No. 32007 (Amendment): R865-19S-90. Telephone Service Pursuant to Utah Code Ann. Section 59-12-103

DAR File No.: 32007
Filed: 10/09/2008, 09:35
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment is necessary due to statutory changes occurring from H.B. 206 (2008). (DAR NOTE: H.B. 206 (2008) is found at Chapter 384, Laws of Utah 2008, and will be effective 01/01/2009.)

Summary of the rule or change:

The proposed amendment deletes language that has been placed into statute, and unnecessary language based on statutory changes.

State statutory or constitutional authorization for this rule:

Section 59-12-103

Anticipated cost or savings to:

the state budget:

None--Any fiscal impact was considered in H.B. 206 (2008).

local governments:

None--Any fiscal impact was considered in H.B. 206 (2008).

small businesses and persons other than businesses:

None--Any fiscal impact was considered in H.B. 206 (2008).

Compliance costs for affected persons:

None--Language moved from rule to statute, and language deleted as unnecessary does not have substantive impact.

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

There are no anticipated impacts as any fiscal impact would have been considered with H.B. 206 (2008). D'Arcy Dixon, Commissioner

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:

12/01/2008

This rule may become effective on:

01/01/2009

Authorized by:

D'Arcy Dixon, Commissioner

RULE TEXT

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

R865-19S-90. [Telephone]Telecommunications 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.](1) Taxable [telephone]telecommunications 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) repair telephone equipment that retains its character as tangible personal property.

C.](2) Nontaxable telecommunications charges include:

[1.](a) refundable subscriber deposits, interest, and late payment penalties;

[2.](b) charges for interstate [long distance or toll ]calls;

[3.](c) [telephone]telecommunications answering services received or relayed by a human operator;

[4.](d) charges to repair subscriber equipment that is regarded as real property; and

[5.](e) charges levied on subscribers to fund or subsidize special [telephone]telecommunications services, including 911 service, special communications services for the deaf, and special [telephone]telecommunications 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

Date of Enactment or Last Substantive Amendment: [August 18, 2008]2009

Notice of Continuation: March 13, 2007

Authorizing, and Implemented or Interpreted Law: 59-12-103