No. 27068 (Amendment): R865-19S-23. Exemption Certificates Pursuant to Utah Code Ann. Sections 59-12-106 and 59-12-104

DAR File No.: 27068
Filed: 04/08/2004, 04:52
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-106 requires vendors to obtain an exemption certificate for sales that are exempt from sales tax.

 

Summary of the rule or change:

The proposed amendment deletes language that is in statute; and includes language allowing for electronic filing of exemption certificates and clarifying that a vendor shall obtain the same information for proof of a claimed exemption regardless of the medium in which the transaction occurs.

 

State statutory or constitutional authorization for this rule:

Sections 59-12-104 and 59-12-106

 

Anticipated cost or savings to:

the state budget:

None--The proposed amendment allows vendors to file evidence of tax exempt sales electronically.

 

local governments:

None--The proposed amendment allows vendors to file evidence of tax exempt sales electronically.

 

other persons:

None--The proposed amendment allows vendors to file evidence of tax exempt sales electronically.

 

Compliance costs for affected persons:

Vendors maybe able to file evidence of tax exempt sales electronically.

 

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

None--The proposed rule allows vendors to file evidence of sales tax exemptions electronically.

 

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-23. Exemption Certificates Pursuant to Utah Code Ann. Sections 59-12-106 and 59-12-104.

A. Taxpayers selling tangible personal property or services to customers exempt from sales tax are required to keep records verifying the nontaxable status of those sales.[ Records shall include:

1. sales invoices showing the name and identity of the customer; and

2. exemption certificates for exempt sales of tangible personal property or services if the exemption category is shown on the exemption certificate forms.]

B. The Tax Commission will furnish samples of acceptable exemption certificate forms on request. Stock quantities are not furnished, but taxpayers may reproduce samples as needed in whole or in part.

C. A [vendor]seller may retain a copy of a purchase order, check, or voucher in place of the exemption certificate as evidence of exemption for a federal, state, or local government entity, including public schools.

D. If a purchaser is unable to segregate tangible personal property or services purchased for resale from tangible personal property or services purchased for the purchaser's own consumption, everything should be purchased tax-free. The purchaser must then report and pay the tax on the cost of goods or services purchased tax-free for resale that the purchaser uses or consumes.

[E. The burden of proving that a sale is for resale or otherwise exempt is upon the vendor. If any agent of the Tax Commission requests the vendor to produce a valid exemption certificate or other similar acceptable evidence to support the vendor's claim that a sale is for resale or otherwise exempt, and the vendor is unable to comply, the sale will be considered taxable and the tax shall be payable by the vendor.]E. A seller may provide evidence of a sales and use tax exemption electronically if the seller uses the standard sales and use tax exemption form adopted by the governing board of the agreement.

F. A seller shall obtain the same information for proof of a claimed exemption regardless of the medium in which the transaction occurs.

 

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

[October 29, 2003]2004

Notice of Continuation April 5, 2002

59-12-104

59-12-106