DAR File No. 32013

Tax Commission, Auditing

R865-19S-119

Certain Transactions Involving Food and Lodging Pursuant to Utah Code Ann. Sections 59-12-103 and 59-12-104

NOTICE OF PROPOSED RULE

DAR File No.: 32013
Filed: 10/09/2008, 12:01
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The section is removed because the language of the rule has been superseded by H.B. 206 (2008). (DAR NOTE: H.B. 206 (2008) is found at Chapter 384, Laws of Utah 2008, and will be effective 01/01/2009.)

Summary of the rule or change:

The section is removed.

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 impacts were considered in H.B. 206 (2008).

local governments:

None--Any fiscal impacts were considered in H.B. 206 (2008).

small businesses and persons other than businesses:

None--Any fiscal impacts were considered in H.B. 206 (2008).

Compliance costs for affected persons:

None--Vendors are now subject to statutory language that indicates how and if these transactions are subject to sales tax.

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

There are no anticipated impacts as these would have been considered with H.B. 206 (2008). 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:

12/01/2008

This rule may become effective on:

01/01/2009

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

[R865-19S-119. Certain Transactions Involving Food and Lodging Pursuant to Utah Code Ann. Sections 59-12-103 and 59-12-104.

A. The provisions of this rule apply to a seller that:

1. is not a restaurant; and

2. provides a purchaser both food and lodging.

B. If a seller does not separately state an amount for tax applicable to food on the invoice, the seller must:

1. pay sales and use tax on the food at the time the seller purchases the food; and

2. include the food in the base that is subject to transient room tax.

C. Subject to D., if a seller separately states an amount for tax applicable to food on the invoice, the seller:

1. may purchase the food tax exempt from sales and use tax as a sale for resale; and

2. may not include the food in the base that is subject to transient room tax.

D. A seller that separately states an amount for tax applicable to food on the invoice must ensure that those amounts are accurately reflected in the seller's records.]

 

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

Date of Enactment or Last Substantive Amendment: [August 18, 2008]2009

Notice of Continuation: March 13, 2007

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