97-0871
Miscellaneous
____________________________________
PETITIONER, :
:
Petitioner, : ORDER
:
v. : Appeal No. 97-0871
:
MOTOR VEHICLE
CUSTOMER )
SERVICE DIVISION
OF THE :
UTAH STATE TAX COMMISSION, :
Respondent. : Tax Type: Miscellaneous
_____________________________________
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 December 10,
1997. Jane Phan, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was
PETITIONERS REP.. Petitioner was also
present. Present and representing Respondent
were RESPONDENT REP. of the Attorney General's Office, Michelle Bush, Assistant
Attorney General, and Julie Halvorson of the Motor Vehicle Customer Service
Division.
Petitioner
is requesting clear title to a 1990 AUTOMOBILE which he purchased pursuant to a
Mechanic's Lien on November 31, 1996.
Respondent has denied clear title due to the prior perfected lien on the
vehicle to BANK. The lien to BANK had
not been satisfied, nor had Petitioner been able to obtain a lien release. Petitioner presented no evidence that BANK
had requested that the repairs be made on the vehicle.
APPLICABLE LAW
The
Utah Legislature has provided for a repairman's lien but has also made that
lien subordinate to the rights of secured parties. Utah Code Ann. §38-2-3 provides as follows:
Every person who shall make, alter or repair, or bestow labor upon, any
article of personal property at the request of the owner or other person
entitled to possession thereof shall have a lien upon such article for the
reasonable value of the labor performed and materials furnished and used in
making such article or in altering or repairing the same, and may retain
possession there of until the amount so due is paid; provided such lien and
right to possession shall be subject and subordinate to the rights and
interests of any secured parties in such personal property unless such secured
party has requested such person to make, alter or repair or bestow labor upon
such property.
DECISION AND ORDER
The
statutes and case law[i]1
pertaining to repairman's liens are clear.
The repairman's lien is subordinate to the secured lien holder, unless
the secured lien holder requested the repairs.
No evidence was presented to indicate that BANK requested the repairs to
the vehicle. In addition the form which
Petitioner filled out, the TC-839, Certificate of Sale (Mechanic and/or Storage
Lien) indicated that Petitioner could not obtain a title without release of the
BANK lien. Section E of the form
states, "To title and register the vehicle in Utah, the purchaser must: 1.
Satisfy any registered lien recorded against the vehicle; and 2. Obtain a lien
release, if applicable . . ."
Petitioner did not comply with either of these requirements. The result for Petitioner is unfortunate but is required by the laws as they are
written.
Based
on the foregoing the Tax Commission denies Petitioner’s request for clear title
to the 1990 AUTOMOBILE.
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 appeal rights in this
matter.
DATED
this _____ day of ____________, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
_____________________
Jane Phan
Administrative Law
Judge
The
agency has reviewed this case and the undersigned concur in this decision.
DATED
this 27 day of January, 1998.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Pam
Hendrickson
Commissioner Commissioner
^^