Response
August 28, 1992
August
28, 1992
XXXXX
Re:
Advisory Opinion - Employee Safety Program
Dear
Ms. XXXXX:
Your
request for an advisory opinion concerning which, if any, of the products and
services you sell or provide to customers are subject to sales tax was referred
to the Auditing Division for their analysis.
It
is the division staff recommendation that:
1. A survey of clients' products is a
nontaxable personal service.
2. Performing an employee training seminar is
not taxable.
3. Preparation of a Material Safety Data Sheet
File is not a taxable service.
4. The sale of a hazardous products index is a
taxable sale of tangible personal property.
5. The preparation and sale of a facility map
with exits and safety equipment marked is a nontaxable custom service.
6. The bloodborne pathogen program is the sale
of printed matter and is taxable.
7. The sale of formaldehyde usage guidelines is
also a taxable sale of printed matter.
8. Charges for an explanation of XXXXX
guidelines customized for a particular customer are not taxable.
9. Telephone consultation is not a taxable
service.
10. It is proper to pay tax on the printing cost
and on the cost of binders where the service or product sale is not taxable.
Where there is a taxable sale of tangible personal property, the materials
should be purchased on a tax-free resale basis.
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 Bill of Rights are attached.
To
arrange for Americans with Disabilities Act accommodations, please contact the
Tax Commission at (801) 530-6920, (801) 530-6077 or TDD (801) 530-6269 allowing
three working days notice.
For
The Commission,
Joe
B. Pacheco
Commissioner
XXXXX
Heber
M. Wells Building
160
East 3rd South
Salt
Lake City, UT 84134
Dear
XXXXX,
Following
is the additional information which you requested in your June 18, 1992 letter.
1. A Material Safety Data Sheet File is a
tabulated file or material safety data sheets (MSDS) for all chemical and
biological products that a buyer has in his workplace. A MSDS is a written 1 or
2 page document stating the safety and health precautions for a certain
chemical or biological products.
2. A Bloodborne Pathogen program is a written
program (approx. 75 pages) informing the reader of the safety guidelines that
he must maintain in his workplace in regards to an infectious disease, virus,
or bacteria carried and spread through the blood.
3. Formaldehyde Usage Guidelines are a written
program informing the reader of the safety guidelines that he must maintain in
his workplace in regards to formaldehyde usage. Formaldehyde is a toxic
preserving agent.
4. We have decided as a company not to provide
eye stations, fire extinguishers etc. but rather provide our customers with the
names and address of where they can purchase the equipment themselves.
Therefore, the only tangible product our customers receive from us is
customized written material printed and bound in a notebook. We are paying tax
on the cost of printing the manual and on the purchase of the notebooks. The
printing charges and the cost of the notebook is approximately 5% of the total
charge to our customer.
I
hope this is information is what you need in order to issue an advisory
opinion. If you need any further assistance, please call me at XXXXX.
Sincerely,
XXXXX
Heber
M. Wells Building
160
East 3rd South
Salt
Lake City, VT 84134
Attn:
Office of Commissioner
Dear
Sirs,
This
letter is a request for an advisory opinion as to the taxable status of the
following transaction.
We
are getting ready to sell a Employee Safety Program to physicians in Utah. This
is a customized program which involves an initial sign-up fee and also includes
and yearly maintenance fee.
The
Employee Safety Program consists of the following items:
1. A survey of clients products
2. An employee training seminar
3. Material safety data sheet file
4. Hazardous products index
5. Map a facility with exits and safety
equipment marked
6. Blood borne pathogen program
7. Formaldehyde usage guidelines
8. Explanation of O.S.H.A. guidelines,
customized required client information, and necessary forms
9. Required equipment (example: fire
extinguisher, eyewash station)
10. On-site training seminar
11. Telephone consultation
Please
advise us as to whether or not we should collect sales tax on the sales of our
Employee Safety Program.
If
you have any further questions, please call XXXXX at (801)XXXXX.
Sincerely,
XXXXX