No. 27833 (Amendment): R865-19S-90. Telephone Service Pursuant to Utah Code Ann. Section 59-12-103

DAR File No.: 27833
Filed: 04/15/2005, 08:01
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-103 indicates the sales tax treatment for charges for repair of tangible personal property. Section R865-19S-78 provided guidance on the tax consequences of repairs. Also, S.B. 127 (2005) amended Section 59-12-104 so that installation charges are not part of the sales price. All of which requires changes to this section. (DAR NOTE: S.B. 127 is found at UT L 2005 Ch 158, and will be effective 07/01/2005.)

 

Summary of the rule or change:

The proposed amendment deletes reference to two sections since those sections no longer contain the language referred to, and deletes language that is replaced by statute in a recent statutory amendment.

 

State statutory or constitutional authorization for this rule:

Section 59-12-103

 

Anticipated cost or savings to:

the state budget:

None--Any fiscal impacts were taken into account by H.B. 51 (2002) and S.B. 127 (2005). (DAR NOTE: H.B. 51 is found at UT L 2002 Ch 117, and was effective 07/01/2002.)

 

local governments:

None--Any fiscal impacts were taken into account by H.B. 51 (2002) and S.B. 127 (2005).

 

other persons:

None--Any fiscal impacts were taken into account by H.B. 51 (2002) and S.B. 127 (2005).

 

Compliance costs for affected persons:

None--Language is removed since it now appears in statute.

 

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

None--Language is removed since it now appears in statute. Pam Hendrickson, Commission Chair

 

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:

Sheri McFall at the above address, by phone at 801-297-3901, 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:

06/01/2005

 

This rule may become effective on:

06/02/2005

 

Authorized by:

Pam Hendrickson, Commissioner

 

 

RULE TEXT

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

R865-19S-90. Telephone Service Pursuant to Utah Code Ann. Section 59-12-103.

A. Definitions.

1. "Interstate" means a transmission that originates in this state but terminates in another state, or a transmission that originates in another state but terminates in this state.

2. "Intrastate" means a transmission that originates and terminates in this state, even if the route of the transmission signal itself leaves and reenters the state. Prepaid telephone services or service contracts are presumed to be used for intrastate telephone services unless the service contract is sold exclusively for use in interstate communications.

3. "Two-way transmission" includes any services provided over a public switched network.

B. Taxable telephone service charges include:

1. subscriber access fees;

2. charges for optional telephone features, such as call waiting, caller ID, and call forwarding; and

3. nonrecurring charges that are ordinarily charged to subscribers only once or only under exceptional circumstances, including charges to:

a) establish, change, or disconnect telephone service or optional features; and

b) install or repair telephone equipment that retains its character as tangible personal property[ under R865-19S-58 and R865-19S-78].

C. Nontaxable charges include:

1. refundable subscriber deposits, interest, and late payment penalties;

2. charges for interstate long distance or toll calls;

3. telephone answering services received or relayed by a human operator;

4. charges to install or repair subscriber equipment that is regarded as real property[ under R865-19S-58 and R865-19S-78];

5. charges levied on subscribers to fund or subsidize special telephone services, including 911 service, special communications services for the deaf, and special telephone service for low income subscribers;

6. contributions in aid of construction, land development fees, payments in lieu of land development fees, and special plant construction and relocation charges; and

7. charges for one-way pager services.

 

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

[December 21, 2004]2005

Notice of Continuation April 5, 2002

59-12-103