Response
January 17, 1990
January
17, 1990
XXXXX
Corporate
Accounting
Re:
Advisory Opinion - Sales Tax Reporting Method
Dear
XXXXX:
This
letter is in response to your December 13, 1989 request for an advisory opinion
that XXXXX be allowed to self accrue sales or use tax on your purchases. It is
the policy of the Tax Commission to refer such requests to its division most
qualified to analyze the request to make recommendations for rendering an
opinion. Your request was referred to the Auditing Division whose
recommendations are as follows:
1.
There is no provision in the Utah code or rules authorizing a "direct pay
permit." Unless a purchase is for "resale" as tangible personal
property, he purchaser is required to pay tax to the vendor, providing the
vendor is not an unlicensed out of state vendor. See §59-12-104(28) and Rule
R865-19-23S.
2.
We are not aware of a written document or authorization letter allowing
Petitioner to self accrue tax.
3.
Respondent recommends Petitioner's request be denied and that they be directed
to pay tax to vendors of consumable purchases in accordance with current
statute and rule.
Based
upon information furnished by the Auditing Division, we are in agreement with
them, and advise that you revise your method of purchasing to comply with law.
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 judgment and be appealable to the Utah State Supreme Court. A
notice of appeal rights is attached.
For
the Commission,
Joe
B. Pacheco
Commissioner
M
E M O R A N D U M
DATE: December 19, 1989
TO: XXXXX
Auditing
FROM: XXXXX
Commission Secretary
SUBJECT:
Request for Advisory Opinion
XXXXX
has requested a declaratory judgment/advisory opinion on XXXXX Sales Tax
Authorization.
Please
respond according to the guidelines established by the Commission. Thank you.
13
December 1989
XXXXX
Utah
State Tax Commission
Attention:
Commissioners
160
East 300 South
Fifth
Floor
Salt
Lake City, Utah 84134
RE:
XXXXX Sales Tax Authorization
Dear
Commissioners:
We
recently have gone through a reorganization of XXXXX in XXXXX Utah. Under that
reorganization we have organized three separate and distinct divisions which
have applied for and received a special authorization to accrue sales and use
tax on all purchases made by each division. Our Corporate headquarters are
located in the city of Ogden and we would like to use the old XXXXX special
authorization to self accrue our own sales and use tax on our purchases made by
the Corporate headquarters. That Identification Number is XXXXX. This number has, in the past, been
utilized for such purchases at all of our Utah operations.
We
have been unable to locate an official letter of authorization documenting that
use. We would appreciate you so authorizing, in writing, that number for our
Corporate headquarters to self-accrue our own sales and use tax on all
purchases. This authorization will avoid confusion of many common vendors we
have with our XXXXX divisions.
If
you have any questions regarding this matter, please call me at XXXXX. We
appreciate your time and consideration.
Sincerely,
XXXXX,
Director
Corporate
Accounting