No. 27059 (Amendment): R865-12L-12. Leases and Rentals Pursuant to Utah Code Ann. Section 59-12-204

DAR File No.: 27059
Filed: 04/07/2004, 02:01
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The statutory language on which this section is based has been repealed by S.B. 147 (2003).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, 59-12-207.3, 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 59-12-204

 

Anticipated cost or savings to:

the state budget:

None--Taxpayers will be required to track the business location and primary property location of leases and rentals.

 

local governments:

None--Taxpayers will be required to track the business location and primary property location of leases and rentals.

 

other persons:

None--Taxpayers will be required to track the business location and primary property location of leases and rentals.

 

Compliance costs for affected persons:

None--Taxpayers will be required to track the business locations and primary property location of leases and rentals.

 

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

Lessors currently track the business location of the lease. Pursuant to Streamlined Sales Tax, they will have to track the location where the leased property is used.

 

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-12. Leases and Rentals Pursuant to Utah Code Ann. Section 59-12-204.

A. Local sales tax applies to all lease and rental charges where the tangible personal property leased or rented is delivered from a lessor's place of business that is located in a county that has adopted The Uniform Local Sales and Use Tax Law. The local sales tax accrues to the county or city from which the property was delivered, regardless of where in Utah such property is used. The lessor is required to collect and remit both local and state sales tax.

B. Lessors who lease or rent tangible personal property that is shipped from outside Utah direct to a lessee in Utah are required to collect local use tax on lease charges for tangible personal property used in a county that has adopted the uniform local tax law, regardless of whether the lessor has a place of business in that county or in Utah. The presence of the lessor's property in a county that has adopted the uniform local tax law imposes the liability upon the lessor to collect and remit local use tax in addition to state use tax. The local use tax on rental and lease charges accrues to the county in which the tangible personal property is being used. With motor vehicles leased in Utah by a lessor who has no place of business in Utah, the local tax will apply according to the Utah address of the lessee, and the tax is to be collected by the lessor and reported on that basis.

]

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

[June 21, 2000]2004

Notice of Continuation April 16, 2002

59-12-204