No. 27052 (Amendment): R865-21U-3. Liability of Retailers Pursuant to Utah Code Ann. Section 59-12-107

DAR File No.: 27052
Filed: 04/06/2004, 02:58
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The language in this section is encompassed within Sections 59-12-102 and 59-12-107 of the Utah Code. Accordingly, this section is no longer necessary.

 

Summary of the rule or change:

This section is deleted in its entirety.

 

State statutory or constitutional authorization for this rule:

Section 59-12-107

 

Anticipated cost or savings to:

the state budget:

None--Any impacts were taken into account in S.B. 147 (2003). (DAR NOTE: S.B. 147 is found at UT L 2003 Ch 312, and will be effective July 1, 2004.)

 

local governments:

None--Any impacts were taken into account in S.B. 147 (2003). (DAR NOTE: S.B. 147 is found at UT L 2003 Ch 312, and will be effective July 1, 2004.)

 

other persons:

None--Any impacts were taken into account in S.B. 147 (2003). (DAR NOTE: S.B. 147 is found at UT L 2003 Ch 312, and will be effective July 1, 2004.)

 

Compliance costs for affected persons:

None--The concepts included in this section are currently found in statute.

 

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

None--The language is deleted because it is found in statute.

 

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

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

 

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

 

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:

06/01/2004

 

This rule may become effective on:

06/02/2004

 

Authorized by:

Pam Hendrickson, Commissioner

 

 

RULE TEXT

R865. Tax Commission, Auditing.

R865-21U. Use Tax.

[R865-21U-3. Liability of Retailers Pursuant to Utah Code Ann. Section 59-12-107.

A. Retailers, as defined by the act, are responsible for the collection of the tax from the purchaser and should give the purchaser a receipt thereof.

B. An example of a retailer would include a manufacturer's representative or a magazine-subscription solicitor located within this state and obtaining orders which are in turn shipped by the manufacturer or publisher to the customer in Utah.

C. A retailer is engaged in business in this state if any activity is conducted by him or his agents, as defined above, with the object of gain, benefit, or advantage--either direct or indirect--whether qualified or admitted to do business or not.

D. When tangible personal property is sold in interstate commerce for use or consumption in this state and the seller is engaged in the business of selling such tangible personal property in this state for use or consumption and delivery is made in this state, the sale is subject to use tax. The sale is taxable regardless of the fact that the purchaser's order may specify that the goods are to be manufactured or produced by the seller at a point outside this state and shipped directly to the purchaser from the point of origin. The seller is required to report all such transactions and collect and remit to this state the use tax on all taxable sales. If these conditions are met, it is immaterial that the contract of sale is closed by acceptance outside the state or that the contract is made before the property is brought into the state.

E. Delivery takes place in this state when physical possession of the tangible personal property is actually transferred to the buyer within this state. Also, when the tangible personal property is placed in the mail at a point outside this state and directed to the buyer in this state or placed on board a carrier at a point outside this state (or otherwise) and directed to the buyer in this state, delivery takes place in Utah.

]

KEY: taxation, user tax

[August 20, 1996]2004

Notice of Continuation March 27, 2001

59-12-107