No. 27078 (Amendment): R865-21U-12. Storage Pursuant to Utah Code Ann. Section 59-12-103 and 59-12-104(34)

DAR File No.: 27078
Filed: 04/12/2004, 04:06
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-102 defines the term "storage." Accordingly, this section is not necessary.

 

Summary of the rule or change:

This section, which defines the term "storage" is deleted.

 

State statutory or constitutional authorization for this rule:

Sections 59-12-103 and 59-12-104

 

Anticipated cost or savings to:

the state budget:

None--There are no substantive differences between the statutory language and the section language that is deleted.

 

local governments:

None--There are no substantive differences between the statutory language and the section language that is deleted.

 

other persons:

None--There are no substantive differences between the statutory language and the section language that is deleted.

 

Compliance costs for affected persons:

None--There are no substantive differences between the statutory language and the section language that is deleted.

 

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-12. Storage Pursuant to Utah Code Ann. Section 59-12-103 and 59-12-104(34).

A. "Storage" means and includes any storing, keeping, retention of or exercise of dominion, or control over tangible personal property within Utah. Storage does not include purchases of tangible personal property or personal property which remains in the interstate commerce channel. Also, no tax applies if the property is brought into Utah for some purpose other than storage, use, or consumption in Utah. For example, steel purchased out of state and brought into Utah for fabrication would be exempt provided that the steel was purchased for intended use in an out-of-state contract and retained its identity through the fabrication process and eventually was used in the intended out-of-state contract. Steel purchased in bulk quantities and placed in a general inventory and subsequently fabricated and used outside of the state would be subject to the Utah tax since this would constitute a purchase for storage in Utah. If the materials are subsequently taken out of state and incorporated into and become real property in a state which will not allow credit for tax paid to Utah, the purchaser may request a refund of the tax previously paid.

]

KEY: taxation, user tax

[August 20, 1996]2004

Notice of Continuation March 27, 2001

59-12-103

59-12-104