R865.  Tax Commission, Auditing.

R865-19S.  Sales and Use Tax.

R865-19S-121.  Sales and Use Tax Exemptions for Certain Purchases by a Mining Facility Pursuant to Utah Code Ann. Section 59-12-104.

(1)  Definitions.

(a)  "Establishment" means a unit of operations, that is generally at a single physical location in Utah, where qualifying activities are performed.  If a business operates in more than one location (e.g., branch or satellite offices), each physical location is considered separately from any other locations operated by the same business.

(b)  "Machinery and equipment" means electronic or mechanical devices having an economic life of three or more years including any accessory that controls the operation of the machinery and equipment.

(2)  The exemptions do not apply to purchases of real property or items of tangible personal property that become part of the real property.

(3)  Purchases of qualifying machinery and equipment are treated as purchases of tangible personal property under R865-19S-58, even if the item is affixed to real property upon installation.

(4)  Machinery and equipment used for non-qualifying activities are eligible for the exemption if the machinery and equipment are primarily used in qualifying activities.   

(5)  The entity claiming the exemption shall retain records to support the claim that the machinery and equipment are qualified for exemption from sales and use tax under the provisions of this rule and Section 59-12-104.

(6)  If a purchase consists of items that are exempt from sales and use tax under this rule and Section 59-12-104, and items that are subject to tax, the tax exempt items must be separately stated on the invoice or the entire purchase will be subject to tax.

KEY:  charities, tax exemptions, religious activities, sales tax

Effective:  02/25/08