Utah State Tax Commission

TC-62 Sales and Use Tax Returns

Effective for filing periods beginning January 1, 2008

Introduction

Form TC-62, effective Jan. 1, 2008

For periods beginning Jan. 1, 2008, sales and use tax returns will be filed using the new TC-62 series of forms. The new forms are available at tax.utah.gov/forms/index.html.

If you submit substitute forms, your forms must exactly match the TC-62 series of forms and be approved by the Tax Commission prior to filing 2008 returns. See Publication 99-ST for substitute forms information. Continue using the TC-61 series of forms (including Schedules PS and PSD) for 2007 filing periods.

New Sales Tax Account Numbers

The Tax Commission is modernizing its internal computer system. Phase II of the modernization will be launched in March 2008 to process sales and use tax returns. To accommodate the new sales tax computer program, the Tax Commission must issue new sales tax account numbers. All sales tax account numbers issued prior to March 10, 2008 will be mailed a new license and account number during March 2008. The new account numbers will have eight digits, a hyphen, three digits, a hyphen, and end with three alpha characters.

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Rounding Numbers and Converting Percentages

When calculating sales tax return dollar amounts, carry calculations to the third place and round to a whole cent. The tax shall be rounded up to the next cent when the third decimal place is greater than four. For example, a calculation of $102.235 will appear as $102.24 on the sales tax return. Admin. Rule 865-19S-117.

Convert any tax rate percentages to decimals. To convert, divide the tax rate by 100. For example, assuming the tax rate is 6.25 percent: 6.25 divided by 100 = .0625, which is used to calculate the sales tax return.

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Completing TC-62 Return Forms

Following are three examples on how to complete a TC-62 sales and use tax return. Example #1 uses form TC-62S for a seller with a single place of business; example #2 uses form TC-62M and related forms for a restaurant with multiple places of business in Utah; example #3 uses form TC-62M and related forms for a grocery store with multiple places of business in Utah.

If you have questions, please call the Tax Commission at (801) 297-2200 or toll free 1-800-662-4335 and press zero for assistance.

Example 1: TC-62S, Single Place of Business

“Arches Bike Shop” is located in Moab, Utah, which is the company’s sole place of business in Utah. Arches Bike Shop sells bicycles, bicycle equipment and clothing, as well as energy bars and bottled water.

Arches Bike Shop’s sales tax account number is 10005184-001-STC. (Please note: All sales tax account numbers issued prior to March 10, 2008 will receive a new license and account number during March 2008. The new account number will be similar to the format used in this example.) The store’s annual tax liability is approximately $38,750; the annual tax liability identifies Arches Bike Shop as filing quarterly sales tax returns.

Please use the following information to complete Arches Bike Shop’s sales and use tax return for January-March 2008, which is due on or before April 30, 2008.

Instructions	Impact to TC-62 Return
Arches Bike Shop is a seller with one fixed business location in Utah.	Files form TC-62S. Does not file any schedules.
For the January-March filing period, Arches Bike Shop had gross sales of $131,000.	TC-62S, Line 1
The gross sales amount included an exempt sale of $3,500 to a 501(c)(3) nonprofit organization, and Arches Bike Shop received an Exemption Certificate from the buyer.	TC-62S, Line 2
The owner of Arches Bike Shop received a shipment of new clothing in March. The clothing was purchased tax-free for resale to customers. To advertise the new clothing line, the owner wore some of the clothes in a bike rally and kept $200 of the new clothing for personal use. These items, which were purchased tax free and used by the owner, are subject to use tax.	TC-62S, Line 4
In February, Arches Bike Shop attended the annual Moab Business Festival and sold $700 (included in gross sales amount) of bicycle clothing. Agents from the Tax Commission collected $54.25 of sales tax from Arches Bike Shop on the last day of the festival.	TC-62S, Line 5
In January, a customer purchased a bicycle and clothing from Arches Bike Shop. The customer was not satisfied with the bicycle and returned it in February. Arches Bike Shop reimbursed the customer $1077.50, or $1000 for the bicycle and $77.50 of sales tax.	TC-62S, Line 5
The sales tax rate in the city of Moab is 7.75 percent for non-food items. (Note: Because tax rates change these may not be the correct rates, but will be used to calculate this example. To find correct rates, go to the Sales & Use Tax page.)	TC-62S, Line 8a
The sales tax rate is 3.00 percent for food and food ingredients. According to Arches Bike Shop’s accounting records, from January-March it had retail sales of $300 (included in gross sales amount) for energy bars and bottled water, which are food items taxed at 3.00 percent.	TC-62S, Line 8b

