Tax Commission, Motor Vehicle Enforcement

Section R877-23V-22

Reasonable Cause to Waive, Reduce, or Compromise a Penalty Pursuant to Utah Code Ann. Section 41-3-704

Notice of Proposed Rule

(Amendment)

DAR File No.: 36063
Filed: 04/12/2012 03:04:17 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed rule is drafted to implement H.B. 255 (2012 General Session). That bill allows the commission to waive, reduce, or compromise, upon reasonable cause shown, a penalty imposed by the Motor Vehicle Enforcement Division (MVED) under Title 41, Chapter 3.

Summary of the rule or change:

The proposed rule indicates what may constitute reasonable cause to reduce or compromise a penalty imposed under Title 41, Chapter 3; provides that a person seeking to reduce or compromise a penalty must demonstrate that reasonable cause to reduce or compromise the penalty exists and recommend the amount by which the penalty should be reduced or compromised; provides that ignorance of the law or inability to pay do not constitute reasonable cause.

State statutory or constitutional authorization for this rule:

• Section 41-3-704

Anticipated cost or savings to:

the state budget:

None--Any fiscal impacts were considered in H.B. 255 (2012).

local governments:

None--Any fiscal impacts were considered in H.B. 255 (2012).

small businesses:

None--Any fiscal impacts were considered in H.B. 255 (2012).

persons other than small businesses, businesses, or local governmental entities:

None--Any fiscal impacts were considered in H.B. 255 (2012).

Compliance costs for affected persons:

None--The proposed rule provides guidance on when a penalty imposed under Title 41, Chapter 3, may be compromised or reduced.

Comments by the department head on the fiscal impact the rule may have on businesses:

Some businesses that appeal fines imposed by MVED may receive a reduction.

Michael Cragun, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Motor Vehicle Enforcement
210 N 1950 W
SALT LAKE CITY, UT 84134

Direct questions regarding this rule to:

• Christa Johnson at the above address, by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at cj@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/31/2012

This rule may become effective on:

06/07/2012

Authorized by:

Michael Cragun, Tax Commissioner

R877. Tax Commission, Motor Vehicle Enforcement.

R877-23V. Motor Vehicle Enforcement.

R877-23V-22. Reasonable Cause to Waive, Reduce, or Compromise a Penalty Pursuant to Utah Code Ann. Section 41-3-704.

(1)(a) Reasonable cause to reduce or compromise a penalty imposed by the division under Title 41, Chapter 3 may include a penalty imposed under Section 41-3-702 for a second or subsequent offense that is issued for a violation that occurred before the division notifies the party of the penalty for the initial offense.

(b) A person seeking to reduce or compromise a penalty under Subsection (1)(a) shall:

(i) demonstrate that there is reasonable cause to reduce or compromise the penalty; and

(ii) recommend the amount by which the penalty should be reduced or compromised.

(2) A penalty that is reduced or compromised under Subsection (1) may not be reduced or compromised below the penalty imposed for a first offense for that violation.

(3) Reasonable cause to waive, reduce, or compromise a penalty imposed by the division under Title 41, Chapter 3 does not include:

(a) ignorance of the law; or

(b) inability to pay a penalty imposed.

(4) Nothing in this rule prevents a person from appealing the appropriateness of a penalty imposed by the division under Title 41, Chapter 3.

 

KEY: taxation, motor vehicles

Date of Enactment or Last Substantive Amendment: [February 9, ]2012

Notice of Continuation: January 3, 2012

Authorizing, and Implemented or Interpreted Law: 41-1a-712; 41-3-105; 41-3-201; 41-3-202; 41-3-210; 41-3-301; 41-3-302; 41-3-305; 41-3-503; 41-3-505; 41-3-506; 41-3-507