DAR File No. 29030

Tax Commission, Auditing

R865-19S-76

Painters, Polishers and Car Washers Pursuant to Utah Code Ann. Section 59-12-103 and 59-12-104

NOTICE OF PROPOSED RULE

DAR File No.: 29030
Filed: 09/14/2006, 03:40
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 51 (2006 General Session) amended the sales taxation of car washes. (DAR NOTE: H.B. 51 (2006) is found at Chapter 181, Laws of Utah 2006, and was effective 07/01/2006.)

Summary of the rule or change:

The proposed amendment deletes language indicating services that are taxable since some of the listed taxable services are no longer taxable. Services that are taxable are listed in statute.

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--Any fiscal impact was taken into account in H.B. 51 (2006).

local governments:

None--Any fiscal impact was taken into account in H.B. 51 (2006).

other persons:

None--Any fiscal impact was taken into account in H.B. 51 (2006).

Compliance costs for affected persons:

None--Under the new legislation, some additional car washes are exempt from sales tax.

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

Some additional car washes are exempt from sales tax. 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.

R865-19S. Sales and Use Tax.

R865-19S-76. Painters, Polishers, and Car Washers[, Etc.] Pursuant to Utah Code Ann. [Section]Sections 59-12-103 and 59-12-104.

[A. Charges for painting, polishing, washing, cleaning, and waxing tangible personal property are subject to tax, and no deduction is allowed for the service involved.

B.](1) Sales of paint, wax, or other material [which becomes a part of the customer's tangible personal property, ]to persons engaged in the business of painting and polishing of tangible personal property are exempt as sales for resale if the paint, wax, or other material becomes a part of the customer's tangible personal property. However, the vendor of these items must be given a resale certificate as provided for in Rule R865-19S-23.

[C.](2) Sales of soap, washing mitts, polishing cloths, spray equipment, sand paper, and similar items to painters, polishers, and car washes[, etc.,] are sales to the final consumer and are subject to tax.

 

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

Date of Enactment or Last Substantive Amendment: [October 13, 2005]2006

Notice of Continuation: April 5, 2002

Authorizing, and Implemented or Interpreted Law: 59-12-103; 59-12-104