No. 27096 (Amendment): R865-19S-117. Use of Rounding in Determining Sales and Use Tax Liability Pursuant to Utah Code Ann. Section 59-12-118

DAR File No.: 27096
Filed: 04/14/2004, 12:41
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-118 provides the Tax Commission with rulemaking authority for the ascertainment and collection of sales tax.

 

Summary of the rule or change:

The proposed new section provides the method by which sales tax must be rounded.

 

State statutory or constitutional authorization for this rule:

Section 59-12-118

 

Anticipated cost or savings to:

the state budget:

None--The proposed section mirrors the long-standing practice of the Tax Commission.

 

local governments:

None--The proposed section mirrors the long-standing practice of the Tax Commission.

 

other persons:

None--The proposed section mirrors the long-standing practice of the Tax Commission.

 

Compliance costs for affected persons:

None--The proposed section mirrors the long-standing practice of the Tax Commission.

 

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

This proposed section, required by Streamlined Sales Tax, reflects long-standing Tax Commission practice.

 

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-117. Use of Rounding in Determining Sales and Use Tax Liability Pursuant to Utah Code Ann. Section 59-12-118.

A. The computation of sales and use tax must be:

1. carried to the third place; and

2. rounded to a whole cent pursuant to B.

B. The tax shall be rounded up to the next cent whenever the third decimal place of the tax liability calculated under A. is greater than four.

C. Sellers may compute the tax due on a transaction on an:

1. item basis; or

2. invoice basis.

D. The rounding required under this rule may be applied to aggregated state and local taxes.

 

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

[October 29, 2003]2004

Notice of Continuation April 5, 2002

59-12-118