96-2159
INCOME
Signed 12/3/097
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
PETITIONER, )
:
Petitioner, ) ORDER
:
v. ) Appeal No. 96-2159
:
AUDITING DIVISION OF THE ) Account
No. #####
UTAH STATE TAX COMMISSION, :
STATE OF UTAH, )
:
Respondent. ) Tax Type: Income
_____________________________________
STATEMENT
OF CASE
This matter came before the Utah State Tax
Commission pursuant to the provisions
of Utah Code Ann. '59-1-502-5. An Initial Hearing was held on November 12,
1997, Gail S. Reich, Administrative Law Judge, heard the matter for and on
behalf of the Commission. Present and
representing Petitioner were PETITIONER.
Present and representing Respondent was Ms. Michelle Bush of the
Attorney General=s Office.
APPLICABLE
LAW
According to Utah Code Ann. '59-10-102, an individual income tax is
imposed on each resident individual for each taxable year.
According to Utah Code Ann. '59-10-103(1)(j)(I), a Aresident@ is an individual who is domiciled in this state for any period of time
during the taxable year.
ADomicile@ is defined as the place where an individual has a true, affixed,
permanent home and principle establishment, into which he or she has the
intention of returning whenever he or she is away. It is a place in which a person has voluntarily fixed the
habitation of himself and family, not for a mere special or temporary purpose,
but with the intention of making a permanent home. After domicile has been established, two things are necessary to
create a new domicile. First, an
abandonment of the old domicile must take place and, second, the intention to
establish and the establishment of a new domicile must occur. The mere intention to abandon a domicile,
once established, is not sufficient to create a new domicile. Before a person can be said to have changed
a domicile, a new domicile must be established.
ANALYSIS
The issue in this case is whether or not the
Petitioners were domiciled in the State of Utah for the purposes of Utah Code
Ann. '59-10-103(1)(j)(I) for 1994. Petitioner is appealing the tax, penalty, and interest imposed on income
earned in that year. Petitioner worked
in COUNTRY as a civilian for the U.S. Government and paid United States Federal
income tax on that income for the relevant period. Petitioner filed Federal tax returns, retained United States
citizenship, and traveled on U.S. passports.
Prior to leaving for employment in COUNTRY, the Petitioners resided in
Utah. Petitioner=s kept their Utah home and rented it out
while they were gone. Petitioner=s kept their Utah bank accounts, Utah driver=s licenses and were registered to vote in
Utah. International driver=s licenses were based upon the Utah driver=s licenses.
Petitioner=s did
not pay taxes in COUNTRY, nor did they report to the government of COUNTRY that
they were residents there. DECISION AND ORDER
After a thorough review of the entire matter
and consideration being given to the issues raised by each of the parties, it
has been determined that Petitioners were domiciled in Utah before they went to
COUNTRY, and they did not abandon their Utah domicile for the tour of duty in
COUNTRY for the U.S. Government and did not establish a domicile in COUNTRY
during this period in issue. Based upon
the foregoing, the Tax Commission hereby affirms the assessment of taxes and
the penalty and interest imposed for the year in issue. It is so ordered.
This Decision does not limit a party's right
to a Formal Hearing. Any party to this
case may file 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 appeal rights in this matter.
DATED this 30 day of DECEMBER, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
_______________________________
Gail S. Reich
Administrative Law Judge
The agency has reviewed this case and the
undersigned concur in this decision.
DATED this 30 day of DECEMBER, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Richard
B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^