Effective Date: March 18, 1995

Re: Exclusion of "theaters" from the definition of "restaurant" for purposes of the Tourism, Recreation, Cultural, and Convention Facilities Tax

The 1995 Utah legislature passed House Bill 205, modifying the definition of "restaurant" for purposes of the tourism, recreation, cultural, and convention facilities tax imposed under Utah Code Ann. Sections 59-12-601 through 59-12-603.

Effective March 18, 1995, the definition of a restaurant, for purposes of the "tourism" tax does not include a "theater." Accordingly, "theaters" located in counties that have imposed the tourism tax are not required to collect the additional 1 percent tax on sales of food and beverages.

However, the change in the law does not exempt theaters from collecting state and local sales taxes. Theaters are still required to collect sales tax on sales of food and beverages.

Definition of a "theater"
A proposed Tax Commission rule defines a "theater" as an indoor or outdoor location for the presentation of movies, plays, or musicals. The term "theater" does not include concerts. A business that is uncertain whether it is a theater should apply to the Tax Commission, by letter indicating the circumstances that may qualify the business as a theater. The letter should be addressed to the Internal Support Section, Customer Service Division of the Tax Commission. A dinner theater, pursuant to House Bill 205, remains subject to the tourism tax.

Procedure for verifying exemptions
A business that is exempt from the collection of this tax as a theater should complete the enclosed form and return it to the Tax Commission with its next-filed Tourism, Recreation, Cultural, and Convention Facilities Tax Return, TC-71F. This form will ensure that the Tax Commission closes theater accounts appropriately.

Remittance of tax collected since March 18
Because the effective date of the bill was March 18, 1995, theaters located in counties that have imposed the tourism tax are expected to have collected sales tax on sales of food and beverages up through and including March 17, 1995. If for any reason the tax is collected on or after March 18, 1995, the tax is required by law to be remitted to the Tax Commission.

To ask questions about this Tax Bulletin, please call Taxpayer Services at (801) 297-2200 or call toll-free 1-800-662-4335. To submit questions in writing, mail to Taxpayer Services, 210 North 1950 West, Salt Lake City, UT 84134. Those who have impaired hearing may call the Telecommunications Device for the Deaf (TDD) at (801) 297-2020.

Notice of Move
The State Tax Commission has moved to new offices. Please address all mail to the Utah State Tax Commission, 210 North 1950 West, Salt Lake City, UT 84134. The Tax Commission's toll-free line, 1-800-662-4335, remains the same. The Salt Lake metro area number has changed to (801) 297-2200.

For theaters that are no longer considered restaurants for purposes of the "tourism" tax.
Please send in this completed form with your final Tourist, Recreation, Cultural, and Convention Facilities Tax Return, form TC-71F. This will insure that the Tax Commission closes your tourism account appropriately.

Complete the following information: