Response
December 8, 1989
December
8, 1989
XXXXX
Re:
Sales Tax - Manufacturers Exemption
Dear
XXXXX:
This
letter is in response to your May 4, 1989 request for a Tax Commission ruling on
whether a laser typesetter and a display adbuilder workstation qualify for
sales tax exemption under Sales Tax Rule R865-19-85S and §59-12-104(16).
Although
your inquiry was framed as a request for a declaratory judgement, Tax
Commission policy is to initially treat all such inquiries as requests for
advisory opinions. As such, it was referred to the Tax Commission's Auditing
Division for their analysis and recommendation. The division's recommendation
is as follows:
1. Your purchase of the infrared diode laser
typesetter is tax exempt, based upon it being an additional typesetting machine
and will not replace an existing one.
2. Your purchase of the display adbuilder
workstation is also tax exempt since it does not replace other equipment and
allows you to perform a new function by automation.
Based
on the facts presented in your letters, we are in agreement with the Auditing
Division's recommendations. Obviously, if there are deviations from these
facts, this opinion may be negated.
If
you do not agree with this determination, you may appeal to the Tax Commission
for a formal hearing. The results of that hearing would constitute a
declaratory judgement and be appealable to the Utah Supreme Court. A notice of
appeal rights is attached.
For
The Commission,
Joe
B. Pacheco
Commissioner
TO:
Utah State Tax Commission
DATE:
May 4, 1989
SUBJECT:
S85 Exemption
XXXXX
is currently installing a XXXXX Display Adbuilder Workstation. This is a computerized
ad makeup system. The purchase price of this system is $$$$$. This equipment
does not replace any other equipment at XXXXX nor has XXXXX ever owned
equipment to perform this function. I believe this equipment is exempt from
Utah State Sales Tax under rule A12-02-S85. In order to avoid the possible
future assessment of sales tax, penalty, and interest I would like a
declaratory judgement to determine whether this piece of equipment qualifies
for exemption.
Please
contact me if you have any questions or need additional information.
Cordially,
XXXXX
Director
of Finance
TO: Utah State Tax Commission
DATE: May 4, 1989
SUBJECT: S85 Exemption
XXXXX
is currently installing a Linotype L-200P infrared diode laser typesetter. The purchase price of the typesetter and
associated type fonts is $$$$$. XXXXX
currently has a typesetter which will continue in full-time use into the
foreseeable future. This equipment is
additional equipment to help reduce the backlog of work in the ad make-up and
typesetting departments. I believe this
equipment is exempt from sales tax under rule A12-02-S85. In order to avoid the possible future of
assessment of sales tax, penalty, and interest I would like a declaratory judgement to determine whether
this piece of equipment qualifies for exemption.
Please
contact me if you have any questions or need additional information.
Cordially,
XXXXX
Director
of Finance