity to present briefs in regards to the Motion to Dismiss and the substantive issue involved in the case.

Timely petitions were not filed for the XXXXX and XXXXX year and the Commission does not have jurisdiction to hear matters concerning those years. Petitioner asserts that it could not have filed timely because the basis of its argument stems from a letter from a law firm which was not received until after the deadline. That circumstance, however, does not alter the requirements of timely filing.

Review of the record reveals that Petitioner has filed a timely appeal for the XXXXX year. The Petition for Redetermination was filed within 30 days of the statutory notice as required by statute. Based upon the foregoing, the appeal is dismissed as it concerns the years XXXXX and XXXXX.

As for the issue in regards to XXXXX, Petitioner is claiming entitlement to guarantee fund credit of $$$$$. The circumstances are that the Petitioner made a preliminary payment identified as a "voluntary contribution" and, subsequently, when the "Class B" assessment was made, the earlier contribution was credited towards and considered payment in full of the Class B assessment.

Respondent's position is that XXXXX erred in offsetting its insurance premium tax liability with amounts paid prior to the assessment. Respondent claims that Petitioner is not entitled to the credit when a Class B assessment obligation is met by applying a prior contribution.

The Commission has reviewed the arguments submitted by both parties and finds the Division erred in not giving Petitioner credit for mandatory Class B assessment based on amounts paid prior to the assessment. Only contributions made in excess of assessments due under the statutory assessment formula should be deemed “voluntary contributions.”

Accordingly, the Division denies Respondent’s request to sustain its assessment and directs it to grant Petitioner proper credit against its premium tax.

This decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 15th day of February, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

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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