DAR File No. 30328

Tax Commission, Auditing

R865-12L-9

Determination of Point of Sale or Use for Sellers and Purchasers Who Make Sales or Purchases From a Location Other Than a Fixed Place of Business in Utah Pursuant to Utah Code Ann. Section 59-12-207

NOTICE OF PROPOSED RULE

DAR File No.: 30328
Filed: 08/15/2007, 01:00
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-12-118 authorizes the commission to prescribe forms for the administration of sales tax, thus a section regarding this is unnecessary.

Summary of the rule or change:

This section is deleted because form numbers are outdated, and the language for what forms should be filed is in publications and form instructions.

State statutory or constitutional authorization for this rule:

Section 59-12-207

Anticipated cost or savings to:

the state budget:

None--The proposed amendment removes outdated language. All information necessary to taxpayers always appears in form instructions.

local governments:

None--The proposed amendment removes outdated language. All information necessary to taxpayers always appears in form instructions.

small businesses and persons other than businesses:

None--The proposed amendment removes outdated language. All information necessary to taxpayers always appears in form instructions.

Compliance costs for affected persons:

None--Taxpayers will continue to file sales tax returns in accordance with current form instructions.

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

There are no anticipated costs. 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:

10/01/2007

This rule may become effective on:

10/08/2007

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-12L. Local Sales and Use Tax.

[R865-12L-9. Determination of Point of Sale or Use for Sellers and Purchasers Who Make Sales or Purchases From a Location Other Than a Fixed Place of Business in Utah Pursuant to Utah Code Ann. Section 59-12-207.

A. "Combined sales tax rate" means the sales tax rate that is the sum of the state sales and use tax rate provided under Title 59, Chapter 12, Part 1, the local sales and use tax rate provided under Title 59, Chapter 12, Part 2, and the rates of any of the following county or municipal taxes that have been imposed in the locality:

1. Title 59, Chapter 12, Part 5, Public Transit Tax;

2. Title 59, Chapter 12, Part 7, County Option Funding for Botanical, Cultural, and Zoological Organizations;

3. Title 59, Chapter 12, Part 8, Funding for Rural County Hospitals;

4. Title 59, Chapter 12, Part 10, Highways Tax; and

5. Title 59, Chapter 12, Part 11, County Option Sales and Use Tax.

B. The following transactions shall be reported on Tax Commission form TC-71, Schedule B/D ("Schedule B/D"):

1. sales of goods from vending machines if the vending machines are situated at multiple locations;

2. sales made from a location in Utah other than a fixed place of business in Utah;

3. sales of tangible personal property shipped into the state by vendors that have established Utah sales tax nexus;

4. purchases of tangible personal property for storage, use, or consumption by a purchaser that is required to file a Utah sales and use tax return but only if:

a) the initial delivery of the tangible personal property is from an inventory located outside the state and the storage, use, or consumption of the tangible personal property occurs at a location other than at a fixed place of business in Utah; and

b) Utah use tax was not collected on the purchase of the tangible personal property described in 4.a).

C. A vendor that makes sales from a fixed location in Utah as well as sales that must be filed on Schedule B/D pursuant to B., may not include on the Schedule B/D those sales the vendor makes from a fixed place of business in Utah.

D. Sales or purchases required to be included on Schedule B/D pursuant to B. shall be reported on the basis of:

1. the county in which they are made, but only if none of the cities within that county has a combined sales tax rate that differs from the county combined sales tax rate; or

2. the city in which they are made, but only if that city has a combined sales tax rate that differs from the county combined sales tax rate.

E. Revenues reported to the Tax Commission on Schedule B/D pursuant to B. shall be allocated to points of sale or use within the reported county based on the proportion of taxable sales or uses attributable to fixed places of business within a particular locality in the county compared to the taxable sales or uses attributable to fixed places of business throughout the county.

F. Revenues allocated to points of sale or use under E. shall be distributed to counties, cities, and towns within the state according to the provisions of Title 59, Chapter 12, Sales and Use Tax Act.

]

KEY: taxation, sales tax, restaurants, collections

Date of Enactment or Last Substantive Amendment: [November 17, 2006]2007

Notice of Continuation: March 16, 2007

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