No. 27053 (Amendment): R865-19S-70. Sales Incidental To The Rendition of Services Pursuant to Utah Code Ann. Sections 59-12-103 and 59-12-104 .

DAR File No.: 27053
Filed: 04/06/2004, 03:42
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

S.B. 147 (2003) amended Section 59-12-104 to delete the exemption for prescription medicines and replace it with a sales tax exemption for drugs sold pursuant to a prescription. (DAR NOTE: S.B. 147 is found at UT L 2003 Ch 312, and will be effective July 1, 2004.)

 

Summary of the rule or change:

The proposed amendment deletes language referring to a sales tax exemption for prescription medicines.

 

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--The change from "medicine" to "drugs" has no impact on what actually qualifies for the exemption.

 

local governments:

None--The change from "medicine" to "drugs" has no impact on what actually qualifies for the exemption.

 

other persons:

None--The change from "medicine" to "drugs" has no impact on what actually qualifies for the exemption.

 

Compliance costs for affected persons:

None--The change in the exemption language affects only the terminology of the exemption, not what actually qualifies for the exemption.

 

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

None--The deleted language is unnecessary because it is 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.

R865-19S. Sales and Use Tax.

R865-19S-70. Sales Incidental To The Rendition of Services Pursuant to Utah Code Ann. Sections 59-12-103 and 59-12-104.

A. Persons engaged in occupations and professions [which]that primarily involve the rendition of services upon the client's person and incidentally dispense items of tangible personal property are regarded as the consumers of the tangible personal property dispensed with the services.

B. Physicians, dentists, beauticians, and barbers[, etc.,] are examples of persons described in [this category]A.[

B. Prescription medicines are exempt from sales and use taxes.]

 

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

[October 29, 2003]2004

Notice of Continuation April 5, 2002

59-12-103

59-12-104