92-007
July
10, 1992
XXXXX,
Owner/Manager
Dear
XXXXX:
I
am responding to your letter of April 17, 1992 sent to Chairman R. H. Hansen
regarding the payment of sales tax prior to collection by the seller.
State
law requires the remittance of the tax with the filing of the return for all
sales made during the period of such return. In your example, if a sale is
made, the sale must be reported in the return for that period regardless if the
account has not been collected. I am enclosing copies of Utah Code Ann.
Sections 59-12-101 and 59-12-102. The relevant subsections of Section 59-12-102
are (8)(a), (9)(a), (b), (c), and (d) and (10). I am also enclosing copies of administrative
rules R865-19-1S and R865-19-20S. This data is the pertinent information you
need in response to your inquiry.
Insofar
as your comment on the state support of tourism, that is an issue that would
need to be addressed to your state legislator. You should point out to your
representatives your concern about the printing industry in bringing in outside
work and retaining employees.
Should
you need any additional information, please feel free to contact me.
Sincerely
Joe
B. Pacheco
Commissioner
R.
H. Hansen
Chairman
Utah
State Tax Commission
160
East 300 South
Salt
Lake City, UT 84134-0700
RE: Petition for Redetermination of Sales/Use
Tax
Dear
Mr. Hansen:
We
appreciate your reviewing this matter for us.
Use
Tax on Prepress & Plates
1.
Printing is an industry that brings out of state money and full time jobs into
the state of Utah
2.
Profit is small and we must pay shipping to get out of state work.
3.
When the state adds sales/use tax that printers in other states do not have to
pay it makes bringing out of state money and jobs to Utah that much harder.
4.
The printing industry nation wide is in a recession that has major printers
from New York to Los Angeles closing their doors. You can check the state
records for printing closures and Chapter 11.
5.
All supplies and plates consumed in a job are figured into the total job price.
Taxing the printer on these items is double taxation.
Collection
of Sales Tax Prior To Collection By Seller:
1.
Sales in commercial printing are billed and collected on a 60 to 95 day rate.
These accounts have not been collected when we must pay state sales tax. I feel
that the state should not be paid before the tax is collected.
2.
Some out of state purchasers elect to pay Utah sales tax. We must borrow to pay
sales tax on these accounts when sales tax comes due before we are paid. We are
not required to tax these sales but do so for our customers convenience. We
have collected over $26,000 from this kind of sales tax over the last 3 years.
The
state budgets 3 million to support tourism, (840,000 to support the winter
tourism).
The
printing industry needs some help to bring in outside work and keep employees
in jobs.
Sincerely
XXXXX
Owner/Manager