R865. Tax Commission, Auditing.
R865-19S. Sales and Use Tax.
R865-19S-32. Leases and Rentals Pursuant to Utah Code Ann. Section
59-12-103.
(1) The lessor shall compute sales or use
tax on all amounts received or charged in connection with a lease or rental of
tangible personal property.
(2) When a lessee has the right to
possession, operation, or use of tangible personal property, the tax applies to
the amount paid pursuant to the lease agreement, regardless of the duration of
the agreement
(3) Lessors of tangible personal property
shall furnish an exemption certificate when purchasing tangible personal
property subject to the sales or use tax on rental receipts. Costs of repairs and renovations to tangible
personal property are exempt if paid for by the lessor since it is assumed that
those costs are recovered by the lessor in his rental receipts.
(4) A person that furnishes tangible
personal property along with an operator, as described in the definition of
lease or rental in Section 59-12-102, provides a service and shall:
(a) pay sales and use tax at the time that
person purchases the tangible personal property that is furnished under this
Subsection (4); and
(b) collect sales and use tax at the time
that person provides the service if the service is subject to sales and use
tax.
Effective: 11/17/2006