DAR File No. 32032

Tax Commission, Auditing

R865-12L-12

Leases and Rentals Pursuant to Utah Code Ann. Section 59-12-204

NOTICE OF PROPOSED RULE

DAR File No.: 32032
Filed: 10/13/2008, 01:34
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The section is removed because the statutory language on which it is based has been repealed by H.B. 206 (2008). That bill provides a new section in the Utah Code, 59-12-214, that indicates how sales tax revenue collected by leases and rentals will be sourced to local jurisdictions. (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:

Section 59-12-207

Anticipated cost or savings to:

the state budget:

None--Any fiscal impact was considered in H.B. 206 (2008).

local governments:

None--Any fiscal impact was considered in H.B. 206 (2008).

small businesses and persons other than businesses:

None--Any fiscal impact was considered in H.B. 206 (2008).

Compliance costs for affected persons:

None--Vendors of leases and rentals will provide information as required by statute.

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.

R865-12L. Local Sales and Use Tax.

[R865-12L-12. Leases and Rentals Pursuant to Utah Code Ann. Section 59-12-204.

A. Local sales tax applies to all lease and rental charges where the tangible personal property leased or rented is delivered from a lessor's place of business that is located in a county that has adopted The Uniform Local Sales and Use Tax Law. The local sales tax accrues to the county or city from which the property was delivered, regardless of where in Utah such property is used. The lessor is required to collect and remit both local and state sales tax.

B. Lessors who lease or rent tangible personal property that is shipped from outside Utah direct to a lessee in Utah are required to collect local use tax on lease charges for tangible personal property used in a county that has adopted the uniform local tax law, regardless of whether the lessor has a place of business in that county or in Utah. The presence of the lessor's property in a county that has adopted the uniform local tax law imposes the liability upon the lessor to collect and remit local use tax in addition to state use tax. The local use tax on rental and lease charges accrues to the county in which the tangible personal property is being used. With motor vehicles leased in Utah by a lessor who has no place of business in Utah, the local tax will apply according to the Utah address of the lessee, and the tax is to be collected by the lessor and reported on that basis.

 

]KEY: taxation, sales tax, restaurants, collections

Date of Enactment or Last Substantive Amendment: [October 12, 2007]2009

Notice of Continuation: March 16, 2007

Authorizing, and Implemented or Interpreted Law: 59-12-118; 59-12-205; 59-12-207; 59-12-301; 59-12-355; 59-12-501; 59-12-502; 59-12-602; 59-12-603; 59-12-703; 59-12-802; 59-12-804