Example 1 – Arches Bicycle Shop, completing return form TC-62S

Line Number – TC-62S	Amount	Explanation
1. Total sales of goods and services	131,000.00	Item #2 in instructions
2. Exempt sales included in line 1	3,500.00	Item #3, exempt sale to nonprofit organization
3. Taxable sales (line 1 minus line 2)	127,500.00	Subtract line 2 from line 1
4. Goods purchased tax free and used by you	200.00	Item #4, clothing purchased tax free for resale was used by owner
5. Total taxable amounts (line 3 plus line 4)	127,700.00	Add line 3 plus line 4
6. Adjustments (attach explanation)	1,700.00	Item #5, sales at a special event and item #6, customer returned purchase and received a refund
7. Net taxable sales and purchases (line 5 plus or minus line 6)	126,000.00	For this example, subtract line 6 from line 5.
8a, tax calculation Non-food sales tax: $125,700 x .0775	9,741.75	In item #8 accounting records indicate $300 of food sales so $125,700 is non-food sales, or line 7 minus $300. $125,700 is multiplied by .0775 because item #7 indicates the sales tax rate is 7.75% for this example.
8b, tax calculation Food sales tax: $300 x .0300	9.00	Item #8, accounting records indicate $300 of food sales, which are taxed at 3%.
9. Total tax (line 8a plus 8b)	9,750.75	Add line 8a plus line 8b.
10. Residential fuels included in line 7	0	This business does not sell fuel to residential customers.
11. Total state and local taxes due (line 9 minus line 10)	9,750.75	$9750.75 minus zero = $9750.75
12. Seller discount, for monthly filers only (line 11 x .0131)	0	This business files quarterly and is not entitled to the monthly seller discount.
13. Additional food seller discount, for monthly filers only (line 8b x .0127)	0	This business files quarterly and is not entitled to the monthly seller discount.
14. NET TAX DUE (line 11 minus line 12, minus line 13)	9,750.75	Amount remitted to the state
15. Qualified exempt purchases or leases of manufacturing or mining equipment	0	This business does not qualify

Note: Enter line 14 amount on payment coupon and remit this amount to the state.

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Completed TC-62S Forms

Arches Bicycle Shop
TC-62S, Sales and Use Tax Return	TC-62PCS Payment Coupon

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Example 2: TC-62M and related forms, restaurant with multiple locations

“My Dining Room” is a restaurant chain with three locations in Utah – there is a restaurant in Logan, a restaurant in Provo, and a restaurant in Draper.

My Dining Room’s sales tax account number is 10020304-002-STC. (Please note: All sales tax account numbers issued prior to March 10, 2008 will receive a new license and account number during March 2008. The new account number will be similar to the format used in this example.) The annual tax liability for all three locations is approximately $65,750; the annual tax liability identifies My Dining Room as filing monthly sales tax returns. For timely filed returns, My Dining Room is eligible for the monthly seller discount.

Please use the following information to complete My Dining Room’s sales and use tax return for February 2008, which is due on or before March 31, 2008.

