R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

R865-19S-54. Governmental Exemption Pursuant to Utah Code Ann. Section 59-12-104.

A. Tax does not apply to sales to the state of Utah, or to any political subdivision of the state, where such property is for use in the exercise of an essential governmental function. Also, certain sales are not taxed because of federal law or the United States Constitution.

B. Sales to the following state and federal agencies, institutions, and instrumentalities are exempt:

1. federal agencies and instrumentalities

2. state institutions and departments

3. counties

4. municipalities

5. school districts, public schools

6. special taxing districts

7. federal land banks

8. federal reserve banks

9. activity funds within the armed services

10. post exchanges

11. Federally chartered credit unions

C. The following are taxable:

1. national banks

2. federal building and loan associations

3. joint stock land banks

4. state banks (whether or not members of the Federal Reserve System)

5. state building and loan associations

6. private irrigation companies

7. rural electrification projects

8. sales to officers or employees of exempt instrumentalities

D. No sales tax immunity exists solely by virtue of the fact that the sale was made on federal property.

E. Sales made by governmental units are subject to sales tax.

Effective: 10/27/89