96-155

Response August 28, 1996

Request

August 19, 1996

XXXXX

Commission Office

Utah State Tax Commission

BUILDING MAIL

RE: Advisory Opinion Request

Dear XXXXX:

A question has been raised concerning, foreclosed motor vehicles on which we would like some direction in the form of an advisory opinion. The issue concerns mechanics’ liens and the resulting sale of a vehicle when a mechanic’s lien exists. The two legal areas we turn to include Utah Code 38-2-4 and Tax Commission Rule R873-22M-2.

The code citation indicates in paragraph (2)(a) that “the lienor shall give notice to the owner of the property, to the customer as indicated on the work order, and to all other persons claiming an interest in or lien on it, as disclosed by the records of the Motor Vehicle Division, . . . (Emphasis added.)

We are requested from time to time to provide information on how to sell a vehicle which is the subject of a mechanic’s lien. We drafted the attached instructions, based on the statute and rule. The written instructions are intended to avoid customers asking our employees to interpret a statute that falls outside of our assigned responsibility (38-2-4).

Our question is whether the rule (and our instructions) as written is sufficient to avoid any liability on the State if we rely on the information listed, as presented by the lienor, including overriding an existing lien. We would appreciate your review of both the statute and the rule to determine if the rule (or our instructions) needs to be modified. Thank you very much for your assistance.

Respectfully,

XXXXX

Customer Service Division

From: XXXXX

To: XXXXX

Date: 8/26/96 9:55am

Subject: Suggested Wording for Draft Instructions for Filing a Mechanic/Storage Lien

XXXXX

We have reviewed the draft of the “Instruction for filing a Mechanic’s or Storage Lien,” along with the request for an advisory opinion with XXXXX. We have the following recommendation:

Paragraph A.3. be worded as follows:

3. Any lienholder of record as shown on the motor vehicle records of the Utah State Tax Commission as disclosed by it’s Customer Service Division, or the motor vehicle records of other jurisdiction(s) in which the vehicle appears to be registered.

For the Commission,

Alice Shearer,

Commissioner