No. 27055 (Amendment): R865-12L-6. Place of Transaction Pursuant to Utah Code Ann. Section 59-12-207

DAR File No.: 27055
Filed: 04/06/2004, 04:31
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The statutory language on which this section is based has been repealed by S.B. 147 (2003). That bill provides a new section, 59-12-207.1, that indicates how sales tax revenue will be distributed to local tax jurisdictions. (DAR NOTE: S.B. 147 is found at UT L 2003 Ch 312, and will be effective July 1, 2004.)

 

Summary of the rule or change:

This section is deleted in its entirety.

 

State statutory or constitutional authorization for this rule:

Section 59-12-207

 

Anticipated cost or savings to:

the state budget:

None--Any fiscal impacts were taken into account in S.B. 147 (2003).

 

local governments:

None--Any fiscal impacts were taken into account in S.B. 147 (2003).

 

other persons:

None--Any fiscal impacts were taken into account in S.B. 147 (2003).

 

Compliance costs for affected persons:

None--Taxpayers will be required to track the business location and, if applicable, the delivery location of all sales.

 

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

Taxpayers currently track the business location of their sales. Pursuant to Streamlined Sales Tax, they will have to track the location of any deliveries they make.

 

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.

R865-12L. Local Sales and Use Tax.

[R865-12L-6. Place of Transaction Pursuant to Utah Code Ann. Section 59-12-207.

A. The sale of merchandise shipped from outside Utah direct to a consumer in any county in Utah that has adopted the Uniform Local Sales and Use Tax Law is subject to local use tax, regardless of where the order was taken.

B. If a vendor sells merchandise that is shipped from outside Utah direct to a consumer in a county in Utah that has adopted the uniform local tax law, and if the vendor engages in solicitation or representation in that county or has a place of business or property located in that county, then the vendor is required to collect and remit local use tax in addition to the state use tax.

C. Vendors who sell merchandise that is shipped from outside Utah direct to a consumer in any county in Utah that has adopted the uniform local tax law but who are not required to collect the local use tax under the criteria in the preceding paragraph are nevertheless requested to collect and remit local use tax in addition to state use tax on a voluntary basis in the same manner as though they were required to do so.

D. If a vendor who is not required to collect local use tax on shipments into counties that have adopted the uniform local tax law does not collect local tax but collects the state tax only, then the consumer remains liable for the local use tax and must remit the local use tax direct to the Tax Commission even though the state tax has been collected by the vendor.

E. Purchases subject to use tax are defined as those purchases made by ultimate consumers for their own storage, use, or consumption in Utah when the merchandise is shipped from outside Utah direct to the purchaser in Utah and on which the vendor did not charge Utah use tax. Local use tax applies to purchases subject to use tax, as defined above, that are stored, used, or consumed in a county that has adopted the uniform local tax law.

F. Taxpayers having one or more places of business in Utah shall report all purchases subject to use tax, as defined above, according to the location of the place of business at which the tangible personal property is initially delivered. If initially delivered within a county that has adopted the uniform local tax law, local use tax applies, regardless of whether the goods are later transferred to a different location.

]

KEY: taxation, sales tax, restaurants, collections[*]

[June 21, 2000]2004

Notice of Continuation April 16, 2002

[59-12-207]