98-0708

Miscellaneous

Signed 6/1/98

 

BEFORE THE UTAH STATE TAX COMMISSION

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PETITIONER, :

:

Petitioners, : ORDER

:

v. : Appeal No. 98-0708

:

PROCESSING DIVISION OF THE : VIN No. #####

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Miscellaneous

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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 May 13, 1998. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Petitioners were present and represented themselves. Present and representing Respondent were Dennis Ritz, Director of the Processing Division and Marjorie Burton from the Motor Vehicle Division.

Petitioners appealed Respondent's denial to issue to Petitioners clear title for their 1994 Toyota Camary. Respondent was prepared to issue title with the salvage brand.

The factual circumstances in this appeal were unique and were undisputed between the parties. Prior to Petitioners' purchase of the vehicle, the vehicle had been licensed and registered in Idaho. It was then stolen from the Idaho owner and was later recovered by the Idaho police with some damage to the ignition, stereo and a broken window. The insurance company took ownership of the vehicle and had it sold through COMPANY A. COMPANY A in error processed the vehicle title work on a salvage certificate. Once the salvage certificate was in place, Respondent's representatives felt they did not have the authority to issue clear title to the vehicle even though there was no dispute that the damage to the vehicle was minimal and would not have been considered to be a salvage vehicle except for the error on the part of COMPANY A. However, Respondent felt that the Commission had the authority to issue clear title to Petitioners and asked that the Commission do so.

APPLICABLE LAW

"Salvage vehicle" means any vehicle:(a) damaged by collision, flood, or other occurrence to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or (b) that has been declared a salvage vehicle by an insurer or other state or jurisdiction, but is not precluded from further registration and titling. (Utah Code Ann. §41-1a-1001.)

DECISION AND ORDER

Based on the uniqueness of the circumstances presented, the fact that there was no significant damage to the vehicle, and no request on the part of the insurance company for salvage title the Commission orders that unbranded title be issued to Petitioners for their 1994 Toyota Camary.

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 1 day of June, 1998.

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 1 day of June, 1998.

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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