Tarbox v. Tax Commission

ON DENIAL OF PETITION FOR REHEARING

HUNTLEY, Justice.

In June of 1979 Fred and Mary Tarbox, doing business as M & K Sales, a used car proprietorship, were issued a Notice of Deficiency Determination by the Idaho Tax Commission. Most of the tax asserted in the deficiency notice is sales tax on the sales of licensed motor vehicles; however the assessment also includes a fifty percent fraud penalty. The penalty was imposed because although the Tarboxes were and continued to be engaged in the used car business when the Idaho Sales Tax Act came into effect on July 1, 1965, they did not obtain a…