Response
August 12, 1992
August
12, 1992
XXXXX
Re:
Advisory Opinion - Health Resort
Dear
XXXXX
Your
request for an advisory opinion concerning the taxation of fees paid to a health
resort was referred to the Auditing Division for their analysis. The resort
provides fitness training, food, diet and hygiene counseling, weight reduction
and encourages a vegetarian way of life. Guests are provided room and board
with the average stay being four weeks. Charges are based upon the length of
stay and are all-inclusive.
It
is the division staff recommendation that:
The
purpose of participating in activities at a health resort is for the fitness
training and weight loss. The health resort operator is the final consumer of
any tangible personal property used or consumed at the facility and should pay
sales tax on all purchases. There is no tax on the guest fees. This issue is
not specifically addressed in the statute or administrative rules.
Based
upon the facts presented in your letter, we are in agreement with the Auditing
Division's recommendation. 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
XXXXX
Utah
State Tax Commission
160
East Third South
Salt
Lake City, Utah 84134
Dear
XXXXX:
Thank
you for your FAX of yesterday, responding to my telephone inquiry re health
resort taxability.
The
proposed fitness resort will place total emphasis upon personal health, fitness
training, food/diet/hygiene counseling, weight reduction and vegetarian way of
life.
Guests
will book for a minimum of one week, with anticipated average stay being four
weeks in duration; the provision of living accommodations and board are
necessary complements to the fitness program, simply to accommodate guests
enrolled in the fitness program.
The
fitness program fees for enrollment are stated thereas; i.e., enrollment fees,
fitness program -- no separate charges for room and board are stated, as such
facilities are included in the fitness enrollment program.
Your
immediate review along with that of XXXXX, will be very much appreciated; your
FAX of the applicable statute confirming non-taxability from a sales tax
approach, will also be appreciated.
Thank
you very much.
Sincerely,
XXXXX