September
20, 1991 Response from Tax Commission
September
4, 1991 Letter from XXXXX
XXXXX
Re:XXXXX
Program
Dear
Sir/Madam:
This
letter is in response to your recent request for a Tax Commission ruling on
whether amounts paid for participation in your XXXXX program are subject to
sales tax. It is your opinion that the activities are much the same as those in
health spas.
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 recommendations. The division's recommendation is as follows:
The
Utah sales tax law imposes tax on admissions to places of amusement, recreation
or entertainment. Such places generally provide tables or seats for patrons.
Membership dues or fees paid to enter health clubs are not subject to sales
tax. XXXXX appears to be a health club
for children. Fees paid to enter and use the facilities are not subject to
sales tax.
XXXXX
will be required to collect and remit tax on the sale of items from a snack bar
or other merchandise or apparel. Use tax must also be paid on the purchase of
equipment, signage, decorations, furnishings, computer software or other items
or tangible personal property purchased for use by XXXXX.
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 and a copy of the Utah Taxpayer's Bill of Rights are
attached.
For
the Commission,
Joe
B. Pacheco
Commissioner
Dear
Mr. XXXXX
I
am starting a new business called XXXXX db as XXXXX. I am planning on opening the business in early November, 1991.
Enclosed
is some information on the services provided.
I would like an advisory opinion on whether a portion or all of these
services would be subject to Utah State sales tax. I understand admission fees to health clubs and spas is not
subject to state sales tax. I consider
our admission to our fitness play areas similar in services and intent and concept.
If
you need further information or have a question on the materials provided
please call me at XXXXX.
I
would appreciate receiving your opinion within 30 days if possible.
Sincerely,
XXXXX