Instructions	Impact to TC-62 Return
My Dining Room is a restaurant with three fixed business locations in Utah.	Files form TC-62M, Schedule A and TC-62F.
During February 2008, total gross sales for all locations were $71,000.	TC-62M, Line 1
In February, My Dining Room in Draper bought printed restaurant menus from an out-of-state vendor for $1,600. When the vendor shipped the menus to My Dining Room, it did not collect any sales tax. As the final consumer of the menus, My Dining Room must remit use tax on this purchase.	TC-62M, Line 4 TC-62M Schedule A; Columns 3 and 4 for the Draper location.
The Draper restaurant sold $3,000 of prepared food at the Utah State Fair in Salt Lake City. Tax Commission agents collected $205.50 in sales tax on the last day of the fair. The $3,000 in sales is already included in the Draper restaurant’s gross sales amount.	TC-62M, Line 6 TC-62M Schedule A; Columns 3 and 4 for the Draper location.
My Dining Room in Logan, designated as Outlet #010 by the Tax Commission, had February gross sales of $21,500. The sales tax rate for the city of Logan is 6.35 percent. (Note: Because tax rates change this may not be the correct rate, but will be used to calculate this example. To find correct rates, go to the Sales & Use Tax page.)	TC-62M Schedule A; Columns 3 and 4 for the Logan location
My Dining Room in Provo, Outlet #020, had February gross sales of $23,075. The sales tax rate for the city of Provo is 6.25 percent. (Note: Because tax rates change this may not be the correct rate, but will be used to calculate this example. To find correct rates, go to the Sales & Use Tax page.)	TC-62M Schedule A; Columns 3 and 4 for the Provo location
My Dining Room in Draper, Outlet #030, had February gross sales of $26,425.To get net taxable sales, add in the $1,600 of Use Tax (Item #3-TC-62M, Line 4) and subtract the $3,000 of prepared food sold at the Utah State Fair (Item #4-TC-62M, Line 6). The sales tax rate for the city of Draper is 6.85 percent. (Note: Because tax rates change this may not be the correct rate, but will be used to calculate this example. To find correct rates, go to the Sales & Use Tax page.)	TC-62M Schedule A; Columns 3 and 4 for the Draper location
My Dining Room's Logan location is in Cache County and had February prepared food and beverage sales of $21,500.	TC-62F; Column 3 for the Logan location.
My Dining Room's Provo location is in Utah County and had February prepared food and beverage sales of $23,075.	TC-62F; Column 3 for the Provo location.
My Dining Room's Draper location is in Salt Lake County and had February prepared food and beverage sales of $26,425	TC-62F; Column 3 for the Draper location.

Example 2 – My Dining Room, completing return form TC-62M, TC-62M Schedule A, and TC-62F

Line Number – TC-62M	Amount	Explanation
1. Total sales of goods and services	71,000.00	Item #2 in instructions
2. Exempt sales included in line 1	0	Did not have any transactions exempt from sales tax
3. Taxable sales (line 1 minus line 2)	71,000.00
4. Goods purchased tax free and used by you	1,600.00	Item #3, purchased menus, was not charged sales tax on this taxable transaction, so use tax is due
5. Total taxable amounts (line 3 plus line 4)	72,600.00	Add line 3 plus line 4
6. Adjustments (attach explanation)	3,000.00	Item #4, sold prepared food at a special event
7. Net taxable sales and purchases (line 5 plus or minus line 6)	69,600.00	For this example, subtract line 6 from line 5.
8a, tax calculation – non-food and prepared food sales tax (enter total from Schedule A)	4,521.65	For this example, filer must complete Schedule A to calculate this amount. See explanation below.
8b, tax calculation – food sales tax	0	This restaurant sells prepared food; it does not have any food and food ingredient sales
9. Total tax (line 8a plus line 8b)	4,521.65	Add line 8a to line 8b
10. Residential fuels included in line 7	0	This business does not sell fuel to residential customers.
11. Total state and local taxes due (line 9 minus line 10)	4,521.65	$4,412.05 minus zero = $4,412.05
12. Seller discount, for monthly filers only (line 11 x .0131)	59.23	$4,412.05 x .0131 = $57.80
13. Additional food seller discount, for monthly filers only (line 8b x .0127)	0	This restaurant sells prepared food; it does not have any food and food ingredient sales
14. NET TAX DUE (line 11 minus line 12, minus line 13)	4,462.42	Amount remitted to the state
15. Qualified exempt purchases or leases of manufacturing or mining equipment	0	This business does not qualify

Note: Enter line 14 amount on payment coupon and remit this amount to the state.

