No. 27062 (Amendment): R865-12L-17. Procedures for Administration of the Tourism, Recreation, Cultural, and Convention Facilities Tax Pursuant to Utah Code Ann. Sections 59-12-602 and 59-12-603

DAR File No.: 27062
Filed: 04/07/2004, 03:37
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-602 defines "restaurant" and "prepared food".

 

Summary of the rule or change:

The proposed amendment deletes definitions that were codified in S.B. 147 (2003). (DAR NOTE: S.B. 147 is found at UT L 2003 Ch 312, and will be effective July 1, 2004.)

 

State statutory or constitutional authorization for this rule:

Sections 59-12-602 and 59-12-603

 

Anticipated cost or savings to:

the state budget:

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

 

local governments:

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

 

other persons:

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

 

Compliance costs for affected persons:

None--The codified definitions are substantively similar to the deleted language.

 

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

None--There are no substantive differences between statutory language and the section language that is deleted.

 

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.

R865-12L. Local Sales and Use Tax.

R865-12L-17. Procedures for Administration of the Tourism, Recreation, Cultural, and Convention Facilities Tax Pursuant to Utah Code Ann. Sections 59-12-602 and 59-12-603.

[A. "Restaurant" means any retail establishment, other than a theater, whose primary business is the sale of foods and beverages prepared for immediate consumption. Retail establishments not subject to the sales tax pursuant to Section 59-12-104 and Tax Commission Rules R865-19S-37, R865-19S-41, R865-19S-43, and R865-19S-61 are not restaurants for purposes of these sections.

1. Restaurant does not include any retail establishment whose primary business is the sale of fuel or food items for off-premise, but not immediate, consumption, totalling more than 50 percent of the revenues. In the case of a retail establishment with more than two lines of business, primary business means the line of business that generates the highest revenues when compared with the other lines of business.]A. Definitions

1. "Primary business" means the source of more than 50 percent of the revenues of the retail establishment. In the case of a retail establishment with more than two lines of business, primary business means the line of business which generates the highest revenues when compared with the other lines of business.

[B.]2. "Retail establishment" means a single outlet, whether or not at a fixed location, operated by a [retailer or vendor]seller. Retail establishment includes the preparation facilities of caterers, outlets that deliver the foods or beverages they prepare, and other similar [retailers and vendors]sellers. A single [retailer or vendor]seller engaged in multiple lines of business at one location may be deemed to be operating multiple retail establishments if the lines of business are not commonly regarded as a single retail establishment or if there are other factors indicating that the lines of business should be treated separately. The operation of concession stands by stadium owners, performers, promoters, or others with a financial interest in ticket sales or admission charges to any event shall be considered a separate line of business constituting a retail establishment.

[C. "Primary business" means the source of more than 50 percent of the revenues of the retail establishment. In the case of a retail establishment with more than two lines of business, primary business means the line of business which generates the highest revenues when compared with the other lines of business.

D. "Prepared for immediate consumption" means any act of the retailer or vendor in either:

1. preparing, which includes heating or chilling, serving, or packaging foods or beverages of a type that are reasonably expected to be consumed immediately, or

2. providing the purchaser with the resources necessary to prepare, serve, or package foods or beverages of a type that are reasonably expected to be consumed immediately.

3. D.1. and D.2. apply even if the retail establishment does not provide facilities for on-premise consumption of the foods or beverages or the purchaser chooses not to consume the foods or beverages at the time of purchase.

E.]3. "Theater" means an indoor or outdoor location for the presentation of movies, plays, or musicals.

[F.]B. If an establishment that is a restaurant under Section [A. above, and]59-12-602 sells prepackaged foods as incidental items with the sale of prepared foods, [the]a tax imposed under Section 59-12-603(1)(b) applies to the prepackaged food as well.

[G.]C. For purposes of collecting the tax imposed on the sale of prepared foods and beverages, the tax will attach in the county in which the food or beverage is served.

[H.]D. A [retailer or vendor who]seller that sells foods or beverages prepared for immediate consumption and is uncertain whether it is a restaurant [within the meaning of this rule ]shall make application, in letter form, for exemption with the Tax Commission indicating the circumstances that may qualify it for an exemption. A single application may be filed by a [retailer or vendor]seller for multiple retail establishments if the operations of all of the retail establishments are similar.

 

KEY: taxation, sales tax, restaurants, collections[*]

[June 21, 2000]2004

Notice of Continuation April 16, 2002

59-12-602

59-12-603