DAR File No. 29027

Tax Commission, Auditing

R865-12L-5

Place of Sale Pursuant to Utah Code Ann. Section 59-12-207

NOTICE OF PROPOSED RULE

DAR File No.: 29027
Filed: 09/14/2006, 03:29
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

S.B. 233 (2006 General Session) provides that sourcing of sales is based on the business location of the seller. (DAR NOTE: S.B. 233 (2006) is found at Chapter 253, Laws of Utah 2006, and was effective 07/01/2006.)

Summary of the rule or change:

The proposed amendment deletes language that sourced a sale to a location other than the business location of the seller.

State statutory or constitutional authorization for this rule:

Section 59-12-207

Anticipated cost or savings to:

the state budget:

None--The agency has been following the statutory language.

local governments:

None--The agency has been following the statutory language.

other persons:

None--The agency has been following the statutory language.

Compliance costs for affected persons:

None--The deleted language has not been followed.

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

There are no foreseen fiscal impacts to businesses with this rule. 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 clee@utah.gov

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:

10/31/2006

This rule may become effective on:

11/07/2006

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-12L. Local Sales and Use Tax.

R865-12L-5. Place of Sale Pursuant to Utah Code Ann. Section 59-12-207.

[A.](1) All retail sales shall be deemed to occur at the place of business of the retailer.

[B.](2) It is immaterial that delivery of the tangible personal property is made in a county or municipality other than that in which the retailer's place of business is located. There is no exemption from local sales or use tax on the basis of residence of or use by the purchaser in a county other than that in which the sale is made.[

C. If a seller has more than one place of business in Utah, and if two or more of such locations participate in the sale, the sale occurs at the place of business where the tangible personal property is located or the place from which it is shipped or delivered.]

 

KEY: taxation, sales tax, restaurants, collections

Date of Enactment or Last Substantive Amendment: [June 29, 2004]2006

Notice of Continuation: April 16, 2002

Authorizing, and Implemented or Interpreted Law: 59-12-207