My Dining Room TC-62M Schedule A, Sales of Non-Food Items from Multiple Locations
1. Location	2. Outlet #	3. Net Taxable Sales & Purchases	4. Tax Rate	5. Sales and Use Tax
My Dining Room Address Logan, UT zip	010 (assigned by Tax Commission)	21,500.00 (item #5)	.0635 (item #5)	1365.25 (column 3 x column 4)
My Dining Room Address Provo, UT zip	020 (assigned by Tax Commission)	23,075.00 (item #6)	.0625 (item #6)	1,442.19 (column 3 x column 4)
My Dining Room Address Draper, UT zip	030 (assigned by Tax Commission)	26,425+1,600-3000 = 25,025.00 (items #3, 4 & 5)	.0685 (item #7)	1,714.21 (column 3 x column 4)
TC-62A Totals		69,600.00		4,521.65

Note: Total in column 5 is entered on form TC-62M, line 8a.

My Dining Room TC-62F, Restaurant Tax Return – Account #10020304-003-SPF
1. County	2. County Code	3. Total Charges for Food & Beverages	4. Tax Rate	5. Tax Due
Cache County (Logan restaurant)	03000	21,500.00 (items #5 & 8)	.0100 (restaurant tax rate)	215.00 (column 3 x column 4)
Salt Lake County (Draper restaurant)	18000	26,425.00 (items #7 & 10)	.0100 (restaurant tax rate)	264.25 (column 3 x column 4)
Utah County (Provo restaurant)	25000	23,075.00 (items #6 & 9)	.0100 (restaurant tax rate)	230.75 (column 3 x column 4)
TC-62F Totals		71,000.00		710.00

Note: Enter column 5 total on payment coupon and remit this amount to the state.

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Completed TC-62M Forms

My Dining Room
TC-62M, Sales and Use Tax Return	TC-62PCM Payment Coupon
TC-62M Schedule A	TC-62F, Restaurant Tax Return

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Example 3: TC-62M and related forms, grocery store with multiple locations

“Groceries & More” is a national grocery store chain with two locations in Utah – a store is located in Cedar City and another in St. George.

Groceries & More sells food items (milk, bread, eggs, etc.), and a variety of household items (soap, light bulbs, stationery, etc.).

Groceries & More’s sales tax account number is 10100203-002-STC. ( Please note: All sales tax account numbers issued prior to March 10, 2008 will receive a new license and account number during March 2008. The new account number will be similar to the format used in this example.) The store’s annual tax liability is approximately $45,000. Its annual tax liability identifies Groceries & More as filing quarterly sales tax returns; however, the stores would like to receive a seller discount and were granted permission to be a monthly filer.

Please use the following information to complete Groceries & More’s sales and use tax return for January 2008, which is due on or before February 29, 2008.

Instructions	Impact to TC-62 Return
Groceries & More has two fixed business locations in Utah that sell food and non-food items.	Files form TC-62M, Schedules A and AG.
During January 2008, total gross sales for both locations were $60,000.	TC-62M, Line 1
A 501(c)(3) nonprofit organization purchased $500 of tax-exempt household items from Groceries & More in St. George and provided an Exemption Certificate at the time of purchase. This $500 purchase is included in gross sales.	TC-62M, Line 2 TC-62M Schedule A; Column 3 for the St. George location
Groceries & More in Cedar City participated in a health fair and gave free apples to each attendee. The apples were purchased for $200 tax-free for resale to customers. Because the apples were given away as free samples, Groceries & More consumed the items and must pay use tax on $200.	TC-62M, Line 4 TC-62M Schedule AG; Column 3 for the Cedar City location
Groceries & More in Cedar City, designated as Outlet #080 by the Tax Commission, had January gross sales of $23,750. Accounting records indicate $3,750 was sales of non-food items. The sales tax rate for Cedar City is 6.10 percent. (Note: Because tax rates change this may not be the correct rate, but will be used to calculate this example. To find correct rates, go to the Sales & Use Tax page.)	TC-62M Schedule A; Columns 3 and 4 for the Cedar City location
Groceries & More in St. George, Outlet #090, had January gross sales of $36,250. Accounting records indicate $5,250 was sales of non-food items. To get net taxable sales, subtract the $500 of tax-exempt items purchased purchased by the nonprofit organization (Item #3-TC-62M, Line 2). The sales tax rate for St. George is 6.25 percent. (Note: Because tax rates change this may not be the correct rate, but will be used to calculate this example. To find correct rates, go to the Sales & Use Tax page.)	TC-62M Schedule A; Columns 3 and 4 for the St. George location
At the Cedar City location, Outlet #080, accounting records indicate Groceries & More had food sales of $20,000. To get the net taxable sales, add the $200 in use tax (Item #4-TC-62M, Line 4).	TC-62M Schedule AG; Columns 3 and 4 for the Cedar City location
At the St. George location, Outlet #090, accounting records indicate Groceries & More had food sales of $31,000.	TC-62M Schedule AG; Columns 3 and 4 for the St. George location

