Revised
Response February 26, 1990
Response
February 22, 1990
February
26, 1990
XXXXX
Re: Advisory Opinion, Mail Order Sales
Dear
XXXXX:
This
letter is in response to your January 5, 1990 request for an advisory opinion
regarding your client's possible liability for collection of use tax on mail
order shipments into Utah. It is the
policy of the Tax Commission to refer such requests to its division most
qualified to analyze the request and make recommendations for rendering an
opinion. Your request was referred to
the Auditing Division whose recommendations are as follows:
1. Utah Code Section 59-12-107 (5) (a) (iii)
states "Each vendor shall pay or collect and remit the sales and use taxes
imposed by this chapter if within this state the vendor directly or by any
agent or other representatives: regularly solicits orders whether or not such
orders are accepted in this state, unless the activity in this state consists
solely of advertising or of solicitation by direct mail: (iv) regularly engages
in the delivery or property in this state other than by common carrier or
Unites States mail:"....
2. A seller who takes orders from Utah
customers in any way other than direct mail solicitation is required to become
registered and to collect tax on shipments into Utah. An application is attached.
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 State Supreme Court. A notice of
appeal rights is attached.
Sincerely,
Joe
B. Pacheco
Commissioner
February
22, 1990
XXXXX
Re: Advisory Opinion, Mail Order Sales
Dear
XXXXX:
This
letter is in response to your January 5, 1990 request for an advisory opinion
regarding your client's possible liability for collection of use tax on mail
order shipments into Utah. It is the
policy of the Tax Commission to refer such requests to its division most
qualified to analyze the request and make recommendations for rendering an opinion. Your request was referred to the Auditing
Division whose recommendations are as follows:
1. Utah Code Section 59-12-107(5)(a)(iii)
states "Each vendor shall pay or collect and remit the sales and use taxes
imposed by this chapter if within this state the vendor directly or by any
agent or other representatives: regularly solicits orders whether or not such
orders are accepted in this state, unless the activity in this state consists
solely of advertising or of solicitation by direct mail; (iv) regularly engages
in the delivery of property in this state other than by common carrier or
United states mail;"....
2. A seller who takes orders from Utah
customers in any way other than direct mail solicitation is required to become
registered and to collect tax on shipments into Utah. An application is attached.
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.
Sincerely,
Joe
B. Pacheco
Commissioner
MEMORANDUM
TO: COMMISSIONER JOE PACHECO
FROM: XXXXX, Director
DATE: February 16, 1990
RE: Declaratory Judgement/Advisory Opinion
Attached
is our recommendation for an answer to XXXXX's request for the department's
position on the requirement for an out of state mail order house to collect
tax.
MEMORANDUM
TO: XXXXX
FROM: XXXXX
DATE: February 13, 1990
SUBJECT: Request for Advisory Opinion
XXXXX
has requested a declaratory judgment/advisory opinion on sales and use tax
collection for mail order business.
Please
respond according to the guidelines established by the Commission. Thank you.
January
5, 1990
XXXXX
Chairman
State
Tax Commissioner
Heber
Wells Office Bldg.
160
East 300 South
Salt
Lake City, UT 84134
Re: Sales and Use Tax Collection For Mail Order
Business
Dear
Mr. XXXXX:
We
are writing to obtain the Department's current position as to whether our client
is required to collect and remit Utah sales and/or use tax.
Our
client, who is in the mail order business will place ads offering merchandise
for sale in publications which have a national circulation. Orders will be
taken either by phone or mail at our client's office in XXXXX State. Orders
will be filled by shipping goods from inventory in XXXXX State via the U.S.
mail or common carrier. Our client will have no employees nor a place of
business nor inventory in your state, nor will our client advertise in local
media in your state.
Under
the circumstances, will our client be required to collect sales/and or use tax
from customers in Utah?
If
our client must collect and remit sales and use tax please notify us as to why
they are required to do so and send us the forms necessary to comply with the
law along with any other information on the sales and use tax that would be
helpful to our client.
Your
prompt response is much appreciated.
Very
truly yours,
XXXXX