98-1234
MISCELLANEOUS
Signed 2/26/99
BEFORE THE
UTAH STATE TAX COMMISSION
____________________________________
PETITIONER, )
) ORDER
Petitioner, )
) Appeal No. 98-1234
v. )
)
MOTOR VEHICLE
ENFORCEMENT )
DIVISION, UTAH
STATE TAX )
COMMISSION, ) Judge: Phan
)
Respondent. )
_____________________________________
Presiding:
Jane Phan,
Administrative Law Judge
Appearances:
For Petitioner:
For Respondent: Michelle Bush, Assistant Attorney General
John Kirk
STATEMENT
OF THE 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 January 5, 1999.
Petitioner is
appealing denial on the part of the Tax Commission to issue a "salvage
rebuilt" or "clean title" for Petitioner's 1992 Dodge
truck. Petitioner had purchased the
truck at an auto auction in Nevada. At
the time of the purchase the truck had a Scrap Certificate of Title, issued by
the state of STATE. On the Scrap
Certificate in large letters it states "SCRAP VEHICLE," "CANNOT BE REGISTERED OR
RETITLED," "THIS VEHICLE CAN ONLY BE USED FOR PARTS OR SCRAP
METAL." Petitioner was aware of
this title at the time of the purchase, but he
thought from past experience that he could have the vehicle retitled in
Utah.
It was
Petitioner's position that the Scrap Title from STATE had been issued in
error. Petitioner provided a copy of
the application for scrap title which was filled out by a representative from
Chrysler Corp., as well as a history of repairs. In addition he had made some contact with Chrysler Corp.,
employees. From the information he was
able to gather, it was his position that there had been insufficient damage to
the vehicle to require issuance of a Scrap Title.
It was
Respondent's position that once a Scrap Title had been issued in another state
it could not be titled in Utah with a "rebuilt" or "unbranded
title." Respondent stated that
Petitioner would have to go to the state of STATE to have them change the
title.
APPLICABLE
LAW
The grounds for
refusing registration or certificate of title are set out in Utah Code Ann. '41-1a-109 in
pertinent part as follows:
(1) The division shall refuse registration or
issuance of a certificate of title or any transfer of registration upon any of
the following grounds: . . .
(c) the applicant is not entitled to the
issuance of a certificate of title or registration of the vehicle under this
chapter.
Utah Code Ann.'41-1a-1001(5)&
(6) provides the following concerning the issuance of salvage certificates:
(5)(a) "Salvage certificate" means a
certificate of ownership issued for a salvage vehicle before a new certificate
of title is issued for the vehicle.
(b) A salvage certificate is not valid for
registration purposes.
(6) "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 operations 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. (Emphasis added.)
The Utah
Legislature have provided some very specific requirements that must be met
prior to the issuance of an unbranded title to a salvage vehicle. Utah Code Ann. '41-1a-1002
provides:
(1) To obtain an unbranded title to a salvage
vehicle:
(a) the vehicle must:
(i) be a motor vehicle;
(ii) (A) have an unbranded Utah title or
a Utah salvage certificate issued to replace an unbranded Utah title at the
time the motor vehicle is inspected under Subsection (iii): or (B) have an unbranded title from another
jurisdiction and the motor vehicle shall have been damaged in Utah as evidenced
by an accident report;
(iii) be inspected by a certified vehicle inspector prior to any repairs
on the motor vehicle following any major damage; and
(iv) have major damage in no more than
one major component part . . .
DECISION AND
ORDER
Petitioner
purchased a vehicle which had been issued a Scrap Certificate of Title by the
state of STATE. On the face of the certificate it states that
the vehicle can not be registered or retitled, that it can only be used for
parts or scrap metal.
There is no
provision in the laws of the state of Utah to replace this out of state scrap
title with a salvage certificate or unbranded or salvage rebuilt title
regardless of whether the scrap title had been issued in error by STATE. According to Utah law this vehicle does not
qualify for status as a salvage vehicle because it was specifically precluded
from further registration or titling by another state. Because the vehicle is not a salvage vehicle
within the meaning of the Utah Code, a salvage certificate can not be
issued. Even if a salvage certificate
were issued, Petitioner could not obtain an unbranded title because the very
specific requirements of Utah Code Ann.
'41-1a-1002 have
not been met, including the fact that there had been no pre-repair
inspection.
Based on the
forgoing the Commission denies Petitioner's request for a salvage certificate
or unbranded title to his 1992 Dodge truck.
It is so ordered.
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 26th
day of February, 1999.
____________________________________
Jane Phan
Administrative Law Judge
BY ORDER OF THE UTAH STATE TAX
COMMISSION.
The Commission
has reviewed this case and the undersigned concur in this decision.
DATED this 26th
day of February, 1999.
Richard B. McKeown Joe B. Pacheco
Chairman Commissioner
Pam Hendrickson R.
Bruce Johnson
Commissioner Commissioner
^^