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Example 3 – Groceries & More, completing return form TC-62M, TC-62M Schedule A and TC-62M Schedule AG

Line Number – TC-62M	Amount	Explanation
1. Total sales of goods and services	60,000.00	Item #2 in instructions
2. Exempt sales included in line 1	500.00	Item #3, exempt sale to nonprofit organization
3. Taxable sales (line 1 minus line 2)	59,500.00
4. Goods purchased tax free and used by you	200.00	Item #4, apples purchased tax free for resale were consumed by business
5. Total taxable amounts (line 3 plus line 4)	59,700.00	Add line 3 plus line 4
6. Adjustments (attach explanation)	0
7. Net taxable sales and purchases (line 5 plus or minus line 6)	59,700.00	Subtract line 6 from line 5.
8a, tax calculation – non-food and prepared food sales tax (enter total from Schedule A)	525.63	Filer must complete Schedule A to calculate this amount. See explanation below.
8b, tax calculation – food sales tax	1,536.00	Filer must complete Schedule AG to calculate this amount. See explanation below.
9. Total tax (line 8a plus line 8b)	2,061.63	Add line 8a to line 8b
10. Residential fuels included in line 7	0	This business does not sell fuel to residential customers.
11. Total state and local taxes due (line 9 minus line 10)	2,061.63	$2,061.63 minus zero = $2,061.63
12. Seller discount, for monthly filers only (line 11 x .0131)	27.01	$2,061.63 x .0131 = $27.01
13. Additional food seller discount, for monthly filers only (line 8b x .0127)	19.51	$1,536 x .0127 = $19.51
14. NET TAX DUE (line 11 minus line 12, minus line 13)	2,015.11	Amount remitted to the state
15. Qualified exempt purchases or leases of manufacturing or mining equipment	0	This business does not qualify

Note: Enter line 14 amount on payment coupon and remit this amount to the state.

Groceries & More TC-62M Schedule A, Sales of Non-Food Items from Multiple Locations
1. Location	2. Outlet #	3. Net Taxable Sales & Purchases	4. Tax Rate	5. Sales and Use Tax
Groceries & More Address Cedar City, UT zip	080 (assigned by Tax Comm.)	3,750.00 (item #5)	.0610 (item #5)	228.75 (column 3 x column 4)
Groceries & More Address St. George, UT zip	090 (assigned by Tax Comm.)	5,250 - 500 = 4,750.00 (items #3 and 6)	.0625 (item #6)	296.88 (column 3 x column 4)
TC-62A Totals		8,500.00		525.63

Note: Total in column 5 is entered on form TC-62M, line 8a.

Groceries & More TC-62M Schedule AG, Sales of Food and Food Ingredients from Multiple Locations
1. Location	2. Outlet #	3. Net Taxable Sales & Purchases	4. Tax Rate	5. Sales and Use Tax
Groceries & More Address Cedar City, UT zip	080 (assigned by Tax Comm.)	20,000 + 200 = 20,200.00 (items #4 and 7)	.0300 (item #7)	606.00 (column 3 x column 4)
Groceries & More Address St. George, UT zip	090 (assigned by Tax Comm.)	31,000.00 (item #8)	.0300 (item #8)	930.00 (column 3 x column 4)
TC-62AG Totals		51,200.00		1,536.00

Note: Total in column 5 is entered on form TC-62M, line 8b.

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Completed TC-62M Forms

Groceries & More
TC-62M, Sales and Use Tax Return	TC-62PCM Payment Coupon
TC-62M Schedule A	TC-62M Schedule AG

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