96-0883

Property

SIGNED 12/20/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

Petitioner, ) ORDER

v. ) Appeal No. 96-0883

PROPERTY TAX DIVISION OF THE ) Tax Type: Centrally Assessed

UTAH STATE TAX COMMISSION, : Property

)

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5, on MMDDYY. XXXXX, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone conference call was PETITIONERS REP. Present and representing Respondent were RESPONDENT REP., Assistant Attorney General, along with RESPONDENT REP. and XXXXX of the Property Tax Division. This matter had originally been scheduled for a Status Conference on MMDDYY. However, the Administrative Law Judge, with approval of the parties, converted the Status Conference to the Initial Hearing in this matter.

Petitioner is appealing the 10% penalty assessed by Respondent for Petitioner's failure to timely comply with the filing requirements of Utah Code Ann. '59-2-202(1). Petitioner failed to timely file the annual property tax return for the 1996 tax year.

Petitioner's representative explained that a precedent had been set by the Property Tax Division of allowing Petitioner additional time to file the return. Petitioner had started filing the reports for the 19YY tax year. Each year they would file a few days late because of the difficulty in obtaining the information required for the return. For the 19YY year, Petitioner's representative called the Property Tax Division on MMDDYY, requesting additional time. She was told that she was too late to request an extension and the penalty would be assessed. The return was filed by Petitioner on MMDDYY.

Respondent's representatives acknowledged that they had not aggressively assessed the late penalty in the past. However, they stated that they had mailed to Petitioner, along with the annual tax form, notice printed on yellow paper, which stated that the penalty would be assessed if the return was filed late. Respondent's representatives also suggested that there had been a legislative change which precipitated the decision to assess the penalty against late filers.

APPLICABLE LAW

A person, or officer or agent of that person, owning or operating a public utility, pipeline, power, canal, irrigation or telephone company operated in more than one county in this state, shall, on or before March 1, of each year, furnish to the Commission a statement singed and sworn to, showing in detail all property, real or personal, owned in the state as of January 1 of that year, with any other information required by the Commission. (Utah Code Ann. '59-2-202(1)(a).)

A person failing to furnish the statement under Subsection (1)(a) on or before March 1, shall be assessed by the Commission a penalty equal to 10% of the estimated tax due, except that the penalty may not be less than $100. (Utah Code Ann. '59-2-202(2).)

DECISION AND ORDER

After reviewing the factual circumstances of Petitioner's late filing, because the precedent had been set allowing Petitioner late filing, and that this was the first time the penalty was assessed, the Commission determines that there is sufficient cause for waiver of the penalty. However, the Commission will not be so lenient in subsequent years, now that Petitioner is clearly aware of the statutory requirements.

Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission waives the penalty assessed pursuant to Utah Code Ann. '59-2-202(2), relating to Petitioner's property for the 19YY tax year.

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 20th day of December, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner