REQUEST LETTER

01-023

Response 7/2/01

NAME

ADDRESS

Several months ago, I contacted your organization regarding the creation of a new special group license plate that would directly benefit organizations in the State of Utah dedicated to preventing the spread of HIV and ensuring compassionate services to those impacted to HIV/AIDS issue. To date, I have not received a reply from your organization regarding this issue.

During last year’s Utah AIDS Foundation’s Walk for Life, my colleagues and I gathered several hundred signatures for our petition to your organization. These signatures are from Utah residents who would support the creation of an AIDS awareness special group license plate. I have enclosed another complete copy of these petitions for your review.

I recently moved to Arizona, however, I am still very dedicated to this cause and will do whatever your organization requires to expedite the creation, administration and/or implementation of this special group plate. Obviously I would like to speak further with you regarding this request. Please contact me at ###### or via email at ADDRESS.

I appreciate your time, consideration and attention to this very sincere request.

NAME

RESPONSE LETTER

DATE

NAME

ADDRESS

RE: Advisory Opinion – Creation of an AIDS awareness special group license plate

Dear Mr. NAME,

We have received your request for the Tax Commission to issue special group license plates that would directly benefit organizations in the State of Utah dedicated to preventing the spread of HIV and ensuring compassionate services to those impacted to HIV/AIDS issue. You have included a petition containing the names of approximately 390 persons who support your request.

The Tax Commission is required to administer the issuance of special group license plates in accordance with laws enacted by the Utah Legislature. The Legislature has provided in statute for the issuance of a number of specifically described special group license plates. None of these specified license plates, however, concern AIDS awareness or benefit organizations involved with this issue. Nevertheless, under Utah Code Ann. §41-1a-408(10), the Legislature permits the Tax Commission to consider requests to create and issue “other” special group license plates, if the following conditions are met:

1. An organization that “makes a significant contribution to the state” requests the Tax Commission to authorize special group license plates for the organization. The Tax Commission considers that an organization “makes a significant contribution to the state” if it is recognized as a 501(c)(3) entity, i.e., exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code. Accordingly, the Tax Commission will authorize special group license plates for an organization that is a 501(c)(3) entity if it meets the other conditions listed below;

2. The organization collects a minimum of 500 applications. A sample application that each applicant must complete may be obtained by contacting NAME, Deputy Director of Motor Vehicle Division, at 297-7680; and

3. All fees required under Utah Code Ann. §41-1a-1211 are submitted with the applications, which in this case is $55 per application (a $5 license plate fee required under subsection 1211(1) plus a $50 special group license plate application fee required under subsection 1211(3)).

Under current law, the Tax Commission cannot approve a request for a special group license plate until these conditions are met. Should these conditions not be met and the Tax Commission rejects the organization’s request, the organization is required under subsection 408(10) to refund all fees to the applicants. However, should the Tax Commission approve the request, we will design a license plate that satisfies the criteria required under subsections 408(2) and (3).

Please note that current law does not provide for an organization making a special group license plate request under subsection 408(10) to benefit from the fees associated with issuing and renewing such plates. The only organizations that can currently benefit from such fees are those that the Legislature has specifically authorized through legislation. If your goal is to benefit the Utah AIDS Foundation or some other 501(c)(3) organization by such fees, legislation providing for this benefit will be required. The Tax Commission is authorized to consider requests for and issue special group license plates subject to the conditions stated above, but we are not authorized to transfer fees to any organization except as specifically mandated by statute.

Please contact us if you have any other questions.

For the Commission,

Marc B. Johnson

Commissioner

MBJ/KC

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