Response
July 10, 1992
July
10, 1992
XXXXX
Re: Tire Recycling Fee
Dear
XXXXX:
This
letter is in response to your request for a Tax Commission ruling on whether
the waste tire recycling fee is due from interstate transportation companies. You
indicated that only six percent of your miles are run in Utah. You further
express your opinion that since Tax Bulletin 7-90 does not give a specific
example for interstate carriers, the fee should not be due.
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:
Tax
Bulletin 7-90 states that the tire recycling fee does not apply to "tires
sold and delivered out of state." Since all vehicles purchased by XXXXX
are presently delivered by the seller at an out of state destination, the tires
on the vehicles would be "sold and delivered out of state" and the
recycling fee is not due. If vehicles are sold and delivered in state, the fee
is due even if the sale of the vehicle is exempt from sales tax.
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.
For
the Commission,
Joe
B. Pacheco
Commissioner
XXXXX:
Please
reference the attached letter.
It
has been a year now since we wrote this attached letter to the Tax
Commission. We have yet to receive an
answer on this matter. If the matter
continues unresolved, it is our intention to exempt ourselves from this fee as
allowed by your Tax Bulletin 7-90.
Would
it be possible to hear definitively on this matter before April 11th? Thanks for your assistance.
XXXXX
V.P.
Finance
XXXXX
Auditing
Division
Utah
State Tax Commission
160
East 300 South
Salt
Lake City, UT 84134
Dear
XXXXX:
As
explained to you over the phone last week Friday, we take exception to your
interpretation of the Tire Recycling Fee code as passed in Senate Bill 6 (Utah
Code 26-32a-101 through 113). As we read Tax Bulletin 7-90 from your office, it
doesn't state that the tax should apply to residents who accept delivery out of
state because they are involved extensively in interstate transportation as we
are. Nor does the Tax Bulletin state that the recycle fee should apply to tires
ultimately disposed of in Utah.
We
are an interstate transportation company. Only 6% of our annual miles are run
in Utah and 94% of our annual miles are run in other states. We feel it
unjustified that we should have to bear 100% of this tire recycling fee because
we reside in Utah. Secondly, since the Tax Bulletin makes no reference to
"resident" or "disposed in Utah," we take exception to
being assessed this fee since we clearly and specifically qualify for the exemption
of "tires sold and delivered out of state." All of our trailers
purchased from XXXXX of XXXXX and XXXXX of XXXXX are purchased by us and
delivered to us in Idaho. XXXXX has
informed us that your office has assessed this fee on our trailer tires.
In
light of the above arguments, it is our opinion and interpretation of the law
that we qualify for exemption from this fee. We request and would very much
appreciate your concurrence on this matter.
Cordially
yours,
XXXXX
Vice
President - Finance