No. 27226 (Amendment): R865-19S-7. Sales Tax License Pursuant to Utah Code Ann.Section 59-12-106

DAR File No.: 27226
Filed: 06/11/2004, 01:29
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-106 provides that a sales tax license is invalid if the holder has ceased to do business or has changed the business address.

 

Summary of the rule or change:

The proposed amendments set forth the parameters for determining when a sales tax license in invalid because the holder has ceased to do business or has changed the business address.

 

State statutory or constitutional authorization for this rule:

Section 59-12-106

 

Anticipated cost or savings to:

the state budget:

Some minor savings may be realized for not sending returns, notices, etc. to persons that are not in business.

 

local governments:

Some minor savings may be realized for not sending returns, notices, etc. to persons that are not in business.

 

other persons:

None--Persons that are not in business will not receive mail directed towards persons that are in business and therefore, subject to sales tax laws.

 

Compliance costs for affected persons:

None--Persons that are not in business will no longer receive forms and notices that persons in business must complete and return.

 

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

There will be no impact on businesses since this change only refers to entities that have ceased doing business.

 

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:

08/02/2004

 

This rule may become effective on:

08/03/2004

 

Authorized by:

Pam Hendrickson, Commissioner

 

 

RULE TEXT

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

R865-19S-7. Sales Tax License Pursuant to Utah Code Ann. Section 59-12-106.

A.1. A separate sales and use tax license must be obtained for each place of business, but where more than one place of business is operated by the same person, one application may be filed giving the required information about each place of business.

2. Each license must be posted in a conspicuous place in the place of business for which it is issued.

B. [Any person required to collect sales tax must]The holder of a license issued under Section 59-12-106 shall notify the [Tax Commission]commission:

1. of any change of address of the business;

2. [or]of a change of character of the business, or

3. if [the business is discontinued]the license holder ceases to do business.

C. The commission may determine that a person has ceased to do business or has changed that person's business address if:

1. mail is returned as undeliverable as addressed and unable to forward;

2. the person fails to file four consecutive monthly or quarterly sales tax returns, or two consecutive annual sales tax returns;

3. the person fails to renew its annual business license with the Department of Commerce; or

4. the person fails to renew its local business license.

D. If the requirements of C. are met, the commission shall notify the license holder that the license will be considered invalid unless the license holder provides evidence within 15 days that the license should remain valid.

E. A person may request the commission to reopen a sales and use tax license that has been determined invalid under D.

F. The holder of a license issued under Section 59-12-106 shall be responsible for any sales and use tax, interest, and penalties incurred under that license whether those taxes and fees are incurred during the time the license is valid or invalid.

 

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

[October 29, 2003]2004

Notice of Continuation April 5, 2002

59-12-106