96-0335
Miscellaneous Tax
Signed 7/15/97
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, :
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
MOTOR VEHICLE
CUSTOMER : Appeal No. 96-0335
SERVICE
DIVISION OF THE :
UTAH STATE TAX COMMISSION, :
& XXXXX, )
Respondent. : Tax Type: Miscellaneous Tax
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a Formal Hearing on June
11, 1997. Jane Phan, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Petitioner was present and represented
himself. Present and representing
Respondent Motor Vehicle Customer Service Division were Michelle Bush, Assistant Attorney General, and Julie
Halvorson, Assistant Director of the Division.
Respondent XXXXX was present and represented himself.
Based
upon the evidence and testimony presented at the hearing, the Tax Commission
hereby makes its:
FINDINGS OF FACT
1. The appeal concerns the issuance of a
personalized license plate with the characters XXXXX.
2. Petitioner applied for the XXXXX
personalized license plate on December 30, 1977. The XXXXX license plate was then issued to him. Petitioner renewed the personalized license
plate by paying the annual registration renewal fee through the period ending
June 1986.
3. The Application and Order for Personalized
License Plate, which Petitioner had filled out and signed in December 1977,
stated as follows:
I further understand that in the event I sell, trade, or otherwise
release ownership of the vehicle to which personalized license plates are
assigned, I will arrange to have the license plates properly transferred
through the Motor Vehicle Department to a newly acquired vehicle and that said
transfer will be subject to a $$$$$ fee in addition to the regular transfer
fee, or that I will surrender the license plates to the Motor Vehicle
Department and release my priority and claim to the particular letters or
numbers or combination thereof.
4. Petitioner testified that after June 1986 he
was no longer driving on public roads the vehicle for which the specialized
plate had been issued and he did not feel that he was required to pay the
annual motor vehicle registration renewal fee.
He did not pay the annual fee or attempt to renew the license plate
until January 1996 when he re-applied for the use of the personalized license
plate.
5. In 1991 the Motor Vehicle Division
implemented an automated personalized license plate computer program. All personalized plates that were current in
1990 or newer were entered into the computer program master file. XXXXX was not entered because it had expired
in June 1986. Upon expiration of all
personalized plates that were entered on the master file notice would be mailed
to the recipient of the personalized license plate. This was done as a courtesy to personalized license plate
holders. Notices were not mailed to
personalized license plate holders whose plates had expired prior to the master
file cut off date.
6. In July 1991 XXXXX filed an application for
a XXXXX personalized plate and the plate was issued to him. PETITIONER has renewed the plate continually
on an annual basis. Petitioner was not notified of the issuance to PETITIONER,
nor was Petitioner asked to surrender his XXXXX plates which had been issued to
Petitioner in 1977 or 1978. However,
the Motor Vehicle Division complied with all laws and established policy and
procedure in affect at that time.
7. Petitioner re-applied for use of the XXXXX
plate in January 1996 and was denied
because at that time the plate was issued to PETITIONER.
CONCLUSIONS OF LAW
At
the time the XXXXX plate was issued to PETITIONER there was no law or rule
which expressly governed the reissuance of personalized licence plates after
expiration or failure to pay the renewal fee and the Motor Vehicle Division was
not in violation of any law, rule, internal policy or procedure in issuing the
personalized plate XXXXX to PETITIONER.
However,
a renewal fee for the personalized plate was specifically required in Utah Code
Ann. §41-1-49.17(2)(1991)as follows:
In addition to the regular renewal fee, the applicant for a renewal of
personalized plates shall be charged an additional fee of $$$$$.
The
statute anticipated that the owner of the personalized plate could transfer the
plate to a different vehicle. See Utah
Code Ann. §41-1-49.18 (1991) which
states:
Whenever any person who has been issued personalized license plates
applies to the department for a transfer of plates to a subsequently acquired
motor vehicle, a transfer fee of $$$$$ shall be charged in addition to all
other appropriate fees. The department
shall issue, at the time of the transfer, for use on the personalized license
plate to be placed on the subsequently acquired motor vehicle, a new monthly
tag showing the month of the transfer.
DECISION AND ORDER
The
issue before the Commission is which party, Petitioner or Respondent XXXXX,
should be allowed to use the personalized license plate XXXXX Petitioner argues that
he purchased the XXXXX license plate in 1977
and is therefore entitled to lifetime usage.
He also argues that the public would not have been aware of the Motor
Vehicle Division's internal procedures on re-issuing a personalized plate to a
new party. After review of the
information presented, the Commission agrees with Respondent's position. Petitioner was not entitled to lifetime use
of the plate and his right to use expired when he stopped paying the annual
registration renewal fees. The plate
was then appropriately transferred to PETITIONER pursuant to Motor Vehicle
Division's normal operating procedures.
Based
upon the foregoing, the Tax Commission denies Petitioner's appeal in this matter
and finds that Petitioner has no right to the personalized license plate
XXXXX It is so ordered.
DATED
this 15 day of JULY, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Pam
Hendrickson
Commissioner Commissioner
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