DAR File No. 32033

Tax Commission, Auditing

R865-21U-3

Liability of Retailers Pursuant to Utah Code Ann. Section 59-12-107

NOTICE OF PROPOSED RULE

DAR File No.: 32033
Filed: 10/13/2008, 01:46
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Sections 59-12-102 and 59-12-107 have recently been amended to include the substance of this section per S.B. 147 (2003 General Session). (DAR NOTE: S.B. 147 (2003) is found at Chapter 312, Laws of Utah 2003, and was effective 07/01/2004.)

Summary of the rule or change:

The section is removed.

State statutory or constitutional authorization for this rule:

Section 59-12-107

Anticipated cost or savings to:

the state budget:

None--The removed provisions are contained in statute.

local governments:

None--The removed provisions are contained in statute.

small businesses and persons other than businesses:

None--The removed provisions are contained in statute.

Compliance costs for affected persons:

None--The removed provisions are contained in statute.

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

None--The removed provisions are contained in statute. 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.

R865-21U. Use Tax.

[R865-21U-3. Liability of Retailers Pursuant to Utah Code Ann. Section 59-12-107.

A. Retailers, as defined by the act, are responsible for the collection of the tax from the purchaser and should give the purchaser a receipt thereof.

B. An example of a retailer would include a manufacturer's representative or a magazine-subscription solicitor located within this state and obtaining orders which are in turn shipped by the manufacturer or publisher to the customer in Utah.

C. A retailer is engaged in business in this state if any activity is conducted by him or his agents, as defined above, with the object of gain, benefit, or advantage--either direct or indirect--whether qualified or admitted to do business or not.

D. When tangible personal property is sold in interstate commerce for use or consumption in this state and the seller is engaged in the business of selling such tangible personal property in this state for use or consumption and delivery is made in this state, the sale is subject to use tax. The sale is taxable regardless of the fact that the purchaser's order may specify that the goods are to be manufactured or produced by the seller at a point outside this state and shipped directly to the purchaser from the point of origin. The seller is required to report all such transactions and collect and remit to this state the use tax on all taxable sales. If these conditions are met, it is immaterial that the contract of sale is closed by acceptance outside the state or that the contract is made before the property is brought into the state.

E. Delivery takes place in this state when physical possession of the tangible personal property is actually transferred to the buyer within this state. Also, when the tangible personal property is placed in the mail at a point outside this state and directed to the buyer in this state or placed on board a carrier at a point outside this state (or otherwise) and directed to the buyer in this state, delivery takes place in Utah.

 

]KEY: taxation, user tax

Date of Enactment or Last Substantive Amendment: [June 29, 2004]2009

Notice of Continuation: March 7, 2006

Authorizing, and Implemented or Interpreted Law: 59-12-107