No. 27089 (Amendment): R865-19S-113. Sales Tax Obligations of Jeep, Snowmobile, and Boat Tour Operators, River Runners, Outfitters, and Other Sellers Providing Similar Services Pursuant to Utah Code Ann. Sections 59-12-103 and 59-12-107

DAR File No.: 27089
Filed: 04/13/2004, 03:51
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-207.1 indicates that services are sourced to the location where the services are first used.

 

Summary of the rule or change:

This section is deleted in its entirety.

 

State statutory or constitutional authorization for this rule:

Sections 59-12-103 and 59-12-107

 

Anticipated cost or savings to:

the state budget:

None--Any fiscal imports were taken into account by 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 fiscal imports were taken into account by S.B. 147 (2003).

 

other persons:

None--Any fiscal imports were taken into account by S.B. 147 (2003).

 

Compliance costs for affected persons:

Vendors currently collecting sales tax may or may not be required to collect sales tax depending on whether the service first occurred in this state.

 

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

Streamlined Sales Tax requires the sales tax on services to be collected by the jurisdiction where the service first occurs. This will require some vendors who did not previously collect sales tax to collect the tax, and others who did collect the tax will no longer collect the 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-113. Sales Tax Obligations of Jeep, Snowmobile, and Boat Tour Operators, River Runners, Outfitters, and Other Sellers Providing Similar Services Pursuant to Utah Code Ann. Sections 59-12-103 and 59-12-107.

A. The provisions of this rule apply to jeep, snowmobile, and boat tour operators, river runners, outfitters, and other sellers providing similar services.

B. If payment for a service provided by a seller described in A. occurs in Utah and the service originates or terminates in Utah, the seller shall collect Utah sales and use tax on the entire amount of the transaction.

C. If payment for a service provided by a seller described in A. occurs outside Utah and the entire service occurs in Utah, the seller shall collect Utah sales and use tax on the entire amount of the transaction.

D. If payment for a service provided by a seller described in A. occurs outside Utah and the service originates or terminates outside Utah, the seller is not required to collect Utah sales and use tax on the transaction.

E. Payment occurs in Utah if the purchaser:

1. while at a business location of the seller in the state, presents payment to the seller; or

2. does not meet the criteria under E.1. and is billed for the service at an address within the state.

F. For purposes of this rule, there is a rebuttable presumption that payment for a service provided by a seller described in A. occurs in Utah.

]

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

[October 29, 2003]2004

Notice of Continuation April 5, 2002

59-12-103

59-12-107