DAR File No. 29033

Tax Commission, Auditing

R865-19S-34

Admission to Places of Amusement Pursuant to Utah Code Ann. Section 59-12-103

NOTICE OF PROPOSED RULE

DAR File No.: 29033
Filed: 09/14/2006, 04:43
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Language in this section is removed that duplicates statutory language. Also, some changes were necessary for clarity and consistency.

Summary of the rule or change:

The proposed amendment deletes language that is duplicated in statute, and makes technical changes.

State statutory or constitutional authorization for this rule:

Section 59-12-103

Anticipated cost or savings to:

the state budget:

None--The proposed amendment deletes language that is duplicated in statute.

local governments:

None--The proposed amendment deletes language that is duplicated in statute.

other persons:

None--The proposed amendment deletes language that is duplicated in statute.

Compliance costs for affected persons:

None--The proposed amendment merely deletes language that is duplicated in statute.

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.

R865-19S. Sales and Use Tax.

R865-19S-34. Admission to Places of Amusement Pursuant to Utah Code Ann. Section 59-12-103.

[A. The phrase "place of amusement, entertainment, or recreation" is broad in meaning but conveys the basic idea of a definite location.

B.](1)(a) The amount paid for admission [to such a place ]is subject to [the]sales and use tax, even though [such charge]that amount includes the right of the purchaser to participate in some activity[ within the place].

(b) For example, the sale of a ticket for a ride upon a mechanical [or self-operated] device is an admission to a place of amusement.

[C.](2)(a) [Charges for admissions to swimming pools, skating rinks, and other places of amusement are subject to tax.]Additional charges for the rental of tangible personal property are subject to sales and use tax as the sale of tangible personal property.

(b) [Charges]For example:

(i) [for ]towel rentals[,] and swimming suit rentals[, skate rentals, etc.,] at a swimming pool are [also] subject to sales and use tax[.];

(ii) [Locker]locker rental fees at a swimming pool are subject to sales tax if the lockers are tangible personal property.

 

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