No. 27063 (Amendment): R865-19S-1. Sales and Use Taxes Distinguished Pursuant to Utah Code Ann. Title 59, Chapter 12

DAR File No.: 27063
Filed: 04/07/2004, 04:14
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-103 authorizes a state sales and use tax, and various sections throughout the chapter authorize the different local sales and use taxes.

 

Summary of the rule or change:

The proposed amendment indicates when the sales and use tax is a sales tax and when it is a use tax. Although this proposed amendment will change that determination, there will be no impact to the consumer because the rates of the taxes are the same. It will, however, in some instances, bear impact on who is responsible for the payment of the tax to the Tax Commission.

 

State statutory or constitutional authorization for this rule:

Section 59-12-103

 

Anticipated cost or savings to:

the state budget:

None--The determination of whether a tax is a sales tax or a use tax has no impact on the amount of revenue collected.

 

local governments:

None--The determination of whether a tax is a sales tax or a use tax has no impact on the amount of revenue collected.

 

other persons:

None--The determination of whether a tax is a sales tax or a use tax has no impact on the amount of revenue collected.

 

Compliance costs for affected persons:

None--The terminology used in referring to the tax has no impact on the amount of revenue collected.

 

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

None--There is no difference to the taxpayer whether the tax collected is a sales tax or use tax.

 

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.

R865-19S. Sales and Use Tax.

R865-19S-1. Sales and Use Taxes Distinguished Pursuant to Utah Code Ann. [Title 59, Chapter 12]Section 59-12-103.

[A. The sales tax is imposed upon sales of tangible personal property made within the state of Utah, regardless of where such property is intended to be used, and on the amount paid or charged for all services for repairs and renovations of tangible personal property or for installation of tangible personal property rendered in connection with other tangible personal property.

B. The use tax is imposed upon the use, storage or other consumption of tangible personal property, and upon the amount paid or charged for the services for repairs or renovations of tangible personal property or installation of tangible personal property in connection with other tangible personal property, if the tangible personal property is for use, storage, or consumption in Utah; and, ordinarily, if the transaction does not take place within the state of Utah.]A. The tax imposed on amounts paid or charged for transactions under Title 59, Chapter 12 is a:

1. sales tax, if the tax is collected and remitted by a seller on the seller's in-state or out-of-state sales; or

2. use tax, if the tax is remitted by a purchaser.

[C.]B. The two taxes are compensating taxes, one supplementing the other, but both cannot be applicable to the same transaction. The rate of tax is the same.[

D. The distinguishing factor in determining which tax is applicable is normally the place where the sale or service takes place. If the sale is made in Utah, the sales tax applies. If the sale is made elsewhere, the use tax applies.]

 

KEY: charities, tax exemptions, religious activities, sales tax

[October 29, 2003]2004

Notice of Continuation April 5, 2002

59-12