Response
December 3, 1990
December
3, 1990
XXXXX
Re: Advisory Opinion - Waste Tire Recycling Fee
Dear
XXXXX:
This
letter is in response to your recent request for a Tax Commission ruling on whether
you must collect the waste tire recycling fee on the sale of lawn and garden
tractors and mowers.
The
Tax Commission policy is to refer such requests to the division most qualified
to analyze the request and make recommendations concerning it. As such, your
request was referred to the Tax Commission's Auditing Division for their
analysis and recommendation. The Division's recommendation is as follows:
1.
Code Section 26-32a-103(10) in defining a tire says a "tire means a
pneumatic rubber covering designed to encircle the wheel of a vehicle in which
a person or property is or may be transported or drawn upon a highway."
Garden tractors and lawn mowers, whether riding or not, are not designed to be
"transported or drawn upon a highway."
2.
Since XXXXX does not sell vehicles designed for use on highways, they are not
considered to be a tire retailer for the purpose of the Tire Recycling Fee Act
and, therefore, are not required to collect the fee on tires sold separately or
as part of garden tractor or lawn mower sale.
Based
upon the facts presented in your letter, 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 judgment and be appealable to the Utah State Supreme Court. A
Notice of Appeal Rights is attached.
For
the Commission,
Joe
B. Pacheco
Commissioner
To:
XXXXX
Auditing
Division
Utah
State Tax Commission
Dear
XXXXX:
Per
our phone conversation of 10-2-90, I am writing to ask for an advisory opinion
as to whether or not the "Tire Recycling Fee", Senate Bill 5 (Utah Code
26-32a-101 through 113, effective July 1, 1990 applies to tires sold on new
units as well as replacement parts for the following types of products we
handle:
Garden
Tractors
Riding
Lawn mowers
Walk
Behind Snow throwers (Gasoline engine or electric powered) (Pneumatic and
semi-pneumatic tires)
Walk
Behind Lawn mowers (Gasoline engine or electric powered) (Pneumatic and
semi-pneumatic tires)
Various
other types of motorized lawn and garden products as illustrated in enclosed
literature.
Enclosed
is literature depicting the types of products we have in question.
Your
prompt reply will be greatly appreciated.
Sincerely,
XXXXX
Partner-Manager